Question 1

Analyze the effect of the following transactions on the accounting equation.(a)The company paid $725 to a vendor for supplies purchased previously on account.(b)The company performed $850 of services and billed the customer.(c)The company received a utility bill for $395 and will pay it next month.(d)The company paid dividends of $145.(e)The company paid $315 in salaries to its employees.(f)The company collected $730 of cash from its customers on account.​
Some of the possible effects of a transaction on the accounting equation are listed below:
(1)Assets, Dr.; Assets, Cr.(2)Assets, Dr.; Stockholders' Equity, Cr.(3)Assets, Dr.; Liabilities, Cr.(4)Assets, Dr.; Revenues, Cr.(5)Liabilities, Dr.; Assets, Cr.(6)Dividends, Dr.; Assets, Cr.(7)Expenses, Dr.; Assets, Cr.(8)Expenses, Dr.; Liabilities, Cr.​
Put the appropriate letter next to each transaction.

Accepted Answer

The answer of Analyze the effect of the following transactions...

Question 2

In the chart of accounts, the balance sheet accounts are normally listed in which order?

Accepted Answer

A) liabilities, assets, stockholders' equity 
B) assets, liabilities, stockholders' equity 
C) stockholders' equity, assets, liabilities 
D) assets, stockholders' equity, liabilities

Question 3

The double-entry accounting system records each transaction twice.

Accepted Answer

A) True 
 B)False

Question 4

The chart of accounts for the Corning Company includes the following:  Page 3 of the journal contains the following entry:  Use the above information to answer the questions that follow.​
-The chart of accounts for the Miguel Company includes the following:  Page 5 of the journal contains the following transaction:  What is the posting reference that will be found in the salaries expense account?

Accepted Answer

A) 5 
B) 11 
C) 54 
D) 21

Question 5

Journalize the following selected transactions for January. Explanations may be omitted.Jan.1
Received cash from the sale of common stock, $14,000.2
Received cash for providing accounting services, $9,500.3
Billed customers on account for providing services, $4,200.4
Paid advertising expense, $700.5
Received cash from customers on account, $2,500.6
Paid dividends, $1,010.7
Received telephone bill, $900.8
Paid telephone bill, $900.​

Accepted Answer

The answer of Journalize the following selected transactions for January....

Question 6

The accounts in the ledger of Nilles Consulting Co. are listed below. All accounts have normal balances.​  Prepare a trial balance. The total of the credits is

Accepted Answer

A) $15,800 
B) $21,300 
C) $22,600 
D) $26,200

Question 7

The posting process will include the transfer of which of the following data from the journal to the account?

Accepted Answer

A) date, amount (debit or credit) 
B) date, amount (debit or credit), journal page number 
C) amount (debit or credit), account number 
D) date, amount (debit or credit), account number

Question 8

The chart of accounts for the Corning Company includes the following:  Page 3 of the journal contains the following entry:  Use the above information to answer the questions that follow.​
-The chart of accounts for the Miguel Company includes the following:  Page 3 of the journal contains the following transaction:  What posting references will be found in the journal entry?

Accepted Answer

A) 41, 3 
B) 3, 11 
C) 11, 41 
D) 11, 3

Question 9

Which of the following entries records the payment of an account payable?

Accepted Answer

A) debit Cash; credit Accounts Payable 
B) debit Accounts Receivable; credit Cash 
C) debit Cash; credit Supplies Expense 
D) debit Accounts Payable; credit Cash

Question 10

If the two totals of a trial balance are not equal, it could be due to

Accepted Answer

A) failure to record a transaction 
B) recording the same erroneous amount for both the debit and the credit parts of a transaction 
C) an error in determining the account balances, such as a balance being incorrectly computed 
D) recording the same transaction more than once

Question 11

Organize the following accounts into the usual sequence of a chart of accounts.Miscellaneous Expense
Accounts Payable
Accounts Receivable
Cash
Common Stock
Fees Earned
Prepaid Rent
Salaries Expense
Unearned Revenue
Dividends

Accepted Answer

The answer of Organize the following accounts into the usual...

Question 12

Which one of the statements below is not a purpose for the journal?

Accepted Answer

A) to show increases and decreases in accounts 
B) to show chronological order of transactions 
C) to show a complete transaction in one place 
D) to help locate errors

Question 13

Which of the following is not true with a double-entry accounting system?

Accepted Answer

A) The accounting equation remains in balance. 
B) The sum of all debits is always equal to the sum of all credits in each journal entry. 
C) Each business transaction will have two debits. 
D) Every transaction affects at least two accounts.

Question 14

Which of the following entries records the receipt of cash from clients on account?

