Exam 2: Recording Business Transactions

The account debited when payment is made for equipment purchased previously on account is:

The entry to record the return of $300 of supplies purchased on account would be:

The payment of salaries to employees for wages of the current period would:

The investment of cash into the business by the owner would:

Purchasing a truck by signing a note payable would include a:

Thermo HVAC is a heating and air conditioning service business. On December 31, 2019, after its first month of business, Thermo HVAC had the following balances in its accounts, listed alphabetically. Accounts receivable 4,100 Accounts payable 22,000 Advertising expense 1,600 Building 17,000 Cash ??? Capital 45,000 Withdrawals 1,800 Equipment 1,800 Land 67,000 Note payable 58,000 Salary expense 1,800 Service revenue 62,000 Supplies 2,900 Utilities expense 4,200 Determine the balance in the cash account and prepare a trial balance using proper format. Account Title Debit Credit

Table 2-1 The following is a list of the accounts and their balances appearing in the ledger of Henry Garage Repairs as of December 31, 2019, the company's year end. The accounts are in alphabetical order and have normal balances. Accounts payable \ 450 Accounts receivable 1,250 Cash 400 Equipment 12,600 Gasoline expense 600 Ian Henry, Capital 6,600 Ian Henry, Withdrawals 500 Notes payable 11,000 Rent expense 1,200 Repairs expense 650 Salary expense 700 Salary payable 100 Service revenue 8,250 Supplies 200 Supplies expense 300 Truck 8,000 -Refer to Table 2-1. Prepare an Income statement for Henry Garage Repairs for the year ended December 31, 2019.

Performing a service for $500 cash and $700 on account would include a:

The journal entry to record the payment of a telephone bill immediately upon receipt of the bill would:

Purchasing supplies and office equipment for cash would include a:

Journalizing is the process of copying information from the ledger to the journal.

The normal balance of a revenue account is a credit.

Which of the following journal entries most accurately records an owner investing building and land into a business valued at $250,000 and $400,000 respectively?

Following is a list of errors made during the posting process. Indicate the exact dollar impact each error would have on (1)total revenue, (2)total expenses, and (3)net income. a)A $100 debit to rent expense was posted as a $300 debit to rent expense. b)A $700 credit to service revenue was credited at $70 instead c)A $2,000 debit to the withdrawals account was posted as a $2,000 debit to revenue. d)A $1,500 debit to the salary expense account was debited to rent expense account. e)A $3,000 debit to the equipment account was debited to an expense account instead. Error Revenue Expenses Net Income a) b) c) d) e)

Prepare a balance sheet dated December 31, 2019, for Canfield Enterprises based on the following transactions completed during 2019. a)Marilyn Canfield invested $16,000 cash and equipment valued at $6,000 into the business. b)Purchased $500 of supplies on account. c)Purchased $2,000 of equipment for cash. d)Purchased a building by issuing a $10,000 note.

Receiving a $350 payment on an account with a current balance of $800 would include a:

The account debited when supplies are purchased on account is:

Sam Snead, the owner of Snead's Fine Golf Wear, used $1,800 of his personal funds to go on vacation. Which of the following is the most appropriate treatment regarding this transaction?

Which of the following is correct?

The steps in the accounting cycle (excluding the preparation of the worksheet)are listed below in random order. List the steps in the proper sequence, inserting the number 1 to 11. a) $\text { Prepare a post-closing trial balance}$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ --------- b) $\text {Prepare an adjusted trial balance}$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ --------- c) $\text {Analyse transactions as they occur}$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ --------- d) $\text {Prepare an unadjusted trial balance}$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ --------- e) $\text {Compute the adjusted balance in each of the ledger accounts}$$\quad$$\quad$$\quad$$\quad$$\quad$ ---------- f) $\text {Post the journal entries to the ledger accounts}$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ -------- g) $\text {Journalize and post the adjusting entries}$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ --------- h) $\text {Journalize and post the closing entries}$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ --------- i) $\text {Prepare financial statements}$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ --------- j) $\text { Compute the unadjusted balance in each of the ledger accounts}$$\quad$$\quad$$\quad$$\quad$ --------- k) $\text {Journalize the transactions}$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ ---------