Exam 2: Recording Business Transactions

The first step in the journalizing process is to identify the transaction and its data.

Total debits must always equal total credits.

A $500 rent bill received for the current period that will be paid in the following period would include a:

A payment of $400 to a creditor, on account, will cause:

The owner withdrawing cash for personal use would:

Table 2-2 The following is a list of the accounts and their balances appearing in the ledger of Martin Mann Garage as of December 31, 2019, the company's year end. The accounts are in alphabetical order and have normal balances. Accounts payable 1,350 Accounts receivable 3,750 Cash 1,200 Equipment 37,800 Gasoline expense 1,800 Martin Mann, Capital 19,800 Martin Mann, Withdrawals 1,500 Notes payable 33,000 Rent expense 3,600 Repairs expense 1,950 Salary expense 2,100 Salary payable 300 Service revenue 24,750 Supplies 600 Supplies expense 900 Truck 24,000 -Refer to Table 2-2. Prepare an Income statement for Martin Mann Garage for the year ended December 31, 2019.

All of the following are assets except:

A $75 payment for rent expense was posted as a debit to salary expense and a credit to cash. This error will cause:

Which of the following groups of accounts have normal debit balances?

An organization's list of all its accounts and the related account numbers is called a:

All of the following are included in the journal entry for a transaction except:

Journalize the following transactions for Redmond Storage and prepare a trial balance dated June 30, 2019. a)Owner, Roger Redmond invested $10,000 cash into the business. b)Rented an office and paid one month's rent, $1,100. c)Purchased $450 of supplies on account. d)Performed a service on account, $1,550. e)Paid $2,500 cash for office furniture. f)Owner, Roger Redmond withdrew $1,700 cash for personal use. g)Collected $1,200 on account.

Posting involves:

An owner investment of a building, valued at $200,000, along with a $55,000 outstanding mortgage, into an entity would:

The normal balance of wages payable is a ________ because it is a(n)________ account.

State whether the following errors would cause the trial balance to be out of balance by placing a check mark in the appropriate column. a) Services rendered for \ 200 cash were recorded twice in the journal and posted twice to the ledger. b) Services rendered on account for \ 300 were recorded as services rendered for cash of \ 300 . c) A cash purchase of supplies for \ 400 was recorded as a debit to supplies and a credit to accounts receivable for \ 400 d) A cash purchase of supplies for \ 300 was posted as a debit to supplies for \ 300 and a debit to cash for \ 300 . e) A payment of \ 200 on account was recorded as a debit to cash and a credit to accounts payable. f) A \ 200 payment to employees for salaries was posted as a debit to utilities expense and a credit to cash. g) A \ 600 cash withdrawal by the owner was recorded as a debit to capital and a credit to cash. In Balance Out of Balance

Performing services on account would:

A journal is a chronological record of transactions.

The purchase of a building by signing a note payable would:

Receiving a payment from a customer on account would: