Exam 2: Analyzing Transactions

On January 1, 2011, Cary Parsons established Cary's Catering Service. Listed below are accounts to use for transactions (a) through (f), each identified by a number. Following this list are the transactions that occurred during the first month of operations. You are to indicate for each transaction the accounts that should be debited and credited by placing the account number(s) in the appropriate box.

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

On August 30th, JumpStart paid numerous bills which include: Payment to the landlord for August rent, $950 Payment to the Gas & Electric Company for August's bill, $525 Payment of employee wages for the last half of August, $1,880 Payment of shopping center's parking lot cleaning fee, $275 Journalize these payments as one compound journal entry.

A debit signifies a decrease in

A debit may signify a(n)

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

The process of transferring the debits and credits from the journal entries to the accounts is known as "updating the accounts".

Which of the following statements is not true about liabilities?

Answer the following questions for each of the errors listed below, considered individually: Present your answers in columnar form, using the following headings: Errors:

Expenses use up assets or consume services in the process of generating revenues.

The increase side of all accounts is the normal balance.

Which of the following entries records the payment of rent for the current month?

Expenses follow the same debit and credit rules as

Georgia Company has condensed income statements as follows: REQUIRED: Prepare a horizontal analysis of Georgia Company's income statements. Comment on the trends, both favorable and unfavorable.

The payment for the monthly rent will require which of the following entries?

A transaction that is recorded in the journal is called a journal entry.

The normal balance of an expense account is a credit.

Which of the following is true regarding normal balances of accounts?

Retained earnings will be reduced by all of the following except

Journalizing eliminates fraud.