Exam 2: Analyzing and Recording Business Transactions

The controller for Tires and More,Inc.has recorded the following transactions during the month: the purchase of supplies on credit,$4,200; receipt of a bill for utilities for the month which is due on the 15th of the next month,$1,200; and,partial payment on the balance due for supplies,$800.What is the balance in the Accounts Payable account at the end of the month assuming a beginning balance of $0,and is the balance a debit or a credit?

A debit has an unfavorable effect on an account.

Which of the following accounts is increased with a debit?

The trial balance for Parker Company is as follows: If the trial balance showed a balance of $14,000 in the Mike Parker,Withdrawals account and a balance of $30,000 in the Wages Expense account,what would be the amount of Advertising Fees Earned for the period?

The trial balance for Parker Company is as follows: If the trial balance showed a balance of $16,000 in the Wages Expense account and a balance of $86,000 in the Advertising Fees Earned account,what would be the amount of A?

The double-entry system

Which of the following is the final step in the accounting cycle?

It is never correct for a compound entry's debit totals and credit totals to be unequal.

A decrease in a liability is recorded by a credit.

When a company pays an employee for work performed,it is considered an economic event that is not recorded as a transaction.

The issue of deciding when to record a transaction is solved by

Generally accepted accounting principles state that all business transactions should be valued at fair value both when they occur and at all subsequent reporting dates.

Which of the following accounts might be placed first in a journal entry?

A transposition error will cause the trial balance to be out of balance by an amount that is evenly divisible by two.

Which of the following errors will cause the trial balance to be out of balance?

The double-entry system is possible because all business transactions have at least two equal and opposite aspects.

When a company has performed a service but has not yet received payment,what is the required journal entry to be recorded?

The trial balance for Parker Company is as follows: On the trial balance,total assets equal

Which of the following accounts should be debited in a journal entry?

A $155 credit item is posted as a debit.The trial balance column totals therefore will differ by