145. Which of the following stockholder equity accounts follow the same debit and credit rules as liabilities?
146. The payment for the monthly rent will require which of the following entries?
147. Expenses follow the same debit and credit rules as
148. Net income will result when
149. Which of the following will increase retained earnings?
150. Which of the following will decrease retained earnings?
151. Which of the following group of accounts are increased with a debit?
152. Which of the following accounts increase with a credit?
153. Which of the following is true regarding normal balances of accounts?
154. All of the following occur with a double-entry accounting system except
155.
March
6
Cash
2,500
Unearned Fees
2,500
????????????
What is the best explanation for this journal entry?
156.
April
14
Equipment
15,000
Cash
5,000
Note Payable
10,000
????????????
Which is the best explanation for this journal entry?
157. The verification that the total dollar amount of the debits equals the total dollar amount of the credits in the
ledger is called a
158. The process of transferring the debits and credits from the journal entries to the ledger accounts is called
159. The posting process will include the transfer of the following information from the journal to the account.
160. The Post. Ref. columns are used to trace transactions from the journal to the accounts. What will be
entered in the Post. Ref. column of (a) the journal and (b) the account?
161. The chart of accounts for the Corning Corporation includes the following:
Account Name
Account Number
Cash
11
Accounts Receivable
13
Prepaid Insurance
15
Accounts Payable
21
Unearned Revenue
24
Capital Stock
31
Retained Earnings
32
Dividends
33
Fees Earned
41
Salaries Expense
54
Insurance Expense
55
Rent Expense
56
On journal page 3, the following transaction was found:
Prepaid Insurance
1,530
Cash
1,530
What is the posting reference that will be found in the Cash account?
162. The chart of accounts for the Corning Corporation includes the following:
Account Name
Account Number
Cash
11
Accounts Receivable
13
Prepaid Insurance
15
Accounts Payable
21
Unearned Revenue
24
Capital Stock
31
Retained Earnings
32
Dividends
33
Fees Earned
41
Salaries Expense
54
Insurance Expense
55
Rent Expense
56
On journal page 3, the following transaction was found:
Prepaid Insurance
1,530
Cash
1,530
What is the posting reference that will be found in the Prepaid Insurance account?
163. The chart of accounts for the Corning Corporation includes the following:
Account Name
Account Number
Cash
11
Accounts Receivable
13
Prepaid Insurance
15
Accounts Payable
21
Unearned Revenue
24
Capital Stock
31
Retained Earnings
32
Dividends
33
Fees Earned
41
Salaries Expense
54
Insurance Expense
55
Rent Expense
56
On journal page 3, the following transaction was found:
Prepaid Insurance
1,530
Cash
1,530
What are the posting references that will be found in the journal entry?
164. The chart of accounts for Miguel Corporation includes the following:
Account Name
Account Number
Cash
11
Accounts Receivable
13
Prepaid Insurance
15
Accounts Payable
21
Unearned Revenue
24
Capital Stock
31
Retained Earnings
32
Dividends
33
Fees Earned
41
Salaries Expense
54
Insurance Expense
55
Rent Expense
56
On journal page 3, the following transaction was found:
Cash
640
Fees Earned
640
What are the posting references that will be found in the journal entry?
165. The chart of accounts for Miguel Corporation includes the following:
Account Name
Account Number
Cash
11
Accounts Receivable
13
Prepaid Insurance
15
Accounts Payable
21
Unearned Revenue
24
Capital Stock
31
Retained Earnings
32
Dividends
33
Fees Earned
41
Salaries Expense
54
Insurance Expense
55
Rent Expense
56
On journal page 5, the following transaction was found:
Salaries Expense
525
Cash
525
166. The accounts in the ledger of Monroe Entertainment Co. are listed below. All accounts have normal
balances.
Accounts Payable
1,500
Fees Earned
3,600
Accounts Receivable
1,800
Insurance Expense
1,300
Prepaid Insurance
2,000
Land
3,000
Cash
3,200
Wages Expense
1,400
Capital Stock
2,500
Retained Earnings
6,300
Dividends
1,200
Prepare a trial balance. The total of the debits is
167. Randomly listed below are the steps for preparing a trial balance:
(1)
Verify that the total of the Debit column equals the total of the Credit column.
(2)
List the accounts from the ledger and enter their debit or credit balance in the Debit or Credit column of the trial balance.
(3)
List the name of the company, the title of the trial balance, and the date the trial balance is prepared.
(4)
Total the Debit and Credit columns of the trial balance.
What is the proper order of these steps?
