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75.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 76.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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145.Expenses follow the same debit and credit rules as a.revenues b.the drawing account c.the capital account d.liabilities 146.Net income will result when a.revenues (credits) > expenses (debits) b.revenues (debits) > expenses (credits) c.expenses (credits) = revenues (debits) d.revenues (credits) = expenses (debits) 147.Which of the following will increase owner’s equity? a.Expenses > revenues. b.The owner draws money for personal use. c.Revenues > expenses. d.Cash.
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168.  Using the following accounts and their amounts, prepare in good format an income statement for Heavenly FuturesCompany for the month ended August 31. Telephone Expense$ 1,150 Cash3,000 Accounts Payable1,540 Jason Heaven, Drawing800 Fees Earned15,700 Rent Expense1,400 Supplies140 Accounts Receivable1,500 Computer Equipment20,000 Jason Heaven, Capital (August 1)14,320 Wages Expense4,800 Utilities Expense750 Notes Payable2,400 Office Expense420 169.  Using the following accounts and their amounts, prepare in.
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165.That the total dollar amount of the debits equal the total dollar amount of the credits in the ledger accounts can beverified through a(n): a.chart of accounts b.trial balance c.income statement d.balance sheet 166.Randomly listed below are the steps for preparing a trial balance: (1)Verify that the total of the Debit column equals the total of.
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51.Assets are increased with debits and decreased with credits. a.True b.False 52.Liabilities are increased with debits and decreased with credits. a.True b.False 53.Debits will increase Unearned Revenues and Revenues. a.True b.False 54.All owners’ equity accounts record increases to the accounts with credits. a.True b.False 55.Journalizing always eliminates fraudulent activity. a.True b.False 56.Journal entries can have more than two accounts as long as the debits equal.
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61.A notation in the post reference column of the general journal indicates that the amount has been posted to theledger. a.True b.False 62.The order of the flow of accounting data is (1) record in the ledger, (2) record in the journal, (3) prepare thefinancial statements. a.True b.False 63.The process of transferring the debits and credits from.
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222.(a)List the errors in the following trial balance. All accounts have normal balances. (b)What would be the new totals of the trial balance after errors are corrected?What would be the balance of Accounts Receivable? Winslow’s Auto Body 19,475 Trial Balance For Month Ending April 30 Cash Accounts Receivable ? Supplies 1,000 Equipment 15,000 Prepaid Insurance 500 Accounts Payable 2,500 Thad Winslow, Capital 17,000 Thad Winslow, Drawing 1,000 Fees Earned 49,600 Salary Expense 14,500 Rent Expense 9,000 Utilities.
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180.  On January 1, Merry Walker established a catering service.  Listed below are accounts to use for transactions (a)through (f), each identified by a number.  Following this list are the transactions that occurred in Walker’s firstmonth of operations.  You are to indicate for each transaction the accounts that should be.
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21.Liabilities are debts owed by the business entity. a.True b.False 22.The accounts payable account is listed in the chart of accounts as an asset. a.True b.False 23.A drawing account represents the amount of withdrawals made by the owner. a.True b.False 24.Revenues are equal to the difference between cash receipts and cash payments. a.True b.False 25.Expenses result from using up assets or consuming.
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Match the following characteristics with the financial statement it describes it. Each may be used more thanonce. a.  Income Statement b.  Balance Sheet c.  Statement of Owner’s Equity d.  Statement of  Cash Flows 168.  Reports as of a specific date 169.  The first statement prepared 170.  Has three sections: operating, investing and financing 171.  Reports only revenues and.
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1.Accounts are records of increases and decreases in individual financial statement items. a.True b.False 2.A chart of accounts is a listing of accounts that make up the journal. a.True b.False 3.The chart of accounts should be the same for each business. a.True b.False 4.Accounts payable are accounts that you expect will be paid to you. a.True b.False 5.Consuming goods and services in.
