Exam 2: Measurement Concepts: Recording Business Transactions

The first step in the accounting cycle is to post the journal entries to the ledger and prepare a trial balance.

The trial balance for Parker Company is as follows: On the trial balance,total assets equal

Which pair of accounts follows the rules of debit and credit in the same manner?

Using the following transactions,calculate (A)the ending balance of Cash, (B)the ending balance of Accounts Receivable, (C)total liabilities,and (D)Stockholders' Equity at the end of the period.For parts a,b,and d,indicate whether each balance is debit or credit. a.Began doing business by selling shares of common stock to investors for $50,000 in cash. b.Billed customers for services rendered,$10,000. c.Paid for six months' subscription in advance,$2,500. d.Received advertising bill,to be paid next week,$500. e.Dividends of $4,000 were paid to common stock holders. f.Received $7,500 from customers billed in b. g.Paid half of advertising bill. h.Received $1,000 in advance of performing a service.

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

When a company pays an employee for work performed,it is considered an economic event that is recorded as a transaction.

An $800 debit item is accidentally posted as a credit.The trial balance column totals will therefore differ by

Liabilities are established with credits and eliminated with debits.

The trial balance for Parker Company is as follows: If the balance of the Dividends account were $100,000 and the balance of the Wages Expense account were $10,000,what would be the amount of B?

Which of the following events does not require a journal entry?

In accounting,to recognize means to record a transaction or event.

During the most recent month,Campbell Company began operations with a cash balance of $0 and made cash sales of $162,000.During this same time period,the company paid $64,000 in cash expenses.Additionally,the company purchased supplies on account,$68,000,made sales on account,$180,000,and paid cash on account $12,000. a.If cash at the end of the month totals $148,000,how much cash was received on account? b.What is the total amount still to be paid? c.What is the total amount still to be received?

Mesquite,Inc.engaged in the following transactions during October: -What is the amount of cash still to be received?

Purchasing office supplies on account is an example of one way a company can take advantage of deferring a cash payment.

One way a company can manage its expenditures is to rely on its creditors to give it time to pay for purchases.

The controller for Tires and More,Inc.has recorded the following transactions during the month: the purchase of equipment for $8,500 cash;payment of $6,300 for 3 months of rent;and,collection of $2,400 from a customer for services performed.At the beginning of the month the company was established by selling 10,000 shares of stock to the public for $15,000 cash.What is the balance in the Cash account at the end of the month,and is the balance a debit or a credit?

Mesquite,Inc.is ordering a new machine to be used in its manufacturing facility.Which of the following events would trigger the recognition of the machine and related liability on Mesquite's books?

Which of the following is a business event that is considered a recordable transaction?

Slim Co.is ordering a new computer for its corporate office.Which of the following events would trigger the recognition of the computer and related liability on Slim's books?

In a trial balance,all debits are listed before all credits.