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Study Resources (Accounting)

204.On January 1, 2010, Cary Parsons established a catering service. Listed below are accounts to use for transactions (a) through (e), each identified by a number. Following this list are the transactions that occurred in Parsons’ first month of operation. You are to indicate for each transaction the accounts that.
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11.To determine the balance in an account, always subtract credits from debits. 12.The double-entry accounting system records each transaction twice. 13.The increase side of all accounts is the normal balance. 14.Transactions are initially entered into a record called a journal. 15.The process of recording a transaction in the journal is called journalizing. 16.Journalizing is the.
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190.Eric Wood, CPA, was organized on January 1, 2011, as a proprietorship. List the errors that you find in the following financial statements and prepare the corrected statements for the three months ended March 31, 2011. Eric Wood, CPA Income Statement For the Three Months Ended March 31, 2011 Fees earned $42,000 Operating expenses: Salary expense $9,735 Rent expense 5,200 Advertising.
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41.Liabilities are debts owed by the business entity. 42.The accounts payable account is listed in the chart of accounts as an asset. 43.A drawing account represents the amount of withdrawals made by the owner. 44.Revenues are equal to the difference between cash receipts and cash payments. 45.Expenses use up assets or consume services in.
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184.Indicate whether each of the following activities would be reported on the Statement of Cash Flows as an Operating Activity, an Investing Activity, a Financing Activity, or does not appear on the Cash Flow Statement. (a) Cash paid for building (b) Cash paid to suppliers (c) Cash paid for owner's withdrawal (d) Cash received from customers (e) Cash received.
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208.The following two situations are independent of each other. 1. On June 1, the cash account balance was $38,750. During June, cash payments totaled $239,140 and the June 30 balance was $42,175. Determine the cash receipts during June and show your calculation. 2. On March 1, the supplies account balance was $1,340..
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167.The chart of account for the Corning Company includes some of the following accounts: Account Name Account Number Cash 11 Accounts Receivable 13 Prepaid Insurance 15 Accounts Payable 21 Unearned Revenue 24 Corning, Capital 31 Corning, Drawing 32 Fees Earned 41 Salaries Expense 54 Rent Expense 56 On the journal page 3, the following transaction was found: Prepaid Insurance 1,530 Cash 1,530 What is the post reference that will be found on the journal entry? A.15, 11 B.15 C.11 D.3 168.The.
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77.Accounts A.do not reflect money amounts B.are not used by entities that manufacture products C.are records of increases and decreases in individual financial statement items D.are only used by large entities with many transactions 78.Accounts are classified in the ledger A.chronologically B.alphabetically C.in accordance with their appearance in the financial statements D.so that accounts used most often are listed.
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127.Which are the parts of the T account? A.title, date, total B.date, debit side, credit side C.title, debit side, credit side D.title, debit side, total 128.Which of the following is not a correct rule of debits and credits? A.assets, expenses and withdrawals are increased by debits B.assets are decreased by credits and have a normal debit.
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194.The account balances of Trendsetter Travel Services at December 31, 2011 are listed below: Accounts Payable $12,000 J. Trendsetter, Capital 1/1/11 $10,000 Accounts Receivable 6,000 Supplies 1,000 Cash 18,000 Taxes Expense 1,300 Computer Equipment 21,000 Utilities Expense 8,000 Fees Earned 70,000 Wages Expense 25,000 Rent Expense 10,000 Supplies Expense 1,700 Prepare an income statement, statement of owner’s equity, and a balance sheet as of December 31, 2011. 195.The accountant for Flagger Company prepared the following list.
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107.Which of the following entries records the withdrawal of cash by Sue Martin, owner of a proprietorship, for personal use? A.debit Sue Martin, Capital; credit Cash B.debit Sue Martin, Drawing; credit Cash C.debit Salaries Expense; credit Cash D.debit Salaries Expense; credit Salaries Payable 108.Office supplies were sold by Ari’s Alarm Service at cost to another.
