Question 1

An increase to a liability account is recorded with a debit entry.

Accepted Answer

A) True 
 B)False

Question 2

Indicate how each event affects the elements of financial statements.Use the following letters to record your answer in the box shown below each element.You do not need to enter amounts.
  
-A transaction recorded as a debit to Cash and a credit to Unearned Revenue.

Accepted Answer

(I)(I)(N)(

Question 3

The following adjusted trial balance is for Wayne Company as of December 31,2016.Using this information,prepare Wayne's 2016 closing entries,income statement,and balance sheet.

Accepted Answer

The answer of The following adjusted trial balance is for...

Question 4

For each of the following journal entries,describe the event or adjustment that would have prompted the entry.The first has been completed for you as an example.

Accepted Answer

The answer of For each of the following journal entries,describe...

Question 5

Indicate whether each of the following statements is true or false.
_____ a)A debit may increase a liability.
_____ b)Closing a revenue account includes a debit to Retained Earnings.
_____ c)A debit may decrease equity.
_____ d)A credit may decrease an asset.
_____ e)Debits to the cash account are reported as cash outflows on the statement of cash flows.

Accepted Answer

a)False b)

Question 6

Use the following information to answer questions 
Wichita,Inc.had the following amounts on its 12/31/16 financial statements.
  
-The return on assets ratio for Wichita is:

Accepted Answer

A) 5%. 
B) 10%. 
C) 20%. 
D) 50%. 
A) 5%. 
B) 10%. 
C) 20%. 
D) 50%.

Question 7

Bijan Corporation recorded the adjusting entry to recognize $4,000 of revenue previously recorded as unearned.Which of the following shows the proper entry using T-accounts?

Accepted Answer

The answer of Bijan Corporation recorded the adjusting entry to...

Question 8

Indicate whether each of the following statements is true or false.
_____ a)An asset source transaction may involve a debit to an asset and a credit to equity.
_____ b)An asset use transaction may involve a debit to an asset and a credit to a liability.
_____ c)A credit to the common stock account would be included in an asset use transaction.
_____ d)The payment of rent in advance involves a debit to Prepaid Rent and a credit to Cash.
_____ e)Recognition of Rent Expense (when a cash payment had previously been made in advance)involves a debit to Rent Expense and a credit to Prepaid Rent.

Accepted Answer

a)True b)F

Question 9

Which account is increased by a credit to the account?

Accepted Answer

A) Accounts receivable 
B) Service revenue 
C) Interest expense 
D) Supplies 
A) Accounts receivable 
B) Service revenue 
C) Interest expense 
D) Supplies

Question 10

Which of the following is increased with a credit?

Accepted Answer

A) Salaries payable 
B) Prepaid rent 
C) Common stock 
D) Both salaries payable and common stock 
A) Salaries payable 
B) Prepaid rent 
C) Common stock 
D) Both salaries payable and common stock

Question 11

Below are listed several transactions of Phelps Company during 2016.
1.Provided services to customers for cash,$70,000
2.Purchased land by paying cash,$32,000
3.Paid rent for 6 months,$24,000
4.Acquired cash of $50,000 by issuing common stock
5.Purchased office supplies on account,$5,400
6.Receive payment of $6,000 from a customer for services that will be provided over the next six months.
Required:
a)Prepare journal entries for each of the preceding transactions,using the general journal below.
b)Show how each transaction affects the financial statements model by inserting amounts.Precede the amount with a minus sign if the transaction reduces that section of the equation.Precede a cash outflow amount with a minus sign.Enter 0 for items not affected.
   
In the Activity Type column,use the letters OA for operating activities,IA for investing activities,and FA for financing activities.Insert NA if cash flow is not affected.

Accepted Answer

The answer of Below are listed several transactions of Phelps...

Question 12

What is the meaning of the terms "debit" and "credit" and what is the effect on specific account types?

Accepted Answer

"Debit" means the left side of an accoun

Question 13

Explain the significance of the return on equity ratio.Who (what category or type of financial statement users)would normally be most interested in this ratio,and why?

Accepted Answer

The return on equity ratio measures the

Question 14

On August 1,2016,Benjamin and Associates collected $18,000 in advance for legal services to be rendered for one year.Which of the following entries reflect the end-of-the-year adjustment to reflect revenue earned?

Accepted Answer

The answer of On August 1,2016,Benjamin and Associates collected $18,000...

Question 15

During a company's first year,the asset account,Office Supplies,was debited for $2,300 for the purchases of supplies.At year-end,office supplies on hand were counted and determined to be $825.The proper adjusting entry crediting supplies and debiting supplies expense will

Accepted Answer

A) increase expenses and decrease assets by $1,475. 
B) decrease assets and increase expenses by $825. 
C) increase expenses and increase assets by $1,475. 
D) have no effect on net income or the accounting equation. 
A) increase expenses and decrease assets by $1,475. 
B) decrease assets and increase expenses by $825. 
C) increase expenses and increase assets by $1,475. 
D) have no effect on net income or the accounting equation.

