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Exam 2: Analyzing Transactions

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Question 51

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A credit may signify a

A) decrease in assets
B) decrease in liabilities
C) decrease in retained earnings
D) decrease in revenue

E) B) and D)
F) All of the above

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Question 52

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The bookkeeper for Brockton Industries prepared the following journal entries and posted the entries to the general ledger as indicated in the T accounts presented.Assume that the dollar amounts and the descriptions of the entries are correct. REQUIRED: If you assume that all journal entries have been recorded correctly,use the above information to: 1)Identify the postings to the general ledger that were made incorrectly. 2)Describe how each incorrect posting should have been made.

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(1)The bookkeeper incorrectly posted the...

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Question 53

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An overpayment error was discovered in computing and paying the wages of a Jamison Tree Trimming employee.When Jamison receives cash from the employee for the amount of the overpayment,which of the following entries will Jamison make?

The recording of cash receipts to the cash account will be done by debiting the account.

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

Accounts in the ledger are usually maintained in alphabetical order.

Increases and decreases in various types of accounts are listed below.In each case,indicate by "Dr." or "Cr." (a)whether the change in the account would be recorded as a debit or a credit and (b)whether the normal balance of the account is a debit or a credit.

Answer the following questions for each of the errors listed below,considered individually: Present your answers in columnar form,using the following headings: Errors:

When an accounts payable account is paid in cash,company expenses increase.

Journalize the following selected transactions for April 2011 in a two-column journal.Journal entry explanations may be omitted.

Which one of the statements below is not a purpose for the journal?

On January 8th,JumpStart purchased $20,000 worth of office equipment.Prepare the journal entry to record this transaction.

Liabilities are debts owed by the business entity.

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

Accounts are classified in the ledger

When a transposition error is made on the trial balance,the difference between the debit and credit totals on the trial balance will be

Which of the following entries records the receipt of cash from patients on account?

The classification and normal balance of the dividends account is

The following errors took place in journalizing and posting transactions: Journalize the entries to correct the errors.Omit the explanations.

Analyze the following transactions as to their effect on the accounting equation. Some of the possible effects of a transaction on the accounting equation are listed below: Put the appropriate letter next to each transaction.