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187.Selected transaction data of a business for September are summarized below. Determine the following amounts for September: (a) total revenue, (b) total expenses, (c) net income. Service sales charged to customers on account during September $33,000 Cash received from cash customers for services performed in September 28,000 Cash received from customers on account during September: Services.
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189.Simpson Designers began operations on April 1, 2011. The financial statements for Simpson Designers are shown below for the month ended April 30, 2011 (the first month of operations). Determine the missing amounts for letters (a) through (o). Simpson Designers Income Statement For the Month Ended April 30, 2011 Fees earned $27,000 Operating expenses: Wages expense $5,250 Rent expense (a) Supplies.
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179.Identify each of the following as an (1) increase in owner's equity, or a (2) decrease in owner's equity. (a) Fees Earned (b) Wages Expense (c) Withdrawal (d) Lawn Care Revenue (e) Investment (f) Supplies Expense 180.Selected transactions completed by a proprietorship are described below. Indicate the effects of each transaction on assets, liabilities, and owner's equity by inserting "+" for increase.
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117.A patient has a physical examination and asks the bookkeeper to mail the bill. The bookkeeper should A.make no entry until the cash is received B.Cash, debit; Accounts Receivable, credit C.Cash, debit; Fees Earned, credit D.Accounts Receivable, debit; Fees Earned, credit 118.Proof that the dollar amount of the debits equals the dollar amount of the.
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177.Which of the following errors, each considered individually, would cause the trial balance totals to be unequal? A.a transaction was not posted B.a payment of $67 for insurance was posted as a debit of $42 to Prepaid Insurance and a credit of $42 to Cash C.a payment of $1,311 to a creditor was.
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181.Schultz Tax Services, a tax preparation business had the following transactions during the month of June: Example: Received cash the owner Schultz, $25,000. 1. Received cash for providing accounting services, $3,000. 2. Billed customers on account for providing services, $7,000. 3. Paid advertising expense, $800. 4. Received cash from customers on account, $3,800. 5. Owner made.
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157.All of the following occur with a double-entry accounting system except: A.The accounting equation remains in balance. B.The sum of all debits is always equal to the sum of all credits in each journal entry. C.Each business transaction will have only two entries. D.Every transaction affects at least two accounts. 158. March 6 Cash 375 Unearned Fees 375 ???????????? What is.
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215.Organize the following accounts into the usual sequence of a chart of accounts. 216.Selected accounts from the ledger of Garrison Company appear below. For each account, indicate the following: (a) In the first column at the right, indicate the nature of each account, using the following abbreviations: Asset - A Revenue - R Liability - L Expense.
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1.Accounts are records of increases and decreases in individual financial statement items. 2.A chart of accounts is a listing of accounts that make up the journal. 3.The chart of accounts should be the same for each business. 4.Accounts payable are accounts that you expect will be paid to you. 5.Consuming goods and services in.
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197.For each of the following errors, considered individually, indicate whether the error would cause the trial balance totals to be unequal. If the error would cause the trial balance total to be unequal, indicate whether the debit or credit total is higher and by how much. A. Payment of a cash withdrawal.
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228.Exhibit 2-1 All nine transactions for Ralston Sports Co. for September 2011, the first month of operations, are recorded in the following T accounts: Cash James Ralston, Capital (1) 25,000 (3) 12,500 (1) 25,000 (7) 11,900 (5) 7,600 (9) 9,700 (6) 10,500 (8) 7,000 Accounts Receivable James Ralston, Drawing (4) 9,900 (9) 9,700 (8) 7,000 Supplies Fees Earned (3) 12,500 (4) 9,900 (7) 11,900 Equipment Operating Expense (2) 9,500 (6) 10,500 Accounts Payable (5) 7,600 (2) 9,500 Refer to Exhibit 2-1. Prepare a.
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212.Journalize the following five transactions for Nexium & Associates, Inc. Omit explanations. March 1 Bills are sent to clients for services provided in February in the amount of $800. 9 Corner Office, Inc. delivers office furniture ($1,060) and office supplies ($160) to Nexium leaving an invoice for $1,220. 15 Payment is made to Corner Office,.
