Exam 2: Recording Business Transactions

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

Following is a list of errors made during the posting process. Indicate the exact dollar impact each error would have on (1)total assets, (2)total liabilities, and (3)owner's equity. a)A $100 debit to the accounts payable account was posted as a $400 debit. b)A $500 debit to withdrawals was never posted. c)A $2,000 debit to the land account was posted as a $2,200 debit. d)A $1,700 credit to the revenue account was credited to an expense account. e)A $4,000 debit to an expense account was debited to land account instead. Error Assets Liabilities Owner's Equity a) b) c) d) e)

The last step in the journalizing process is to:

The normal balance of the Accounts Payable account is a debit.

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

An owner investment of equipment into the business would:

If the credit amount of an entry to record the payment of salaries was not posted:

The payment of the owner's personal expenses from the business's chequebook should be recorded with a debit to:

Receiving cash on account of $1,200 from a customer would include a:

A business has the following transactions: The business is started by receiving $20,000 from the owner. The business purchases $500 of supplies on account. The business purchases $2,000 of furniture on account. The business renders services to various clients totaling $9,000 on account. The business pays out $2,000 for Salary expense and $3,000 for Rent expense. The business pays $500 to a supplier for the supplies purchased earlier. The business collects $1,500 from one of its clients for services rendered earlier in the month. At the end of the month, all journal entries are posted to the ledger. The Cash account will appear as follows:

Prepare a trial balance dated February 28, 2019. Debit Credit

The basic summary device of accounting is the account.

The year end balance in the capital account is determined by:

A business purchases equipment for cash of $100,000. This transaction will cause:

Performing a service on account would:

Recording salaries paid to employees as a debit to accounts receivable and a credit to cash will cause:

A payment to a creditor would increase assets and decrease liabilities.

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 a trial balance for Martin Mann Garage at December 31, 2019

A $200 payment on a notes payable posted as a debit to notes payable and a debit to cash. This error will cause:

Accounts are grouped in a book called the: