FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 2: Analyzing and Recording Transactions

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Short Answer

Review LaterAdd Note

Review Later

A company provided $12,000 of consulting services, and was immediately paid in cash by the customer.Identify the journal entry below that properly records this transaction. $\begin{array}{l}\text { A) }\\\begin{array} { | l | r | r | } \hline \text { Accounts receivable } & 12,000 & \\\hline \text { Consulting services revenue } & & 12,000 \\\hline\end{array}\end{array}$ B) $\begin{array}{|l|r|r|}\hline \text { Accounts receivable } & 12,000 & \\\hline \text { Cash } & & 12,000 \\\hline\end{array}$ C) $\begin{array}{|l|r|r|}\hline \text { Consulting services revenue } & 12,000 & \\\hline \text { Cash } & & 12,000 \\\hline\end{array}$ D) $\begin{array}{|l|r|l|}\hline \text { Cash } & 12,000 & \\\hline \text { Consulting services revenue } & & 12,000 \\\hline\end{array}$ E) $\begin{array}{|l|r|l|}\hline \text { Accounts payable } & 12,000 & \\\hline \text { Consulting services revenue } & & 12,000 \\\hline\end{array}$

Correct Answer

verified

Show Answer

Question 22

Multiple Choice

Review LaterAdd Note

Review Later

A double-entry accounting system is an accounting system:

A) That may only be used if T-accounts are used.
B) That insures that errors never occur.
C) In which each transaction affects and is recorded in two or more accounts but that could include two debits and no credits.
D) That records the effects of transactions and other events in at least two accounts with equal debits and credits.
E) That records each transaction twice.

F) A) and D)
G) A) and C)

Correct Answer

verified

Show Answer

Question 23

Multiple Choice

Review LaterAdd Note

On January 1 of the current year, Jimmy's Sandwich Company reported owner's capital totaling $122,500. During the current year, total revenues were $96,000 while total expenses were $85,500. Also, during the current year Jimmy withdrew $20,000 from the company. No other changes in equity occurred during the year. If, on December 31 of the current year, total assets are $196,000, the change in owner's capital during the year was:

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

Explain the recording and posting processes.

An asset created by prepayment of an insurance premium is:

Identify the account used by businesses to record the transfer of assets from a business to its owner for personal use:

A credit entry:

Identify the account below that is classified as a liability account:

If a company purchases equipment paying cash, the journal entry to record this transaction will include a debit to Cash.

An account is a record of increases and decreases in a specific asset, liability, equity, revenue, or expense item.

Trimble Graphic Design receives $1,500 from a client billed in a previous month for services provided. Which of the following general journal entries will Trimble Graphic Design make to record this transaction? A) $\begin{array}{|l|r|r|}\hline \text { Accounts Receivable } & 1,500 & \\\hline \text { Unearned Design Revenue } & & 1,500 \\\hline\end{array}$ B) $\begin{array}{|l|r|r|}\hline \text { Cash } & 1,500 & \\\hline \text { Unearned Design Revenue } & & 1,500 \\\hline\end{array}$ C) $\begin{array}{|l|r|r|}\hline \text { Cash } & 1,500 & \\\hline \text { Design Revenue } & & 1,500 \\\hline\end{array}$ D) $\begin{array}{|l|r|r|}\hline \text { Accounts Receivable } & 1,500 & \\\hline \text { Cash } & & 1,500 \\\hline\end{array}$ $\begin{array}{l}\text { E) }\\\begin{array} { | l | r | r | } \hline \text { Cash } & 1,500 & \\\hline \text { Accounts Receivable } & & 1,500 \\\hline\end{array}\end{array}$

Unearned revenues refer to a(n) :

The numbering system used in a company's chart of accounts:

Ralph Pine Consulting received its telephone bill in the amount of $300, and immediately paid it. Pine's general journal entry to record this transaction will include a

Unearned revenues are classified as liabilities.

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

A revenue account normally has a debit balance.

Indicate whether a debit or credit entry would be required to record the following changes in each account.

Larry Bar opened a frame shop and completed these transactions: 1. Larry started the shop by investing $40,000 cash and equipment valued at $18,000. 2. Purchased $70 of office supplies on credit. 3. Paid $1,200 cash for the receptionist's salary. 4. Sold a custom frame service and collected $1,500 cash on the sale. 5. Completed framing services and billed the client $200. What was the balance of the cash account after these transactions were posted?