Exam 2: Analyzing Transactions

For each of the following errors, considered individually, indicate whether the error would cause the trial balance totals to be unequal. If the error would cause the trial balance total to be unequal, indicate whether the debit or credit total is higher and by how much.

Which of the following group of accounts increase with a credit?

Once journal entries are posted to accounts, each account will show a new balance after each entry.

Which of the following entries records the acquisition of office supplies on account?

McMann Company has a condensed income statement as shown:: Using horizontal analysis, calculate the amount and percent change for Sales. Round to one decimal place.

The purchase of supplies on account was recorded and posted as a debit to Supplies for $500 and a credit to Accounts Receivable for $500. The correcting entry would include a:

The erroneous arrangement of digits, such as writing $45 as $54, is called a slide.

Journalize the entries to correct the following errors:

Calculate the following:

Accounts in the ledger are usually maintained in alphabetical order.

For a month's transactions for a typical medium-sized business, the accounts payable account is likely to have only credit entries.

The journal entry will:

Which of the following is not a short-cut in finding errors on the trial balance?

The trial balance is out of balance and the accountant suspects that a transposition or slide error has occurred. What will the accountant do to find the error?

The order of the flow of accounting data is (1) record in the ledger, (2) record in the journal, (3) prepare the financial statements.

The following two situations are independent of each other. 1. On June 1, the cash account balance was $45,750. During June, cash payments totaled $243,910 and the June 30 balance was $53,200. Determine the cash receipts during June and show your calculation. 2. On March 1, the supplies account balance was $1,800. During March, supplies of $2,450 were purchased and $630 of supplies were on hand as of March 31. Determine the supplies expense for March and show your calculation.

Liabilities are increased with debits and decreased with credits.

Prepare a trial balance, listing the following accounts in proper sequence. The accounts (all normal balances) were taken from the ledger of Sophie Designs Co. on April 30, 2014.

When a business receives a bill from the utility company, no entry should be made until the invoice is paid.