ACC module 3

A ledger: (a) contains only asset and liability accounts. (b) should show accounts in alphabetical order. (c) is a collection of the entire group of accounts maintained by a company. (d) provides a chronological record of transactions.

c

At January 1, 2017, Troyer Industries reported Retained Earnings of $ 350000. During 2017, Troyer had a net loss of $ 75000 and paid dividends to the stockholders of $ 50000. At December 31, 2017, the balance in Retained Earnings is

225,000 credit

At December 1, 2017, Orear Company's Accounts Receivable balance was $ 16800. During December, Orear had credit sales of $45000 and collected accounts receivable of $ 36000. At December 31, 2017, the Accounts Receivable balance is

25,800 debit

At February 1, 2017, the balance in Goebel Inc.'s supplies account was $ 3500. During February. Goebel purchased supplies of $ 3000and used supplies of $ 4000. At the end of February, the balance in the Supplies account should be

2500 debit

Cash-14,000 Prepaid insurance-700 Accounts receivable-3500 Accounts payable-2800 Notes payable-4200 Common stock-5400 Dividends-700 Revenues-29,000 Expenses-17,500 What amount did Barnes Comapany show as total credits?

41,400

During January 2017, its first month of operation, Osborn Enterprises earned net income of $ 6800 and paid dividends to the owners of $ 2000. At January 31, the balance in Retained Earnings will be

4800

At October 1, 2017, Metz Industries had an Accounts Payable balance of $ 140000. During the month, the company made purchases on account of $ 100000 and made payments on account of $ 160000. At October 31, 2017, the Accounts Payable balance is

80,000 credit

A trial balance: (a) is a list of accounts with their balances at a given time. (b) proves that proper account titles were used. (c) will not balance if a correct journal entry is posted twice. (d) proves that all transactions have been recorded

a

During 2017, Gibson Company assets decreased $50,000 and its liabilities decreased $90,000. Its stockholders' equity therefore: (a) increased $40,000. (b) decreased $140,000. (c) decreased $40,000. (d) increased $140,000.

a

Which of these statements about a journal is false? (a) It contains only revenue and expense accounts. (b) It provides a chronological record of transactions. (c) It helps to locate errors because the debit and credit amounts for each entry can be readily compared. (d) It discloses in one place the complete effect of a transaction.

a

A trial balance will not balance if

a $50 cash dividend is debited to dividends for $500 and credited to cash for $50

On July 7, 2017, Shireman Enterprises received cash $ 1400 for services rendered. The entry to record this transaction will include

a debit to cash of 1400

Genesis Company buys a $900 machine on credit. This transaction will affect the: (a) income statement only. (b) balance sheet only. (c) income statement and retained earnings statement only. (d) income statement, retained earnings statement, and balance sheet

b

The effects on the basic accounting equation of performing services for cash are to: (a) increase assets and decrease stockholders' equity. (b) increase assets and increase stockholders' equity. (c) increase assets and increase liabilities. (d) increase liabilities and increase stockholders' equity

b

Which is not part of the recording process? (a) Analyzing transactions. (b) Preparing an income statement. (c) Entering transactions in a journal. (d) Posting journal entries.

b

Which of the following events is not recorded in the accounting records? (a) Equipment is purchased on account. (b) An employee is terminated. (c) A cash investment is made into the business. (d) Company pays dividend to stockholders.

b

Which statement about an account is true? (a) In its simplest form, an account consists of two parts. (b) An account is an individual accounting record of increases and decreases in specific asset, liability, and stockholders' equity items. (c) There are separate accounts for specific assets and liabilities but only one account for stockholders' equity items. (d) The left side of an account is the credit, or decrease, side

b

A trial balance will not balance if: (a) a correct journal entry is posted twice. (b) the purchase of supplies on account is debited to Supplies and credited to Cash. (c) a $100 cash dividend is debited to Dividends for $1,000 and credited to Cash for $100. (d) a $450 payment on account is debited to Accounts Payable for $45 and credited to Cash for $45.

c

Debits: (a) increase both assets and liabilities. (b) decrease both assets and liabilities. (c) increase assets and decrease liabilities. (d) decrease assets and increase liabilities.

c

A revenue account: (a) is increased by debits. (b) is decreased by credits. (c) has a normal balance of a debit. (d) is increased by credits.

d

Paying an account payable with cash affects the components of the accounting equation in the following way: (a) Decreases stockholders' equity and decreases liabilities. (b) Increases assets and decreases liabilities. (c) Decreases assets and increases stockholders' equity. (d) Decreases assets and decreases liabilities.

d

Posting: (a) normally occurs before journalizing. (b) transfers ledger transaction data to the journal. (c) is an optional step in the recording process. (d) transfers journal entries to ledger accounts.

d

Which accounts normally have debit balances? (a) Assets, expenses, and revenues. (b) Assets, expenses, and retained earnings. (c) Assets, liabilities, and dividends. (d) Assets, dividends, and expenses.

d

On January 14, Decker industries purchased supplies of $ 500 on account. The entry to record the purchase will include

debit to supplies and credit to accounts payable