Exam 2: Analyzing Business Transactions

The Unearned Fees account is classified as a(n)

All of the following are examples of source documents except

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?

When collection is made on Accounts Receivable,

An increase in an asset 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

In the journal provided,prepare journal entries without explanations for the following transactions.Write "no entry" if none is needed. a. Received a $1,500 invoice for this month's rent. Payment will not be made right away. b. Paid $1,600 for insurance premiums to cover the next six months. c. A $350 dividend is declared and paid. d. The rent of a is paid. e. Purchased land for $60,000. The company paid half in cash and issued a promissory note for the other half.

A net income of $10,000 means that the business received $10,000 more in cash from its customers than it spent to run the business.

Which of the following accounts has a normal debit balance?

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

Explain why the dollar amount of total stockholders' equity probably will not equal the dollar amount that would remain if all the assets were sold and all the liabilities were then settled.

For which of the following accounts would a related Accumulated Depreciation account be recorded?

Revenue should be recorded when it has been earned,not when the related cash has been collected.

When a company receives a product previously ordered,a recordable transaction has occurred.

Purchase requisitions are recognized in the accounting records.

The double-entry system is possible because all business transactions have two equal and opposite aspects.

Accounts Receivable and Accounts Payable are used when there is a time delay between a transaction and its related cash flow.

When a magazine company receives advance payment for a subscription,what is the required journal entry to be recorded?

Indicate whether each account below has a normal debit or a normal credit balance. a. Cash b. Wages Payable c. Wages Expense d. Unearned Fees e. Prepaid Insurance f. Notes Payable g. Interest Receivable h. Store Equipment i. Legal Fees Earned j. Common Stock k. Depreciation Expense, Buildings

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