Exam 3: Processing Accounting Information

Which of the following statements regarding the activities of Casion Corp.is true?

Payment is made for an electric bill which was received and recorded earlier.For this transaction,identify the effect on the accounting equation.

Presented below are several accounts from the financial statements of Eagle, Inc. for the year ended December 31, 2017: 1. Cash 2. Accounts Receivable 3. Prepaid Expenses 4. Accounts Payable 5. Common Stock 6. Sales 7. Selling Expenses 8. Administrative Expenses 9. Interest Expense 10. Income Taxes Expense Each of these accounts has been assigned an identification number that you will use as answers for the transactions described below.Enter the account number(s)in the blank spaces under the headings DEBIT and CREDIT to indicate the accounts debited and credited when each transaction is recorded in a general journal.

The payment of salaries and wages decreases cash and increases a(n)____________________.

Debits are good and credits are bad in financial terms.

A list of all asset,liability,stockholders' equity,revenue,and expense accounts,along with their assigned account numbers,that are used by a company,is a(n)

The ____________________ principle says that,with a few exceptions,assets are not carried at market values,but at their original cost.

Assets and expenses are ____________________ by credits.

A(n)________________________________ is a numerical list of all of the accounts used by an entity.

The term "chronological order" is best associated with

Terry Company Transactions Oct. 1 $\quad$ Terry purchased computer equipment for $\$ 8,400$ , paying $\$ 1,000$ now, and issuing a promissory note for the bal ance; the note is due in monthly installments of $\$ 500$ plus interest at $10 \%$ on the unpaid balance. 8 $\quad$ Terry records service revenue earned: $\$ 3,200$ from cash customers; $\$ 12,000$ for customers billed for completed services. 22 $\quad$ Common stock is issued for land with a far value of $\$ 35,000$ . 31 $\quad$ An invoice for $\$ 1,200$ is received from the company's advertising agency for ads that were run on radio and $\mathrm { TV }$ during October; the invoice is due in 30 days. -Refer to the Terry Company transactions. Required Indicate the economic effects of each transaction above on the accounting equation.Use the following format for your answers.Show the dollar amounts in the appropriate columns and use a "+" (plus)sign to indicate an increase and a "-" (minus)sign to indicate a decrease. Transaction Stockholders' Date Assets Liabilities Equity

Every business transaction is recorded by a debit to a balance sheet account and a credit to an income statement account.

Copper Corp. Use the selected accounts for Copper Corp.presented below to answer the following question(s). ​ $\text { DEPOSITS RECEIVED IN ADVANCE }$ ​ -Read the information about Copper Corp.. Assuming that there are no other transactions,how much was owed to the company on August 8?

Several accounts from the financial statements of Robot Technologies are listed below.In the two columns provided for answers,indicate the type of account and the normal account balance.Use the following identification codes for your answers: ? Type of Account Normal Bal ance A= Asset DR = Debit L= Liability CR = Credit SE = Stockhol ders' Equity R= Revenue E= Expense Type of Account Normal Balance A) Prepaid Expenses B) Cable Television Equipment C) Subscriptions Received in Advance D) Common Stock E) Accounts Payable F) Income Taxes Expense G) Interest Income H) Cable Television Franchises I) Long-Term Debt

If the sum of the debits and credits in a trial balance is not equal,then

The use of equipment in a company is an external event.

Monaco & Associates Use the following five transactions for Monaco & Associates to answer the following question. Oct. 1 $\quad$ Bills are sent to clients for services provided in September in the amount of $\$ 800$ . 9 $\quad$ Dravo Co. delivers office furniture $( \$ 1,060 )$ and office supplies $( \$ 160 )$ to Monaco leaving an invoice for $\$ 1,220$ . 15 $\quad$ Payment is made to Dravo Co. for the furniture and office supplies delivered on October 9 . 23 $\quad$ A bill for $\$ 430$ for electricity for the month of September is received and will be paid on its due date in November. 31 $\quad$ Salaries of $\$ 850$ are paid to employees. -See the transactions for Monaco & Associates. ? Based only on these transactions,what is the total amount of expenses that should appear on the income statement for the month of October?

Hennigan Company Use the five transactions below for Hennigan Rentals to answer the questions that follow. Dec. 1 $\quad$ Hennigan purchases two new saws on credit at $\$ 375$ each. The saws are added to Hennigan's rental inventory. Payment is due in 30 days. 8 $\quad$ Hennigan accepts advance deposits for tool rentals of $\$ 75$ . 15 $\quad$ Hennigan receives a bill from Farmer's Electric Company for $\$ 150$ . Payment is due in 30 days. 20 $\quad$ Customers are charged $\$ 750$ by Hennigan for tool rentals. Payment is due from the customers in 30 days. 31 $\quad$ Hennigan receives $\$ 500$ in payments from the customers that were billed for rentals on December 20. -Refer to the transactions for Hennigan Rentals. ? Based on the December 31 transaction,Hennigan will record which of the following in its accounting records?

What type of account is increased with a debit but is a decrease to Retained Earnings?

Falcon Services was organized on October 1,2017.The company received a contribution of $2,000 from each of the two principal owners.During the month,Falcon Services provided services for cash of $1,400 and services on account for $600,received $350 from customers in payment of their accounts,purchased supplies on account for $800 and equipment on account for $1,050,received a utility bill for $150 that will not be paid until November,and paid the full amount due on the equipment. ​ Required Show your work to determine the company's Cash balance on October 31,2017.