117.
A journal entry to recognize an expense could include each of the following,
except
:
118.
The agreement of the debit and credit totals of the trial balance gives assurance that:
119.
If the trial balance has a higher debit balance than credit balance, it signifies:
120.
If the trial balance has a smaller debit balance than credit balance, it signifies:
121.
A trial balance that is out of balance indicates that:
122.
A trial balance consists of:
123.
Which of the following errors would be disclosed by preparation of a trial balance?
124.
Which of the following errors would
not
be disclosed by preparation of a trial balance?
Montauk Oil Co. reports these account balances at December 31, 2014
On January 2, 2015, Montauk Oil collected $50,000 of its accounts receivable and paid
$20,000 of its accounts payable.
125.
Refer to the information above. In a trial balance prepared at
December 31, 2014
the total
of the debit column is:
3-66
126.
Refer to the information above. In a trial balance prepared at
January 3, 2015
, the total of
the debit column is:
Ceramic Products, Inc. reports these account balances at January 1, 2015 (shown in
alphabetical order):
On January 5, Ceramic Products collected $12,000 of its accounts receivable and paid
$11,000 on its note payable.
127.
Refer to the information above. In a trial balance prepared for Ceramic Products on
January 1, 2015, the total of the credit column is:
128.
Refer to the information above. In a trial balance prepared on January 6, 2015, the total of
the credit column is:
Indirect Oil Co. reports these account balances at December 31, 2014
On January 2, 2015, Indirect Oil collected $25,000 of its accounts receivable and paid
$20,000 of its accounts payable.
129.
Refer to the information above. In a trial balance prepared at
December 31, 2014
the total
of the debit column is:
3-69
130.
Refer to the information above. In a trial balance prepared at
January 3, 2015
, the total of
the debit column is:
Wilson Trucking, Inc. reports these account balances at January 1, 2015 (shown in
alphabetical order):
On January 5, Wilson Trucking collected $175,000 of its accounts receivable, paid $150,000
on its accounts payable, and paid $11,000 on its note payable.
131.
Refer to the information above. In a trial balance prepared for Wilson Trucking on January
1, 2015, the total of the credit column is:
132.
Refer to the information above. In a trial balance prepared for Wilson Trucking on January
6, 2015, the total of the debit column is:
133.
Refer to the information above. In a trial balance prepared on January 6, 2015, the total of
the credit column is:
134.
The need for familiarity with accounting concepts is:
3-72
Essay Questions
135.
Accounting terminology
Listed below are nine technical accounting terms introduced in this chapter:
(A.) The accounting record in which transactions are initially recorded.
(B.) A concept designed to avoid overstatement of the financial strength of a company.
(C.) A schedule prepared to determine the equality of the debit and credit amounts in the
ledger.
(D.) An amount entered in the right side of a ledger account.
(E.) The sequence of procedures involved in recording transactions, processing the
information in the accounting system, and summarizing the information in the form of
financial statements.
(F.) The accounting record that contains a separate account for each type of asset and
liability, and for each element of owners’ equity appearing in the balance sheet.
(G.) The system of accounting in which every business transaction is recorded by equal
dollar amounts of debit and credit entries.
3-75
136.
Recording transactions directly in T accounts; trial balance
On July 20, Mollie Rose began a new business called MR Printing, which provides typing,
duplicating, and printing services. The following six transactions were completed by the
business during July.
(A.) Issued to Rose 1,000 shares of capital stock in exchange for her investment of
$200,000 cash.
(B.) Purchased land and a small building for $450,000, paying $165,000 cash and signing a
note payable for the balance. The land was considered to be worth $240,000 and the
building $210,000.
(C.) Purchased office equipment for $30,000 from Quality Interiors, Inc. Paid $17,000 cash
and agreed to pay the balance within 60 days.
(D.) Purchased a motorcycle on credit for $3,400 to be used for making deliveries to
customers. Mollie agreed to make payment to Spokes, Inc. within 10 days.
(E.) Paid in full the account payable to Spokes, Inc.
(F.) Borrowed $30,000 from a bank and signed a note payable due in six months.
Instructions
3-78
137.
Recording transactions in T accounts; trial balance
On May 15, George Manny began a new business, called Sounds, Inc., a recording studio
to be rented out to artists on an hourly or daily basis. The following six transactions were
completed by the business during May:
(A.) Issued to Manny 5,000 shares of capital stock in exchange for his investment of
$200,000 cash.
(B.) Purchased land and a building for $410,000, paying $100,000 cash and signing a note
payable for the balance. The land was considered to be worth $310,000 and the building
$100,000.
(C.) Installed special insulation and soundproofing throughout most of the building at a
cost of $120,000. Paid $32,000 cash and agreed to pay the balance in 60 days. Manny
considers these items to be additional costs of the building.
(D.) Purchased office furnishings costing $18,000 and recording equipment costing
$88,400 from Music Supplies. Sounds paid $28,000 cash with the balance due in 30 days.
(E.) Borrowed $180,000 from a bank by signing a note payable.
(F.) Paid the full amount of the liability to Music Supplies arising from the purchases in D
above.
Instructions
