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Exam 2: Analyzing and Recording Transactions

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Question 91

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During the month of March,Cooley Computer Services made purchases on account totaling $43,500.Also during the month of March,Cooley was paid $8,000 by a customer for services to be provided in the future and paid $36,900 of cash on its accounts payable balance.If the balance in the accounts payable account at the beginning of March was $77,300,what is the balance in accounts payable at the end of March?

A) $83,900.
B) $91,900.
C) $6,600.
D) $75,900.
E) $4,900.

F) A) and C)
G) None of the above

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Question 92

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Debits increase asset and expense accounts.

A) True
B) False

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Question 93

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The balance sheet reports the financial position of a company at a point in time.

Increases in assets are _______________ to asset accounts,increases in liabilities are _______________ to liability accounts.

Robert Haddon contributed $70,000 in cash and land worth $130,000 to open a new business,RH Consulting.Which of the following general journal entries will RH Consulting make to record this transaction?

Stride Along has total assets of $385 million.Its total liabilities are $100 million and its equity is $285 million.Calculate its debt ratio.

At the end of the current year,Norman Company reported total liabilities of $300,000 and total equity of $100,000.The company's debt ratio on the last year-end was:

Based on the following trial balance for Sal's Beauty Shop,prepare an income statement,statement of owner's equity,and a balance sheet.Sal made no additional investments in the company during the year. Sal's Beauty Shop Trial Balance December 31

Identify whether a debit or credit yields the indicated change for each of the following accounts.

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

Inge Industries received $3,000 from a customer for services rendered and not previously recorded.Inge's general journal entry to record this transaction will be:

Land and buildings are generally recorded in the same ledger account.

A revenue account normally has a debit balance.

Andrea Conaway opened Wonderland Photography on January 1 of the current year.During January,the following transactions occurred and were recorded in the company's books: 1) Conaway invested $13,500 cash in the business. 2) Conaway contributed $20,000 of photography equipment to the business. 3) The company paid $2,100 cash for an insurance policy covering the next 24 months. 4) The company received $5,700 cash for services provided during January. 5) The company purchased $6,200 of office equipment on credit. 6) The company provided $2,750 of services to customers on account. 7) The company paid cash of $1,500 for monthly rent. 8) The company paid $3,100 on the office equipment purchased in transaction #5 above. 9) Paid $275 cash for January utilities. Based on this information,the balance in the Andrea Conaway,Capital account reported on the Statement of Owner's Equity at the end of the month would be:

A company paid $2,500 cash to satisfy a previously recorded account payable.Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.

A journal gives a complete record of each transaction in one place,and shows the debits and credits for each transaction.

A collection of all accounts and their balances used by a business is called a:

The owner's withdrawal account normally has a credit balance since it is an equity account.

Transactions are first recorded in the ledger.

The trial balance is a list of all general ledger accounts and their balances at a point in time.