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180.  The bookkeeper for Brockton Industries prepared the following journal entries and posted the entries to the generalledger as indicated in the T accounts presented. Assume that the dollar amounts and the descriptions of the entriesare correct. July3Accounts Receivable1,000 Service Revenue1,000 Customers were billed for servicescompleted. 11                 Cash500 Accounts Receivable500 Payment is received from a customerbilled.
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168.  Using the following accounts and their amounts, prepare in good format a balance sheet for Bright FuturesCompany for the month ended August 31. Telephone Expense$ 1,150 Cash3,000 Accounts Payable1,540 Jason Bright, Drawing800 Fees Earned15,700 Rent Expense1,400 Supplies140 Accounts Receivable1,500 Computer Equipment20,000 Jason Bright, Capital (August 1)14,320 Wages Expense4,800 Utilities Expense750 Notes Payable2,400 Office Expense420 169.  .
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175.The trial balance is out of balance and the accountant suspects that a transposition or slide error hasoccurred.  What will the accountant do to confirm this suspicion? a.Determine the amount of the error and look for that amount on the trial balance. b.Determine the amount of the error and divide by two,.
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135.The process of recording a transaction in the journal is called a.ledgerizing b.journalizing c.posting d.summarizing 136.Joshua Scott invests $40,000 into his new business.  How would this transaction be entered in the journal in goodform? a.Cash40,000 Joshua Scott, Capital40,000Invested cash in business. b.Cash40,000 Joshua Scott, Capital40,000Invested cash in business c.Joshua Scott, Capital40,000 Cash40,000 Invested cash in business d.Joshua Scott, Loan40,000 137. May23Cash22,000 Scott Clark, Capital22,000 Invest cash in.
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180.  For each of the following errors, considered individually, indicate whether the error would cause the trial balance totto be unequal.  If the error would cause the trial balance totals to be unequal, indicate whether the debit or credit totis higher and by how much. A.          Payment of a cash withdrawal.
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180.  Several transactions are listed below, with the accounting equation stated to the right side of each. Use thefollowing identification codes to indicate the effects of each transaction on the accounting equation. Write youranswers in the space provided under the accounting equation. You need an identification code for eachelement ofthe.
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Match the following characteristics with the form of business entity that best describes it. Each may be usedmore than once. a.  Proprietorship b.  Partnership c.  Corporation d.  Limited liability company (LLC) 168.  Comprises 70% of business entities in the United States 169.  Generates 90% of business revenues 170.  Owned by two or more individuals 171.  Organized as a.
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180.  On January 12, JumpStart Co. purchased $870 in office supplies. (a)  Journalize this transaction as if JumpStart paid cash. (b)  (1) Journalize this transaction as if JumpStart placed it on account. (b) (2) On January 18, JumpStart pays the amount due. Journalize this event. 181.  On November 10, JumpStart Co. provides $2,900 in.
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180.  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 taccount is a debit or a credit. (a)(b) RecordedAsNormalBalance (1)       .
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168.  Harris Designers began operations on April 1.  The financial statements for Harris Designers are shown below for tmonth ended April 30, (the first month of operations).  Determine the missing amounts for letters (a) through (o). Harris DesignersIncome Statement For the Month Ended April 30 Fees earned$27,000 Operating expenses: Wages expense$5,250 Rent expense(a) Supplies expense4,600 Utilities expense400 Miscellaneous expense1,250 Total.
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168.  Company G has a ratio of liabilities to stockholders’ equity of 0.12 and 0.28 for Year 1 and Year 2, respectively. Incontrast, Company M has a ratio of liabilities to stockholders’ equity of 1.13 and 1.29 for the same period. REQUIRED: Based on this information, which company's creditors are more at.
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41.Liability accounts are increased by debits. a.True b.False 42.Journalizing transactions using the double-entry bookkeeping system will eliminate fraud. a.True b.False 43.Transactions are listed in the journal chronologically. a.True b.False 44.Journalizing is the process of entering amounts in the ledger. a.True b.False 45.The process of recording a transaction in the journal is called journalizing. a.True b.False 46.Transactions are initially entered into a record called a journal. a.True b.False 47.The.
