Question 1

At year-end,Harris Cleaning Service noted the following errors in its trial balance:
1.It understated the total debits to the Cash account by $500 when computing the account balance.
2.A credit sale for $311 was recorded as a credit to the revenue account,but the offsetting debit was not posted.
3.A cash payment to a creditor for $2,600 was never recorded.
4.The $680 balance of the Prepaid Insurance account was listed in the credit column of the trial balance.
5.A $24,900 truck purchase was recorded as a $24,090 debit to Vehicles and a $24,090 credit to Notes Payable.
6.A purchase of office supplies for $150 was recorded as a debit to Office Equipment.The offsetting credit entry was correct.
7.An additional investment of $4,000 by Del Harris was recorded as a debit to Del Harris,Capital and as a credit to Cash.
8.The cash payment of the $510 utility bill for December was recorded (but not paid)twice.
9.The revenue account balance of $79,817 was listed on the trial balance as $97,817.
10.A $1,000 cash withdrawal was recorded as a $100 debit to Del Harris,Withdrawal and $100 credit to cash.
Using the form below,indicate whether each error would cause the trial balance to be out of balance,the amount of any imbalance,and whether a correcting journal entry is required.

Accepted Answer

The answer of At year-end,Harris Cleaning Service noted the following...

Question 2

The first step in the processing of a transaction is to analyze the transaction and source documents.

Accepted Answer

A) True 
 B)False

Question 3

An accountant has debited an account for $3,500 and credited a liability account for $2,000.Which of the following would be an incorrect way to complete the recording of this transaction:

Accepted Answer

A)  Credit another asset account for $1,500.
B)  Credit another liability account for $1,500.
C)  Credit an expense account for $1,500.
D)  Credit the owner's capital account for $1,500.
E)  Debit another asset account for $1,500.F) A) and E)
G) D) and E)

Question 4

The posting process is the link between the _______________ and the _____________.

Accepted Answer

journal; ledger

Question 5

Which of the following statements is true?

Accepted Answer

A)  If the trial balance is in balance, it proves that no errors have been made in recording and posting transactions.
B)  The trial balance is a book of original entry.
C)  Another name for the trial balance is the chart of accounts.
D)  The trial balance is a list of all accounts from the ledger with their balances at a point in time.
E)  The trial balance is another name for the balance sheet as long as debits balance with credits.F) A) and E)
G) D) and E)

Question 6

A debit entry is always favorable.

Accepted Answer

A) True 
 B)False

Question 7

What is a trial balance?
 What is its purpose?

Accepted Answer

The trial balance is a list of all of th...

Question 8

Generally,the ordering of accounts in a trial balance typically follows their identification number from the chart of accounts,that is,assets first,then liabilities,then owner's capital and withdrawals,followed by revenues and expenses.

Accepted Answer

A) True 
 B)False

Question 9

Describe the link between the income statement,the statement of owner's equity,and the balance sheet.

Accepted Answer

The income statement shows the amount of...

Question 10

The purchase of supplies on credit should be recorded with a debit to Supplies and a credit to Accounts Payable.

Accepted Answer

A) True 
 B)False

Question 11

The heading on each financial statement lists the three W's - Who (the name of the organization); What (the name of the statement); and Where (the organization's address)

Accepted Answer

A) True 
 B)False

Question 12

Of the following accounts,the one that normally has a credit balance is:

Accepted Answer

A)  Cash.
B)  Office Equipment.
C)  Wages Payable.
D)  Owner, Withdrawals.
E)  Sales Salaries Expense.F) B) and E)
G) All of the above

Question 13

Explain the difference between a ledger and a chart of accounts.

Accepted Answer

A ledger is a record containing all of t...

Question 14

An owner's capital account normally has a debit balance.

Accepted Answer

A) True 
 B)False

Question 15

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 16

The right side of a T-account is a(n) :

Accepted Answer

A)  Debit.
B)  Increase.
C)  Credit.
D)  Decrease.
E)  Account balance.F) C) and D)
G) B) and E)

Question 17

A column in journals 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.F) A) and C)
G) A) and E)

Question 18

Match between columns
                        Premises: Unearned revenues
Note receivable
Trial Balance
Account
General journal
Compound journal entry
T-account
Chart of accounts
Posting
Posting reference column

Accepted Answer

The Answer of A written promise from a customer to is...

Question 19

Explain how accounts are used in recording information about transactions.

Accepted Answer

Accounts are classified into three gener...

