Question 1

Given the trial balance amounts below,compute ending retained earnings.

Accepted Answer

A) $19,578 
B) $29,578 
C) $23,728 
D) $49,578 
E) $45,000

Question 2

On October 1,2011,Smith invested $20,000 cash,office equipment costing $15,000,and drafting equipment costing $12,000 into the company in exchange for common stock.Show the general journal entry to record this transaction.

Accepted Answer

The answer of On October 1,2011,Smith invested $20,000 cash,office equipment...

Question 3

Given the trial balance amounts below,compute net income.

Accepted Answer

A) $19,578 
B) $20,528 
C) $23,728 
D) $49,578 
E) $24,578

Question 4

A ___________________ is a record containing all accounts for a company along with their balances.

Accepted Answer

The answer of A ___________________ is a record containing all...

Question 5

Match between columns
                        Premises: Decrease in an asset, dividend and expense account and increase in a liability, common stock and revenue account; recorded on the right side of a T-account.
The process of transferring journal entry information to the ledger.
A file containing all accounts of a company and their balances.
A company's record of all transactions in one place that shows debits and credits for each transaction.
The sources of accounting information.
A simple account form used as a helpful tool in showing the effects of transactions and events on specific accounts.
An increase in an asset, dividend and expense account and decrease in a liability, common stock, and revenue account; recorded on the left side of a T-account.
An accounting system where the impact of each transaction is recorded in at least two accounts; the sum of the debits for each entry must equal its credits.
A record of the increases and decreases in a specific asset, liability, equity, revenue or expense item.
Another name for the accounting books or simply the books.

Accepted Answer

The Answer of Posting and Credit and Journal and Double-entry is...

Question 6

An asset created by prepayment of an expense is:

Accepted Answer

A) Recorded as a debit to an unearned revenue account. 
B) Recorded as a debit to a prepaid expense account. 
C) Recorded as a credit to an unearned revenue account. 
D) Recorded as a credit to a prepaid expense account. 
E) Not recorded in the accounting records until the earnings process is complete.

Question 7

Accounts are normally decreased by debits.

Accepted Answer

A) True 
 B)False

Question 8

The difference between total debits and total credits for an account,including any beginning balance,is the ________________________.

Accepted Answer

The answer of The difference between total debits and total...

Question 9

If a company pays cash to purchase land,the journal entry to record this transaction will include a debit to Cash.

Accepted Answer

A) True 
 B)False

Question 10

The balances for the accounts of Lance's Consulting Firm,Inc.for the year ended December 31 are shown below.Each account shown had a normal balance.
  
-Calculate total assets.

Accepted Answer

The answer of The balances for the accounts of Lance's...

Question 11

The following is a list of accounts and identification letters A through J for Shannon Management Co.:
  Use the form below to identify the type of account and its normal balance.The first item is filled in as an example.

Accepted Answer

The answer of The following is a list of accounts...

Question 12

Michael Jansen starts a business called Crafty Cleaning.The following events occurred during its first month of business.Prepare journal entries to record these transactions.

Accepted Answer

The answer of Michael Jansen starts a business called Crafty...

Question 13

What would be the appropriate entry for the following transaction? 
Bill Co.performed $5,200 in consulting services on account.

Accepted Answer

A) Credit to Cash,debit to Accounts Receivable. 
B) Debit to Service Revenue,debit to Cash. 
C) Debit to Accounts Receivable,credit to Cash. 
D) Debit to Service Revenue,credit to Cash. 
E) Debit to Accounts Receivable,credit to Service Revenue.

Question 14

Which of the following statements is incorrect?

Accepted Answer

A) The normal balance of accounts receivable is a debit. 
B) The normal balance of dividends is a debit. 
C) The normal balance of unearned revenues is a credit. 
D) The normal balance of an expense account is a credit. 
E) The normal balance of common stock is a credit.

Question 15

World Wide Webster (WWW),which is owned and operated by Wally Wrobel,a master website designer.The business began business as a corporation in April of the current year.The following transactions and events took place during April of the current year:
  Prepare journal entries to record these transactions.

Accepted Answer

The answer of World Wide Webster (WWW),which is owned and...

Question 16

The second step in the analyzing and recording process is to record the transactions and events in the _____________________________.

Accepted Answer

The answer of The second step in the analyzing and...

Question 17

When a company bills a customer for $600 for services rendered,the journal entry to record this transaction will include a $600 debit to Services Revenue.

Accepted Answer

A) True 
 B)False

Question 18

A trial balance that balances is not proof of complete accuracy in recording transactions.

Accepted Answer

A) True 
 B)False

Question 19

A column in journal and ledger accounts used to cross reference journal and ledger entries is the:

Accepted Answer

A) Account balance column 
B) Debit column 
C) Posting reference column 
D) Credit column 
E) Description column

Question 20

Grotto Company pays a vendor $900 cash as partial payment for its earlier $1,800 purchase of supplies on credit.How would Grotto record this payment?

Accepted Answer

A) Debit Supplies by $900 and credit Accounts Payable by $900. 
B) Debit Accounts Payable by $900 and credit Cash for $900. 
C) Debit Accounts Payable by $900 and credit Supplies by $900. 
D) Debit Supplies for $1,800,debit Accounts Payable for $900,and Credit Cash for $900. 
E) Debit Supplies for $900,debit Accounts Payable for $900,and credit Cash for $1,800.

Exam 2: Accounting System and Financial Statements

Given the trial balance amounts below,compute ending retained earnings.

On October 1,2011,Smith invested $20,000 cash,office equipment costing $15,000,and drafting equipment costing $12,000 into the company in exchange for common stock.Show the general journal entry to record this transaction.

Given the trial balance amounts below,compute net income.

A ___________________ is a record containing all accounts for a company along with their balances.

Match the following definitions and terms:

An asset created by prepayment of an expense is:

Accounts are normally decreased by debits.

The difference between total debits and total credits for an account,including any beginning balance,is the ________________________.

If a company pays cash to purchase land,the journal entry to record this transaction will include a debit to Cash.

The balances for the accounts of Lance's Consulting Firm,Inc.for the year ended December 31 are shown below.Each account shown had a normal balance. -Calculate total assets.

The following is a list of accounts and identification letters A through J for Shannon Management Co.: Use the form below to identify the type of account and its normal balance.The first item is filled in as an example.

Michael Jansen starts a business called Crafty Cleaning.The following events occurred during its first month of business.Prepare journal entries to record these transactions.

What would be the appropriate entry for the following transaction? Bill Co.performed $5,200 in consulting services on account.

Which of the following statements is incorrect?

The second step in the analyzing and recording process is to record the transactions and events in the _____________________________.

When a company bills a customer for $600 for services rendered,the journal entry to record this transaction will include a $600 debit to Services Revenue.

A trial balance that balances is not proof of complete accuracy in recording transactions.

A column in journal and ledger accounts used to cross reference journal and ledger entries is the:

Grotto Company pays a vendor $900 cash as partial payment for its earlier $1,800 purchase of supplies on credit.How would Grotto record this payment?