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Exam 2: Analyzing Transactions

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Question 81

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Expense accounts are increased by credits.

A) True
B) False

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Question 82

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Below is the unadjusted trial balance for Dawson Designs Co.Required (1) Identify the errors in the trial balance. All accounts have normal balances. (2) Prepare a corrected trial balance.

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(1)a. The Debit column is added incorrec...

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Question 83

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The payment for the monthly rent will require which of the following entries?

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

All of the following accounts are increased with a debit except

The chart of accounts classifies the accounts to make identification of the accounts easier. Describe the numbering system businesses use in setting up the chart of accounts.

Prepare a journal entry on October 12 for the fees earned on account, $14,600. Omit explanation.

A chart of accounts is

The classification and normal balance of the drawing account are

Which of the following groups of accounts increases with a credit?

Which of the following is not considered to be a liability?

Which of the following accounts is an owner's equity account?

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

Record the following selected transactions for April in a two-column journal, identifying each entry by letter: (a)Received $18,000 from Katie Long, owner. (b)Purchased equipment for $27,000, paying $10,000 in cash and giving a note payable for the remainder. (c)Paid $2,300 for rent for April. (d)Purchased $1,500 of supplies on account. (e)Recorded $9,800 of fees earned on account. (f)Received $7,500 in cash for fees earned. (g)Paid $1,200 to creditors on account. (h)Paid wages of $3,425. (i)Received $7,900 from customers on account. (j)Recorded owner's withdrawal of $1,875.

A trial balance is prepared to

A drawing account represents the amount of withdrawals made by the owner.

The following two situations are independent of each other.​ 1. On June 1, the cash account balance was $45,750. During June, cash payments totaled $243,910, and the June 30 balance was $53,200. Determine the cash receipts during June and show your calculation.​ 2. On March 1, the supplies account balance was $1,800. During March, supplies of $2,450 were purchased, and supplies of $630 were on hand as of March 31. Determine the supplies expense for March and show your calculation.

Accounts are classified in the ledger

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

To determine the balance in an account, always subtract credits from debits.