ACCT 4A Ch 2 DSM

Assuming normal account balances, the following statement is true when balancing a T-account or Ledger?

Assets normally have debit balances.

Which of the following statements about the trial balance are true?

It is a list of all accounts and their balances at a point in time. The trial balance and the balance sheet are not the same: formats and purposes are quite different. The accounts on the trial balance are listed with assets followed by liabilities and then equity related accounts. The financial statements are prepared from the trial balance.

Which of the following accounts is part of equity?

Withdrawals

Complete Computer Services reports Total Assets of $1,000, Total Liabilities of $200, and Total Equity of $800. What is Complete Computer Services debt ratio?

20%

Which of the following accounts is a liability?

Accounts Payable

Which of the following statements is correct?

Accounts Payable increases with a credit entry.

Which of the following accounts is an asset?

Accounts Receivable

Which of the following statements is correct?

Cash increases with a debit entry.

When considering normal account balances, which statement is true?

Cash normally has a debit balance.

Which of the following is a list of accounts that shows how the accounting system accounts are organized in a manner similar to that of a table of contents of a book?

Chart of accounts

Assuming normal account balances, the following statement is true when balancing a T-account or Ledger?

Liabilities normally have credit balances.

On March 3, Complete Computer Service made a $300 payment on the Accounts Payable for a previous purchase on account. The journal entry to record this transaction would be:

accounts payable debit 300 cash credit 300

On March 26, Jones Repair Service earned $1,700 of service revenue on account. The journal entry to record this transaction would be:

accounts receivable debit 1700 service revenue credit 1700

On February 1, Complete Computer Service earned $2,200 of service revenue on account. The journal entry to record this transaction would be:

accounts receivable debit 2200 service revenue credit 2200

On March 15, Complete Computer Service purchased a $25,000 building in exchange for a notes payable. The journal entry to record this transaction would be:

building debit 25000 notes payable credit 25000

On March 16, John Write, owner of Complete Computer Service, contributed a building to the business with a fair market value of $3,000 in exchange for capital. The journal entry to record this transaction would be:

building debit 3000 write, capital credit 3000

On January 1, John Write, owner of Complete Computer Service, invested $10,000 in cash and the business in exchange for capital. The journal entry to record this transaction would be:

cash debit 10000 write, capital credit 10000

On March 1, Jones Repair Services received cash of $1,200 for service revenue earned. The journal entry to record this transaction would be:

cash debit 1200 service revenue credit 1200

A list of all of a company's accounts with numbers.

chart of accounts

A record of transactions in date order.

journal

On January 15, Complete Computer Service paid $2,000 cash for land. The journal entry to record this transaction would be:

land debit 2000 cash credit 2000

The record holding all the accounts of a business, the changes in those accounts, and their balances.

ledger

On January 20, Complete Computer Service purchases $200 of office supplies on account. The journal entry to record this transaction would be:

office supplies debit 200 accounts payable credit 200

On March 14, Complete Computer Service prepays 4 month of office rent of $2,000. The journal entry to record this transaction would be:

prepaid rent debit 2000 cash credit 2000

On March 1, Complete Computer Service paid cash of $900 for rent expense for the current month. The journal entry to record this transaction would be:

rent expense debit 900 cash credit 900

On March 1, Complete Computer Service paid cash of $700 for salaries expense for the current month. The journal entry to record this transaction would be:

salaries expense debit 700 cash credit 700

provides evidence and data for an accounting transaction

source document

On March 17, John Write, owner of Complete Computer Service, made $1,000 cash withdrawal from the business. The journal entry to record this transaction would be:

write, withdrawals debit 1000 cash credit 1000