Review
. Samuel was asked to prepare a financial statement to determine whether or not the costs of doing business exceeded the revenue during the past year. What is the LAST Samuel will do in preparing this statement?
Calculate the component percentages
What is the correct journal entry for the transaction, PAID CASH ON ACCOUNT TO AVIS SUPPLY COMPANY, $500?
Debit Accounts Payable/Avis Supply Company and credit Cash
What is the correct journal entry for the transaction, PAID CASH ON ACCOUNT TO VENDOR JONES SUPPLY, $1000?
Debit Accounts Payable/Jones Supply and credit Cash
What is the correct entry for the transaction, PAID $150 FOR ADVERTISING?
Debit Advertising Expense and credit Cash
What is the correct entry for the transaction, PAID CASH FOR NEWSPAPER ADVERTISEMENT, $200?
Debit Advertising Expense and credit Cash
James discovered that a transaction for an Advertising Expense was journalized and posted in error as a debit to Miscellaneous Expense, $200. What is the entry to correct the error?
Debit Advertising Expense, $200; credit Miscellaneous Expense, $200
. What is the correct journal entry for the transaction, RECEIVED CASH ON ACCOUNT FROM BILL'S LIMOS FOR, $500?
Debit Cash and credit Accounts Receivable/Bill's Limos
What is the correct journal entry for the transaction, RECEIVED CASH ON ACCOUNT FROM BURKE SUPPLY FOR, $800?
Debit Cash and credit Accounts Receivable/Burke Supply
. What is the correct journal entry for the transaction, RECEIVED CASH FROM OWNER DANA JACKSON AS INVESTMENT, $5000?
Debit Cash and credit Dana Jackson, Capital
What is the correct entry for the transaction, HANS SCHMIDT INVESTED $2000 OF HIS OWN MONEY INTO THE BUSINESS?
Debit Cash and credit HANS SCHMIDT, Capital
. What is the correct journal entry for the transaction, RECEIVED BIKE RENTAL FEES, $375?
Debit Cash and credit Rental Fees
What is the correct journal entry for the transaction, RECEIVED CASH FROM SALES, $150?
Debit Cash and credit Sales
What is the correct journal entry for the transaction, RECEIVED CASH FROM SALES, $2500?
Debit Cash and credit Sales
What is the correct journal entry for the transaction, RECEIVED CASH FROM SALES, $250?
Debit Cash and credit Sales
What is the correct journal entry for the transaction, PAID CASH TO JOHN SMITH, OWNER FOR PERSONAL USE, $500?
Debit John Smith, Drawing and credit Cash
What is the correct journal entry for the transaction, PAID CASH TO MARK JOHNSON, OWNER FOR PERSONAL USE, $900?
Debit Mark Johnson, Drawing and credit Cash
What is the correct journal entry for the transaction PAID CASH FOR A DELIVERY (MISCELLANEOUS EXPENSE), $25?
Debit Miscellaneous Expense and credit Cash
What is the correct journal entry for the transaction PAID CASH FOR MISCELLANEOUS EXPENSE, $400?
Debit Miscellaneous Expense and credit Cash
What is the correct journal entry for the transaction, PAID CASH FOR AN OFFICE DESK, $250?
Debit Office Equipment and credit Cash
. What is the correct journal entry for the transaction, PAID CASH FOR INSURANCE, $400?
Debit Prepaid Insurance and credit Cash
What is the correct journal entry for the transaction, PAID CASH FOR INSURANCE, $200?
Debit Prepaid Insurance and credit Cash
What is the correct journal entry for the transaction, PAID CASH FOR RENT, $1000?
Debit Rent Expense and credit Cash
What is the correct journal entry for the transaction, PAID CASH FOR RENT, $700?
Debit Rent Expense and credit Cash
What is the correct journal entry for the transaction, PAID CASH FOR REPAIRS, $95?
Debit Repair Expense and credit Cash
What is the correct journal entry for the transaction, PAID CASH TO REPAIR OFFICE EQUIPMENT, $250?
Debit Repair Expense and credit Cash
What is the correct journal entry for the transaction, BOUGHT SUPPLIES ON ACCOUNT FROM JONES SUPPLY COMPANY, $250?
Debit Supplies and credit Accounts Payable/Jones Supply Company
What is the correct journal entry for the transaction, BOUGHT SUPPLIES ON ACCOUNT FROM STEINMAN COMPANY, $75?
Debit Supplies and credit Accounts Payable/Steinman Company
What is the correct journal entry for the transaction, PAID CASH FOR COMPUTER PAPER?
Debit Supplies and credit Cash
What is the correct journal entry for the transaction, PAID CASH FOR PRINTER CARTRIDGES?
Debit Supplies and credit Cash
What is the correct journal entry for the transaction, PAID THE GAS BILL, $125?
Debit Utilities Expense and credit Cash
What is the correct journal entry for the transaction, PAID THE TELEPHONE BILL, $125?
Debit Utilities Expense and credit Cash
Bill James discovered that a transaction for Utilities Expense was journalized and posted in error as a debit to Repair Expense, $250. What is the entry to correct the error?
