1 Role Of Accounting In Society 2 Introduction To Financial Statements 3 Analyzing And Recording Transactions 4 The Adjustment Process 5 Completing The Accounting Cycle 6 Merchandising Transactions 7 Accounting Information Systems 8 Fraud, Internal Controls, And Cash 9 Accounting For Receivables 10 Inventory 11 Long-term Assets 12 Current Liabilities 13 Long-term Liabilities 14 Corporation Accounting 15 Partnership Accounting 16 Statement Of Cash Flows Chapter3: Analyzing And Recording Transactions
Chapter Questions Section: Chapter Questions
Problem 1MC: That a business may only report activities on financial statements that are specifically related to... Problem 2MC: That companies can present useful information in shorter time periods such as years, quarters, or... Problem 3MC: The system of using a monetary unit, such as the US dollar, to value the transaction is known as... Problem 4MC: Which of the following terms is used when assuming a business will continue to operate in the... Problem 5MC: The independent, nonprofit organization that sets financial accounting and reporting standards for... Problem 6MC: The standards, procedures, and principles companies must follow when preparing their financial... Problem 7MC: These are used by the FASB, and it is a set of concepts that guide financial reporting. A. Financial... Problem 8MC: This is the independent federal agency protecting the interests of investors, regulating stock... Problem 9MC: Which of the following is the principle that a company must recognize revenue in the period in which... Problem 10MC: Which of the following is the principle that a business must report any business activities that... Problem 11MC: Also known as the historical cost principle, ________ states that everything the company owns or... Problem 12MC: Which of the following principles matches expenses with associated revenues in the period in which... Problem 13MC: Which of the following does not accurately represent the accounting equation? A. B. C. D. Problem 14MC: Which of these statements is false? A. B. C. D. Problem 15MC: Which of these accounts is an asset? A. Common Stock B. Supplies C. Accounts Payable D. Fees Earned Problem 16MC: Which of these accounts is a liability? A. Accounts Receivable B. Supplies C. Salaries Expense D.... Problem 17MC: If equity equals $100,000, which of the following is true? A. Assets exceed liabilities by $100,000.... Problem 18MC: Which process of the accounting cycle often requires the most analytical thought? A. making a... Problem 19MC: The step-by-step process to record business activities and events to keep financial records up to... Problem 20MC: One operating cycle of a business, which could be a month, quarter, or year, is commonly referred to... Problem 21MC: ________ takes all transactions from the journal during a period and moves the information to a... Problem 22MC: Which of these events will not be recognized? A. A service is performed, but the payment is not... Problem 23MC: A company purchased a building twenty years ago for $150,000. The building currently has an... Problem 24MC: What is the impact on the accounting equation when a current months utility expense is paid? A. both... Problem 25MC: What is the impact on the accounting equation when a payment of account payable is made? A. both... Problem 26MC: What is the impact on the accounting equation when an accounts receivable is collected? A. both... Problem 27MC: What is the impact on the accounting equation when a sale occurs? A. both sides increase B. both... Problem 28MC: What is the impact on the accounting equation when stock is issued, in exchange for assets? A. both... Problem 29MC: Which of the following accounts is increased by a debit? A. Common Stock B. Accounts Payable C.... Problem 30MC: Which of the following accounts does not increase with a debit entry? A. Retained Earnings B.... Problem 31MC: Which of the following pairs increase with credit entries? A. supplies and retained earnings B. rent... Problem 32MC: Which of the following pairs of accounts are impacted the same with debits and credits? A. Cash and... Problem 33MC: Which of the following accounts will normally have a debit balance? A. Common Stock B. Fees Earned... Problem 34MC: What type of account is prepaid insurance? A. Stockholders Equity B. Expense C. Liability D. Asset Problem 35MC: Unearned service revenue occurs when which of the following occurs? A. company receives cash from a... Problem 36MC: Which set of accounts has the same type of normal balance? A. Cash, accounts payable B. Prepaid... Problem 37MC: Which of these transactions requires a debit entry to Cash? A. paid balance due to suppliers B. sold... Problem 38MC: Which of these transactions requires a credit entry to Revenue? A. received cash from services... Problem 39MC: Which of these accounts