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Match the following business types with each business listed below.Each may be used more than once. a.  Service firm b.  Manufacturing firm c.  Merchandising firm 168.  A tax preparation firm 169.  A law firm 170.  A health club and spa 171.  An automobile dealer 172.  A book publisher 173.  A hospital 174.  A supermarket 175.  A modular homebuilder 176.  A men’s clothing.
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180.  Journalize the following selected transactions for January.  Explanations may be omitted. Jan. 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 withdraws $1,010. 7                    Received telephone bill,.
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180.  The following two situations are independent of each other. 1.    On June 1, the cash account balance was $45,750.  During June, cash payments totaled $243,910, and the June30 balance was $53,200.  Determine the cash receipts during June and show your calculation. 2.    On March 1, the supplies account balance was $1,800. .
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168.  Schultz Tax Services, a tax preparation business, had the following transactions during the month of June: 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 a withdrawal, $1,500. 6.   Received telephone.
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168.  The account balances of Awesome Travel Services at December 31 are listed below. There were no additionalinvestments or withdrawals by J. Trendsetter during the year. Accounts Payable $12,000 J. Trendsetter, Capital (Jan. 1) $10,000 Accounts Receivable 14,000 Supplies 1,000 Cash 18,000 Taxes Expense 1,300 Computer Equipment 21,000 Utilities Expense 8,000 Fees Earned 78,000 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.
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180.  Prepare a journal entry on October 12 for the fees earned on account, $14,600. Omit explanation. 181.  Journalize the five transactions for Mirmax Rentals described below. August       1Mirmax purchases two new saws on credit at $425 each. Thesaws are added to Mirmax’s rental inventory. Payment is duein 30 days. 8Mirmax accepts advance.
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180.  On September 1, Erika Company purchased land for $47,500 cash. Provide the journal entry for this transaction. 181.  On October 10, Nikle Company purchased supplies for $1,800 on account. On October 25, Nikle Company paid theinvoice. (a) Provide the journal entry for the purchase on account. (b) Provide the journal entry for.
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11.To determine the balance in an account, always subtract credits from debits. a.True b.False 12.An account in its simplest form has three parts to it: a title, an increase side, and a decrease side. a.True b.False 13.The T account got its name because it resembles the letter “T.” a.True b.False 14.The right hand side of a T account is.
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95.Which of the following is notconsidered to be a liability? a.Wages Payable b.Accounts Receivable c.Unearned Revenues d.Accounts Payable 96.Which of the following statements is nottrue about liabilities? a.Liabilities are debts owed to outsiders. b.Account titles of liabilities often include the term “payable.” c.Cash received before a service is performed creates a liability. d.Liabilities do not include wages owed to.
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180.  On January 31, the cash account balance was $96,750.  During January, cash receipts totaled $305,000 and cashpayments totaled was $375,880.  Determine the cash balance on January 1. 181.  Organize the following accounts into the usual sequence of a chart of accounts. Miscellaneous ExpenseAccounts PayableAccounts ReceivableCash Alecia Morris, CapitalFees Earned Prepaid RentSalaries ExpenseUnearned Revenue Alecia.
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180.  On January 8, 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. 181.  On August 30, JumpStart incurred the following expenses: Payment to the landlord for August rent.
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125.Which of the following entries records the acquisition of office supplies on account? a.Office Supplies, debit; Cash, credit b.Cash, debit; Office Supplies, credit c.Office Supplies, debit; Accounts Payable, credit d.Accounts Receivable, debit; Office Supplies, credit 126.Which of the following entries records the payment of insurance for the current month? a.Cash, debit; Insurance Expense, credit b.Insurance Expense, debit;.
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180.  The chart of accounts classifies the accounts to make identification of the accounts easier. Describe the numberingsystem businesses use in setting up the chart of accounts. 181.  On January 1, Cassie Harris established a catering service.  Listed below are accounts she would like to open inthe general ledger. List the.
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180.  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 thefollowing abbreviations: Asset - ARevenue - R Liability - LExpense - E None of the above - N (b)   In the second column,.
