Exam 2: The Balance Sheet

Meridian Furniture had the transactions for the month that are summarized below. Purchased $3,600 in supplies with cash. Issued 400 shares of stock for $45 per share. Ordered supplies at a cost of $8,000. Paid a utility bill for $1,000. If the Cash account had a beginning balance of $20,000,what was the balance at the end of the month?

Assets totaled $24,250 and liabilities totaled $8,500 at the beginning of the year.During the year,assets decreased by $3,500 and liabilities increased by $2,800. What is the amount of stockholders' equity at the end of the year?

Which of the following statements about the balance sheet is correct?

How do debits appear in a T-account?

For each of the following,indicate how the event would most likely be categorized. -Management promises to pay workers an overtime bonus as required by their union contract.

A company started the year with a normal balance of $136,000 in the Inventory account.During the year,debits totaling $90,000 and credits totaling $110,000 were posted to the Inventory account.Which of the following statements about the Inventory account is correct?

Match the term with its definition.(There are more definitions than terms. ) -cr

A trial balance shows a subtotal for current assets and current liabilities.

Which of the following would cause a trial balance to be out of balance?

The journal entry to record the purchase of supplies on account includes a credit to:

Which of the following statements regarding debits and credits is always correct?

Cash had a beginning balance of $206,700.During the month,Cash was credited for $48,000 and debited for $54,900.At the end of the month,the balance is:

During the month,a company enters into the following transactions: - Borrows $3,200 of cash from the bank by signing a formal agreement to repay the loan in 2 years. - Buys $4,000 of new equipment on account. - Pays off $2,400 of accounts payable. - Pays off $1,200 of notes payable Required: Part a.Show the effect of these transactions on the basic accounting equation. Part b.Prepare the journal entries that would be used to record the transactions.

Transactions include which two types of events?

A debit may increase or decrease an account,depending on the type of account.

A ledger is used to:

The normal balance of any account is the:

Every transaction:

Match the term with its definition.(There are more definitions than terms. ) -Credit

Match each account name with the category that it would be included under in a classified balance sheet. -Common Stock