Exam 3: The Accounting Cycle: Capturing Economic Events

Brett Tarek, a manager at D&J Landscaping, Inc. needs information regarding the amount of accounts payable currently owed by the company. This information would most easily be found in the:

Listed below are accounts of Global Company, each identified by a number. Following this list of accounts is a series of transactions. You are to indicate for each transaction the accounts that should be debited and credited by inserting the proper account numbers in the space provided. 1 Cash 5 Delivery Equipment 2 Accounts Receivable 6 Notes Payable 3 Land 7 Accounts Payable 4 Building 8 Capital Stock 9 Retained Earnings

The manager of Grande Home Improvements purchased several cash registers for the business on June 10 but does not remember whether he paid cash for the full price or still owes a balance to the vendor. Where is the best place for the manager to get the information about this transaction?

Each business transaction is initially recorded in a journal and later transferred to the appropriate accounts in the general ledger.

At the end of October, Flagship Marina received a bill for fuel used in October. Payment is not due until November 30. This transaction:

What type of account will normally contain a debit balance?

Every business transaction is recorded by a debit to a balance sheet account and a credit to an income statement account.

The purchase of equipment on credit is recorded by a:

Recording transactions journal entry grid A list of accounts for Harding Company is given below, followed by a series of transactions. Indicate the accounts that would be debited and credited in recording each transaction by placing the appropriate number (or numbers) in the space provided. 1 Cash 5 Office Equipment 2 Accounts Receivable 6 Notes Payable 3 Land 7 Accounts Payable 4 Building 8 Capital Stock 9 Retained Earnings Transaction Account(s) Debited Account(s) Credited Example: Purchased office equipment, paying part cash, with the balance due on account 5 1,7 A. Purchased land and a building paying part cash and issuing a note payable for the balance of the purchase price B. Sold a piece of the company's office equipment at cost, received part of the proceeds in cash, with the balance due in 30 days C. Collected an account receivable D. Borrowed money from a bank and signed a note payable due in one year E. Paid an account payable F. Issued capital stock in exchange for cash

The general ledger is sometimes called the book of original entry because it is the accounting record where transactions are first recorded.

On June 27, Healthy Life Services, Inc. performed extensive tests on lab specimens submitted by several customers and sent invoices totaling $5,200, due in 30 days.

In a trial balance prepared on June 4, the sum of the credit column is:

The following trial balance of Brian's Pickle Co for June 30, 2010 does not balance. The following errors were discovered: 1. A purchase of supplies for cash was posted as $40 when it should have been $400. 2. The first two numbers of the amount for notes payable were transposed while being copied from the account balance to the trial balance. The correct amount of Notes Payable should be $51,500. 3. A collection of cash was debited to the cash account in the amount of $5,500 but was not credited to the revenue account. 4. A purchase of supplies for $725 on account was not recorded. Instructions: Prepare a corrected trial balance

What is the total of Hunter Products' liabilities at the end of May?

The running balance form or the T account form is typically used in the trial balance to display the accounts and their amounts.

On January 5, 2009, total liabilities are:

In the general ledger, a separate "account" is maintained for each:

Net income is:

What is the total owners' equity at the end of March?

The principle that states revenue should be recognized at the time goods are sold or services rendered is called: