Exam 2: Analyzing Transactions

Which of the following groups of accounts have a normal debit balance?

An overpayment error was discovered in computing and paying the wages of a Jamison Tree Trimming employee. When Jamison receives cash from the employee for the amount of the overpayment, which of the following entries will Jamison make?

Discuss and describe how errors in accounts can be found.

To determine the balance in an account, always subtract credits from debits.

The normal balance of the drawing account is a debit.

Which of the following applications of the rules of debit and credit is true?

Which group of accounts is comprised of only assets?

The chart of account for the Miguel Company includes some of the following accounts: Account Name Account Number Cash 11 Accounts Receivable 13 Prepaid Insurance 15 Accounts Payable 21 Unamed Revenue 24 Miguel, Capital 31 Miguel, Drawing 32 Fees Earned 41 Salaries Expense 54 Rent Expense 56 On the journal page 3, the following transaction was found: Cush \nobreakspace\nobreakspace\nobreakspace\nobreakspace\nobreakspace\nobreakspace \nobreakspace\nobreakspace\nobreakspace\nobreakspace\nobreakspace\nobreakspace640 \nobreakspace\nobreakspace\nobreakspace\nobreakspace\nobreakspace\nobreakspace\nobreakspace\nobreakspace\nobreakspace\nobreakspace\nobreakspace\nobreakspace Fess Earned 640 What is the post reference that will be found on the journal entry?

On October 17th Nikle Company purchased a building and a plot of land for $750,000. The building was valued at $500,000 while the land carried a value of $250,000. Nikle paid $300,000 down in cash and signed a notes payable for the balance. In the space below write the journal entry.

The post reference columns are used to trace transactions from the journal to the accounts. What will be posted on the post reference column of (a) the journal and (b) on the account?

Journalizing transactions using the double-entry bookkeeping system will eliminate fraud.

A proof of the equality of debits and credits in the ledger at the end of an accounting period is called a balance sheet.

The post reference notation used in the journal is the page number.

On the chart of accounts, the balance sheet accounts are normally listed in the following order

On January 1, 2010, Cary Parsons established a catering service. Listed below are accounts she would like to open in the general ledger. List the accounts in the order in which they should appear in the ledger and propose a two digit account numbering scheme that is consistent with the rules of a proper chart of accounts.

Expense accounts are increased by credits.

The accounts in the ledger of Monroe Entertainment Co. are listed in alphabetical order. All accounts have normal balances. Accounts Payable 1,500 Fees Earned 3,600 Accounts Receivable 1,800 Insurnce Expense 1,300 Prepaid Insurance 2,000 Land 3,000 Cash 3,200 Wages Expense 1,400 Drawing 1,200 Capital 8,800 The total of all the assets is:

Increases and decreases in various types of accounts are listed below. In each case, indicate by "Dr." or "Cr." (a) whether the change in the account would be recorded as a debit or a credit and (b) whether the normal balance of the account is a debit or a credit.

On September 1st, Erika Company purchased land for $47,500 cash. Write the journal entry in the space below.

A credit may signify a