commonly requires both debit and credit entries? A. Sales Revenue B.... Problem 40MC: Which of the following accounting records is the main source of information used to prepare the... Problem 41MC: Which of the following financial statements should be prepared first? A. Balance Sheet B. Income... Problem 1Q: Explain what conservatism means, and give an example in your own words. Problem 2Q: State the accounting equation, and explain what each part represents. Problem 3Q: How do revenues and expenses affect the accounting equation? Problem 4Q: Does every transaction affect both sides of the accounting equation? Explain your answer. Problem 5Q: Which is the book of original entry? Problem 6Q: What is the effect on the accounting equation when a business purchases supplies on account? Problem 7Q: What is the effect on the accounting equation when a business pays the balance due on accounts... Problem 8Q: Is it still necessary to record a transaction if it has no net effect on the accounting equation?... Problem 9Q: Why does the combined total of the companys liabilities and equity always equal the total of the... Problem 10Q: What do the terms debit and credit mean? Problem 11Q: Will an accounts receivable balance increase with a debit or a credit entry? How do you know? Problem 12Q: What types of accounts will increase with a credit? Problem 13Q: What is a journal? Problem 14Q: Why is a journal referred to as the book of original entry? Problem 15Q: What does the term recognize mean? Problem 16Q: What are the rules you should follow when recording journal entries? Problem 17Q: What is the general ledger? Problem 18Q: Explain the steps in posting. Problem 19Q: What is a T-account? When would we use T-accounts? Problem 20Q: Explain normal balances. Give three examples of accounts that will normally have a debit balance and... Problem 21Q: What is a prepaid account? What type of account is it? Problem 22Q: What is an unearned account? What type of account is it? Problem 23Q: Explain what a T-account is and what purpose it serves. Problem 24Q: Can a credit entry be described as a generally positive or negative transaction? Explain. Problem 25Q: What types of accounts are increased with a debit? Problem 26Q: What types of accounts are increased with a credit? Problem 27Q: What does an accounts normal balance indicate? Problem 28Q: Does the order in which financial statements are prepared matter? Problem 29Q: Answer the following questions about the trial balance: What is the purpose of it? What is the... Problem 1EA: Match the correct term with its definition. A. cost principle i. if uncertainty in a potential... Problem 2EA: Consider the following accounts, and determine if the account is an asset (A), a liability (L), or... Problem 3EA: Provide the missing amounts of the accounting equation for each of the following companies. Problem 4EA: Identify the financial statement on which each of the following accounts would appear: the income... Problem 5EA: Cromwell Company has the following trial balance account balances, given in no certain order, as of... Problem 6EA: From the following list, identify which items are considered original sources: A. prepaid insurance... Problem 7EA: Indicate what impact the following transactions would have on the accounting equation, . Table 3.4 Problem 8EA: For the following accounts please indicate whether the normal balance is a debit or a credit. A.... Problem 9EA: Indicate what impact the following transactions would have on the accounting equation, . Table 3.5 Problem 10EA: Identify the normal balance for each of the following accounts. Choose Dr for Debit; Cr for Credit.... Problem 11EA: Identify whether each of the following transactions would be recorded with a debit (Dr) or credit... Problem 12EA: Identify whether each of the following transactions would be recorded with a debit (Dr) or credit... Problem 13EA: Identify whether ongoing transactions posted to the following accounts would normally have only... Problem 14EA: Determine whether the balance in each of the following accounts increases with a debit or a credit.... Problem 15EA: Journalize for Harper and Co. each of the following transactions or state no entry required and... Problem 16EA: Discuss how each of the following transactions for Watson, International, will affect assets,... Problem 17EA: For each item that follows, indicate whether a debit or a credit applies. A. increase in prepaid... Problem 18EA: Indicate whether each account that follows has a normal debit or credit balance. A. Unearned Revenue... Problem 19EA: A business has the following transactions: The business is started by receiving cash from an... Problem 20EA: Prepare journal entries to record the following transactions. A. January 22, purchased, an asset,... Problem 21EA: Prepare journal entries to record the following