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Exam 2: Analyzing Transactions

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Question 21

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On October 10th, Nikle Company purchased supplies worth $1,800 on account. (a) Write the journal entry in the space below. (b) Nikle Company paid this bill on October 25th. Write the journal entry in the space below.

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_TB2085_00...

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Question 22

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The T account got its name because it resembles the letter "T."

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Question 23

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The balance of the account can be determined by adding all of the debits, adding all of the credits, and adding the amounts together.

When an owner contributes equipment to the business, he or she retains ownership of the property.

A cash payment is recorded on the cash account as a

In which of the following types of accounts are decreases recorded by debits?

Which of the following accounts would be increased with a credit?

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 plot. Write the journal entry for this payment in the space below.

In which of the following types of accounts are decreases recorded by credits?

Expenses follow the same debit and credit rules as

A drawing account represents the amount of withdrawals made by the owner.

In which order are the accounts listed in the chart of accounts?

Record the following selected transactions for April in a two-column journal, identifying each entry by letter:

Liabilities are increased with debits and decreased with credits.

On January 1, 2010, Cary Parsons 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 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. $\begin{array}{|l|l|}\hline 1 . & \text { Cash } ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~\\\hline 2 . & \text { Accounts Receivable } \\\hline 3 . & \text { Supplies } \\\hline 4 . & \text { Prepaid Insurance } \\\hline 5 . & \text { Equipment } \\\hline 6 . & \text { Truck } \\\hline 7 . & \text { Notes Payable } \\\hline 8 . & \text { Accounts Payable } \\\hline 9 . & \text { Cary Parsons, Capital } \\\hline 10 . & \text { Cary Parsons, Drawing } \\\hline 11 . & \text { Fees Earned } \\\hline 12 . & \text { Wages Expense } \\\hline 13 . & \text { Rent Expense } \\\hline 14 . & \text { Utilities Expense } \\\hline 15 . & \text { Truck Expense } \\\hline 16 . & \text { Miscellaneous Expense } \\\hline & \\\end{array}$

The owner's equity will be reduced by all of the following accounts except:

When an account receivable is collected in cash, the total assets of the business increase.

The gross increases in owner's equity attributable to business activities are called

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:

If the trial balance is in balance, it can be assumed that all journal entries were posted correctly and no errors were made.