Exam 2: Analyzing Business Transactions

A transaction in which six months' rent is paid in advance results in which of the following journal entries?

Which of the following errors will not cause the debit and credit columns of a trial balance to be unequal?

In the journal provided,prepare journal entries (in good form)for the following transactions.If no entry is required,write "no entry." Omit explanations. Nov. 1 Investors opened a dance school called Olga's Dance Studio by depositing $\$ 24,000$ into a business bank account in exchange for 24,000 shares of $\$ 1$ par value stock. 2 Paid three months' rent in advance, $\$ 2,400$ . 4 Hired a part-time assistant, to be paid $\$ 275$ per week. 6 Purchased sound equipment for $\$ 4,200$ . Paid $\$ 600$ in cash, the remainder to be paid in installments of $\$ 1,200$ every two weeks. 8 Signed up ten students, who will begin lessons on November 10 , at $\$ 100$ per week per student. 17 Received the first week's tuition from nine students; the tenth student will remit payment in three days. 17 Paid the assistant his first week's wages. 20 Received payment from the tenth student. 20 Paid the next installment on the sound equipment purchased on November 6. 23 Received an electric bill of $\$ 150$ , to be paid on December 1 .

Which of the following transactions decreases both assets and stockholders' equity?

Which of the following accounts probably would be listed before the others in a chart of accounts?

It is sometimes correct for a compound entry's debit totals and credit totals to be unequal.

Which of the following accounts might be used when there is a time delay between a transaction and its related cash flow?

Which of the following accounts will eventually be followed with an inflow of cash?

One can obtain a clear picture of a company's liquidity by referring to its income statement.

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

In a journal entry,credits are always indented.

One might see "J2" correctly placed in the Post.Ref.column of the journal.

When a company receives an order,a transaction has occurred.

Which of the following accounts is increased with a credit?

If Accounts Receivable has debit postings of $29,000,credit postings of $22,000,and a normal ending balance of $24,000,which of the following was its beginning balance?

When a company has performed a service but has not yet received payment,what is the required journal entry to be recorded?

Here is the trial balance for McLeary Corporation: McLeary Corporation Trial Balance January 31, 2010 Cash \ 5,500 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 purpose of the ledger is to

Column totals are called footings.

Which of the following is not a measurement issue in accounting?