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105.A credit may signify a a.decrease in assets b.decrease in liabilities c.decrease in capital d.decrease in revenue 106.A debit signifies a decrease in a.assets b.expenses c.drawing d.revenues 107.Which of the following applications of the rules of debit and credit is true? a.decrease Prepaid Insurance with a credit and the normal balance is a credit b.increase Accounts Payable with a credit and the.
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180.  Prepare a trial balance, listing the following accounts in proper sequence.  The accounts (all normal balances) weretaken from the ledger of Sophie Designs Co. on April 30. Accounts Payable $ 4,100 Rent Expense $11,500 Accounts Receivable 3,450 Salary Expense 14,000 Cash 6,700 Fees Earned 45,425 Sophie Dawson, Capital 17,800 Supplies 3,125 Sophie Dawson, Drawing 7,500 Supplies Expense 1,700 Equipment 14,500 Utilities Expense 4,000 Miscellaneous Expense 850 .
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31.A debit is abbreviated as Db and a credit is abbreviated as Cr. a.True b.False 32.When a business receives a bill from the utility company, no entry should be made until the invoice is paid. a.True b.False 33.For a month's transactions for a typical medium-sized business, the accounts payable account is likely to have onlycredit entries. a.True b.False 34.Withdrawals.
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Match each transactions with its effect on the accounting equation. Each letter may be used more thanonce. a.  Increase assets, increase liabilities b.  Increase liabilities, decrease owner’s equity c.  Increase assets, increase owner’s equity d.  No effect e.  Decrease assets, decrease liabilities f.   Decrease assets, decrease owner’s equity 168.  Received cash for services provided 169.  Received utility bill.
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115.A credit balance in which of the following accounts would indicate a likely error? a.Fees Earned b.Salary Expense c.Janet James, Capital d.Accounts Payable 116.A debit balance in which of the following accounts would indicate a likely error? a.Salaries Expense b.Notes Payable c.Edgar Martin, Drawing d.Supplies 117.Which of the following entries records the payment of an account payable? a.debit Cash; credit Accounts.
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168.  Selected transaction data of a business for September are summarized below.  Determine the following amountsfor September:  (a) total revenue, (b) total expenses, (c) netincome. 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 performed.
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168.  Eric Wood, CPA, was organized on January 1 as a proprietorship.  List the errors that you find in the followingfinancial statements and prepare the corrected statements for the three months ended March 31. Eric Wood, CPA Income Statement For the Three Months Ended March 31 Fees earned $42,000 Operating expenses: Salary expense $9,735 Rent expense 5,200 Advertising expense 3,950 Utilities expense 3,225 Miscellaneous expense 4,000 Answering.
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180.  On January 1, Merry Walker established a catering service.  Listed below are accounts to use for transactions (a)through (d), each identified by a number.  Following this list are the transactions that occurred during the first monthof operations.  You are to indicate for each transaction the accounts that should be.
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180.  Record the following selected transactions for April in a two-column journal, identifying each entry by letter: (a)         Received $18,000 from Katie Long, owner. (b)        Purchased equipment for $27,000, paying $10,000 in cash and giving a notepayable for the remainder. (c)         Paid $2,300 for rent for April. (d)        Purchased $1,500 of supplies on account. (e)        .
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85.A cash payment is recorded in the cash account as a.neither a debit or a credit b.a credit c.a debit d.either a debit or a credit 86.The balance of an account is determined by a.adding all of the debits to all of the credits b.always subtracting the debits from the credits c.always subtracting the credits from the debits d.adding.
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180.  On December 1, 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.
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168.  For each of the following, determine the amount of net income or net loss for the year. (a)          Revenues for the year totaled $71,300 and expenses totaled $35,500. The owner made anadditional investment of $15,000 during the year. (b)         Revenues for the year totaled $220,500 and expenses totaled $175,000. The ownerwithdrew.
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155.The process of transferring the debits and credits from the journal entries to the accounts is called a.sliding b.transposing c.journalizing d.posting 156.The posting process will include the transfer of which of the following data from the journal to the account? a.date, amount (debit or credit) b.date, amount (debit or credit), journal page number c.amount (debit or credit), account.
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