transactions. A. July 1, issued common stock for... Problem 22EA: Prepare journal entries to record the following transactions. A. March 1, purchased land for cash,... Problem 23EA: Post the following February transactions to T-accounts for Accounts Receivable and Cash, indicating... Problem 24EA: Post the following November transactions to T-accounts for Accounts Payable and Inventory,... Problem 25EA: Prepare an unadjusted trial balance, in correct format, from the alphabetized account information as... Problem 1EB: Match the correct term with its definition. A. Financial Accounting Standards Board FASB) i. used by... Problem 2EB: Consider the following accounts and determine if the account is an asset (A), a liability (L), or... Problem 3EB: Provide the missing amounts of the accounting equation for each of the following companies. Problem 4EB: From the following list, identify which items are considered original sources: A. accounts... Problem 5EB: Indicate what impact the following transactions would have on the accounting equation, . Table 3.10 Problem 6EB: For the following accounts indicate whether the normal balance is a debit or a credit. A. Unearned... Problem 7EB: Which two accounts are affected by each of the following transactions? Table 3.11 Problem 8EB: Identify the normal balance for each of the following accounts. Choose Dr for Debit; Cr for Credit.... Problem 9EB: Identify whether each of the following transactions would be recorded with a debit (Dr) or credit... Problem 10EB: Identify whether each of the following transactions would be recorded with a debit (Dr) or credit... Problem 11EB: Identify whether ongoing transactions posted to the following accounts would normally have only... Problem 12EB: West End Inc., an auto mechanic shop, has the following account balances, given in no certain order,... Problem 13EB: State whether the balance in each of the following accounts increases with a debit or a credit. A.... Problem 14EB: Journalize each of the following transactions or state no entry required and explain why. Be sure to... Problem 15EB: Discuss how each of the following transactions will affect assets, liabilities, and stockholders... Problem 16EB: For each of the following items, indicate whether a debit or a credit applies. A. increase in... Problem 17EB: Indicate whether each of the following accounts has a normal debit or credit balance. A. prepaid... Problem 18EB: Krespy Corp. has a cash balance of $7,500 before the following transactions occur: A. received... Problem 19EB: A business has the following transactions: A. The business is started by receiving cash from an... Problem 20EB: Prepare journal entries to record the following transactions. A. November 19, purchased merchandise... Problem 21EB: Prepare journal entries to record the following transactions: A. December 1, collected balance due... Problem 22EB: Prepare journal entries to record the following transactions: A. October 9, issued common stock in... Problem 23EB: Post the following August transactions to T-accounts for Accounts Payable and Supplies, indicating... Problem 24EB: Post the following July transactions to T-accounts for Accounts Receivable and Cash, indicating the... Problem 25EB: Prepare an unadjusted trial balance, in correct format, from the alphabetized account information as... Problem 1PA: For each of the following situations write the principle, assumption, or concept that justifies or... Problem 2PA: Assuming the following account balances, what is the missing value? Problem 3PA: Assuming the following account balance changes for the period, what is the missing value? Problem 4PA: Assuming the following account balance changes for the period, what is the missing value? Problem 5PA: Identify the financial statement on which each of the following account categories would appear: the... Problem 6PA: Indicate what impact ( for increase; for decrease) the following transactions would have on the... Problem 7PA: Indicate how changes in the following types of accounts would be recorded (Dr for debit; Cr for... Problem 8PA: Identify the normal balance (Dr for Debit; Cr for Credit) and type of account (A for asset, L for... Problem 9PA: Indicate the net effect ( for increase; for decrease; 0 for no effect) of each of the following... Problem 10PA: Identify whether the following transactions would be recorded with a debit (Dr) or credit (Cr)... Problem 11PA: The following information is provided for the first month of operations for Legal Services Inc.: A.... Problem 12PA: Sewn for You had the following transactions in its first week of business. A. Jessica Johansen... Problem 13PA: George Hoskin started his own business, Hoskin Hauling. The following transactions occurred in the... Problem 14PA: Prepare journal entries to record the following transactions. Create a T-account