Question 1

Indicate on which of the financial statements the following items appears.Use I for income statement,E for statement of owner's equity,and B for balance sheet.More than one statement may be appropriate for some items.

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Question 2

Jason Hope decided to open a hotel in his hometown.Prepare journal entries to record the following transactions.Hope uses the accounts Room Rental Revenue and Event Revenue.All expenses for special events are recorded as Event Expense.

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Question 3

ABC Company made a $2,500 payment on account,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.

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Question 4

For each of the following accounts,identify whether a debit or credit yields the indicated change.

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Question 5

Mary Sunny began business as Sunny Law Firm on November 1.Record the following November transactions by making entries directly to the T-accounts provided.Then,prepare a trial balance,as of November 30.
a)Mary invested $15,000 cash and a law library valued at $6,000.
b)Purchased $7,500 of office equipment from John Bronx on credit.
c)Completed legal work for a client and received $1,500 cash in full payment.
d)Paid John Bronx.$3,500 cash in partial settlement of the amount owed.
e)Completed $4,000 of legal work for a client on credit.
f)Mary withdrew $2,000 cash for personal use.
g)Received $2,500 cash as partial payment for the legal work completed for the client in (e).
h)Paid $2,500 cash for the legal secretary's salary.

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Question 6

_____________ and ______________ are the starting points for the analyzing and recording process.
Answers can appear in either order.

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Question 7

Based on the following trial balance for Sally's Salon,prepare an income statement,statement of owner's equity,and a balance sheet.Sally Crawford made no additional investments in the company during the year.

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Question 8

The following trial balance is prepared from the general ledger of HG's Auto Maintenance.  Because the trial balance did not balance,you decided to examine the accounting records.You found that the following errors had been made:
1.A purchase of supplies on account for $245 was posted as a debit to Supplies and as a debit to Accounts Payable.
2.An investment of $500 cash by the owner was debited to Hal Griffin,Capital and credited to Cash.
3.In computing the balance of the Accounts Receivable account,a debit of $600 was omitted from the computation.
4.One debit of $300 to the Hal Griffin,Withdrawals account was posted as a credit.
5.Office equipment purchased for $800 was posted to the Shop Equipment account.
6.One entire entry was not posted to the general ledger.The transaction involved the receipt of $125 cash for repair services performed for cash.
Prepare a corrected trial balance for the HG's Auto Maintenance as of October 31.

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Question 9

George Butler owned a tugboat and was tired of his current job.He decided to open a business that provides day tugboat tours to tourists along the Mississippi River near his hometown.Prepare journal entries to record the following transactions.

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Question 10

Based on the following trial balance for Barry's Automotive Shop,prepare an income statement,statement of owner's equity,and a balance sheet.Barry made no additional investments in the company during the year.

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The answer of Based on the following trial balance for...

Question 11

Pippa's Paralegal Services completed these transactions in February:
a.Purchased office supplies on account,$300.
b.Completed work for a client on credit,$500.
c.Paid cash for the office supplies purchased in (a).
d.Completed work for a client and received $800 cash.
e.Received $500 cash for the work described in (b).
f.Received $1,000 from a client for paralegal services to be performed in March.
Prepare journal entries to record the above transactions.Explanations are not necessary.

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Question 12

On December 3,the ABBJ Company paid $1,400 cash in salaries to office personnel.Prepare the general journal entry to record this transaction.

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Question 13

For each of the accounts in the following table (1)identify the type of account as an asset,liability,equity,revenue,or expense,and (2)identify the normal balance of the account.

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Question 14

A business paid $100 cash to Charles Nice (the owner of the business)for his personal use.Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.

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Question 15

Larry Matt completed these transactions during December of the current year:  Prepare general journal entries to record these transactions.

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Question 16

Given each of the following errors,indicate on the table below the amount by which the trial balance will be out of balance and which trial balance column (debit or credit)will have the larger total as a result of the error.
a.$100 debit to Cash was debited to the Cash account twice.
b.$1,900 credit to Sales was posted as a $190 credit.
c.$5,000 debit to Office Equipment was debited to Office Supplies.
d.$625 debit to Prepaid Insurance was posted as a $62.50 debit.
e.$520 credit to Accounts Payable was not posted.

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Question 17

On February 5,Teddy's Catering purchased an oven that cost $35,000.The firm made a down payment of $5,000 cash and signed a long-term note payable for the balance.Show the general journal entry to record this transaction.

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Question 18

For each of the following (1)identify the type of account as an asset,liability,equity,revenue,or expense,and (2)identify the normal balance of the account.

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Question 19

Jarrod Automotive,owned and operated by Jarrod Johnson,began business in September of the current year.Jarrod,a mechanic,had no experience with recording business transactions.As a result,Jarrod entered all of September's transactions directly into the ledger accounts.When he tried to locate a particular entry he found it confusing and time consuming.He has hired you to improve his accounting procedures.The accounts in his General Ledger follow:    Prepare the general journal entries,in chronological order (a)through (e),from the T-account entries shown.Include a brief description of the probable nature of each transaction.

