Exam 7: Accounting Information Systems

For each of the following events using debits and credits indicate the increase or decrease in particular account affected by the transaction.

Which of the following results in a revenue event?

Which of these steps in the accounting cycle comes first?

The ending cash balance can be found on the:

All of the following accounts are decreased by debits except:

The last step in the accounting cycle is to prepare:

Closing entries are necessary to update the:

On November 4,2010,Blazek,Inc.received $24,000 in advance for work to be performed over the next several months.By December 31,2010,1/3 of the amount had been earned.The required adjusting entry would be:

The unadjusted trial balance of Mitchell Corporation is presented below,together with the information for necessary adjustments.Prepare the required adjusting entries and indicate what effect each adjustment has on net income - increase,decrease,or no effect. Adjustment data: (a.) Unused supplies on hand, $250 (b.) Unexpired rent, $3,250 (c.) Depreciation on equipment, $1,200 (d.) Portion of unearned fees not yet earned, $1,300 (e.) Accrued interest on the note, $400 (f.) Fees earned but not recorded and not received, $600

Describe the difference between a computer-based transaction system and a database system.What are the advantages of the database system?

The following adjusted trial balance was taken from the accounting records of Rock Corporation.Prepare the closing entries for Dec 31,2010.Was the company profitable?

On April 1,2010,a firm borrowed $100,000 on a 6% note.The note is due on April 1,2011.No interest is to be paid until then.What amount of interest expense should it report in its income statement for December 31,2010?

Indicate the normal balance of the following accounts

A firm received and paid a utilities bill.How would this affect the elements of the fundamental accounting equation?

The following transactions occurred during Klein Corporation's first month of operations,June 2010.Journalize the transactions in a general journal,post the transactions to the appropriate T-Accounts,and prepare a trial balance. (a.) Issued $20,000 of capital stock for cash. (b.) Purchased $250 of office supplies on account. (c.) Borrowed $1,000 from the bank and signed a note payable for that amount (d.) Billed a client $450 for services rendered. (e.) Received and immediately paid the utility bill for the month, $270. (f.) Performed a service and immediately collected $200. (g.) Paid for the office supplies purchased in transaction b. (h.) Received $150 from a client who had previously been billed. (i.) Recorded, but did not pay, the telephone bill for the month, $160. (j.) Declared a paid a $300 dividend to stockholders. (k.) Received a $500 deposit from a client for work to be performed next month.