Exam 2: The Accounting Information System

The bookkeeper prepared the following journal entries during May. Assume that the descriptions of the entries are correct.Journal (partial): -Refer to Holiday Marina. Assume that the incorrect journal entries have been posted to the general ledger. For each incorrect journal entry, explain why the error would or would not be discovered by preparing a trial balance.

Hesson Properties, Inc.The following transactions occurred during June: -Refer to Hesson Properties. What journal entry is required to record the collections on account from customers?

The chronological record in which transactions are initially recorded in the order in which they occur is called a(n)

A list of all asset, liability, stockholders' equity, revenue, expense, and dividend accounts which are used by the company is called a(n)

The list of accounts presented below are from the accounting records of Hoosier Momma Promotions on September 30, 2019. Assume that each account balance is normal, and present them in proper trial balance format.

A debit entry increases assets and revenue accounts.

Presented below are accounts from the general ledger: Account 1.Cash 2.Accounts Receivable 3.Prepaid Insurance 4.Accounts Payable 5.Common Stock 6.Service Revenues 7.Advertising Expense 8.Salary Expense 9.Interest Expense 10.Income Tax Expense Each of the accounts has been assigned an identification number which you will use as answers for the transactions described below. Enter the account numbers in the blank spaces under the headings Debit and Credit to indicate the accounts debited and credited when each transaction is recorded in a general journal.

Which pair of accounts has the same set of procedures for debit and credit entries?

The dividends account has a normal debit balance.

The initial step in the recording process is sometimes referred to as journalizing.

Which of the following is an assumption made in the preparation of the financial statements?

The ____________________ side, or left-side, of a liability account is used to record decreases in the account balance.

The two-column record used to accumulate monetary increases and decreases for individual assets, liabilities, stockholders' equity, revenue, expense, and dividends items is a(n)

The qualitative characteristics of accounting information include

Which of the following transactions does not affect total assets?

Hesson Properties, Inc.The following transactions occurred during June: -Refer to Hesson Properties. How much is still owed to the company by its customers at the end of the month?

HVAC Service The following transactions occurred during -Refer to HVAC Service. Based on these transactions, what is the total amount of expense that should be reported on the company's income statement for the month?

H&R Clock Company The following transactions were incurred during July 2019: -Refer to H&R Clock Company. Set up T-accounts and post each transaction to the T-accounts.

A list of all active accounts and their balances at a particular date, which is used to prove the equality of debits and credits, is a

The bookkeeper prepared the following journal entries during May. Assume that the descriptions of the entries are correct.Journal (partial): -Refer to Holiday Marina. Identify the transactions that the bookkeeper recorded incorrectly in the journal. Prepare the journal entry that the bookkeeper should have made for each transaction that you identify as being made incorrectly.