Question 20

An account used to record the owner's investments in the business is called a(n) :

Accepted Answer

A)  Withdrawals account.
B)  Capital account.
C)  Revenue account.
D)  Expense account.
E)  Liability account.F) A) and C)
G) B) and C) B

Exam 2: Analyzing and Recording Transactions

Correct Answer
verified

The first step in the processing of a transaction is to analyze the transaction and source documents.

Correct Answer
verified

An accountant has debited an account for $3,500 and credited a liability account for $2,000.Which of the following would be an incorrect way to complete the recording of this transaction:

Correct Answer
verified

The posting process is the link between the ___ and the _.

Correct Answer
verified
journal; ledger

Which of the following statements is true?

Correct Answer
verified

A debit entry is always favorable.

Correct Answer
verified

What is a trial balance? What is its purpose?

Correct Answer
verified
The trial balance is a list of all of th...
View Answer

Generally,the ordering of accounts in a trial balance typically follows their identification number from the chart of accounts,that is,assets first,then liabilities,then owner's capital and withdrawals,followed by revenues and expenses.

Correct Answer
verified

Describe the link between the income statement,the statement of owner's equity,and the balance sheet.

Correct Answer
verified
The income statement shows the amount of...
View Answer

The purchase of supplies on credit should be recorded with a debit to Supplies and a credit to Accounts Payable.

Correct Answer
verified

The heading on each financial statement lists the three W's - Who (the name of the organization); What (the name of the statement); and Where (the organization's address)

Correct Answer
verified

Of the following accounts,the one that normally has a credit balance is:

Correct Answer
verified

Explain the difference between a ledger and a chart of accounts.

Correct Answer
verified
A ledger is a record containing all of t...
View Answer

An owner's capital account normally has a debit balance.

Correct Answer
verified

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

Correct Answer
verified

The right side of a T-account is a(n) :

Correct Answer
verified

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

Correct Answer
verified

Match the following definitions and terms by placing the letter that identifies the best definition to the term.

Explain how accounts are used in recording information about transactions.

Correct Answer
verified
Accounts are classified into three gener...
View Answer

An account used to record the owner's investments in the business is called a(n) :

Correct Answer
verified
B

Exam 2: Analyzing and Recording Transactions

Correct AnswerverifiedShow Answer

The first step in the processing of a transaction is to analyze the transaction and source documents.

Correct AnswerverifiedShow Answer

An accountant has debited an account for $3,500 and credited a liability account for $2,000.Which of the following would be an incorrect way to complete the recording of this transaction:

Correct AnswerverifiedShow Answer

The posting process is the link between the _______________ and the _____________.

Correct Answerverifiedjournal; ledger

Which of the following statements is true?

Correct AnswerverifiedShow Answer

A debit entry is always favorable.

Correct AnswerverifiedShow Answer

What is a trial balance? What is its purpose?

Correct AnswerverifiedThe trial balance is a list of all of th...View AnswerShow Answer

Generally,the ordering of accounts in a trial balance typically follows their identification number from the chart of accounts,that is,assets first,then liabilities,then owner's capital and withdrawals,followed by revenues and expenses.

Correct AnswerverifiedShow Answer

Describe the link between the income statement,the statement of owner's equity,and the balance sheet.

Correct AnswerverifiedThe income statement shows the amount of...View AnswerShow Answer

The purchase of supplies on credit should be recorded with a debit to Supplies and a credit to Accounts Payable.

Correct AnswerverifiedShow Answer

The heading on each financial statement lists the three W's - Who (the name of the organization); What (the name of the statement); and Where (the organization's address)

Correct AnswerverifiedShow Answer

Of the following accounts,the one that normally has a credit balance is:

Correct AnswerverifiedShow Answer

Explain the difference between a ledger and a chart of accounts.

Correct AnswerverifiedA ledger is a record containing all of t...View AnswerShow Answer

An owner's capital account normally has a debit balance.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The right side of a T-account is a(n) :

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Match the following definitions and terms by placing the letter that identifies the best definition to the term.

Explain how accounts are used in recording information about transactions.

Correct AnswerverifiedAccounts are classified into three gener...View AnswerShow Answer

An account used to record the owner's investments in the business is called a(n) :

Correct AnswerverifiedB

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The posting process is the link between the ___ and the _.

Correct Answer
verified
journal; ledger

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The trial balance is a list of all of th...
View Answer

Correct Answer
verified

Correct Answer
verified
The income statement shows the amount of...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A ledger is a record containing all of t...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Accounts are classified into three gener...
View Answer

Correct Answer
verified
B