Exam 2: Analyzing Transactions

Prepare a trial balance, listing the following accounts in proper sequence. The accounts (all normal balances) were taken from the ledger of Sophie Designs Co. on April 30, 2014.

The chart of accounts classifies the accounts to make identification of the accounts easier. This is done by way of assigning a number to each account. The first number identifies the classification of the type of account. Which of the following indicates the use of this classification?

Journalize the following selected transactions for April 2011 in a two-column journal. Journal entry explanations may be omitted.

Which of the following entries records the receipt of a utility bill from the water company?

Debits will increase Unearned Revenues and Revenues.

A credit may signify a

The trial balance is out of balance and the accountant suspects that a transposition or slide error has occurred. What will the accountant do to find the error?

Posting a part of a transaction to the wrong account will cause the trial balance totals to be unequal.

The T account got its name because it resembles the letter "T."

The chart of accounts for the Corning Corporation includes the following: On journal page 3, the following transaction was found: What are the posting references that will be found in the journal entry?

Which of the following entries records the collection of cash from cash customers?

This journal entry will

Which of the following is true about a T account?

Which are the parts of the T account?

The gross increases in retained earnings attributable to business activities are called

Scott, Inc. issued $40,000 of capital stock. How would this transaction be entered in the journal?

Journalizing is the process of entering amounts in the ledger.

Of the following, which istrue about assets?

State for each account whether it is likely to have from normal business operations (a) debit entries only, (b) credit entries only, or (c) both debit and credit entries. Also, indicate the normal balance of each account.

A notation in the post reference column of the general journal indicates that the amount has been posted to the ledger.