Exam 2: Analyzing and Reporting Transactions

The chart of accounts is a list of all the accounts used by a company.

Welder Company purchases supplies from Plumber Company on account.The entry for this transaction will include a:

A journal in which transactions are first recorded is:

Of the following errors,which one by itself will cause the trial balance to be out of balance?

A T-Account is a formal account frequently used in business.

The accounting equation can be expressed as liabilities = assets - equity.

A place or location within an accounting system in which the increases and decreases in a specific asset,liability,or equity item is recorded and stored is called a(n):

After preparing an unadjusted trial balance at year-end,the accountant for Chu Design Company discovered the following errors: (1)The payment of the $225 telephone bill for December was recorded twice. (2)The payment of a $1,000 note payable was recorded as a debit to Cash and a debit to Notes Payable. (3)A $900 withdrawal by the owner was recorded to the correct accounts as $90. (4)An additional investment of $5,000 by the owner was recorded as a debit to G.Chu,Capital and a credit to Cash. (5)A credit purchase of office equipment for $1,800 was recorded as a debit to the Office Equipment account with no offsetting credit entry. Using the form below,indicate if each error would cause the trial balance to be out of balance. Would the error cause the trial balance to be out of balance?

The left side of a T-account is always the credit side,while the right side is always the debit side.

Posting is the process of copying the debit and credit amounts from a journal to the ledger accounts.

While in the process of posting from the journal to the ledger,the accountant for X Company failed to post a $50 debit to the Office Supplies account.The effect of this error will be as follows:

A $130 credit to Office Equipment was credited to Sales by mistake.By what amounts are the accounts under- or overstated as a result of this error?

In which of the following situations would the trial balance not balance?

A compound journal entry is:

Double-entry accounting means that every transaction affects and is recorded in at least two accounts.

If Girard Don,the owner of Girard's Software proprietorship,uses cash of the business to purchase a personal computer,the business should record this use of cash with an entry to:

The balances for the accounts of Mike's Maintenance Co.for the year ended December 31,2015 are shown below.Each account shown has a normal balance. *The ending balance of the capital account is $20,000; the only addition to the account for the year was net income. Calculate the correct balances for Cash and Mike,Withdrawals and prepare a trial balance.

If the Debit and Credit column totals of a trial balance are equal,then:

A ledger is a type of account.

A business paid $100 to Karen Smith (the owner of the business)for her personal use.Set up two or more T-accounts below and show how this transaction would be recorded directly in those accounts.