Exam 2: Recording Business Transactions

When using a three-column account format,the column on the far right is used to show:

A junior bookkeeper,Bob Delisle,prepared the following trial balance on April 30,2017,for Big Party Inc.Prepare a corrected trial balance based on the incorrect trial balance and the additional data. Additional data: 1.Cash is overstated by $1,140. 2.Note Payable is understated by $1,440. 3.Service Revenue is understated by $6,400.

The account credited when cash is received from a customer on account is:

On a trial balance the total of all debits must equal the total of all credits.

A journal is a record of financial transactions and can be thought of as a diary; it shows a chronological listing of a business's accounting activities.

Explain the following terms in your own words and give an example of each for Humpty's Equipment Inc. a.asset b.liability c.shareholders' equity d.dividend e.revenue f.expense

Paying by cheque to settle a debt would include a:

The accounting transaction to record payment of the telephone bill would include a:

Fox Ltd.had the following trial balance on October 31,2017. The following errors caused the trial balance not to balance: a.Recorded a $2,000 debit to Note Payable as a debit to Note Receivable. b.Posted a $3,000 credit to Accounts Payable as $300. c.Recorded a cash revenue transaction by debiting Cash for $6,000 and crediting Accounts Receivable for $6,000. d.The Common Shares account is understated by $11,100. Prepare a corrected trial balance as of October 31,2017.All accounts have a normal balance.

Following is a list of errors made during the posting process.Indicate the exact dollar impact each error would have on total assets,total liabilities,and shareholders' equity.Complete the chart below by using (+)to indicate overstated,(-)to indicate understated,and (0)to indicate no effect.Transaction (a)is completed as an example. a.A $200 credit to the Accounts Payable account was posted as $2,000. b.A $50 debit to Cash was never posted. c.A $550 credit to the Revenue account was credited to the Accounts Receivable account. d.A $45,000 debit to the Land account was debited to an expense account. e.A $200 payment on an account payable was credited to Accounts Receivable instead of Cash. f.A $350 debit to the Dividends account was posted as $530. b. c. d. e. f.