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191.Using the following accounts and their amounts, prepare in good format an Income Statement for Bright Futures Company, month ended August 31, 2011: Telephone Expense $1,150 Cash $3,000 Accounts Payable $1,540 Jason Bright, Drawing $800 Fees Earned $15,700 Rent Expense $1,400 Supplies $140 Accounts Receivable $1,500 Computer Equipment $20,000 Jason Bright, Capital $14,320 Wages Expense $4,800 Utilities Expense $750 Notes Payable $2,400 Office Expense $420 192.Using the following accounts and their amounts, prepare in good format a Statement of.
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210.Several transactions are listed below, with the accounting equation stated to the right side of each. Use the following identification codes to indicate the effects of each transaction on the accounting equation. Write your answers in the space provided under the accounting equation. You need an identification code for each.
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21.Revenue accounts are increased by credits. 22.The normal balance of a capital account is a debit. 23.The normal balance of the drawing account is a debit. 24.The normal balance of an expense account is a credit. 25.The normal balance of revenue accounts is a credit. 26.Withdrawals decrease owner's equity and are listed on the income.
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222.On December 1st, JumpStart Company provides $2,800 in services to clients. (a) Journalize this event as if the clients had paid cash at the time the services were rendered. (b)(1) Journalize this event as if the clients had placed this on account. (b)(2) Assume that the clients paid $1,200 of the amount on.
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137.The chart of accounts classify the accounts to make identification of the accounts easier. This is done by way of assigning a number to each account. The first number identifies the classification of the type of account. Which of the following indicates the use of this classification? A.1-Assets, 2-Liabilities, 3-Owner’s Equity,.
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211.Journalize the five transactions for Mirmax Rentals described below. August 1 Mirmax purchases two new saws on credit at $375 each. The saws are added to Mirmax’s rental inventory. Payment is due in 30 days. 8 Mirmax accepts advance deposits for tool rentals of $75 that will be applied to the cash rental when.
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206.Listed below are accounts to use for transactions (a) through (d), each identified by a number. Following this list are the transactions. You are to indicate for each transaction the accounts that should be debited and credited by place the account number(s) in the appropriate box. 1. Cash 2. Accounts Receivable 3. Office Supplies 4. Land 5. Interest Receivable 6. Building 7. Accumulated.
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51.Debits will increase Unearned Revenues and Revenues. 52.All owner’s equity accounts record increases to the accounts with credits. 53.Journal entries can have more than two accounts as long as the debits equal the credits. 54.Normal balances are the side that increase the account balance. 55.When an owner invests assets in the business, the capital.
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230.Answer the following questions for each of the errors listed below, considered individually: (a) Did the error cause the trial balance totals to be unequal? (b) What is the amount of the difference between the trial balance totals (where applicable)? (c) Which of the trial balance totals, debit or credit, is the larger (where applicable)? Present your.
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217.Calculate the following: (a) Determine the cash receipts for April based on the following data: Cash payments during April $45,500 Cash account balance, April 1 6,750 Cash account balance, April 30 10,000 (b) Determine the cash received from customers on account during April based on the following data: Accounts receivable account balance, April 1 $10,500 Accounts receivable account balance, April 30 7,250 Fees billed to.
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11.Revenues and expenses should be recorded in the same period to which they relate. 12.The matching concept supports matching expenses with the related revenues. 13.Even though GAAP requires the accrual basis of accounting, some businesses prefer using the cash basis of accounting. 14.The updating of accounts is called the adjusting process. 15.Adjusting entries are.
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224.Journalize the following selected transactions for April 2011 in a two-column journal. Journal entry explanations may be omitted. April 1 Received cash from the investment made by the owner, $14,000. 2 Received cash for providing accounting services, $9,500. 3 Billed customers on account for providing services, $4,200. 4 Paid advertising expense, $700. 5 Received cash from customers on account, $2,500. 6 Owner.
