Exam 3: Analyzing Business Transactions Using T Accounts

The accounts with their respective balances for Dom's Delivery Service as of June 1 are given below. All accounts have normal balances. Cash \ 23,350 Accounts Receivable 14,600 Dominic Goggin, Capital 64,300 Supplies 450 Dominic Goggin, Drawing -0- Delivery Fees Income -0- Office Equipment 12,800 Rent Expense -0- Delivery Equipment 20,000 Salaries Expense -0- Accounts Payable 6,900 Utilities Expense -0- Advertising Expense -0- Dom's had the following transactions during the month of June. a. Paid rent for June, $1,000 b. Dominic Goggin withdrew $4,500 from the business for personal use c. Performed services for $4,000 in cash d. Performed services for $22,750 on credit e. Received $12,000 from credit customers on account f. Paid the administrative assistant salary of $2,000 and delivery service messenger/driver salary of $3,000 for the month by check g. Paid the electric and phone bills by check for a total of $600 h. Paid creditors $6,000 on account i. Purchased $7,500 in supplies on account. j. Paid $1,800 cash for advertising in the local newspaper in June -Using the information shown, create Chart of Accounts numbers for the accounts given for Dom's Delivery Service.

Another name for the profit and loss statement is the _____________________.

The account Moriah Paige, _______________ would appear on both the Statement of Owner's Equity and the Balance Sheet.

A decrease in a liability is recorded on the ____________________ side of the account.

Which of the following groups contain only accounts that normally have credit balances?

Which of the following is not one of the formal financial statements that is made available to all users of the financial statements.

Credits increase Liabilities, Owner's Equity, and Revenue.

The "Net Income" or "Net Loss" is transferred from the income statement to the

Credits are used to record

If the total of the amounts on the debit side of an account is greater than the total on the credit side, the balance is recorded on the debit side.

An entry on the right side of an account is called a(n) ____________________.

Which of the following accounts is not a permanent account?

On a typical chart of accounts, the accounts are arranged in the same order as they appear in the trial balance.

The modern system of accounting is called the double-entry system because a debit to one account is balanced by a credit to another account.

When preparing the trial balance, the total debits should equal the total credits.

When charge customers pay cash to apply against their accounts, the amount is recorded

A business purchases supplies on account. The journal entry to record this transaction is:

When an owner invests assets in a business, the capital account is debited.

Permanent accounts are used to account for the change in owner's equity during the accounting period.

The difference between the debit and credit side of an account is called the account ____________________.