Question 1

The bookkeeper for Brockton Industries prepared the following journal entries and posted the entries to the general ledger as indicated in the T accounts presented. Assume that the dollar amounts and the descriptions of the entries are correct.
     REQUIRED:
If you assume that all journal entries have been recorded correctly, use the above information to:
(1) Identify the postings to the general ledger that were made incorrectly.
(2) Describe how each incorrect posting should have been made.

Accepted Answer

(1) The bookkeeper incorrectly posted th...

Question 2

This journal entry will

Accepted Answer

A)   increase Stockholders' Equity and decrease Cash
B)   increase Cash and decrease Stockholders' Equity
C)   increase Cash and increase Stockholders' Equity
D)   decrease Cash and decrease Stockholders' EquityE) B) and C)
F) None of the above

Question 3

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

Accepted Answer

A)   Office Supplies, debit; Cash, credit
B)   Office Supplies, debit; Accounts Payable, credit
C)   Cash, debit; Office Supplies, credit
D)   Accounts Payable, debit; Office Supplies, creditE) C) and D)
F) A) and B)

Question 4

The process of initially recording a business transaction is called

Accepted Answer

A)   trial balancing
B)   posting
C)   journalizing
D)   balancingE) B) and C)
F) All of the above

Question 5

Normal balances appear on the side that increases the account balance.

Accepted Answer

A) True 
 B)False

Question 6

Prarie Clinic purchased X-ray equipment for $4,000, paid $1,275 down, with the remainder to be paid later. The correct entry would be

Accepted Answer

A)   Equipment 1,275 Cash 1,275
B)   Cash 1,275 Accounts Payable 2,725Equipment 4,000
C)   Equipment Expense 4,000 Accounts Payable 1,275Cash 2,725
D)   Equipment 4,000 Accounts Payable 2,725Cash 1,275E) B) and C)
F) C) and D)

Question 7

All of the following statements regarding a horizontal analysis are true except

Accepted Answer

A)   A horizontal analysis is used to compare an item in a current statement with the same item in prior statements.
B)   A horizontal analysis can be performed on a balance sheet and income statement, but not on a statement of cash flows.
C)   If fees earned in 2010 are $150,000 and fees earned in 2011 are $187,500, a horizontal analysis will indicate a 25% increase over this period.
D)   When two statements are compared in horizontal analysis, the earlier statement is used as the base for computing the amount and the percent of change.E) C) and D)
F) A) and B)

Question 8

On December 1st, JumpStart Company provides $2,800 in services to clients.
(a) Journalize this event as if the clients had paid cash at the time the services were rendered.
(b) (1) Journalize this event as if the clients had placed this on account.
(b) (2) Assume that the clients paid $1,200 of the amount on account on December 30th. Journalize this transaction.

Accepted Answer

The answer of On December 1st, JumpStart Company provides $2,800...

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Listed below are accounts to use for transactions (a) through (d), each identified by a number. Following this list are the transactions. You are to indicate for each transaction the accounts that should be debited and credited by placing the account number(s) in the appropriate box.

Accepted Answer

The answer of Listed below are accounts to use for...

Question 11

The accounts payable account is listed in the chart of accounts as an asset.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following entries records the acquisition of office supplies on account?

Accepted Answer

A)   Office Supplies, debit; Cash, credit
B)   Cash, debit; Office Supplies, credit
C)   Office Supplies, debit; Accounts Payable, credit
D)   Accounts Receivable, debit; Office Supplies, creditE) C) and D)
F) B) and C)

Question 13

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.

Accepted Answer

A) True 
 B)False

Question 14

In which of the following types of accounts are increases recorded by debits?

Accepted Answer

A)   assets, liabilities
B)   dividends, liabilities
C)   expenses, liabilities
D)   assets, expensesE) All of the above
F) B) and D)

Question 15

Journalize the entries to correct the following errors:

Accepted Answer

The answer of Journalize the entries to correct the following...

