Exam 2: Transaction Analysis

Anya Smith started Geek Speak, a computer consulting business, in February, 2012. The company completed the following transactions during March, 2012: 1. Geek Speak paid Anya a dividend of $1,000. 2. Received partial payment from customers on account, $1,500. 3. Purchased a new computer for $1,800 and paid cash. 4. Borrowed $10,000 from the bank and signed a note payable. 5. Paid the employees their monthly salary of $2,800. 6. Recorded $4,000 of revenue on account and mailed invoices to the customers. 7. Purchased office supplies of $600 on account. 8. Paid for the office supplies purchased on account, $600. REQUIRED: Journalize the transactions. Explanations are not required.

Any event that has a financial impact on the business and can be measured reliably is a(n):

Golden Company had a balance of $40,000 in Accounts Payable at the beginning of June, and purchased $30,000 of merchandise on account during the month At the end of June, Golden's Account Payable balance was $28,000. What amount did Golden pay on account during June?

What is the last step in the journalizing process?

A bookkeeper posted the same journal entry twice. This will cause the trial balance to be out of balance.

Which of the following is a correct numbering system for a chart of accounts?

The Diamond Store began business on June 1. During the month of June, it had cash payments of $9,000.At the end of June, it had a $14,000 balance in cash. Based on this information, the cash receipts for the month of June:

An important rule of debits and credits is:

A company paid cash for an amount owed to a creditor. This transaction decreased cash and:

Revenues and expenses are specialized stockholders' equity accounts, all having debit balances.

Every transaction has two sides-you give something and you receive something.

The normal balance of an account:

Assets, expenses, and dividends are all increased by debits.

The left side of a T-account is always the:

When analyzing a transaction, first pinpoint the effects, if any, on cash.

When preparing the financial statements:

Which of the following items would NOT be included in the journal entry for a transaction?

To see how a transaction affects a business, managers must first enter the transaction in the journal.

The process of copying the information from the journal to the ledger is called:

Double-entry accounting affects at least three accounts.