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Study Resources (Accounting)

BRIEF EXERCISES BE 178 Match the following external users of financial accounting information with the type of decision that user will make with the information. a.Creditor b.Investor c.Regulatory Agency dInternal Revenue Service _______(1)Is the company operating within prescribed guidelines? _______(2)Is the company complying with tax laws? _______(3)Is the company able to pay its debts? _______(4)Is the company a good investment? BE.
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BE 187 Use the following information to calculate for the year ended December 31, 2016 (a) net income, (b) ending owner’s equity, and (c) total assets. Supplies$  3,000Revenues$25,000 Operating expenses11,000Cash15,000 Accounts payable9,000Drawings1,000 Accounts receivable3,000Notes payable2,000 Beginning Capital5,000Equipment8,000 BE 188 Listed below in alphabetical order are the balance sheet items of Middleton Company at December 31, 2016. Prepare a.
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148.Posting of journal entries should be done in a.account number order. b.alphabetical order. c.chronological order. d.dollar amount order. 149.The chart of accounts is a a.list of accounts and their balances at a given time. b.device used to prove the mathematical accuracy of the ledger. c.listing of the accounts and the account numbers which identify their location in the.
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BE 167 The transactions of the Litehouse Realty are recorded in the general journal below. You are to post the journal entries to T-accounts. General Journal DateAccount TitlesDebitCredit 2016 Aug.5Accounts Receivable4,600 Service Revenue4,600 10Cash3,200 Service Revenue3,200 19Rent Expense1,300 Cash1,300 25Cash1,500 Accounts Receivable1,500 BE 167(cont.) General Ledger CashAccounts Receivable Service   RevenueRent   Expense BE 168 Prepare a trial balance from the ledger accounts of Black Diamond Express as of.
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131.The primary purpose of the statement of cash flows is to report a.a company's investing transactions. b.a company's financing transactions. c.information about cash receipts and cash payments of a company. d.the net increase or decrease in cash. 132.All of the financial statements are for a period of time except the a.income statement. b.owner's equity statement. c.balance sheet. d.statement of.
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108.When journalizing, the reference column is a.left blank. b.used to reference the source document. c.used to reference the journal page. d.used to reference the financial statements. 109.On June 1, 2016 Ben Casey buys a copier machine for his business and finances this purchase with cash and a note. When journalizing this transaction, he will a.use two.
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S-A E  241 (Ethics) Jill Bolan owns and operates Jill’s Bagels, a small bakery, located at the edge of City College campus in San Diego, California. After several very profitable years, Jill’s Bagels began to have problems. Most of the problems were related to Jill’s expansion of the eating area in.
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Ex. 171 Under a double-entry system, show how the entry in each statement is entered in the ledger by using debit or credit to indicate the increase or decrease in the affected account.         Debit or Credit                  1.An increase in Salaries and Wages Expense.                                          2.A decrease in Accounts Payable.                           .
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118.On August 13, 2016, Accounting Services Co. purchased office equipment for $1,700 and office supplies of $300 on account. Which of the following journal entries is recorded correctly and in the standard format? a.Equipment1,700 b.Equipment.1,700 c.Accounts Payable2,000 d.Equipment1,700 119.Able2 Company received a cash advance of $800 from a customer. As a result of this event, a.assets.
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Ex. 208 For each of the following, describe a transaction that will have the stated effect on the elements of the accounting equation. (a)Increase one asset and decrease another asset. (b)Increase an asset and increase a liability. (c)Decrease an asset and decrease a liability. (d)Increase an asset and increase owner's equity. (e)Increase one asset, decrease one.
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121.Which of the following events is not a business transaction? a.Investment of cash by the owner. b.Hired employees. c.Incurred utility expenses for the month. d.Earned revenue for services provided. 122.Net income results when a.Assets > Liabilities. b.Revenues = Expenses. c.Revenues > Expenses. d.Revenues < Expenses. 123.Owner's capital at the end of the period is equal to a.owner's capital at the beginning.
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TRUE-FALSE STATEMENTS 1.A new account is opened for each transaction entered into by a business firm. 2.The recording process becomes more efficient and informative if all transactions are recorded in one account. 3.When the volume of transactions is large, recording them in tabular form is more efficient than using journals and ledgers. 4.An account.
