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Exam 2: Analyzing Transactions

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Question 61

Multiple Choice

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Proof that the dollar amount of the debits equals the dollar amount of the credits in the ledger means

A) all of the information from the journal was correctly transferred to the ledger
B) all accounts have their correct balances in the ledger
C) only the journal is accurate; the ledger may be incorrect
D) only that the debit dollar amounts equal the credit dollar amounts

E) B) and D)
F) A) and C)

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Question 62

Essay

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

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(1)
a. The debit column is added incorre...

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Question 63

Multiple Choice

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The process of transferring the journal entries to the accounts is known as

Prepare a journal entry for the purchase of a truck on April 4 for $85,700, paying $15,000 cash and the remainder on account.

The posting process will include the transfer of the following information from the journal to the account.

Which of the following situations increase owner's equity?

The balance of the account can be determined by adding all of the debits, adding all of the credits, and adding the amounts together.

The post reference columns are used to trace transactions from the journal to the accounts. What will be posted on the post reference column of (a) the journal and (b) on the account?

On January 8th, Damien Lawson transfers ownership of several pieces of office equipment to his new business, JumpStart. When new, these items were worth $72,500. The fair market value of the equipment is $60,000. Journalize this transfer.

McMann Company has a condensed income statement as shown:: REQUIRED: Prepare a horizontal analysis of McMann Company's income statements. Comment on the trends, both favorable and unfavorable.

Which of the following is true regarding normal balances of accounts?

The accounts in the ledger of Monroe Entertainment Co. are listed in alphabetical order. All accounts have normal balances. The total of all the assets is:

Which of the following entries records the investment of cash by Ron York, owner of a proprietorship?

On January 1, 2010, Cary Parsons established a catering service. Listed below are accounts she would like to open in the general ledger. List the accounts in the order in which they should appear in the ledger and propose a two digit account numbering scheme that is consistent with the rules of a proper chart of accounts.

The process of recording a transaction in the journal is called

Accounts

A debit signifies a decrease in

For the following, mark a "D" if the following account normally has a debit balance and mark a "C" if the following account normally has a credit balance. _____1. Notes Payable _____2. Mortgage Payable _____3. Drawing _____4. Accounts Receivable _____5. Capital _____6. Rent Revenue _____7. Unearned Income _____8. Utility Expense _____9. Automobiles

The right hand side of a T account is known as a debit and the left hand side is known as a credit.

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