Exam 2: Recording Business Transactions

The following transactions have been journalised and posted to the proper accounts. 1)Mark Call invested $7 000 cash in his new design services business. 2)The business paid the first month's rent with $700 cash. 3)The business purchased equipment by paying a $2 000 deposit and borrowing $4 500. 4)The business purchased supplies for $850 cash. 5)The business billed its clients a total of $4 000 for design services rendered. 6)The business collected $3 000 on credit from one of its clients. What is the balance in Service revenue?

A business renders services to a customer for $16 000 on credit.Which account is credited?

A business pays cash back to the owner.Which account is debited?

For Revenues,the category of account and its normal balance are:

The following transactions for the month of March have been journalised and posted to the proper accounts. Mar 1 Martinez invested $9000 cash in his new design services business. Mar 2 Paid the first month's rent of $900. Mar 3 Purchased equipment by paying $4000 cash and executing a loan payable for $9000. Mar 4 Purchased office supplies for $750 cash. Mar 5 Billed a client for $8000 of design services completed. Mar 6 Received $7900 on account for the services previously recorded. What is the balance in Cash?

An asset account is increased by a debit.

When a business records an expense incurred,the expense account is always credited.

The following are the ending month's balances for Toys Galore. Accounts payable \ 6790 Revenue 8680 Cash 4500 Expenses 1050 Furniture 8370 Accounts receivable 7710 Capital 930 Loan payable 5230 What would be the last account listed on the trial balance for Toys Galore?

A trial balance summarises a ledger by listing all the accounts with their ending balances.

Which of the following accounts is NOT an example of an asset?

A business pays cash back to the owner.Which account is credited?

An owner invests $20 000 in her new business by depositing the cash in the business bank account.Which account is credited?

In a typical chart of accounts,what information is provided along with the account name?

Assets,Drawings and Expenses have a normal balance on the debit side.

A business makes a cash payment to a supplier 'on credit' (for supplies that were purchased earlier).Which account is debited?

A business purchased $200 of supplies on credit and recorded the following journal entry: Supplies 200 Accounts payable 200 Which of the following sets of ledger accounts reflects the posting of this transaction?

Which of the following accounts increases with a debit?

Which of the following is the order of steps to journalise an entry?

After initially recording a transaction,the data is then copied or posted to the:

When a business makes a cash payment,the Cash account is always debited.