Question 1

Owner equity accounts include:

Accepted Answer

A) assets, liabilities and capital. 
B) assets, revenues and expenses. 
C) only the capital and withdrawal accounts. 
D) the revenue, expense, capital and withdrawal accounts. 
A) assets, liabilities and capital. 
B) assets, revenues and expenses. 
C) only the capital and withdrawal accounts. 
D) the revenue, expense, capital and withdrawal accounts.

Question 2

The purchase of office equipment for cash would increase assets and decrease liabilities.

Accepted Answer

A) True 
 B)False

Question 3

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 $600 debit to the accounts payable account was posted as a $400 debit.
b)A $700 credit to cash was never posted.
c)A $2,000 debit to the withdrawals account was posted as a $2,200 debit.
d)A $1,700 credit to the revenue account was debited to the revenue account.
e)A $4,000 debit to the land account was debited to an expense account instead. $$\begin{array} { | l | l | l | l | } 
\hline \text { Error } & \text { Assets } & \text { Liabilities } & \text { Owner's Equity } \
\hline \text { a) } & & & \
\hline \text { b) } & & & \
\hline \text { c) } & & & \
\hline \text { d) } & & & \
\hline \text { e) } & & & \
\hline
\end{array}$$

Accepted Answer

The answer of Following is a list of errors made...

Question 4

State whether the account should be debited or credited and the normal balance of the account for the items listed below: $\begin{array}{|l|l|l|}
\hline \text { Account } & \begin{array}{c}
\text { Recorded as a } \
\text { debit or credit }
\end{array} & \begin{array}{c}
\text { Normal balance } \
\text { of the account }
\end{array} \
\hline \text { a) Increase in Accounts payable } & & \
\hline \text { b) Increase in Salary expense } & & \
\hline \text { c) Increase in Withdrawals } & & \
\hline \text { d) Decrease in Capital } & & \
\hline \text { e) Decrease in Supplies } & & \
\hline \text { f) Increase in Accounts } & & \
\text { receivable } & & \
\hline \text { g) Decrease in Note payable } & & \
\hline \text { h) Decrease in Note receivable } & & \
\hline \text { 1) Increase in Utilities expense } & & \
\hline \text { j) Decrease in Land } & & \
\hline
\end{array}$

Accepted Answer

The answer of State whether the account should be debited...

Question 5

Double-entry accounting means entering business transactions twice to avoid possible errors.

Accepted Answer

A) True 
 B)False

Question 6

Credit is a term representing:

Accepted Answer

A) the right side of an account. 
B) an increase. 
C) a decrease. 
D) the left side of an account. 
A) the right side of an account. 
B) an increase. 
C) a decrease. 
D) the left side of an account.

Question 7

Describe owner's equity in relation to the assets of the business.

Accepted Answer

Owner's equity represents a residual int

Question 8

Which of the following entries records the billing of service revenue performed for cash for $5,400?

Accepted Answer

A) debit to service revenue and a credit to cash for $5,400 
B) debit to accounts payable and a credit to cash for $5,400 
C) debit to cash and a credit to the owner's capital for $5,400 
D) debit to cash and a credit to service revenue for $5,400 
A) debit to service revenue and a credit to cash for $5,400 
B) debit to accounts payable and a credit to cash for $5,400 
C) debit to cash and a credit to the owner's capital for $5,400 
D) debit to cash and a credit to service revenue for $5,400

Question 9

Based on the following transactions that occurred during 2019, prepare a trial balance dated December 31, 2019, for Wellman Water Services
a)Randy Wellman invested $13,000 cash in the business.
b)Purchased $500 of supplies on account.
c)Bought equipment on account, $5,000.
d)Performed $6,000 of services on account.
e)Performed $3,000 of services for cash.
f)Paid $3,000 on equipment purchased in transaction c.
g)Paid salaries to employees for the current period, $2,500.

Accepted Answer

The answer of Based on the following transactions that occurred...

Question 10

Janet Smythe started her personal coaching business, Smythe Personal Coaching, on November 1, 2019 Janet records purchasing supplies as assets and cash received from clients on deposit as unearned revenue. The following transactions occurred during the first month of operations:
Nov. 1 Janet Smythe invested $25,000 personal cash in the business by depositing that amount in the bank account titled Smythe Personal Coaching. The business gave capital to Smythe.
Nov. 1 Paid the November rent on the office space, $1,500.
Nov. 3 Purchased a computer and printer for use in the business; she used her personal credit card in the amount of $1,800.
Nov. 5 Purchased office supplies in the amount of $75 on an account she set up with the store, Ace Office Depot.
Nov. 10 Received $500 from her first client, Robert Jones, as payment in advance for coaching fees. (Record this amount in the account Unearned Coaching Revenue.)
Nov. 17 Travelled to Montreal to attend a personal coaches conference. The conference lasted one week and costs were: travel $1,500; conference registration fee, $750. Used cash from the business to pay for the expenses.
Nov. 25 Paid Ace Office Depot the amount owing from November 5.
Required:
Prepare journal entries for the above transactions necessary to prepare financial statements for the month of November. $\begin{array} { | l | l | l | l | } 
\hline \text { Date } & \text { Accounts } & \text { Debit } & \text { Credit } \
\hline & & & \
\hline & & & \
\hline & & & \
\hline & & & \
\hline & & & \
\hline & & & \
\hline & & & \
\hline & & & \
\hline & & & \
\hline & & & \
\hline
\end{array}$

Accepted Answer

The answer of Janet Smythe started her personal coaching business,...

