Question 1

Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transaction.
1. Barry Cain invested $38000 cash to start an appliance repair business.
2. Hired an employee to be paid $500 per week starting tomorrow.
3. Paid two years' rent in advance $10800.
4. Paid the worker's weekly wage.
5. Recorded revenue earned and received for the week $2900.

Accepted Answer

The answer of Journalize the following business transactions in general...

Question 2

A T-account is

Accepted Answer

A)  a way of depicting the basic form of an account. 
B)  what the computer uses to organize bytes of information. 
C)  a special account used instead of a trial balance. 
D)  used for accounts that have both a debit and credit balance.

Question 3

Haselhof Company purchases equipment for $2400 and supplies for $700 from Behrman Co. for $3100 cash. The entry for this transaction will include a

Accepted Answer

A)  debit to Equipment $2400 and a debit to Supplies Expense $700 for Behrman. 
B)  credit to Cash for Behrman. 
C)  credit to Accounts Payable for Haselhof. 
D)  debit to Equipment $2400 and a debit to Supplies $700 for Haselhof.

Question 4

Customarily a trial balance is prepared

Accepted Answer

A)  at the end of each day. 
B)  after each journal entry is posted. 
C)  at the end of an accounting period. 
D)  only at the inception of the business.

Question 5

The double-entry accounting system is the basis of accounting systems

Accepted Answer

A)  worldwide. 
B)  worldwide except for the U.S. 
C)  in the U.S. only 
D)  neither internationally nor in the U.S.

Question 6

At October 1 2016 Medina Co. had an accounts payable balance of $50000. During the month the company made purchases on account of $35000 and made payments on account of $48000. At October 31 2016 the accounts payable balance is

Accepted Answer

A)  $37000. 
B)  $33000. 
C)  $63000. 
D)  $133000.

Question 7

A debit to an account indicates an increase in that account.

Accepted Answer

A) True 
 B)False

Exam 2: The Recording Process