Accepted Answer

A) Accounts Payable, debit; Fees Earned, credit 
B) Accounts Receivable, debit; Fees Earned, credit 
C) Accounts Receivable, debit; Cash, credit 
D) Cash, debit; Accounts Receivable, credit

Question 15

Proof that the dollar amount of the debits equals the dollar amount of the credits in the ledger means

Accepted Answer

A) all of the information from the journal was correctly transferred to the ledger 
B) all accounts have their correct balances in the ledger 
C) only the journal is accurate; the ledger may be incorrect 
D) only that the debit dollar amounts equal the credit dollar amounts

Question 16

On January 1, Merry Walker and other stockholders established a catering service. Listed below are accounts to use for transactions (a) through (f), each identified by a number. Following this list are the transactions that occurred in Walker's first month of operations. You are to indicate for each transaction the accounts that should be debited and credited by placing the account number(s) in the appropriate box.
1.Cash
2.Accounts Receivable
3.Supplies
4.Prepaid Insurance
5.Equipment
6.Truck
7.Notes Payable
8.Accounts Payable
9.Common Stock
10.Dividends
11.Fees Earned
12.Wages Expense
13.Rent Expense
14.Utilities Expense
15.Truck Expense
16.Miscellaneous Expense
17.Insurance Expense

Accepted Answer

The answer of On January 1, Merry Walker and other...

Question 17

Which group of accounts is composed of only assets?

Accepted Answer

A) Cash, Accounts Payable, Buildings 
B) Accounts Receivable, Revenue, Cash 
C) Prepaid Expenses, Buildings, Patents 
D) Unearned Revenues, Prepaid Expenses, Cash

Question 18

The ____ is where a transaction can first be found in the accounting records.

Accepted Answer

A) chart of accounts 
B) income statement 
C) balance sheet 
D) journal

Question 19

The balance of an account is determined by

Accepted Answer

A) adding all of the debits to all of the credits 
B) always subtracting the debits from the credits 
C) always subtracting the credits from the debits 
D) adding all of the debits, adding all of the credits, and then subtracting the smaller sum from the larger sum

Question 20

On December 1, JumpStart Company provides $2,800 in services to clients.(a) Journalize this event as if the clients had paid cash at the time the services were rendered.​
(b)(1) Journalize this event as if the clients had been rendered the services on account.​
(b)(2) Assume that the clients paid $1,200 of the amount on account on December 30. Journalize this transaction.

Accepted Answer

The answer of On December 1, JumpStart Company provides $2,800...

Exam 2: Analyzing Transactions

In the chart of accounts, the balance sheet accounts are normally listed in which order?

The double-entry accounting system records each transaction twice.

The accounts in the ledger of Nilles Consulting Co. are listed below. All accounts have normal balances. Prepare a trial balance. The total of the credits is

The posting process will include the transfer of which of the following data from the journal to the account?

Which of the following entries records the payment of an account payable?

If the two totals of a trial balance are not equal, it could be due to

Organize the following accounts into the usual sequence of a chart of accounts.Miscellaneous Expense Accounts Payable Accounts Receivable Cash Common Stock Fees Earned Prepaid Rent Salaries Expense Unearned Revenue Dividends

Which one of the statements below is not a purpose for the journal?

Which of the following is not true with a double-entry accounting system?

Which of the following entries records the receipt of cash from clients on account?

Proof that the dollar amount of the debits equals the dollar amount of the credits in the ledger means

Which group of accounts is composed of only assets?

The ____ is where a transaction can first be found in the accounting records.

The balance of an account is determined by

Exam 2: Analyzing Transactions

In the chart of accounts, the balance sheet accounts are normally listed in which order?

The double-entry accounting system records each transaction twice.

The accounts in the ledger of Nilles Consulting Co. are listed below. All accounts have normal balances.​ Prepare a trial balance. The total of the credits is

The posting process will include the transfer of which of the following data from the journal to the account?

Which of the following entries records the payment of an account payable?

If the two totals of a trial balance are not equal, it could be due to

Organize the following accounts into the usual sequence of a chart of accounts.Miscellaneous Expense Accounts Payable Accounts Receivable Cash Common Stock Fees Earned Prepaid Rent Salaries Expense Unearned Revenue Dividends

Which one of the statements below is not a purpose for the journal?

Which of the following is not true with a double-entry accounting system?

Which of the following entries records the receipt of cash from clients on account?

Proof that the dollar amount of the debits equals the dollar amount of the credits in the ledger means

Which group of accounts is composed of only assets?

The ____ is where a transaction can first be found in the accounting records.

The balance of an account is determined by

The accounts in the ledger of Nilles Consulting Co. are listed below. All accounts have normal balances. Prepare a trial balance. The total of the credits is