Question 16

Describe the transaction shown in the following journal entry.

Accepted Answer

A) Paid cash to a customer who requested a refund. 
B) Received cash in advance for work to be performed in future months. 
C) Recorded adjusting entry for work completed. 
D) Received cash for services completed. 
A) Paid cash to a customer who requested a refund. 
B) Received cash in advance for work to be performed in future months. 
C) Recorded adjusting entry for work completed. 
D) Received cash for services completed.

Question 17

What effect do credits have on asset accounts? On equity accounts?

Accepted Answer

Credits decrease ass

An increase to a liability account is recorded with a debit entry.

Indicate how each event affects the elements of financial statements.Use the following letters to record your answer in the box shown below each element.You do not need to enter amounts. -A transaction recorded as a debit to Cash and a credit to Unearned Revenue.

The following adjusted trial balance is for Wayne Company as of December 31,2016.Using this information,prepare Wayne's 2016 closing entries,income statement,and balance sheet.

For each of the following journal entries,describe the event or adjustment that would have prompted the entry.The first has been completed for you as an example.

Use the following information to answer questions Wichita,Inc.had the following amounts on its 12/31/16 financial statements. -The return on assets ratio for Wichita is:

Bijan Corporation recorded the adjusting entry to recognize $4,000 of revenue previously recorded as unearned.Which of the following shows the proper entry using T-accounts?

Which account is increased by a credit to the account?

Which of the following is increased with a credit?

What is the meaning of the terms "debit" and "credit" and what is the effect on specific account types?

Explain the significance of the return on equity ratio.Who (what category or type of financial statement users)would normally be most interested in this ratio,and why?

On August 1,2016,Benjamin and Associates collected $18,000 in advance for legal services to be rendered for one year.Which of the following entries reflect the end-of-the-year adjustment to reflect revenue earned?

During a company's first year,the asset account,Office Supplies,was debited for $2,300 for the purchases of supplies.At year-end,office supplies on hand were counted and determined to be $825.The proper adjusting entry crediting supplies and debiting supplies expense will

Describe the transaction shown in the following journal entry.

What effect do credits have on asset accounts? On equity accounts?

An Introduction to Accounting

Understanding the Accounting Cycle

Accounting for Merchandising Businesses

Accounting for Inventories

Internal Control and Accounting for Cash

Accounting for Receivables

Accounting for Long-Term Operational Assets

Accounting for Current Liabilities and Payroll

Accounting for Long-Term Debt

Proprietorships,partnerships,and Corporations

Statement of Cash Flows

Financial Statement Analysis

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Exam 3: The Double-Entry Accounting System

An increase to a liability account is recorded with a debit entry.

Indicate how each event affects the elements of financial statements.Use the following letters to record your answer in the box shown below each element.You do not need to enter amounts. -A transaction recorded as a debit to Cash and a credit to Unearned Revenue.

The following adjusted trial balance is for Wayne Company as of December 31,2016.Using this information,prepare Wayne's 2016 closing entries,income statement,and balance sheet.

For each of the following journal entries,describe the event or adjustment that would have prompted the entry.The first has been completed for you as an example.

Use the following information to answer questions Wichita,Inc.had the following amounts on its 12/31/16 financial statements. -The return on assets ratio for Wichita is:

Bijan Corporation recorded the adjusting entry to recognize $4,000 of revenue previously recorded as unearned.Which of the following shows the proper entry using T-accounts?

Which account is increased by a credit to the account?

Which of the following is increased with a credit?

What is the meaning of the terms "debit" and "credit" and what is the effect on specific account types?

Explain the significance of the return on equity ratio.Who (what category or type of financial statement users)would normally be most interested in this ratio,and why?

On August 1,2016,Benjamin and Associates collected $18,000 in advance for legal services to be rendered for one year.Which of the following entries reflect the end-of-the-year adjustment to reflect revenue earned?

During a company's first year,the asset account,Office Supplies,was debited for $2,300 for the purchases of supplies.At year-end,office supplies on hand were counted and determined to be $825.The proper adjusting entry crediting supplies and debiting supplies expense will

Describe the transaction shown in the following journal entry.

What effect do credits have on asset accounts? On equity accounts?

An Introduction to Accounting

Understanding the Accounting Cycle

Accounting for Merchandising Businesses

Accounting for Inventories

Internal Control and Accounting for Cash

Accounting for Receivables

Accounting for Long-Term Operational Assets

Accounting for Current Liabilities and Payroll

Accounting for Long-Term Debt

Proprietorships,partnerships,and Corporations

Statement of Cash Flows

Financial Statement Analysis

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