46. Which of the accounts are decreased on the debit side and increased on the credit side?
47. Which of the following is/are true about a “debit”?
I. It is part of the double-entry procedure that keeps the accounting equation in balance.
II. It represents an increase to assets.
III. It represents a decrease to liabilities.
IV. It is on the right side of a T-account.
48. Which of the following is/are true about a “credit”?
I. It is part of the double-entry procedure that keeps the accounting equation in balance.
II. It represents a decrease to assets.
III. It represents an increase to liabilities.
IV. It is on the right side of a T-account.
49. Dividends normally carry a _______ balance and are shown in the _________.
50. Expenses normally carry a _______ balance and are shown in the _________.
51. Liabilities normally carry a _______ balance and are shown in the _________.
52. Which of the following accounts has a debit balance?
53. Which of the following accounts would normally have a credit balance?
54. Which of the following accounts would normally have a debit balance?
55. Which of the following accounts would normally have a debit balance and appear in the
balance sheet?
56. Which of the following accounts has a credit balance?
57. Which of the accounts are increased with a debit and decreased with a credit?
58. Consider the following list of accounts:
How many of these accounts have a normal debit balance?
59. Consider the following list of accounts:
Accounts Payable
Cash
Prepaid Rent
Common Stock
Salaries Payable
Equipment
Supplies
Rent Expense
How many of these accounts have a normal credit balance?
60. Consider the following accounts:
Utilities Expense
Accounts Payable
Service Revenue
Common Stock
How many of these accounts are increased with debits?
61. Consider the following accounts:
Dividends
Insurance Expense
Cash
Service Revenue
How many of these accounts are increased with credits?
62. Which one of the following accounts will have a credit balance?
63. The following statements pertain to recording transactions. Which of them are true?
I. Total debits should equal total credits.
II. It is possible to have multiple debits or credits in one journal entry.
III. Assets are always listed first in journal entries.
IV. Some journal entries will have debits only.
64. Which of the following is not a possible journal entry?
65. Providing services on account would be recorded with a:
66. Xenon Corporation borrows $75,000 from First Bank. Xenon Corporation records this
transaction with a:
67. Childers Service Company provides services to customers totaling $3,000, for which it
billed the customers. How would the transaction be recorded?
68. A company received a bill for newspaper advertising services received, $400. The bill will
be paid in 10 days. How would the transaction be recorded today?
69. When a company pays utilities of $1,800 in cash, the transaction is recorded as:
70. Assume that cash is paid for rent to cover the next year. The appropriate debit and credit
are:
71. Summer Leasing received $12,000 for 24 months rent in advance. How should Summer
record this transaction?
72. Styleson Inc. performed cleaning services for its customers for cash. These transactions
would be recorded as:
73. Assume that $18,000 cash is paid for insurance to cover the next year. The appropriate
debit and credit are:
74. Schooner Inc. purchased equipment by signing a note payable. This transaction would be
recorded as:
75. When a company pays $2,500 dividends to its stockholders, the transaction should be
recorded as:
76. Daniel Dino Restaurant owes workers’ salaries of $15,000. This would be recorded as:
77. Jerome purchased a building for his business by signing a note to pay the amount due over
the next ten years. Which of the following correctly describes how to record this transaction?
78. Incurring an expense for advertising on account would be recorded by:
79. Tyler Incorporated receives $150,000 from investors for issuing them shares of its
common stock. Tyler Incorporated records this transaction with a:
80. The owner of an office building should report rent collected in advance as a debit to Cash
and a credit to:
81. Clement Company paid an account payable related to a previous utility bill of $1,000.
This transaction should be recorded as follows on the payment date:
82. On July 7, 2012, Saints Inc. received $10,000 in cash from a customer for services to be
provided on October 10, 2012. Which of the following describes how the transaction should
be recorded on July 7, 2012?
83. On December 1, 2012, Bears Inc. signed a contract with a retailer to supply maintenance
for the next calendar year. How should this transaction be recorded on December 1, 2012?
84. On July 31, ALOE Inc. received $5,000 cash from a customer who previously purchased
ALOE’s products on account. What should ALOE Inc. record at the time it receives cash?
85. Tomlin & Company provides music for special occasions. On January 14, the Smith
family hired Tomlin for an upcoming family wedding for an agreed upon fee of $10,000. The
wedding was scheduled for May 23. As part of the agreement, the Smiths paid Tomlin half of
the fee at the end of April with the remaining amount due by the end of June. How would
Tomlin record the receipt of the final payment in June?
86. Bostel wanted to expand the size of its warehouse in order to generate more profits. The
company decided to purchase the building adjacent to its existing warehouse. The company
pays for the building by borrowing from the bank. The purchase would be recorded as:
87. On July 5, Harris Company purchased supplies from the hardware store for $600 on
account. On July 10, Harris receives a bill from the hardware store as a reminder about the
account balance. On July 17, Harris pays the account in full. How does Harris record the
88. The Accounts Payable account has a beginning balance of $12,000 and the company
purchased $50,000 of supplies on account during the month. The ending balance was $10,000.
How much did the company pay to creditors during the month?
89. On March 3, Cobra Inc. purchased a desk for $450 on account. On March 22, Cobra
purchased another desk for $500 also on account, and then on March 24, Cobra paid $400 on
account. At the end of March, what amount should Cobra report for desks (assuming these
two desks were the only desks they had)?
90. Posting is the process of:
91. Accounts Receivable account has a beginning balance of $10,000 and the company
provides services of $50,000 on account during the month. The ending balance was $12,000.
How much did the company receive from customers during the month?
92. Posting transactions to the T-accounts involve:
93. A trial balance can best be explained as a list of:
94. Lithuanian Motors has the following balance sheet accounts:
If the company has total assets of $288,000, what is the balance of the company’s Salaries
Payable account?