ch 3 terrible acct 1301
A company paid $500 by check for office supplies that it had previously purchased on credit. This transaction would debit the ________ ________,account, and credit the ________account.
accounts payable cash
Best Consulting Co. issued a check for $1,000 to an office supply vendor in partial payment of an open account balance. This transaction would be recorded with a debit entry to the _________ account
accounts payable
identify which of the following accounts are permanent accounts:
accounts payable cash prepaid rent
Speedy Delivery Company completed a delivery and billed the customer for $980. This transaction would be recorded with a debit entry on the left-hand side of which account:
accounts receivable
Which of the following are correct steps to calculate the balance of an account? add the figures on each side of the account enter the total in small pencil figures called a footing record the balance on the side that has the smaller total add the two footing balances together
add the figures on each side of the account enter the total in small pencil figures called a footing
The normal balance side for asset, liability, and owner's equity accounts is: right, right, right respectively. left, right, right respectively. right, right, left respectively. left, left, right respectively.
left, right, right respectively.
The owner's capital account appears on which two financial statements?
statement of owner's equity balance sheet
Net income appears on which two financial statements?
statement of owner's equity income statement
Fancy Painting Company purchased office supplies for $500 in cash. This transaction would be recorded with a debit to the _______ account.
supplies
A company purchased office supplies for $500 in cash. This transaction would debit the _______________account, and credit the_______account
supplies or office supplies cash
An error in which the decimal point is misplaced, for example when 317 is written as 3.17 is an example of a
slide.
Place the steps to calculate the balance of an account in the correct order.
1. add the figures on each side of the account 2. Enter the total small pencil figures 3.subtract the smaller total from the larger total 4.record the balance on the side that has the larger total
Place the steps to prepare a trial balance in the correct order:
1.enter the trial balance heading 2.list the accounts name in the order they appear 3.enter the end balances of each account 4.total the debit column;total the credit column 5.compare the total debits with total credits
The company owner took $5,000 cash for personal use. What is the entry for this transaction?
Debit Caleb Parker, Drawing and Credit Cash
True or false: A list of the accounts used by a business to record financial transactions is called the trial balance
False
the steps to analyze the effects of a business transaction include (select all that apply):
analyze the financial event make the entry in T-account form
increases
are shown on the right-hand side of the T account
Identify the correct statements: liabilities decrease on the right (credit) side assets increase on the left (debit) side liabilities increase on the right (credit) side owner's equity decrease on the left (debit) side
assets increase on the left (debit) side liabilities increase on the right (credit) side owner's equity decrease on the left (debit) side
Helen Jone's Hair Salon collects $800 cash for services provided during the day. This transaction would be recorded with a debit entry on the left-hand side of which account:
cash
A list of the accounts used by a business to record its financial transactions is called the
chart of accounts
An entry on the right-hand side of a T account is called a
credit
A company collected $200 cash from customers for services provided. This transaction would (debit/credit)________he fees earned account, and debit/credit___________the cash account.
credit debit
A company issued a check for $500 to an office supply vendor in partial payment of an open account balance. This transaction would be recorded with a:
credit to cash debit to accounts payable
An entry on the left-hand side of a T account is called a
debit
A company completed services and billed customers for $800. This transaction would (debit/credit)__________he accounts receivable account, and (debit/credit)_________the fees income account.
debit credit
A(n) (increase/decrease)__________to the fees earned account is shown on the left-hand side of the T account.
decrease
An (increase/decrease) ________to the accounts receivable account is shown on the right-hand side of the T account.
decrease
An (increase/decrease)____________to the accounts receivable account is shown on the right-hand side of the T account
decrease
Identify the correct steps to prepare a trial balance:
enter the ending balances of each account in the appropriate debit or credit column enter the trial balance heading total the debit column; total the credit column
Identify the correct statement about the accounting equation:
owner's equity increases on the right (credit) side
An account that is kept open from one accounting period to the next, such as cash, is called a
permanent
Credit entries are always made on the (left/right)________-hand side of a T account.
right
The fees earned account is always increased on the (left/right) ______________ -hand side of the T account.
right
an error where numbers are switched, for example, entering 120 instead of 210, is called a:
transposition
A statement to test the accuracy of total debits and credits after transactions have been recorded is called the_____ _____
trial balance
A statement that lists all accounts and related balances, that is prepared after transactions have been recorded, and which tests the accuracy of total debits and total credits is called the
trial balance
A statement to test the accuracy of total debits and credits after transactions have been recorded is called the_________ _______
trial balance