Final Exam Accounting Chapters 1-6

debit to equipment 2,100 ' credit to accounts payable 2,100

extreme home bought painting equipment on account fro 2,100. the entry would include

debit salaries expense and credit salaries payable

to record accrued salaries, you would

incurred a net income

when the balance in the income summary account is a credit, the company has

withdrawals

which of the following accounts will be directly closed to capital at the end of the fiscal year?

credit to income summary for $3,800

on flex company worksheet the revenue account had a normal balance of $3,800. The entry to close the account would include a

assets= liabilities + owner's equity

the basic accounting equation is

accounts receivable when it is increased

Which of the following accounts would be debited in a proper journal entry?

none of these answers are correct

a non sufficient funds check was returned to your company. How does this appear on the bank reconciliation?

account

an accounting device used to record increases and decreases in individual assets, liabilities, capital, revenue, expenses, and withdrawals is an

added to the balance per books

bank interest earned on a checking account would be shown on a bank reconciliation as

cash debit $11,000; Katelyn's capital credit $11,000

during the month of January, Katelyn invested $11,000 in starting her legal practice. The proper journal entry would be

have not been presented to the bank for payment but have been subtracted in the checkbook

outstanding checks a. have been subtracted on the bank records but not the checkbook records b. have not been presented to the bank for payment and have not been subtracted from the checkbook c. have not been presented to the bank for payment but have been subtracted in the checkbook d. have been returned to the business for nonpayment

asset

prepaid rent is considered to be

note collected by the bank

which item should be added to the company's book balance during the bank reconciliation?

cash

which of the following accounts is not a temporary account?

cash

which of the following accounts would be increased by a debit

cash

which of the following accounts would most likely NOT need to be adjusted at the end of the year?

salaries expense

which of the following accounts would not be considered a permanent account

withdrawals, debit; cash, credit

which of the following entries records the owner taking cash for personal use?

accounts payable

which of the following is not an asset a. buildings b. cash c. accounts payable d. accounts receivable

capital

which of the following items are on both the balance sheet and the statement of owner's equity?

revenues

which of the following types of accounts has a normal credit balance

debit $300

accounts receivable has a normal balance of $1,100. After collecting $800, the balance in the account is

net income of $9,000

The income summary account shows credits of $19,000 and debits of $10,000. This results in a

income statement

The net income or net loss is calculated in the

bank service charge

Which items should be subtracted from the balance per books?

bank service charges, note collected by the bank, and deposits in transit

Which items would require a journal entry to update the balance in the cash account?

liabilities+ owner's equity

assets are equal to

owner's equity

closing entries will affect

deposit in transit

on a bank reconciliation, deposits added to the bank side are called

false

one internal control safeguard is to assign all duties of receiving, depositing, and recording cash to one employee

liabiities

the claims of creditors against the assets are

revenue, income summary, expenses, withdrawals

the correct order for closing accounts is

analyzing business transactions

the first step of the accounting cycle is

is the book of original entry

the general journal

debit side

the left side of any account is the

accounting cycle

the process that begins with recording business transactions and includes the completion of the financial statements is the

assets

the purchase of supplies for cash would affect which account category?

credit side

the right side of any account is the

normal balance

the side that increases the account balance, by the rules of debit and credit is said to be the

book value

the cost of an asset less accumulated depreciation equals

posting reference

"PR" in the general journal and general ledger stands for

increase computer; increase accounts payable

Bob purchased a new computer for the company on account. The transaction will

accounts payable debit, cash credit

During the month of October, ford advertised on the internet. Ford received the bill for $600 in October, but waited until November to pay the advertising expense. The journal entry to record the payment in November is:

$450

If the balance of supplies at the start of the month was $900 and at the end of the month you had $450 on hand, the adjustment for Supplies would be

$5,000

Robert purchased a truck for $35,000 with a residual value of $10,000 and a life expectancy of 5 years; the amount of the depreciation adjustment for the first year would be

debit to insurance expense, $300

Samantha purchased a two year insurance policy for $7,200. The adjusting entry for one month would include a

debit to J Higgings, Capital $4,200

The balance in the J. Higgings, Withdrawals account was $4,200. The entry to close the account would include a

is a listing of all the accounts used by a company

a chart of accounts

a transaction involving more than one debit and or credit

a compound entry is

an account with an opposite balance of a normal asset

a contra asset is

compound entry

a journal entry affecting three or more accounts is called a

service company

a law firm would be considered a

permanent accounts

accounts in which the balances are carried over from one accounting period to the next are called

decrease the total assets and increase the total expenses

adjusting the supplies account will

remains the same

after the adjustment for depreciation has been made, the original cost of the quipment

indenting

how are credits distinguished from debits in the journal

They would be subtracted from the balance of the bank statement

how would outstanding checks be handled when completing a bank reconciliation?

assets, liabilities and owner's equity

the balance sheet contains

a deduction from the balance per company books

the bank statement included bank charges. On the bank reconciliation, the item is