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Exam 3: Processing Accounting Information

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Question 61

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Credits are always on the side of the T account.

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Question 62

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Choose from the following list of account titles the one that most accurately fits the description of that account or is an example of that account. An account title may be used more than once or not at all. -A written obligation to repay a fixed amount, with interest, at some time in the future

A) Cash
B) Prepaid Asset
C) Investments
D) Taxes Payable
E) Preferred Stock
F) Accounts Receivable
G) Land
H) Accounts Payable
I) Retained Earnings
J) Notes Receivable
K) Buildings
L) Notes Payable
M) Common Stock

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Question 63

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Parachute Country Club Use the selected accounts for Parachute Country Club presented below to answer the following questions. -Read the information on Parachute Country Club. On which date did the country club collect an advance deposit?

The following transactions occurred during March, the first month of operations for Canyon Products, Inc.. 1) Issued 50,000 shares of capital stock in exchange for $600,000 cash. 2) Purchased land for $400,000, using a $150,000 cash down payment and signing a note payable for the balance. 3) Made a $60,000 cash payment on the note payable from the purchase of land. 4) Purchased equipment on credit from Burton, Inc. for $63,000. What is the balance in the Cash account at the end of March?

Parachute Country Club Use the selected accounts for Parachute Country Club presented below to answer the following questions. -Read the information about Parachute Country Club. Assuming that there are no other transactions, how much was owed to the club by the membership on August 8th?

The system of accounting in which there are at least two accounts affected in every transaction so that the accounting equation stays in balance is aan:

A debit is a negative entry.

Dividends are not an but a direct reduction of retained earnings.

Which of the following statements is true?

Several terms which represent components of a bookkeeping system are listed below. For each term, write a brief explanation of how that component is used in a bookkeeping system. Space is provided for your answer immediately below each term. A Accounts B Chart of Accounts C Double-entry system with debits and credits D General Journal E General Ledger F Trial Balance

Which one of the following best defines an internal event in terms of accounting?

Every business transaction is recorded by a debit to a balance sheet account and a credit to an income statement account.

The correct term for the process of transferring amounts from a book of original entry to specific assets, liabilities, revenues, expenses, and stockholders' equity items is:

What type of account is increased with a debit but is a decrease to retained earnings?

Use the following five transactions for Morton & Associates, Inc. to answer the questions. May 1 Bills are sent to clients for services provided in April in the amount of $800. 9 Techno, Inc. delivers office furniture $1,060 and office supplies $160 to Morton leaving an invoice for $1,220. 15 Payment is made to Techno, Inc. for the furniture and office supplies delivered on May 9. 23 A bill for $430 for electricity for the month of April is received and will be paid on its due date in June. 31 Salaries of $850 are paid to employees. -See the transactions for Morton & Associates. Based only on these transactions, what is the total amount of expenses that should appear on the income statement for the month of May?

The payment of wages to employees is an internal event.

Use the following five transactions for Morton & Associates, Inc. to answer the questions. May 1 Bills are sent to clients for services provided in April in the amount of $800. 9 Techno, Inc. delivers office furniture $1,060 and office supplies $160 to Morton leaving an invoice for $1,220. 15 Payment is made to Techno, Inc. for the furniture and office supplies delivered on May 9. 23 A bill for $430 for electricity for the month of April is received and will be paid on its due date in June. 31 Salaries of $850 are paid to employees. -See the transactions to Morton & Associates. The journal entry to record the May 23 transaction will include an increase of $430 to

Payment is received from customers who were billed earlier for services provided for them. For this transaction, identify the effect on the accounting equation.

Which of the following statements best describes the effects of recognizing revenue earned by a business entity?

All of the following events transactions would be identified from standard source documents except for: