Exam 2: Analyzing and Recording Transactions

David Roberts is a real estate appraiser. Shown below are (a) several accounts in his ledger with each account preceded by an identification number, and (b) several transactions completed by Roberts. Indicate the accounts debited and credited when recording each transaction by placing the proper account identification numbers to the right of each transaction.

During the month of March, Cooley Computer Services made purchases on account totaling $43,500. Also during the month of March, Cooley was paid $8,000 by a customer for services to be provided in the future and paid $36,900 of cash on its accounts payable balance. If the balance in the accounts payable account at the beginning of March was $77,300, what is the balance in accounts payable at the end of March?

The process of transferring general journal information to the ledger is:

Describe the link between the income statement, the statement of owner's equity, and the balance sheet.

The balance sheet reports the financial position of a company at a point in time.

Indicate the financial statement on which each of the following items appears. Use I for income statement, E for statement of changes in equity, and B for balance sheet.

Hal Smith opened Smith's Repairs on March 1 of the current year. During March, the following transactions occurred and were recorded in the company's books: 1. Smith invested $25,000 cash in the business. 2) Smith contributed $100,000 of equipment to the business. 3) The company paid $2,000 cash to rent office space for the month. 4) The company received $16,000 cash for repair services provided during March. 5) The company paid $6,200 for salaries for the month. 6) The company provided $3,000 of services to customers on account. 7) The company paid cash of $500 for monthly utilities. 8) The company received $3,100 cash in advance of providing repair services to a customer. 9) Smith withdrew $5,000 for his personal use from the company. Based on this information, the balance in Hal Smith, Capital reported on the Statement of Owner's Equity at the end of March would be:

A compound journal entry affects no more than two accounts.

Source documents include all of the following except:

The trial balance can serve as a replacement for the balance sheet, since debits must equal with credits.

James Haley owned a sailboat and was tired of his current job. He decided to open a business that provides day sails to tourists in his hometown. Prepare journal entries to record the following transactions.

Debit means the right side of an account.

Wisconsin Rentals purchased office supplies on credit. The general journal entry made by Wisconsin Rentals will include a:

The general journal provides a place for recording all of the following except:

Increases in liability accounts are recorded as debits.

Robert Haddon contributed $70,000 in cash and land worth $130,000 to open a new business, RH Consulting. Which of the following general journal entries will RH Consulting make to record this transaction?

On April 30, Holden Company had an Accounts Receivable balance of $18,000. During the month of May, total credits to Accounts Receivable were $52,000 from customer payments. The May 31 Accounts Receivable balance was $13,000. What was the amount of credit sales during May?

Management Services, Inc. provides services to clients. On May 1, a client prepaid Management Services $60,000 for 6-months services in advance. Management Services' general journal entry to record this transaction will include a

In a double-entry accounting system, the total amount debited must always equal the total amount credited.

Rocky Industries received its telephone bill in the amount of $300, and immediately paid it. Rocky's general journal entry to record this transaction will include a