Accounting 111 - Test 2
When a transposition error is made on the trial balance the difference between the debit and the credit totals of the trial balance will be...
easily divisible by 9
Journal entry
Debits then Credits
If the 2 totals of a trial balance aren't equal it could be due to:
an error determines account balance, balance being wrongly computed
Liabilities
unearned revenue, payable, debit, owing anything in the future
payment of shopping centers parking lot cleaning fee the amount is $600 on August 8
8/10 Maintenance Expense 600 . Cash. 600
Paid employee wages on August 8 in the amount $2000
8/10 Payroll Expense 2000 Cash. 2000
On September 1, we purchased land in amount of $500,000 in cash
9/1 Land 500,000 Cash 500,000
Paid on account
Account Payable: Debit Cash: Credit
Services Provided on Account
Account Receivable: Debit Fees Earned: Credit
Identify assets and explain balance Acc payable 200,000 Acc receivable 20,000 Insurance expense 190,000 Cash 50,000 Retained earning 5,000 Dividends 200 Common stock 10,000
Accounts Receivable 20,000 Cash 50,000 Total - 70,000
Purchased on Account
Asset Accounting: Debit Accountable Payable: Credit
Paid cash
Asset or Expense Account:Debit Cash: Credit
Received Cash on Account
Cash: Debit Accountable Receivable: Credit
Received Cash for Services provided
Cash: Debit Fees Earned: credit
Which side of the account increases the cash account
Debit
Paid Dividends
Debit Dividends; credit Cash.
What could cause a trial balance totals to not equal?
Debit and credit to not be the same
T account
Debit left, credit right
Normal balance of an account
Is whatever increases the amount of
Which group of accounts is composed of only assets
Prepaid Expenses, Buildings, Patents
the payment for monthly rent will require what entry?
Rent Expense Cash
Fees Earned
Revenue
Stockholder's Equity
common stock, retained earnings, dividends
Revenue
increased with credit (rarely decreased with debit to correct entry)
Equity
increased with credits decreased with debits
Liability
increased with credits decreased with debits
Expense
increased with debit (Rarely decreased with credit only to correct entry)
Assets
increased with debits decreased with credits
Assets
supplies, equipment, historical cost principles, land, buildings, investments, inventory, accounts receivable, prepaid expense, marketable securities
