Exam 2: The Recording Process

Eight transactions are recorded in the following T accounts: Indicate for each debit and each credit: a. whether an asset, liability, capital, drawings, revenue, or expense account was affected and b. whether the account was increased (+) or decreased (-). Answers should be presented in the following chart form:

Which of the following correctly identifies normal balances of accounts?

The transactions of the Got It Now Store are recorded in the general journal below. Instructions Post the journal entries to the following T accounts and calculate the August 31 balances. Leaky Faucet plumbing services has the following account balances as of March 31: Cash $1,500 Accounts Receivable 2,100 Accounts Payable 650 L. Faucet, Capital 2,950 The following transactions take place during April: 1. Services of $3,100 were made on account. 2. Paid April rent of $1,100. 3. Bought $650 of supplies on account. 4. Collected $4,000 cash on outstanding customer accounts. 5. Made payments on account $500. Journalize April's transactions. What are the April 30 account balances? Hint: You may wish to use T accounts.

Which of the following statements is NOT true? The book of original entry

The trial balance of P. Heavy Record Company shown below does not balance. An examination of the ledger and journal reveals the following errors: 1. Each of the above listed accounts has a normal balance per the general ledger. 2. Cash of $350 received from a customer on account was debited to Cash $530 and credited to Accounts Receivable $530. 3. A withdrawal of $300 by the owner was posted as a credit to P. Heavy, Drawings, $300 and credit to Cash $300. 4. A debit of $300 was not posted to Wages Expense. 5. The purchase of equipment on account for $700 was recorded as a debit to Repair Expense and a credit to Accounts Payable for $700. 6. Services were performed on account for a customer, $510, for which Accounts Receivable was debited $510 and Service Revenue was credited $51. 7. A payment on account for $215 was credited to Cash for $215 and credited to Accounts Payable for $251. Instructions Prepare a correct trial balance.

A three-column form of account is so named because it has columns for

The name given to entering transaction data in the journal is

A chart of accounts should be arranged in alphabetical order for easier reference.

A journal provides

A ledger is the entire group of accounts maintained by a company.

In the first month of operations, the total of the debit entries to the cash account amounted to $900 and the total of the credit entries to the cash account amounted to $500. The cash account has a

The normal balance in an asset account is a debit.

A company receives a year's worth of rent in advance. Which of the following statements pertaining to this event is NOT correct?

Posting to the general ledger in a manual accounting system is usually performed

The first step in the recording process in a computerized environment is to

A debit to an asset account always indicates

Kali's Courier Service has the following account balances at the July 31, 2014 year end. The accounts all have normal balances and are shown in the following alphabetical list: Instructions Prepare a trial balance with the accounts arranged in financial statement order.

A listing of the balances of all assets, liabilities, and owner's equity accounts is called a

The double-entry system requires that each transaction must be recorded

An accountant has debited an expense account for $1,000 and credited an asset account for $500. Which of the following would be a correct way to complete the recording of the transaction?