168. Of the following, which will determine if the accounting equation is in balance?
169. An overpayment error was discovered in computing and paying the wages of a Jamison Tree Trimming
employee. When Jamison receives cash from the employee for the amount of the overpayment, which of the
following entries will Jamison make?
170. If the two totals of a trial balance are not equal, it could be due to
171. When a transposition error is made on the trial balance, the difference between the debit and credit totals
on the trial balance will be
172. Which of the following errors would cause the trial balance totals to be unequal?
173. Supplies purchased on account were incorrectly recorded as Office Equipment. The correcting entry
would be
174. Which of the following errors will cause the trial balance totals to be unequal?
175. The trial balance is out of balance and the accountant suspects that a transposition or slide error has
occurred. What will the accountant do to find the error?
176. Which of the following is not a short-cut in finding errors on the trial balance?
177. All of the following statements regarding a horizontal analysis are true except
178. McMann Company has a condensed income statement as shown::
2014
2013
Sales
$198,000
$165,500
Total operating expenses
163,000
147,500
Net income
35,000
18,000
Using horizontal analysis, calculate the amount and percent change for Sales. Round to one decimal place.
179. McMann Company has a condensed income statement as shown::
2014
2013
Sales
$150,000
$165,500
Total operating expenses
133,000
147,500
Net income
17,000
18,000
Using horizontal analysis, calculate the amount and percent change for Sales. Round to one decimal place.
180. The purchase of supplies on account was recorded and posted as a debit to Supplies for $500 and a credit
to Accounts Receivable for $500. The correcting entry would include a:
181. The chart of accounts classifies the accounts to make identification of the accounts easier. Discuss how
companies set up a chart of accounts for use in their business.
182. On September 1st, Erika Company purchased land for $47,500 cash. Prepare the journal entry to record
this transaction.
183. (a) On October 10th, Nikle Company purchased supplies worth $1,800 on account. Prepare the journal
entry to record this transaction.
(b) Nikle Company paid for the supplies purchased in (a) on October 25th. Prepare the journal entry to record
this transaction.
184. On October 17th, Nikle Company purchased a building and a plot of land for $750,000. The building was
valued at $500,000 while the land carried a value of $250,000. Nikle paid $300,000 down in cash and signed a
note payable for the balance. Prepare the journal entry to record this transaction.
185. On November 1st, Nikle Company made a cash payment of $200,000 on a note payable that was generated
in the purchase of a building and land. Prepare the journal entry to record this transaction.
186. On January 7th, Damien Lawson deposited $95,000 in a bank account in the name of JumpStart in return
for shares of stock in the corporation. Prepare the journal entry to record this transaction.
187. On January 8th, JumpStart purchased $20,000 worth of office equipment. Prepare the journal entry to
record this transaction.
188. On August 30th JumpStart pays numerous bills which include:
Payment to the landlord for August rent – $2,300
Payment to the Gas & Electric Company for August’s bill – $525
Payment of employee wages for the last half of August – $1,750
Payment of shopping center’s parking lot cleaning fee – $275
Journalize these payments as one compound journal entry.
189. On October 30th, JumpStart paid its only stockholder, Damien Lawson, a $3,300 cash dividend. Journalize
this event.
190. Prepare a journal entry for the purchase of a truck on April 4 for $85,700, paying $15,000 cash and the
remainder on account.
191. Prepare a journal entry on October 12 for the fees earned on account, $14,600.
192. State for each account whether it is likely to have from normal business operations (a) debit entries only,
(b) credit entries only, or (c) both debit and credit entries. Also, indicate the normal balance of each account.
1.
Fees Earned
4.
Supplies
2.
Utilities Expense
5.
Cash
3.
Accounts Payable
6.
Accounts Receivable
193. On June 1, the cash account balance was $96,750. During June, cash receipts totaled $305,000 and the
June 30 balance was $75,880. Determine the cash payments made during June.
75,880 = 96,750 + 305,000 – ?
194. 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 totals to be unequal, indicate whether the
debit or credit total is higher and by how much.
a.
Payment of a cash dividend of $6,800 was journalized and posted as a debit of $8,600 to Salaries Expense and a credit of $8,600 to
Cash.
b.
A fee of $9,780 earned was debited to Accounts Receivable for $7,980 and credited to Fees Earned for $9,780.
c.
A payment of $3,000 to a creditor was posted as a credit of $3,000 to Accounts Payable and a credit of $3,000 to Cash.
b.
The totals are unequal. The credit total is higher by $1,800.
c.
The totals are unequal. The credit total is higher by $6,000.
195. The following errors took place in journalizing and posting transactions:
a.