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Ex. 177 For each of the following accounts indicate (a) the type of account (Asset, Liability, Owner’s Equity, Revenue, Expense), (b) the debit and credit effects, and (c) the normal account balance. Example 0.Casha.Asset account b.Debit increases, credit decreases c.Normal balance - debit                 Accounts                 1.Accounts Payable              5.              Service Revenue 2.Accounts Receivable              6.              Insurance Expense 3.Owner’s Capital              7.              Notes Payable 4.Owner’s.
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48.The double-entry system requires that each transaction must be recorded a.in at least two different accounts. b.in two sets of books. c.in a journal and in a ledger. d.first as a revenue and then as an expense. 49.A credit is not the normal balance for which account listed below? a.Capital account b.Revenue account c.Liability account d.Owner’s Drawings account 50.Which one.
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MULTIPLE CHOICE QUESTIONS 38.An account consists of a.one part. b.two parts. c.three parts. d.four parts. 39.The left side of an account is a.blank. b.a description of the account. c.the debit side. d.the balance of the account. 40.Which one of the following is not a part of an account? a.Credit side b.Trial balance c.Debit side d.Title 41.An account is a part of the financial information system and.
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Ex. 193 Tesla Car Cleaning has the following accounts: Accounts Receivable Notes Payable Accounts PayableOwner’s Capital CashOwner’s Drawing SuppliesEquipment Identify which items are(1)Assets (2)Liabilities (3)Owner's Equity Ex. 194 On June 1, 2016, Secretly Canadian Company prepared a balance sheet that shows the following: Assets (no cash)..................................$100,000 Liabilities.......................................45,000 Owner's Equity...................................55,000 Ex. 194(cont.) Shortly thereafter, all of the assets were sold for cash. How would the balance.
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Ex. 215 The following information relates to Molly Mae Co. for the year 2016. Owner’s Capital, January 1, 2016 $ 64,000 Advertising expense $6,500 Drawings during 2016      5,700 Rent expense   8,500 Service revenue    58,500 Utilities expense   1,500 Salaries and wages expense    29,000 Instructions After analyzing the data, prepare an income statement and.
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Ex. 207 Maria Martinez decides to open a cleaning and laundry service near the local college campus that will operate as a sole proprietorship. Analyze the following transactions for the month of June in terms of their effect on the basic accounting equation. Record each transaction by increasing (+) or decreasing.
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Ex. 197 From the following list of selected accounts taken from the records of Lori’s Landscaping Center, identify those that would appear on the balance sheet. a. Owner’s Capitalf.Accounts Payable b.Service Revenueg.Cash c.Landh.Rent Expense d.Salaries and Wages Expensei.Supplies e.Notes Payablej.Utilities Expense Ex. 198 Selected transactions for Mountain Goats Tree Service are listed below. 1. Made cash investment to start.
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Ex. 174 For each of the following accounts, indicate the effects of (a) a debit and (b) the normal account balance.              1.Notes Payable              2.Prepaid Insurance              3.Salaries and Wages Expense              4.Service Revenue              5.Equipment              6.Owner’s Capital Ex. 175 During an accounting period, a business has numerous transactions affecting each of the following accounts. State for.
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171.The internal control standards applicable to Sarbanes-Oxley apply to a.all U.S. and international companies. b.U.S. and international companies listed on U.S. exchanges. c.International companies listed on U.S. exchanges. d.U.S. companies listed on U.S. exchanges. 172.The concern about international companies adopting SOX-type standards centers on a.cost-benefit analysis. b.ethics issues. c.the governing authorities. d.comparability. 173.Financial accounting ethics violations are a.not a problem in.
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68.Which of the following statements is not true? a.Expenses increase owner’s equity. b.Expenses have normal debit balances. c.Expenses decrease owner’s equity. d.Expenses are a negative factor in the computation of net income. 69.A credit to a liability account a.indicates an increase in the amount owed to creditors. b.indicates a decrease in the amount owed to creditors. c.is an.
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EXERCISES Ex. 189 Below is a list of important abbreviations widely used in business. For each abbreviation give the full designation.               1.CPA____________________________________________               2.IRS____________________________________________               3.FBI____________________________________________               4.FASB___________________________________________               5.GAAP__________________________________________               6.SEC____________________________________________ Ex. 190 Determine the missing amount for each of the following.  Assets=Liabilities              +              Owner's Equity 1.(a)$55,000$95,0002.$125,000(b)$85,0003.$160,000$65,000(c) Ex. 191 For the items listed below, fill in the appropriate code letter to.