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Question 20

After preparing an (unadjusted)trial balance at year-end,R.Chang of Chang Window Company discovered the following errors:
1.Cash payment of the $225 telephone bill for December was recorded twice.
2.Cash payment of a note payable was recorded as a debit to Cash and a debit to Notes Payable for $1,000.
3.A $900 cash withdrawal by the owner was recorded to the correct accounts as $90.
4.An additional investment of $5,000 cash by the owner was recorded as a debit to R,Chang,Capital and a credit to Cash.
5.A credit purchase of office equipment for $1,800 was recorded as a debit to the Office Equipment account with no offsetting credit entry.
Using the form below,indicate whether the error would cause the trial balance to be out of balance by placing an X in either the yes or no column.Would the error cause the trial balance to be out of balance?  Would the error cause the trial balance to be out of balance?

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Quiz 2: Analyzing and Recording Transactions

Indicate on which of the financial statements the following items appears.Use I for income statement,E for statement of owner's equity,and B for balance sheet.More than one statement may be appropriate for some items.

Jason Hope decided to open a hotel in his hometown.Prepare journal entries to record the following transactions.Hope uses the accounts Room Rental Revenue and Event Revenue.All expenses for special events are recorded as Event Expense.

ABC Company made a $2,500 payment on account,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.

For each of the following accounts,identify whether a debit or credit yields the indicated change.

_ and __ are the starting points for the analyzing and recording process. Answers can appear in either order.

Based on the following trial balance for Sally's Salon,prepare an income statement,statement of owner's equity,and a balance sheet.Sally Crawford made no additional investments in the company during the year.

George Butler owned a tugboat and was tired of his current job.He decided to open a business that provides day tugboat tours to tourists along the Mississippi River near his hometown.Prepare journal entries to record the following transactions.

Based on the following trial balance for Barry's Automotive Shop,prepare an income statement,statement of owner's equity,and a balance sheet.Barry made no additional investments in the company during the year.

On December 3,the ABBJ Company paid $1,400 cash in salaries to office personnel.Prepare the general journal entry to record this transaction.

For each of the accounts in the following table (1)identify the type of account as an asset,liability,equity,revenue,or expense,and (2)identify the normal balance of the account.

A business paid $100 cash to Charles Nice (the owner of the business)for his personal use.Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.

Larry Matt completed these transactions during December of the current year: Prepare general journal entries to record these transactions.

On February 5,Teddy's Catering purchased an oven that cost $35,000.The firm made a down payment of $5,000 cash and signed a long-term note payable for the balance.Show the general journal entry to record this transaction.

For each of the following (1)identify the type of account as an asset,liability,equity,revenue,or expense,and (2)identify the normal balance of the account.

Quiz 2: Analyzing and Recording Transactions

Indicate on which of the financial statements the following items appears.Use I for income statement,E for statement of owner's equity,and B for balance sheet.More than one statement may be appropriate for some items.

Jason Hope decided to open a hotel in his hometown.Prepare journal entries to record the following transactions.Hope uses the accounts Room Rental Revenue and Event Revenue.All expenses for special events are recorded as Event Expense.

ABC Company made a $2,500 payment on account,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.

For each of the following accounts,identify whether a debit or credit yields the indicated change.

_____________ and ______________ are the starting points for the analyzing and recording process. Answers can appear in either order.

Based on the following trial balance for Sally's Salon,prepare an income statement,statement of owner's equity,and a balance sheet.Sally Crawford made no additional investments in the company during the year.

George Butler owned a tugboat and was tired of his current job.He decided to open a business that provides day tugboat tours to tourists along the Mississippi River near his hometown.Prepare journal entries to record the following transactions.

Based on the following trial balance for Barry's Automotive Shop,prepare an income statement,statement of owner's equity,and a balance sheet.Barry made no additional investments in the company during the year.

On December 3,the ABBJ Company paid $1,400 cash in salaries to office personnel.Prepare the general journal entry to record this transaction.

For each of the accounts in the following table (1)identify the type of account as an asset,liability,equity,revenue,or expense,and (2)identify the normal balance of the account.

A business paid $100 cash to Charles Nice (the owner of the business)for his personal use.Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.

Larry Matt completed these transactions during December of the current year: Prepare general journal entries to record these transactions.

On February 5,Teddy's Catering purchased an oven that cost $35,000.The firm made a down payment of $5,000 cash and signed a long-term note payable for the balance.Show the general journal entry to record this transaction.

For each of the following (1)identify the type of account as an asset,liability,equity,revenue,or expense,and (2)identify the normal balance of the account.

_ and __ are the starting points for the analyzing and recording process. Answers can appear in either order.