Exam 2: Analyzing and Recording Business Transactions

For each of the following economic events determine whether the event is a business transaction on the date it occurs and whether it's recognized in the accounts on that date.Support your answer. a On July 15,the controller of Kona Corporation orders a custom display case for the company's store. b.On July 31,a new administrative assistant is hired at a monthly salary of $3,500. c.On July 31,the controller of Kona Corporation receives a bill for electricity for the month of July.The bill is due on August 18 and will be paid on that date.

All sales transactions generate immediate cash.

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

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

The issue of deciding when to record a transaction is solved by

When a service has been performed,but no cash has been received,which of the following statements is true?

The controller for Tires and More,Inc.has recorded the following transactions during the month: the owner established the business with a $20,000 investment on the 1st of the month;the company recorded $36,000 of revenue for tires and services provided during the month;and expenses of $22,000 were recorded for the month.What is the balance ofOwner's Equity at the end of the month,and is the balance a debit or a credit?

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

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

Which of the following accounts is not shown on the Statement of Owner's Equity?

The controller for Tires and More,Inc.has recorded the following transactions during the month: the purchase of supplies on credit,$4,200;receipt of a bill for utilities for the month which is due on the 15th of the next month,$1,200;and,partial payment on the balance due for supplies,$800.What is the balance in the Accounts Payable account at the end of the month assuming a beginning balance of $0,and is the balance a debit or a credit?

Entering transactions into the journal is called posting.

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

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

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

The trial balance for Parker Company is as follows: -If the trial balance showed a balance of $8,000 in the Wages Expense account and a balance of $85,000 in the Advertising Fees Earned account,what would be the amount of the Mike Parker,Withdrawals account?

For a T account,an account balance is the difference in total dollars between total debit footings and total credit footings.

A decrease in a liability is recorded by a credit.

Owner's withdrawals should appear on the statement of owner's equity.

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