Exam 2: Analyzing Business Transactions

From the following alphabetical list of account balances, all of which are normal, for Aloha Company on September 30, 2010, prepare a trial balance in proper form (the amount of Ron Ho, Withdrawals must be computed) . Accounts Payable 780 Accounts Receivable 460 Cash 400 Equipment 1,380 Prepaid Advertising 20 Revenue Earned 1,000 Ron Ho, Capital 1,200 Ron Ho, Withdrawals ? Wages Expense 60 Wages Payable 20

Land and buildings may be combined into one account.

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

Purchase requisitions are recognized in the accounting records.

The principal purpose of posting is to

When collection is made on Accounts Receivable,

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

The numbering scheme of a chart of accounts should contain no gaps.

When a business hires a new employee, a recordable transaction has occurred.

Which of the following accounts should be credited in a journal entry?

Here is the trial balance for McLeary Company: If the balance of the Art McLeary, Withdrawals account were $50,000 and the balance of the Wages Expense account were $5,000, what would be the amount of B?

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

An increase in revenue is recorded with a credit.

Which of the following bookkeeping techniques generally is not acceptable?

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

Entering transactions into the journal is called posting.

The valuation issue deals with how the components of a transaction should be categorized.

Wages payable is a type of expense.

Generally, before Accounts Payable is debited, it is credited.

Which of the following accounts has a normal debit balance?