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Ex. 218 Prepare an income statement, an owner's equity statement, and a balance sheet for the accupuncture practice of Golda Bear, from the items listed below for the month of September, 2016. Owner’s Capital, September 1$47,000 Accounts payable7,000 Equipment35,000 Service revenue28,000 Owner’s Drawings6,000 Insurance expense4,500 Cash3,000 Utilities expense700 Supplies4,800 Salaries and wages expense9,000 Accounts receivable14,000 Rent expense5,000 GOLDA BEAR, ACCUPUNCTURIST Income Statement For the Month Ended.
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SHORT-ANSWER ESSAY QUESTIONS S-A E  237 The accounting profession provides many career opportunities for individuals. Identify the major fields that exist in accounting and comment on the major functions performed by individuals in each of these areas. S-A E  238 The framework used to record and summarize the economic activities of a business enterprise.
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11.The drawing account is a subdivision of the owner’s capital account and appears as an expense on the income statement. 12.Revenues are a subdivision of owner’s capital. 13.Under the double-entry system, revenues must always equal expenses. 14.Transactions are entered in the ledger first and then they are analyzed in terms of their effect.
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Ex. 176 Eight transactions are recorded in the following T-accounts: CASHACCOUNTS RECEIVABLE (1)25,000(2)3,500(5)27,500              (7)22,500 (7)22,500(3)1,950 (4)5,100 (6)8,000 (8)3,300 SUPPLIESEQUIPMENT (3)1,950(2)13,500 OWNER’S CAPITALSERVICE REVENUE (1)25,000(5)27,500 ACCOUNTS PAYABLEOWNER’S DRAWINGS (6)8,000(2)10,000(8)3,300 SALARIES AND WAGES EXPENSE (4)5,100 Ex. 176(cont.) Indicate for each debit and each credit:  (a) whether an asset, liability, capital, drawing, revenue, or expense account was affected and (b) whether the account was increased (+) or (–) decreased. Answers.
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Ex. 212 There are ten transactions listed below. Match the transactions that have the identical effect on the accounting equation. You should end up with 5 matches. a.Receive cash from customers on account. b.Initial cash contribution by an owner. c.Pay cash to reduce an accounts payable. d.Purchase supplies for cash. e.Pay cash to reduce a notes.
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98.A journal provides a.the balances for each account. b.information about a transaction in several different places. c.a list of all accounts used in the business. d.a chronological record of transactions. 99.When three or more accounts are required in one journal entry, the entry is referred to as a a.compound entry. b.triple entry. c.multiple entry. d.simple entry. 100.When two accounts are.
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MATCHING 236.Match the items below by entering the appropriate code letter in the space provided. A.CPAF.Corporation B.BudgetingG.Assets C.SECH.Equities D.ProprietorshipI.Expenses E.Economic Entity AssumptionJ.Transactions _____              1.Activities of an entity must be kept separate from its owner’s activities. _____              2.Consumption of assets or services. _____              3.Ownership is limited to one person. _____              4.Offers expert accounting service to the general public. _____              5.Creditor and ownership.
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138.A trial balance would only help in detecting which one of the following errors? a.A transaction that is not journalized b.A journal entry that is posted twice c.Offsetting errors are made in recording the transaction d.A transposition error when transferring the debit side of journal entry to the ledger 139.An account is an individual accounting.
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COMPLETION STATEMENTS 226.Accounting is an information system that identifies, _____________, and _____________ the economic events of an organization. 227.The mere recording of economic events is called ______________, and is just one part of the _______________ process. 228.The three major services rendered by a certified public accountant are ______________, ________________, and management ________________. 229.Accountants who.
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78.Qwik Company showed the following balances at the end of its first year: a.$52,400 b.$61,500 c.$62,900 d.$70,900 79.Bertoli Company showed the following balances at the end of its first year: a.$14,000 b.$46,000 c.$44,000 d.$48,000 80.During February 2016, its first month of operations, the owner of Solcist Co. invested cash of $50,000. Solcist had cash revenues of $16,000 and paid expenses.
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88.The usual sequence of steps in the transaction recording process is: a.journal  ?  analyze  ?  ledger. b.analyze  ?  journal  ?  ledger. c.journal  ?  ledger  ?  analyze. d.ledger  ?  journal  ?  analyze. 89.In recording business transactions, evidence that an accounting transaction has taken place is obtained from a.business documents. b.the Internal Revenue Service. c.the public relations department. d.the SEC. 90.After a.