for Cash, post any... Problem 15PA: Prepare journal entries to record the following transactions. Create a T-account for Accounts... Problem 16PA: Prepare journal entries to record the following transactions for the month of July: A. on first day... Problem 17PA: Prepare journal entries to record the following transactions for the month of November: A. on first... Problem 18PA: Post the following July transactions to T-accounts for Accounts Receivable, Sales Revenue, and Cash,... Problem 19PA: Post the following November transactions to T-accounts for Accounts Payable, Inventory, and Cash,... Problem 20PA: Prepare an unadjusted trial balance, in correct format, from the following alphabetized account... Problem 21PA: Prepare an unadjusted trial balance, in correct format, from the following alphabetized account... Problem 1PB: Assuming the following account balances, what is the missing value? Problem 2PB: Assuming the following account balance changes for the period, what is the missing value? Problem 3PB: Assuming the following account balance changes for the period, what is the missing value? Problem 4PB: Identify the financial statement on which each of the following account categories would appear: the... Problem 5PB: Indicate what impact ( for increase; for decrease) the following transactions would have on the... Problem 6PB: Indicate how changes in these types of accounts would be recorded (Dr for debit; Cr for credit).... Problem 7PB: Identify the normal balance (Dr for Debit; Cr for Credit) and type of account (A for asset, L for... Problem 8PB: Indicate the net effect ( for increase; for decrease; 0 for no effect) of each of the following... Problem 9PB: Prepare journal entries to record the following transactions. Create a T-account for Cash, post any... Problem 10PB: Prepare journal entries to record the following transactions. Create a T-account for Accounts... Problem 11PB: Prepare journal entries to record the following transactions that occurred in April: A. on first day... Problem 12PB: Prepare journal entries to record the following transactions that occurred in March: A. on first day... Problem 13PB: Post the following November transactions to T-accounts for Accounts Payable, Inventory, and Cash,... Problem 14PB: Post the following July transactions to T-accounts for Accounts Receivable, Sales Revenue, and Cash,... Problem 15PB: Prepare an unadjusted trial balance, in correct format, from the following alphabetized account... Problem 16PB: Prepare an unadjusted trial balance, in correct format, from the following alphabetized account... Problem 17PB: Prepare an unadjusted trial balance, in correct format, from the following alphabetized account... Problem 18PB: Prepare an unadjusted trial balance, in correct format, from the following alphabetized account... Problem 1TP: Is it possible to be too conservative? Explain your answer. Problem 2TP: Why is it important to learn all of this terminology when accounting is a quantitative subject? Problem 3TP: Assume that you are the controller of a business that provides legal services to clients. Suppose... Problem 5TP: Is the order in which we place information in the journal and ledger important? Problem 8TP: Analyze Trusty Companys trial balance and the additional information provided to determine the... Problem 17PA: Prepare journal entries to record the following transactions for the month of November: A. on first...
Related questions
Concept explainers
Required:
Prepare the journal entries for the Hampton Corporation (a newly-formed service company) in the general journal provided.
Aug
1
Opened a business bank account with a deposit of $50,000 in exchange for issued common stock.
3
Purchased $2,000 of supplies on account to be used next month.
6
Purchased a parcel of land for $20,000.
8
Completed a consulting job and billed client $5,000.
11
Paid rent of $1,500 on office equipment for the month.
14
Paid half of the balance due on the supplies purchased on the 3rd.
15
Paid office salaries, $3,500.
17
Received $6,000 in advance from a customer for a job to be performed in September.
21
Collected fees of $4,000 for a consulting job completed today.
23
Collected $3,000 of the amount billed on August 8.
27
Paid the telephone expense, $500.
31
Paid $600 for an advertising promotion.
General Journal
Date Account
Debit Credit
Aug 1 Cash
50,000
4
Common Stock
50,000
1
1
Aug 3 Supplies
2,000
4
Accounts Payable
2,000
1
0
Aug 6
20,000
3
Cash
20,000
1
1
Aug 8 Accounts Payable
5,000
3
5,000
0
0
Aug 11
1,500
3
Cash
1,500
1
0
Aug 14
1,000
3
Cash
1,000
1
0
Aug 15
3,500
3
Cash
3,500
1
1
Aug 17 Cash
6,000
4
Unearned Revenue
6,000
1
1
Aug 21 Cash
4,000
3
4,000
0
1
Aug 23 Cash
3,000
4
Accounts Receivable
3,000
1
0
Aug 27
500
3
Cash
500
1
1
Aug 31 Advertising Expense
600
4
Cash
600
1
Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
