Exam 2: Recording Business Transactions

The following transactions have been journalized and posted to the proper accounts.Prepare a trial balance at the end of the first month using the following details: a)Received a $15,000 cash contribution from the owner. b)Paid the first month's rent with $800 cash. c)Purchased equipment by paying $4,000 cash and executing a note payable for $4,000. d)Purchased office supplies for $200 cash.The supplies remain at the end of the month. e)Billed clients for a total of $7,000 for design services rendered. f)Received $1,000 cash from clients for services rendered above.

Cash is a(n)________ account and has a normal ________ balance.

A business renders services for $26,000 and collects cash from the customer.Which of the following accounts will be debited?

Grace Paper Company has a debt ratio of 25%,which means that 75% of the assets are financed by creditors.

All asset accounts and equity accounts increase with a debit.

In reviewing the T-account for Accounts Payable,you find that the beginning balance is zero,the total increases are $7,400 and the total decreases are $4,900.This means that the ending balance of the account is a credit balance of $2,500.

A listing of all accounts in numerical order is called a(n)________.

A business makes a cash payment to a supplier on account for office supplies that were purchased earlier.Which of the following accounts is credited?

Companies use a ledger to show all of the increases and decreases in each account along with their balances.

A customer's promise to pay in the future for services or goods sold is called a(n)________.

A chart of accounts provides more detail than a ledger.

Which of the following is used by both internal and external users?

Which is a true statement regarding the accounting equation?

The following transactions for the month of March have been journalized and posted to the proper accounts. What is the balance in Cash?

The following are the current month's balances for Adams Marketing Company. What is the net income for Adams Marketing for the current month?

Which of the following accounts increases with a debit?

A business makes a payment of $1,400 on a note payable.Which of the following journal entries would be recorded?