Exam 7: Accounting Information Systems

Prepare journal entries to record the following transactions: (a.) Purchased $12,500 of inventory on account. (b.) Paid $1,800 for office supplies. (c.) Performed a service and immediately collected $600. (d.) Paid the monthly rent, $1,150. (e.) Paid twenty percent of the amount owed for the inventory purchased in (a) above. (f.) Sold products for $8,000 on account that cost $4,500. (g.) Borrowed $12,000 by signing a note payable. (h.) Received the amount owed from the customer of (f) above.

Which financial statement would report a firm's total profits accumulated to date minus distributions to owners?

Which of the following cases would not require an adjusting entry?

After closing entries are made which of the following grouping of accounts will all have balances?

The master file in a computer-based transaction system serves as which of the following?

On which financial statement would unearned revenue be reported?

Adams Company completed the following transactions during March: Purchased inventory on open account,$28,000. Purchased $900 of supplies for cash. Sold on open account for $35,000 merchandise that had cost $23,000. Employees earned $6,000 during March and were paid $5,000. Collected $30,000 from credit customers. Paid $25,000 to suppliers for merchandise purchases. Used up $700 of supplies during March. Using the form shown below,indicate the effect of each event on the assets,liabilities,and owners' equity of Adams Company.Use + or increases and - for decreases. Using debits and credits make the entries for the same events ( A)

The year-end accrual adjustment to record the estimated expense for a telephone bill not yet received would include a:

Debiting an account always means

On November 1,2010 Clyde Corp paid $6,000 for six months rent in advance.What is the appropriate adjusting entry for December 31,2010?

The following journal entry affected the accounting equation by:

The entry to record collections from credit customers would include a:

The following journal entry affected the accounting equation by:

The following journal entry affected the accounting equation by:

A chronological record of accounting events is maintained in the:

A database system differs from manual and computer-based transactions system in that-

If an adjustment for expense that has been incurred but not paid was not recorded.

The most likely explanation for the following journal entry would be:

Merta Inc.reported revenues of $500,000,expenses of $340,000 and operating income of $160,000.Explain the information contained in each of these figures.