Ceramic Products, Inc. reports these account balances at January 1, 2009 (shown in alphabetical order): On January 5, Ceramic Products collected $12,000 of its accounts receivable and paid $11,000 on its note payable. $\begin{array}{|l|c|} \hline \text { Accounts Payable. } & \$ 28,000 \\ \hline \text { Accounts Receivable. } & 20,000 \\ \hline \text { Buildings. } & 153,000 \\ \hline \text { Capital Stock } & 185,000 \\ \hline \text { Cash. } & 13,000 \\ \hline \text { Equipment } & 20,000 \\ \hline \text { Land } & 80,000 \\ \hline \text { Notes Payable. } & 24,000 \\ \hline \text { Retained Earnings } & 49,000 \\ \hline \end{array}$ -In a trial balance prepared on January 5, 2009, the total of the credit column is:

A) $275,000. B) $286,000. C) $287,000. D) $297,000. A) $275,000. B) $286,000. C) $287,000. D) $297,000.

Wilson Trucking, Inc. reports these account balances at January 1, 2012 (shown in alphabetical order): On January 5, Wilson Trucking collected $175,000 of its accounts receivable, paid $150,000 on its accounts payable, and paid $11,000 on its note payable. \[\begin{array} { | l | l | } \hline \text { Accounts Payable } & \$ 220,000 \\ \\ \hline \text { Accounts Receivable } & \$ 200,000 \\ \\ \hline \text { Buildings } & \$ 480,000 \\ \\ \hline \text { Capital Stock } & \$ 680,000\\ \\ \hline \text { Cash } & \$ 160,000 \\ \\ \hline \text { Equipment } & \$ 320,000 \\ \\ \hline \text { Land } & \$ 400,000 \\ \\ \hline \text { Notes Payable } & \$ 520,000 \\ \\ \hline \text { Retained Earnings } &\$140,000 \\ &\\ \hline \end{array}\] -In a trial balance prepared on January 5, 2012, the total of the credit column is:

A) $1,350,000. B) $1,399,000. C) $1,560,000. D) $1,721,000. A) $1,350,000. B) $1,399,000. C) $1,560,000. D) $1,721,000.

Exam 3: The Accounting Cycle: Capturing Economic Events

Enter the following transactions in the two-column journal provided for Charlie's Cabinetry. You may omit explanations. Mar. 2 Purchased auto cleaning supplies from Robert Suppliers for $750 on account. 4 Collected an account receivable of $525 from a customer, Elegant Kitchens. 5 Paid $275 in partial payment of an account payable to Lucy Co for equipment purchased in February. 7 Issued capital stock in exchange for $5,600 cash. 9 Purchased office equipment from Diamond's Warehouse for $3,700; paid $1,700 cash and issued a note payable due in 90 days for the balance. Date General Journal

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Question 1

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$\begin{array}{|l|l|l|l|}\hline 20- & & \\\hline \text { Mar 2 } & \text { Supplies } & 750 & \\\hline & \text { Accounts Payable } & & 750 \\\hline & \text { Bought supplies from Robert Suppliers. } & & \\\hline & & & \\\hline 4 & \text { Cash } & 525 & \\\hline & \text { Accounts Receivable } & & 525 \\\hline & \text { Collected from Elegant Kitchens } & & \\\hline\\\hline 5 & \text { Accounts Payable } & 275 & \\\hline & \text { Cash } & & 275 \\\hline & \text { Partial payment on amount due to Lucy Co. } & & \\\hline & & & \\\hline 7 & \text { Cash } & 5,600 & \\\hline & \text { Capital Stock } & & 5,600 \\\hline & \text { Issued stock. } & & \\\hline 9 & & & \\\hline & \text { Office Equipment } & 3,700 & \\\hline & \text { Cash } & & 1,700 \\\hline & \text { Notes Payable } & & 2,000 \\\hline & \text { Purchased office equipment from Diamond's } \\\hline & \text { Warehouse; note due in 90 days. } \\\hline & \\\hline & \\\hline & \\\hline\end{array}$

The following transactions occurred during May, the first month of operations for Hunter Products, Inc: * Issued 50,000 shares of capital stock to the owners of the corporation in exchange for $600,000 cash. * Purchased a piece of land for $400,000, making a $150,000 cash down payment and signing a note payable for the balance. * Made a $60,000 cash payment on the note payable from the purchase of land. * Purchased equipment on credit from BBW, Inc. for $63,000. -What are total assets of Hunter Products at the end of May?

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Question 2

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C

Preparing a journal entry in proper form involves all the following except:

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Question 3

Correct Answer:

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B

Dividends are an expense to a corporation and appear on the income statement.