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128.After journal entries are posted, the reference column a.of the general journal will be blank. b.of the general ledger will show journal page numbers. c.of the general journal will show "Dr" or "Cr". d.of the general ledger will show account numbers. 129.The explanation column of the general ledger a.is completed without exception. b.is nonexistent. c.is used infrequently. d.shows account.
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141.Mirah Company compiled the following financial information as of December 31, 2016: a.$100,000. b.$140,000. c.$220,000. d.$260,000. 142.Teamboo Company’s owner’s equity at the beginning of August 2016 was $740,000.  During the month, the company earned net income of $175,000 and owner’s drawings were $80,000. At the end of August 2016, what is the balance in owner’s.
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Ex. 170 The chart of accounts used by Notwist Copy Company is listed below. You are to indicate the proper accounts to be debited and credited for the following transactions by writing the account number(s) in the appropriate boxes. CHART OF ACCOUNTS 101Cash209Unearned Service Revenue 112Accounts Receivable301Owner’s Capital 125Supplies306Owner’s Drawings 157Equipment400Service Revenue 200Notes Payable610Advertising Expense 201Accounts Payable729Rent Expense ——————————————————————————————————————————— Number(s)Number(s) of.
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21.Transactions are recorded in alphabetic order in a journal. 22.A journal is also known as a book of original entry. 23.The complete effect of a transaction on the accounts is disclosed in the journal. 24.The account titles used in journalizing transactions need not be identical to the account titles in the ledger. 25.The chart.
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151. At October 1, Flambo Company reported owner’s equity of $68,000. During October, the owner made additional investments of $10,000 and the company posted a net loss of $4,000. If owner’s equity at October 31 totals $70,000, what amount of owner drawings were made during the month? a.$0 b.$4,000 c.$6,000 d.$10,000 152.Which of the following.
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161.Mellon Company purchases $1,500 of equipment from Office Equipment Inc. for cash. The effect on the components of the basic accounting equation of Mellon Company is a.an increase in assets and liabilities. b.a decrease in assets and liabilities. c.no change in total assets. d.an increase in assets and a decrease in liabilities. 162.Juggernaut Company buys.
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Ex. 202 The Constantine Company had the following assets and liabilities on the dates indicated. December 31 Total Assets Total Liabilities 2015 $480,000 $250,000 2016 $460,000 $220,000 2017 $590,000 $300,000 Constantine began business on January 1, 2015, with an investment of $100,000. Instructions From an analysis of the change in owner’s equity during the year, compute the net.
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Ex. 205 Analyze the transactions of a business organized as a proprietorship described below and indicate their effect on the basic accounting equation. Use a plus sign (+) to indicate an increase and a minus sign (–) to indicate a decrease. Assets=Liabilities+Owner's Equity               1.Received cash for services rendered._______                                                        2.Purchased.
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BE 163 Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transaction. 1.Barry Cain invested $38,000 cash to start an appliance repair business. 2.Hired an employee to be paid $500 per week, starting tomorrow. 3.Paid two years’ rent in advance, $10,800. 4.Paid the worker’s.
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BRIEF Exercises BE 159 At June 1, 2016, Cooper Company had an accounts receivable balance of $14,000. During the month, the company performed credit services of $35,000 and collected accounts receivable of $23,000. What is the balance in accounts receivable at June 30, 2016? BE 160 TNT has the following transactions during April of.
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BE 183 Classify each of these items as an asset (A), liability (L), or owner’s equity (OE). _____1.Accounts receivable _____2.Accounts payable _____3.Owner’s Capital _____4.Supplies _____5.Utilities expense _____6.Cash _____7.Notes payable _____8.Equipment BE 184 Identify the impact on the accounting equation of each of the following transactions. 1.Purchase office supplies on account. 2.Paid secretary weekly salary. 3.Purchased office furniture for cash. 4.Received monthly utility bill to be.
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Ex. 220 Listed below in alphabetical order are the balance sheet items of City Plaza Company at December 31, 2016. Prepare a balance sheet and include a complete heading. Accounts Payable$  24,000 Accounts Receivable15,000 Buildings51,000 Cash7,000 Owner’s Capital102,000 Land42,000 Equipment11,000 Ex. 221 One item is omitted in each of the following summaries of balance sheet and income statement data for.
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