A payment of $5,000 in cash dividends was recorded as a debit to Office Salaries Expense and a credit to Cash.
b.
An accounts receivable payment of $7,800 was recorded as a debit to Cash and a credit to Fees Earned.
Journalize the entries to correct the errors. Omit the explanations.
196. Discuss and describe how errors in accounts can be found.
197. On November 30th, it was discovered that a $550 of a transaction recording the purchase of office supplies
was really office equipment. Prepare the journal entry to correct this situation.
Nov. 30
Office Equipment
550
Office Supplies
550
Office Salaries Expense
5,000
b.
Fees Earned
7,800
198. Journalize the entries to correct the following errors:
(a)
A purchase of supplies for $500 on account was recorded and posted as a debit to Supplies for $200 and as a credit to
Accounts Receivable for $200.
(b)
A receipt of $2,500 from Fees Earned was recorded and posted as a debit to Fees Earned for $2,500 and a credit to Cash for
$2,500.
199. For the following, enter a “D” if the account normally has a debit balance and enter a “C” if the account
normally has a credit balance.
_____1. Notes Payable
_____2. Mortgage Payable
_____3. Dividends
_____4. Accounts Receivable
_____5. Capital Stock
_____6. Rent Revenue
_____7. Unearned Income
_____8. Utility Expense
_____9. Automobiles
200. On January 1, 2011, Cary Parsons established Cary’s 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 month of operations. You are to indicate for each transaction the accounts that should
be debited and credited by placing the account number(s) in the appropriate box.
1.
Cash
2.
Accounts Receivable
3.
Supplies
4.
Prepaid Insurance
5.
Equipment
6.
Truck
7.
Notes Payable
8.
Accounts Payable
9.
Capital Stock
10.
Dividends
11.
Fees Earned
12.
Wages Expense
13.
Rent Expense
14.
Utilities Expense
15.
Truck Expense
16.
Miscellaneous Expense
17.
Insurance Expense
Transactions
Account(s) Debited
Account(s) Credited
a. Cary transferred cash from a personal bank account to an
account for the business in exchange for stock.
b. Paid rent for the period of January 3 to the end of the month.
c. Purchased a truck for $30,000 with a cash down payment of
$5,000 and the remainder on a note.
d. Purchased equipment on account.
Transactions
Account(s) Debited
Account(s) Credited
1
9
b.
13
1
6
1,7
d.
5
8
201. On January 1, 2011, Cary Parsons established Cary’s 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 during the first month of operations. You are to indicate for each transaction the accounts that should
be debited and credited by placing the account number(s) in the appropriate box.
1.
Cash
2.
Accounts Receivable
3.
Supplies
4.
Prepaid Insurance
5.
Equipment
6.
Truck
7.
Notes Payable
8.
Accounts Payable
9.
Capital Stock
10.
Dividends
11.
Fees Earned
12.
Wages Expense
13.
Rent Expense
14.
Utilities Expense
15.
Truck Expense
16.
Miscellaneous Expense
17.
Insurance Expense
Transactions
Account(s) Debited
Account(s) Credited
a. Purchased supplies for cash.
b. Paid the annual premiums on property and casualty insurance.
c. Received cash for a job previously recorded on account.
d. Paid a creditor a portion of the amount owed for equipment
previously purchased on account.
e. Received cash for a completed job.
Transactions
Account(s) Debited
Account(s) Credited
a.
3
1
b.
4
1
c.
1
2
d.
8
1
e.
1
11
202. On January 1, 2011, Cary Parsons established Cary’s 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 during the first month of operations. You are to indicate for each transaction the accounts that should
be debited and credited by placing the account number(s) in the appropriate box.
1.
Cash
2.
Accounts Receivable
3.
Supplies
4.
Prepaid Insurance
5.
Equipment
6.
Truck
7.
Notes Payable
8.
Accounts Payable
9.
Capital Stock
10.
Dividends
11.
Fees Earned
12.
Wages Expense
13.
Rent Expense
14.
Utilities Expense
15.
Truck Expense
16.
Miscellaneous Expense
17.
Insurance Expense
Transactions
Account(s) Debited
Account(s) Credited
a. Recorded jobs completed on account and sent invoices to
customers.
b. Received an invoice for truck expenses to be paid in
February.
c. Paid utilities expense
d. Received cash from customers on account.
e. Paid employee wages.
f. Paid Cary a cash dividend.
Transactions
Account(s) Debited
Account(s) Credited
a.
2
11
b.
15
8
c.
14
1
d.
1
2
e.
12
1
10
1