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Exam 2: Analyzing Transactions

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Question 1

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Journalize the five transactions for Mirmax Tool Rentals described below.

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Question 2

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When a business receives a bill from the utility company, no entry should be made until the invoice is paid.

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B) False

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Question 3

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In accordance with the rules of debit and credit, which of the following is true?

The trial balance is out of balance and the accountant suspects that a transposition or slide error has occurred. What will the accountant do to find the error?

Journalizing transactions using the double-entry bookkeeping system will eliminate fraud.

Office supplies purchased by Ari's Alarm Service on account were returned. Which of the following entries for Ari's Alarm Service records this transaction?

Increases and decreases in various types of accounts are listed below. In each case, indicate by "Dr." or "Cr." (a) whether the change in the account would be recorded as a debit or a credit and (b) whether the normal balance of the account is a debit or a credit.

A chart of accounts is a listing of accounts that make up the journal.

A chart of accounts is

A credit balance in which of the following accounts would indicate a likely error?

On November 10th, JumpStart Co. provides $2,900 in services to clients. At the time of service, the clients paid $600.00 in cash and put the balance on account. (a) Journalize this event. (b) On November 20th, JumpStart Co. clients paid an additional $900 on their accounts due. Journalize this event. (c) Calculate the amount of accounts receivable on November 30th.

Assets are increased with debits and decreased with credits.

Several transactions are listed below, with the accounting equation stated to the right side of each. Use the following identification codes to indicate the effects of each transaction on the accounting equation. Write your answers in the space provided under the accounting equation. You need an identification code for each element of the accounting equation. An example is given before the first transaction.

Which of the following entries records the receipt of cash for two months' rent? The cash was received in advance of providing the service.

Of the following, which will determine if the accounting equation is in balance?

The following errors took place in journalizing and posting transactions: Journalize the entries to correct the errors. Omit the explanations.

The post reference notation used in the ledger is the account number.

Revenues are equal to the difference between cash receipts and cash payments.

Which of the following is not a short-cut in finding errors on the trial balance?

Which of the following abbreviations are correct?