Question 16

Accounts are classified in the ledger

Accepted Answer

A)   chronologically
B)   alphabetically
C)   in accordance with their appearance in the financial statements
D)   so that accounts used most often are listed firstE) B) and C)
F) C) and D)

Question 17

Record the following selected transactions for April in a two-column journal, identifying each entry by letter:

Accepted Answer

The answer of Record the following selected transactions for April...

Question 18

The process of recording a transaction in the journal is called

Accepted Answer

A)   recording
B)   journalizing
C)   posting
D)   summarizingE) C) and D)
F) B) and C)

Question 19

Consuming goods and services in the process of generating revenues results in expenses.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following describes the classification and normal balance of the fees earned account?

Accepted Answer

A)   an asset with a credit balance
B)   a liability with a credit balance
C)   an expense with a debit balance
D)   a revenue with a credit balanceE) A) and B)
F) A) and C)

Exam 2: Analyzing Transactions

Record the following selected transactions for April in a two-column journal, identifying each entry by letter:

Correct Answer
verified

Listed below are accounts to use for transactions (a) through (d), each identified by a number. Following this list are the transactions. You are to indicate for each transaction the accounts that should be debited and credited by placing the account number(s) in the appropriate box.

Correct Answer
verified

The process of initially recording a business transaction is called

Correct Answer
verified

Which of the following describes the classification and normal balance of the fees earned account?

Correct Answer
verified

Correct Answer
verified

Accounts are classified in the ledger

Correct Answer
verified

Consuming goods and services in the process of generating revenues results in expenses.

Correct Answer
verified

The process of recording a transaction in the journal is called

Correct Answer
verified

In which of the following types of accounts are increases recorded by debits?

Correct Answer
verified

All of the following statements regarding a horizontal analysis are true except

Correct Answer
verified

Which of the following entries records the acquisition of office supplies on account?

Correct Answer
verified

Journalize the entries to correct the following errors:

Correct Answer
verified

Normal balances appear on the side that increases the account balance.

Correct Answer
verified

The accounts payable account is listed in the chart of accounts as an asset.

Correct Answer
verified

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

Correct Answer
verified

Prarie Clinic purchased X-ray equipment for $4,000, paid $1,275 down, with the remainder to be paid later. The correct entry would be

Correct Answer
verified

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.

Correct Answer
verified

This journal entry will

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified
(1) The bookkeeper incorrectly posted th...
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Exam 2: Analyzing Transactions

Record the following selected transactions for April in a two-column journal, identifying each entry by letter:

Correct AnswerverifiedShow Answer

Listed below are accounts to use for transactions (a) through (d), each identified by a number. Following this list are the transactions. You are to indicate for each transaction the accounts that should be debited and credited by placing the account number(s) in the appropriate box.

Correct AnswerverifiedShow Answer

The process of initially recording a business transaction is called

Correct AnswerverifiedShow Answer

Which of the following describes the classification and normal balance of the fees earned account?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Accounts are classified in the ledger

Correct AnswerverifiedShow Answer

Consuming goods and services in the process of generating revenues results in expenses.

Correct AnswerverifiedShow Answer

The process of recording a transaction in the journal is called

Correct AnswerverifiedShow Answer

In which of the following types of accounts are increases recorded by debits?

Correct AnswerverifiedShow Answer

All of the following statements regarding a horizontal analysis are true except

Correct AnswerverifiedShow Answer

Which of the following entries records the acquisition of office supplies on account?

Correct AnswerverifiedShow Answer

Journalize the entries to correct the following errors:

Correct AnswerverifiedShow Answer

Normal balances appear on the side that increases the account balance.

Correct AnswerverifiedShow Answer

The accounts payable account is listed in the chart of accounts as an asset.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Prarie Clinic purchased X-ray equipment for $4,000, paid $1,275 down, with the remainder to be paid later. The correct entry would be

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

This journal entry will

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answerverified(1) The bookkeeper incorrectly posted th...View AnswerShow Answer

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(1) The bookkeeper incorrectly posted th...
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