Exam 2: Double-Entry Accounting

Which of the following entries records the receipt of cash from clients on account?

The accounts in the ledger of Devers Gym as of August 31 are listed in alphabetical order as follows. All accounts have normal balances. The balance of the cash account has been omitted. Prepare an unadjusted trial balance, listing the accounts in proper sequence and inserting the missing figure for cash. ​ Accounts Payable \ 36,200 Notes Payable \ 125,000 Accounts Receivable 63,450 Prepaid Insurance 16,800 Cash ? Rent Expense 42,000 Common Stock 30,000 Retained Earnings 72,300 Dividends 5,000 Supplies 3,000 Fees Earned 180,600 Supplies Expense 9,500 Insurance Expense 4,200 Unearned Rent 18,000 Land 125,000 Utilities Expense 16,700 Miscellaneous Expense 4,500 Wages Expense 94,000

Posting a part of a transaction to the wrong account will cause the trial balance totals to be unequal.

Office supplies were sold by Janer's Cleaning Service at cost to another repair shop, with cash received. Which of the following entries for Janer's Cleaning Service records this transaction?

Which of the following groups of accounts increase with a credit?

For a month's transactions for a typical medium-sized business, the salary expense account is likely to have only credit entries.

Depending on the account title, the right side of the account is referred to as the credit side.

A trial balance determines the complete accuracy of the numbers.

A journal with a debit and credit column for recording transactions is known as a

The increases in stockholders' equity attributable to selling services or products to customers are called

Which of the following is not a correct rule of debits and credits?

Journalizing a transaction with both the debit and the credit for $69 instead of $96 will cause the trial balance to be out of balance.

A notation in the post reference column of the general journal indicates that the amount has been posted to the ledger.

A trial balance is prepared to

The normal balance of an expense account is a credit.

Debits will increase unearned revenues and revenues.

Which of the following entries records the payment of insurance for the current month?

A list of the accounts used by a business is called the

The posting process will include the transfer of which of the following data from the journal to the account?

Transactions are listed in the journal chronologically.