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Question 4

Ceramic Products, Inc. reports these account balances at January 1, 2009 (shown in alphabetical order): On January 5, Ceramic Products collected $12,000 of its accounts receivable and paid $11,000 on its note payable. Accounts Payable. \ 28,000 Accounts Receivable. 20,000 Buildings. 153,000 Capital Stock 185,000 Cash. 13,000 Equipment 20,000 Land 80,000 Notes Payable. 24,000 Retained Earnings 49,000 -In a trial balance prepared on January 5, 2009, the total of the credit column is:

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Question 5

Sunset Tours has a $3,500 account receivable from the Del Mar Rotary. On January 20, the Rotary makes a partial payment of $2,100 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:

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Question 6

The agreement of the debit and credit totals of the trial balance gives assurance that:

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Question 7

Wilson Trucking, Inc. reports these account balances at January 1, 2012 (shown in alphabetical order): On January 5, Wilson Trucking collected $175,000 of its accounts receivable, paid $150,000 on its accounts payable, and paid $11,000 on its note payable. Accounts Payable \ 220,000 Accounts Receivable \ 200,000 Buildings \ 480,000 Capital Stock \ 680,000 Cash \ 160,000 Equipment \ 320,000 Land \ 400,000 Notes Payable \ 520,000 Retained Earnings \1 40,000 -In a trial balance prepared on January 5, 2012, the total of the credit column is:

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Question 8

Indicate all correct answers. In the accounting cycle:

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Question 9

The following transactions occurred during May, the first month of operations for Hunter Products, Inc: * Issued 50,000 shares of capital stock to the owners of the corporation in exchange for $600,000 cash. * Purchased a piece of land for $400,000, making a $150,000 cash down payment and signing a note payable for the balance. * Made a $60,000 cash payment on the note payable from the purchase of land. * Purchased equipment on credit from BBW, Inc. for $63,000. -Eagle News has a $6,000 account receivable from one of its advertisers, Allwood Floors. When Eagle receives $3,600 from Allwood as partial payment:

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Question 10

In a ledger, debit entries cause:

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Question 11

Accounting terminology Listed below are nine technical accounting terms introduced in this chapter: (A.) The accounting record in which transactions are initially recorded. (B.) A concept designed to avoid overstatement of the financial strength of a company. (C.) A schedule prepared to determine the equality of the debit and credit amounts in the ledger. (D.) An amount entered in the right side of a ledger account. (E.) The sequence of procedures involved in recording transactions, processing the information in the accounting system, and summarizing the information in the form of financial statements. (F.) The accounting record that contains a separate account for each type of asset and liability, and for each element of owners' equity appearing in the balance sheet. (G.) The system of accounting in which every business transaction is recorded by equal dollar amounts of debit and credit entries. Matching principle Debit Trial balance Double-entry Credit Joumal Accounting cycle Ledger Conservatism

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Question 12

Indicate all correct answers. Dividends:

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Question 13

Increases in owners' equity are recorded by credits; increases in assets and in liabilities are recorded by debits.

(True/False)

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Question 14

Which of the following is not true regarding the general ledger account for Cash?

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Question 15

In a computerized accounting system, posting may be done automatically but journalizing must be done by someone with an understanding of recording transactions.

(True/False)

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Question 16

The collection of an account receivable is recorded by a debit to Cash and a credit to Accounts Payable. If this error is not corrected:

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Question 17

Every transaction affects equal numbers of ledger accounts and is recorded by equal dollar amounts of debits and credits.

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Question 18

The journal entry to record a particular business transaction includes a credit to the Cash account. This transaction is most likely also to include:

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Question 19

Which of the following errors would not be disclosed by preparation of a trial balance?

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Question 20

Preparing a journal entry in proper form involves all the following except:

Dividends are an expense to a corporation and appear on the income statement.

Sunset Tours has a $3,500 account receivable from the Del Mar Rotary. On January 20, the Rotary makes a partial payment of $2,100 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:

The agreement of the debit and credit totals of the trial balance gives assurance that:

Indicate all correct answers. In the accounting cycle:

In a ledger, debit entries cause:

Indicate all correct answers. Dividends:

Increases in owners' equity are recorded by credits; increases in assets and in liabilities are recorded by debits.

Which of the following is not true regarding the general ledger account for Cash?

In a computerized accounting system, posting may be done automatically but journalizing must be done by someone with an understanding of recording transactions.

The collection of an account receivable is recorded by a debit to Cash and a credit to Accounts Payable. If this error is not corrected:

Every transaction affects equal numbers of ledger accounts and is recorded by equal dollar amounts of debits and credits.

The journal entry to record a particular business transaction includes a credit to the Cash account. This transaction is most likely also to include:

Which of the following errors would not be disclosed by preparation of a trial balance?

Accounting: Information for Decision Making

Basic Financial Statements

The Accounting Cycle: Accruals and Deferrals

The Accounting Cycle: Reporting Financial Results

Merchandising Activities

Financial Assets

Inventories and the Cost of Goods Sold

Plant and Intangible Assets

Liabilities

Stockholders Equity: Paid-In Capital

Income and Changes in Retained Earnings

Statement of Cash Flows

Financial Statement Analysis

Global Business and Accounting

The Time Value of Money

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