Question 1

Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first)
-A shareholder purchased stock
A) Debit an asset
B) Credit an asset
C) Debit a liability
D) Credit a liability
E) Debit common stock
F) Credit common stock
G) Debit dividends
H) Credit dividends
I) Debit revenue
J) Credit revenue
K) Debit expense
L) Credit expense

Accepted Answer

The answer of Match each of the numbered transactions of...

Question 2

Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first)
-Paid rent for the current month
A) Debit an asset
B) Credit an asset
C) Debit a liability
D) Credit a liability
E) Debit common stock
F) Credit common stock
G) Debit dividends
H) Credit dividends
I) Debit revenue
J) Credit revenue
K) Debit expense
L) Credit expense

Accepted Answer

Paying rent for the current month involves debiting an expense account (Rent Expense) and crediting an asset account (Cash).

Question 3

Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first)
-Received and immediately paid repair bill.
A) Debit an asset
B) Credit an asset
C) Debit a liability
D) Credit a liability
E) Debit common stock
F) Credit common stock
G) Debit dividends
H) Credit dividends
I) Debit revenue
J) Credit revenue
K) Debit expense
L) Credit expense

Accepted Answer

Receiving and immediately paying a repair bill would result in debiting an expense account to recognize the cost (K) and crediting an asset account (typically cash or bank) to reflect the payment made (B).

Question 4

Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first)
-Purchased equipment on account.
A) Debit an asset
B) Credit an asset
C) Debit a liability
D) Credit a liability
E) Debit common stock
F) Credit common stock
G) Debit dividends
H) Credit dividends
I) Debit revenue
J) Credit revenue
K) Debit expense
L) Credit expense

Accepted Answer

When a corporation purchases equipment on account, it increases its assets (equipment) by debiting an asset account. Simultaneously, because the purchase is on account, it increases its liabilities (accounts payable or a similar liability account) by crediting a liability account.

Question 5

Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first)
-Billed customers for services rendered.
A) Debit an asset
B) Credit an asset
C) Debit a liability
D) Credit a liability
E) Debit common stock
F) Credit common stock
G) Debit dividends
H) Credit dividends
I) Debit revenue
J) Credit revenue
K) Debit expense
L) Credit expense

Accepted Answer

When billing customers for services rendered, accounts receivable (an asset) is debited, and revenue is credited.

Question 6

Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first)
-Made partial payment for equipment purchased in transaction
A) Debit an asset
B) Credit an asset
C) Debit a liability
D) Credit a liability
E) Debit common stock
F) Credit common stock
G) Debit dividends
H) Credit dividends
I) Debit revenue
J) Credit revenue
K) Debit expense
L) Credit expense

Accepted Answer

The answer of Match each of the numbered transactions of...

Question 7

Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first)
-Collected amounts due from customers billed in transaction
A) Debit an asset
B) Credit an asset
C) Debit a liability
D) Credit a liability
E) Debit common stock
F) Credit common stock
G) Debit dividends
H) Credit dividends
I) Debit revenue
J) Credit revenue
K) Debit expense
L) Credit expense

Accepted Answer

The answer of Match each of the numbered transactions of...

Question 8

Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first)
-Borrowed money from bank, giving a note.
A) Debit an asset
B) Credit an asset
C) Debit a liability
D) Credit a liability
E) Debit common stock
F) Credit common stock
G) Debit dividends
H) Credit dividends
I) Debit revenue
J) Credit revenue
K) Debit expense
L) Credit expense

Accepted Answer

The answer of Match each of the numbered transactions of...

Question 9

Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first)
-Paid cash dividends.
A) Debit an asset
B) Credit an asset
C) Debit a liability
D) Credit a liability
E) Debit common stock
F) Credit common stock
G) Debit dividends
H) Credit dividends
I) Debit revenue
J) Credit revenue
K) Debit expense
L) Credit expense

Accepted Answer

Paying cash dividends involves debiting the Dividends account to recognize the distribution of earnings to shareholders and crediting an asset account (usually Cash) to reflect the decrease in the company's assets as a result of the payment.

Question 10

Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first)
-Paid employees' salaries
A) Debit an asset
B) Credit an asset
C) Debit a liability
D) Credit a liability
E) Debit common stock
F) Credit common stock
G) Debit dividends
H) Credit dividends
I) Debit revenue
J) Credit revenue
K) Debit expense
L) Credit expense

Accepted Answer

When paying employees' salaries, the company incurs an expense, so it debits the expense account. The payment reduces cash, an asset, so it credits the asset account.

Question 11

The following T-accounts contain numbered entries for the July transactions of RL, Inc., who opened on July 1 of this year.
  
Give a reasonable description of each of the nine numbered transactions entered in the above accounts. Example: (1) Shareholders invested $30,000 cash in the business.

Accepted Answer

The answer of The following T-accounts contain numbered entries for...

Question 12

Use the T-account below, to answer the following questions.
  