Debit Utilities Expense, $250; credit Repairs Expense, $250
When preparing an Income Statement, after all account total debits and credits are entered correctly, verified and totaled, what is the next step?
Double rule across both amount columns.
When closing the Advertising Expense account, debit:
Income Summary and credit Advertising Expense
When closing the Miscellaneous Expense account, debit:
Income Summary and credit Miscellaneous Expense
James is closing the income summary account. His company had a net income of $900. The correct journal entry is to debit:
Income Summary, and credit Owner's Equity, $900.
. If the beginning prepaid insurance balance is $2,000, and the ending value of the insurance is $800, the correct adjustment on the work sheet is to debit:
Insurance Expense and credit Prepaid Insurance $1,200.
The beginning Prepaid Insurance balance is $3,700 and the ending Prepaid Insurance balance is $2,200. The correct adjusting entry will be to debit:
Insurance Expense and credit Prepaid Insurance $1,500.
If the beginning prepaid insurance balance is $3,400, and the ending value of the insurance is $1,200, the correct adjustment on the work sheet is to debit:
Insurance Expense and credit Prepaid Insurance $2,200
A journal's column totals are General Debit, $500; General Credit, $200; Sales Credit, $750; Cash Debit, $1,000; Cash Credit, $600. This means that the:
Journal does not prove.
A journal's column totals are General Debit, $500; General Credit, $200; Sales Credit, $350; Cash Debit, $1,000; Cash Credit, $950. This means that the:
Journal proves.
Michael is preparing the closing entries for his company. He has closed all the income statement accounts that have a credit balance. What is the NEXT step that he will perform?
Journalize an entry to close income statement accounts that have a debit balance
Mary is preparing the closing entries for her company. After she has closed the Income Summary account, what will she do NEXT?
Journalize an entry to close the owner's drawing account
The ABC Manufacturing Company's Income Statement worksheet shows total debits of $600 and total credits of $750. ABC Manufacturing Company has a:
Net income of $150.
On a worksheet, the Income Statement credit total is $1,200 and the Income Statement debit total is $800. The company has a:
Net income of $400
. On a worksheet, the Income Statement credit total is $2,150 and the Income Statement debit total is $2,400. The company has a:
Net loss of $250
The owner's drawing account has a balance of $275. The correct entry to close the drawing account would be to debit:
Owner's equity account, credit drawing account for $275.
Mary is closing the income summary account. Her company had a net loss of $2,000. The correct journal entry is to debit:
Owner's equity, and credit Income Summary, $2,000.
. Mary is preparing a Balance Sheet. What must she do after she completes the heading information?
Prepare the Asset section.
Mary is preparing a Balance Sheet. What must she do after she completes the Assets section?
Prepare the Liability section.
William has almost finished updating the Supplies account at the end of the month. He has transferred all of the information in the General Journal to the General Ledger. What is the LAST step for William to do?
Record an account number in the journal.
Mike is posting journal entries to the General Ledger. He has just calculated the new account balance in the credit column for Sales. What is the NEXT step in the posting procedure?
Record the account number that the entry was posted to in the journal in the post reference column.
In preparing adjustment entries for his company, Steve has written "Insurance Expense" in the Account Title column. What will he do NEXT?
Record the debit amount in the General Debit column
Adam is preparing the Post-Closing Trial Balance. He has recorded all the account balances in the correct column. What will he do NEXT?
Rule a single line below the last amount in each column
. The Sales account has a balance of $3,875. To close the Sales account, debit:
Sales $3,875 and credit Income Summary $3,875.
If the beginning supplies balance is $1,800, and the ending supplies balance is $300, the correct adjustment on the work sheet is to debit:
Supplies Expense and credit Supplies $1,500.
If the beginning supplies balance is $2,200, and the ending supplies balance is $700, the correct adjustment on the work sheet is to debit:
Supplies Expense and credit Supplies $1,500.
The beginning supplies balance is $2,300 and the ending supplies balance is $2,200. The correct adjusting entry will be to debit:
Supplies Expense and credit Supplies $100.
Mary is preparing a Balance Sheet. When she completes the Owner's Equity Section, what should the end result be?
The Total Assets should equal Total Liabilities plus Owner's Equity.
Steve is preparing the Post-Closing Trial Balance. After he has written "Post Closing Trial Balance" in the heading section, what will he do NEXT?
Write the account titles of all general ledger accounts that have balances in the Account Title column
John is preparing an Income Statement. He has written the titles of each expense account in the Expenses Section. What should John do NEXT?
Write the balance of each expense account.
When he applied for a bank loan, Robert was asked by the bank to develop a financial statement that would show the financial health of his business as of March 31. What is the FIRST step Robert will do to prepare this statement?
Write the name of the company.
6. On the last day of April, Jack prepared the adjusting entries for his company. He has written "Adjusting Entries" in the Account Title column and recorded April 30 in the date column. What will Jack do NEXT?
Write the title of the account debited in the Account Title column