Exam 2: Analyzing Transactions

The chart of accounts for Miguel 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?

On June 1, the cash account balance was $96,750. During June, cash receipts totaled $305,000 and the June 30 balance was $75,880. Determine the cash payments made during June.

Retained earnings account increases with debits.

The post reference notation used in the ledger is the account number.

Revenue should be recognized when

The ____ is where a transaction can first be found on the accounting records.

The normal balance of a capital stock account is a debit.

Which of the following types of accounts have a normal credit balance?

In which of the following types of accounts are decreases recorded by credits?

What effect does this journal entry have on the accounts?

Which of the following entries records the cash sale of capital stock to stockholders?

The dividends account is an example of an expense.

Office supplies were sold by Ari's Alarm Service at cost to another repair shop, with cash received. Which of the following entries for Ari's Alarm Service records this transaction?

Transactions are initially entered into a record called a journal.

Accounts in the ledger are usually maintained in alphabetical order.

Which of the following accounts are debited to record increase in balances?

The process of transferring the data from the journal to the ledger accounts is posting.

Which of the following accounts would be increased with a credit?

All of the following statements regarding a horizontal analysis are true except