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226.Set up T accounts for Cash; Accounts Receivable; Supplies; Accounts Payable; Clay Potter, Capital; Clay Potter, Drawing; Professional Fees; and Operating Expenses. (a) In the T accounts, record the following transactions of Potter Pool Services for June, 2011, identifying each entry by number: (1) Potter invested $12,500 cash in the business. (2) Purchased supplies on account,.
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97.In which of the following types of accounts are increases recorded by debits? A.assets, liabilities B.drawing, liabilities C.expenses, liabilities D.assets, expenses 98.In which of the following types of accounts are increases recorded by credits? A.revenues, liabilities B.drawing, assets C.liabilities, drawing D.expenses, liabilities 99.In which of the following types of accounts are decreases recorded by debits? A.assets B.revenues C.expenses D.drawing 100.In which of the following types.
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213.McMann Company has a condensed income statement as shown:: 2011 2010 Sales $178,400 $162,500 Wage expenses 100,000 92,500 Rent expenses 33,000 30,000 Utilities expenses 30,000 25,000 Total operating expenses 163,000 147,500 Net income 15,400 15,000 REQUIRED: Prepare a horizontal analysis of McMann Company’s income statements. Comment on the trends, both favorable and unfavorable. 214.Georgia Company has a condensed income statement as shown:: 2011 2010 Sales $158,400 $162,500 Wage expenses 80,000 92,500 Rent expenses 28,000 30,000 Utilities expenses 30,000 25,000 Total operating expenses 138,000 147,500 Net income 20,400 15,000 REQUIRED: Prepare a horizontal analysis of Georgia.
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147.All of the following accounts are increased with a debit except: A.Unearned Revenues B.Land C.Accounts Receivable D.Cash 148.Which of the following owner’s equity accounts follow the same debit and credit rules as liabilities? A.Expense accounts only B.Drawing accounts only C.Revenues accounts only D.Expenses and drawing accounts 149.The payment for the monthly rent will require the following entry A.Debit Cash and Debit.
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201.Journalize the entries to correct the following errors: (a) A purchase of supplies for $200 on account was recorded and posted as a debit to Supplies for $500 and as a credit to Accounts Receivable for $500. (b) A receipt of $4,000 from Fees Earned was recorded and posted as a debit to Fees.
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183.The chart of accounts classify the accounts to make identification of the accounts easier. Discuss how companies set up their chart of accounts for use in their business A chart of accounts is set-up by assigning numbers to each of the accounts. The account number for assets will begin with (1),.
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1.The system of accounting where revenues are recorded when they are earned and expenses are recorded when they are incurred is called the cash basis of accounting. 2.Generally accepted accounting principles require accrual-basis accounting. 3.The revenue recognition concept states that revenue should be recorded in the same period as the cash is.
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87.Which of the following types of accounts have a normal credit balance? A.assets and liabilities B.liabilities and expenses C.revenues and liabilities D.capital and drawing 88.Which of the following groups of accounts have a normal debit balance? A.revenues, liabilities, capital B.capital, assets C.liabilities, expenses D.assets, expenses 89.Which one of the statements below is not a purpose for the journal? A.to show increases.
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219.Record the following selected transactions for April in a two-column journal, identifying each entry by letter: (a) Received $12,000 from Katie Long, owner. (b) Purchased equipment for $25,000, paying $10,000 in cash and giving a note payable for the remainder. (c) Paid $1,800 for rent for April. (d) Purchased $9,800 of supplies on account. (e) Recorded $2,250 of fees earned.
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220.All nine transactions for Dalton Survey Company for September, the first month of operations, are recorded in the following T accounts: Cash Michael Dalton, Capital (1) 20,000 (3) 7,500 (1) 20,000 (7) 6,900 (5) 2,600 (9) 4,700 (6) 5,500 (8) 2,000 Accounts Receivable Michael Dalton, Drawing (4) 4,900 (9) 4,700 (8) 2,000 Supplies Fees Earned (3) 7,500 (4) 4,900 (7) 6,900 Equipment Operating Expense (2) 4,500 (6) 5,500 Accounts Payable (5) 2,600 (2) 4,500 Indicate the following for each debit and.
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