Exam 2: Analyzing Business Transactions

The most generally accepted value used in accounting is market value.

For each item below,indicate whether a debit or a credit applies. a. Increase in Art Fees Earned b. Decrease in Prepaid Rent c. Decrease in Unearned Fees d. Increase in Common Stock e. Increase in Depreciation Expense, Buildings f. Increase in Interest Receivable g. Decrease in Retained Earnings h. Increase in Dividends i. Increase in Notes Payable

Which of the following errors will cause a trial balance to be out of balance?

Here is the trial balance for McLeary Corporation: McLeary Corporation Trial Balance January 31, 2010 Cash \ 3,000 Accounts Receivable 2,000 Art Supplies 3,000 Office Supplies 5,000 Prepaid Rent 7,000 Prepaid Insurance 5,000 Art Equipment 5,000 Office Equipment 3,000 Accounts Payable \ 10,000 Common Stock 5,000 Retained Earnings 5,000 Dividends ? Advertising Fees Earned ? Wages Expense ? Utilities Expense 5,000 Telephone Expense 3,000 \A \B If the trial balance showed a balance of $4,000 in the Wages Expense account and a balance of $30,000 in the Advertising Fees Earned account,what would be the amount of Dividends?

Record the following transactions,using proper form,in the journal provided. Mar. 2 Provided services in the amount of \2 ,000, receiving \6 0] in partial payyent. 12 Received \ 800 of the andunt awed from March 2.

All of the following actions can help a business manage its cash flows except

Given the following ledger account and postings,complete the Balance column.Assume no previous postings in the account.

Here is the trial balance for McLeary Corporation: McLeary Corporation Trial Balance January 31, 2010 Cash \ 3,000 Accounts Receivable 2,000 Art Supplies 3,000 Office Supplies 5,000 Prepaid Rent 7,000 Prepaid Insurance 5,000 Art Equipment 5,000 Office Equipment 3,000 Accounts Payable \ 10,000 Common Stock 5,000 Retained Earnings 5,000 Dividends ? Advertising Fees Earned ? Wages Expense ? Utilities Expense 5,000 Telephone Expense 3,000 \A \B On the trial balance,total assets equal

The ledger account form has a Balance column.

Recording an account with a debit balance as a credit,or vice versa,will cause the trial balance to be out of balance by an amount that is evenly divisible by 2.

A debit has an unfavorable effect on an account.

Office supplies become expenses

A decrease in a liability is recorded by a debit.

Provide explanations for the following related journal entries: a. Prepaid Rent 4,000 Cash 4,000 b. Trucks and Automobile 36,000 Notes Payable 36,000 c. Cash 600 Accounts Receivable 600 d. Notes Payable 18,000 Cash 18,000 e. Cash 2,500 Unearned Fees 2,500

Which of the following accounts is classified differently from the others listed?

Which of the following events does not require a journal entry?

Which of the following business events is not a transaction?

Which of the following accounts is increased with a debit?

The chart of accounts is the starting point for a

Which of the following accounts is decreased with a debit?