Question 11

A trial balance has all of the following except:

Accepted Answer

A) a heading. 
B) totals for both debits and credits. 
C) balances for each account contained in the ledger. 
D) subtotals for revenues and expenses. 
A) a heading. 
B) totals for both debits and credits. 
C) balances for each account contained in the ledger. 
D) subtotals for revenues and expenses.

Question 12

The posting reference column in the general journal is used to:

Accepted Answer

A) indicate if the account is an asset, a liability, or an owner equity. 
B) provide space for the bookkeeper to initial the transaction. 
C) record the page number of the general journal. 
D) record the account number of the general ledger account. 
A) indicate if the account is an asset, a liability, or an owner equity. 
B) provide space for the bookkeeper to initial the transaction. 
C) record the page number of the general journal. 
D) record the account number of the general ledger account.

Question 13

The right side of the account is the correct side.

Accepted Answer

A) True 
 B)False

Question 14

Assets, revenues, and withdrawals are all increased by debits.

Accepted Answer

A) True 
 B)False

Question 15

Purchasing supplies on account would include a:

Accepted Answer

A) debit to supplies and a credit to note payable. 
B) debit to supplies and a credit to cash. 
C) debit to supplies and a debit to accounts payable. 
D) debit to supplies and a credit to accounts payable. 
A) debit to supplies and a credit to note payable. 
B) debit to supplies and a credit to cash. 
C) debit to supplies and a debit to accounts payable. 
D) debit to supplies and a credit to accounts payable.

Question 16

When posting transactions, debits must always equal credits.

Accepted Answer

A) True 
 B)False

Question 17

At the end of a month, a business shows the following balances in its ledger.   Please use this data to prepare a trial balance in the proper format. $\begin{array}{|c|c|c|}
\hline \text { Account Title } & \text { Debit } & \text { Credit } \
\hline & & \
\hline & & \
\hline & & \
\hline & & \
\hline & & \
\hline & & \
\hline & & \
\hline & & \
\hline & & \
\hline & & \
\hline & & \
\hline & & \
\hline & & \
\hline & & \
\hline & & \
\hline & & \
\hline
\end{array}$

Accepted Answer

The answer of At the end of a month, a...

Question 18

Journalize the following transactions for Benjies's Repair Shop and prepare a trial balance dated June 30, 2019.
a)Owner, Benjie Brown invested $6,000 cash into the business.
b)Rented a garage and paid one month's rent, $1,200.
c)Purchased $80 of supplies for cash.
d)Performed repair services on account, $1,700.
e)Paid $1,100 cash for equipment.
f)Owner, Benjie Brown withdrew $500 cash for personal use.

Accepted Answer

The answer of Journalize the following transactions for Benjies's Repair...

Question 19

A journal is like a diary; it shows a chronological listing of a business's activities.

Accepted Answer

A) True 
 B)False

Question 20

Transactions are first recorded in a(n):

Accepted Answer

A) trial balance. 
B) journal. 
C) account. 
D) ledger. 
A) trial balance. 
B) journal. 
C) account. 
D) ledger.

Owner equity accounts include:

The purchase of office equipment for cash would increase assets and decrease liabilities.

Double-entry accounting means entering business transactions twice to avoid possible errors.

Credit is a term representing:

Describe owner's equity in relation to the assets of the business.

Which of the following entries records the billing of service revenue performed for cash for $5,400?

A trial balance has all of the following except:

The posting reference column in the general journal is used to:

The right side of the account is the correct side.

Assets, revenues, and withdrawals are all increased by debits.

Purchasing supplies on account would include a:

When posting transactions, debits must always equal credits.

A journal is like a diary; it shows a chronological listing of a business's activities.

Transactions are first recorded in a(n):

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

Owner equity accounts include:

The purchase of office equipment for cash would increase assets and decrease liabilities.

Double-entry accounting means entering business transactions twice to avoid possible errors.

Credit is a term representing:

Describe owner's equity in relation to the assets of the business.

Which of the following entries records the billing of service revenue performed for cash for $5,400?

A trial balance has all of the following except:

The posting reference column in the general journal is used to:

The right side of the account is the correct side.

Assets, revenues, and withdrawals are all increased by debits.

Purchasing supplies on account would include a:

When posting transactions, debits must always equal credits.

At the end of a month, a business shows the following balances in its ledger. Please use this data to prepare a trial balance in the proper format. Account Title Debit Credit

A journal is like a diary; it shows a chronological listing of a business's activities.

Transactions are first recorded in a(n):

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