Exam 2: Recording Business Transactions

Identify the normal balance for asset and liability accounts. What is the reasoning behind the "normal balances" for these accounts?

A chronological record (or history) of an entity's transactions is called a(n):

The entry to record $500 received from a customer for services provided to that customer today would be:

Every transaction affects at least two accounts.

A trial balance is a list of all of a company's accounts with their account numbers.

Which type of account is credited when a company pays its employees?

State the increase side (debit or credit) for each of the following accounts. a. Inventory b. Retained earnings c. Cash d. Accounts Payable e. Dividends f. Land g. Supplies h. Common Shares i. Service Revenue j. Accounts Receivable

The entry to record the payment of $895 salary to employees would be:

If the credit amount of an entry to record the payment of salaries was not posted:

Post the following journal entries to the appropriate T-accounts, and show the resulting balance in each account.

In the journal you will find the total balance for each account.

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

Borrowing money from the bank by signing a note payable would:

The accounting transaction to record the payment of salaries to employees would include a:

Describe what is listed on a trial balance.

If a transposition error has occurred when recording a transaction, then the out-of-balance amount will be evenly divisible by:

The payment of an amount owed to a creditor would:

The account credited when supplies are purchased on account is:

Sending out a cheque to settle a debt would include a:

List the types of accounts that appear on the income statement. List the types of accounts that appear on the balance sheet.