Exam 3: The Accounting Cycle: Capturing Economic Events

The sequence of accounting procedures used to record, classify, and summarize accounting information is called the:

The manager of Grande Home Improvements purchased several cash registers for the business on June 10 but does not remember whether he paid cash for the full price or still owes a balance to the vendor. Where is the best place for the manager to get the information about this transaction?

In February of each year, the Carlton Hotel holds a very popular wine tasting event. Tickets must be ordered and paid for in advance, and are typically sold out by November of the preceding year. The realization principle indicates that the revenue from these ticket sales should be recognized in the period in which the:

Brett Tarek, a manager at D&J Landscaping, Inc. needs information regarding the amount of accounts payable currently owed by the company. This information would most easily be found in the:

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 is the balance in the Cash account at the end of May?

Which of the following accounts normally does not have a debit balance?

Revenues increase owners' equity because:

Which of the following accounting procedures requires the greatest knowledge of generally accepted accounting principles?

The collection of accounts receivable is recorded by a:

A journal entry to record revenue could include each of the following, except:

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 -Ben Dryden, president of Jet Glass, Inc, noticed a $8,000 debit to Accounts Payable in the company's general ledger. This debit could correspond to:

When a company uses the double-entry method, the total dollar amount of debits recorded must equal the total dollar amount of credits recorded, but the number of debit and credit entries may differ.

The following transactions occurred during March, the first month of operations for Quality Galleries, Inc. * Capital stock was issued in exchange for $360,000 cash. * Purchased $180,000 of equipment by making a $60,000 cash down payment and signing a note payable for the balance. * Made a $35,000 cash payment on the note payable from the purchase of equipment. * Sold a piece of equipment for cash of $18,000. The equipment was sold at cost, so there is no gain or loss on the sale. -On June 27, Healthy Life Services, Inc. performed extensive tests on lab specimens submitted by several customers and sent invoices totaling $5,200, due in 30 days.

The following entry appears in 35,000 Martin Supply's general journal on March 10, 2010: Accounts Receivable Cash 21,000 Equipment 51,000 -Before the journal entry above, Martin had assets of $900,000; liabilities of $460,000; and owners' equity of $440,000. Total assets immediately after the above transaction has been recorded amount to:

The balance in the Cash account at the end of June:

According to the rules of debit and credit for balance sheet accounts:

Given the following list of accounts and their amounts for Hayden's Co. in alphabetical order, prepare a trial balance for December 31, 2009 as it should be presented. Accounts Payable 5,000 Accounts Receivable 3,000 Advertising expense 400 Building 18,000 Capital stock 14,100 Cash 6,500 Dividends 1,600 Land 26,000 Notes Payable 15,000 Revenue 31,000 Retained Earnings ? Supplies 700 Utilities expense 900 Wage expense 13,250 Wages Payable 3,050

Dividends increase owners' equity and therefore should be added to retained earnings.

The account balances for Creative Band, Inc. as of May 31, 2009, are listed below in alphabetical order: Accounts Payable $12,000 Equipment $18,000 Accounts Receivable $14,000 Land $52,000 Building $42,000 Notes Payable $30,000 Cash $8,000 Capital Stock $92,000 On June 3, Creative Band, Inc collected $4,000 of its accounts receivable and paid $7,000 of its accounts payable. In addition, 2,000 of additional shares of capital stock are issued for $5,600. -On June 4, the balance in the Capital Stock account is:

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 for Wilson Trucking on January 5, 2012, the total of the debit column is: