Exam 2: Recording Business Transactions

Journalize the following transactions for Stanley's Repair Shop and prepare a trial balance dated May 31, 2019. a)Owner, Stanley Knowles invested $5,000 cash into the business. b)Rented a garage and paid one month's rent, $1,400. c)Purchased $50 of supplies for cash. d)Performed repair services on account, $1,590. e)Paid $1,500 cash for equipment. f)Owner, Stanley Knowles withdrew $700 cash for personal use.

(Essay)

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Question 41

The normal balance of an expense is a while the normal balance of an asset is a .

(Multiple Choice)

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Question 42

A journal produces a balance in each account.

(True/False)

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Question 43

The purchase of equipment for cash would:

(Multiple Choice)

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Question 44

A business acquires equipment costing $10,000 by making a $2,000 down payment and issuing a note for the balance. This transaction will cause:

(Multiple Choice)

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Question 45

In the double-entry accounting system, each transaction:

(Multiple Choice)

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Question 46

An account receivable for the selling company is an account payable for the purchasing company.

(True/False)

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Question 47

Post each journal entry to the t-accounts and calculate the balance of each account.

(Essay)

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Question 48

Which of the following is a revenue account?

(Multiple Choice)

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Question 49

The entry to record the receipt of $650 on account for services previously rendered and billed would be:

(Multiple Choice)

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Question 50

A transaction always involves exactly two accounts.

(True/False)

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Question 51

The proper journal entry to record a proprietor taking $500 cash from the business for personal use is:

(Multiple Choice)

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Question 52

The ledger is the first book of entry for a business transaction.

(True/False)

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Question 53

The copying of amounts from the journal to the appropriate ledger accounts is referred to as:

(Multiple Choice)

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Question 54

The right-hand side of an account is called the increase side.

(True/False)

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Question 55

Which of the following records the payment of the current month's rent bill for a business?

(Multiple Choice)

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Question 56

Providing services for $2,000 where cash is immediately received will cause:

(Multiple Choice)

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Question 57

A customer with an overdue account of $450 pays $150 on account. Which of the following is the most appropriate journal entry to record this transaction?

(Multiple Choice)

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Question 58

Which of the following statements is false?

(Multiple Choice)

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Question 59

Which of the following journal entries correctly records paying for a $900 one year insurance policy in advance?

(Multiple Choice)

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Question 60

Showing 41 - 60 of 165

The normal balance of an expense is a while the normal balance of an asset is a .

A journal produces a balance in each account.

The purchase of equipment for cash would:

A business acquires equipment costing $10,000 by making a $2,000 down payment and issuing a note for the balance. This transaction will cause:

In the double-entry accounting system, each transaction:

An account receivable for the selling company is an account payable for the purchasing company.

Post each journal entry to the t-accounts and calculate the balance of each account.

Which of the following is a revenue account?

The entry to record the receipt of $650 on account for services previously rendered and billed would be:

A transaction always involves exactly two accounts.

The proper journal entry to record a proprietor taking $500 cash from the business for personal use is:

The ledger is the first book of entry for a business transaction.

The copying of amounts from the journal to the appropriate ledger accounts is referred to as:

The right-hand side of an account is called the increase side.

Which of the following records the payment of the current month's rent bill for a business?

Providing services for $2,000 where cash is immediately received will cause:

A customer with an overdue account of $450 pays $150 on account. Which of the following is the most appropriate journal entry to record this transaction?

Which of the following statements is false?

Which of the following journal entries correctly records paying for a $900 one year insurance policy in advance?

Accounting and the Business Environment

Measuring Business Income: The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations and the Accounting Cycle

Accounting for Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Property, Plant, and Equipment; Goodwill; and Intangibles

Current Liabilities and Payroll

Filters

Exam 2: Recording Business Transactions

The normal balance of an expense is a ________ while the normal balance of an asset is a ________.

A journal produces a balance in each account.

The purchase of equipment for cash would:

A business acquires equipment costing $10,000 by making a $2,000 down payment and issuing a note for the balance. This transaction will cause:

In the double-entry accounting system, each transaction:

An account receivable for the selling company is an account payable for the purchasing company.

Post each journal entry to the t-accounts and calculate the balance of each account.

Which of the following is a revenue account?

The entry to record the receipt of $650 on account for services previously rendered and billed would be:

A transaction always involves exactly two accounts.

The proper journal entry to record a proprietor taking $500 cash from the business for personal use is:

The ledger is the first book of entry for a business transaction.

The copying of amounts from the journal to the appropriate ledger accounts is referred to as:

The right-hand side of an account is called the increase side.

Which of the following records the payment of the current month's rent bill for a business?

Providing services for $2,000 where cash is immediately received will cause:

A customer with an overdue account of $450 pays $150 on account. Which of the following is the most appropriate journal entry to record this transaction?

Which of the following statements is false?

Which of the following journal entries correctly records paying for a $900 one year insurance policy in advance?

Accounting and the Business Environment

Measuring Business Income: The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations and the Accounting Cycle

Accounting for Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Property, Plant, and Equipment; Goodwill; and Intangibles

Current Liabilities and Payroll

Filters

The normal balance of an expense is a while the normal balance of an asset is a .