Required
A) What journal entry is most likely represented by $2,400,200 in the T-account? What business event caused this?
B) What journal entry is most likely represented by the $1,506,500 in the T-account? What business event caused this?
C) What is the balance of Accounts Receivable on December 31?

Accepted Answer

The answer of Use the T-account below, to answer the...

Question 13

Sparkling Water offers pool and spa cleaning services to hotels and residential customers. Commercial (hotels) customers pay on a monthly contract basis, while residential customers pay an hourly rate based on services provided.
In July, Sparkling Water signed a 6-month contract with Hilton Holidays to provide pool and spa cleaning services for 3 hotel sites. The contract price of $24,000 was collected on July 1. The services will be provided evenly over the 6 months.
During July, Sparkling Water also provided 80 hours of residential pool services at $15 per hour. These services have not yet been billed to residential customers. The company uses the account, Fees Receivable, to reflect amounts due but not yet billed.
Required
a. Prepare the entry on July 1 to record the receipt of $24,000 cash related to the contract with Hilton Holidays.
b. Prepare the adjusting entry to be made on July 31 for the contract work performed for Hilton Holidays during the month.
c. Prepare the adjusting entry needed on July 31 to reflect the residential pool services performed during the month.

Accepted Answer

The answer of Sparkling Water offers pool and spa cleaning...

Question 14

On January 18, 2019, MetroPlex paid $12,000 for a two-year insurance premium that covers February 1, 2019 through January 31, 2021. MetroPlex's year-end is March 31. 
Required
a. What entry is made on January 18, 2019?
b. What adjusting entry should be made on March 31, 2019 before the financial statements are prepared for the year ending March 31, 2019?

Accepted Answer

The answer of On January 18, 2019, MetroPlex paid $12,000...

Question 15

Use BVD's adjusted trial balance to prepare the company's income statement.

Accepted Answer

The answer of Use BVD's adjusted trial balance to prepare...

Question 16

Use BVD's adjusted trial balance to prepare BVD's balance sheet for the current year-end.

Accepted Answer

The answer of Use BVD's adjusted trial balance to prepare...

Question 17

Use BVD's adjusted trial balance to prepare entries to close BVD's temporary accounts in journal entry form.

Accepted Answer

The answer of Use BVD's adjusted trial balance to prepare...

Question 18

Listed below are several accounts of Moyer Catering, Inc. Indicate with an X in the proper column whether (1) the account is permanent or temporary, (2) which side of the account increases are recorded on, and (3) which side of the account represents a normal balance.

Accepted Answer

The answer of Listed below are several accounts of Moyer...

Question 19

What are the three major steps in the closing process? Why is the closing process necessary?

Accepted Answer

The answer of What are the three major steps in...

Question 20

Make T accounts for the following general ledger accounts of Mast Printers, Inc., which began business on January 1: Cash; Accounts Receivable; Supplies; Equipment; Accounts Payable; Notes Payable; Common Stock; Dividends; Printing Fees Earned; Salaries Expense; Rent Expense; and Utilities Expense. Record the following January transactions in the accounts and key each entry with the transaction number.
(1) Shareholders purchased $90,000 in stock.
(2) Paid rent for the month, $1,100.
(3) Purchased equipment for $30,000, giving a note payable for $30,000.
(4) Purchased supplies on account, $5,000.
(5) Billed clients for services rendered, $19,000.
(6) Paid salaries for the month, $7,800.
(7) Paid $4,000 on account for supplies purchased in transaction (4).
(8) Collected $8,700 from clients previously billed.
(9) Paid utilities for the month, $490.
(10) Paid $5,800 cash dividends.

Accepted Answer

The answer of Make T accounts for the following general...

Quiz 13: Appendix A: The Language of Accountants: Debits and Credits

Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first) -A shareholder purchased stock

Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first) -Paid rent for the current month

Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first) -Received and immediately paid repair bill.

Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first) -Purchased equipment on account.

Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first) -Billed customers for services rendered.

Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first) -Made partial payment for equipment purchased in transaction

Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first) -Collected amounts due from customers billed in transaction

Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first) -Borrowed money from bank, giving a note.

Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first) -Paid cash dividends.

Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first) -Paid employees' salaries

The following T-accounts contain numbered entries for the July transactions of RL, Inc., who opened on July 1 of this year. Give a reasonable description of each of the nine numbered transactions entered in the above accounts. Example: (1) Shareholders invested $30,000 cash in the business.

Use BVD's adjusted trial balance to prepare the company's income statement.

Use BVD's adjusted trial balance to prepare BVD's balance sheet for the current year-end.

Use BVD's adjusted trial balance to prepare entries to close BVD's temporary accounts in journal entry form.

Listed below are several accounts of Moyer Catering, Inc. Indicate with an X in the proper column whether (1) the account is permanent or temporary, (2) which side of the account increases are recorded on, and (3) which side of the account represents a normal balance.

What are the three major steps in the closing process? Why is the closing process necessary?