Exam 2: Analyzing and Recording Business Transactions

Using the following transactions,calculate (A)the ending balance of Cash,(B)the ending balance of Accounts Receivable,(C)total liabilities,and (D)Owner's Equity at the end of the period.For parts a,b,and d,indicate whether each balance is debit or credit.

Which of the following accounts would be placed after the debit(s)in a journal entry?

Provide explanations for the following related journal entries:

The controller for Tires and More,Inc.has recorded the following transactions during the month: the owner established the business with a $20,000 investment on the 1st of the month; the company recorded $36,000 of revenue for tires and services provided during the month; and expenses of $22,000 were recorded for the month.What is the balance ofOwner's Equity at the end of the month,and is the balance a debit or a credit?

Provide explanations for the following related journal entries:

For a T account,an account balance is the difference in total dollars between total debit footings and total credit footings.

The journal is a chronological record of all transactions.

Mesquite,Inc.engaged in the following transactions during October: What is the balance in cash after these transactions?

The primary purpose of the trial balance is to test the

When a service has been performed,but no cash has been received,which of the following statements is true?

When a business reports an asset at an inflated dollar amount,is has violated the measurement issue of

A trial balance may be prepared at any point in time.

The general ledger is the basic storage unit for accounting data and is used to accumulate amounts from similar transactions.

Which pair of accounts follows the rules of debit and credit in the opposite manner?

Liabilities are established with credits and eliminated with debits.

Owner's withdrawals should appear on the statement of owner's equity.