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Exam 13: The Double-Entry Accounting System

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Question 51

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The following is a random list of the adjusted account balances of Wyoming Company as of the end of the current accounting period: What is the total of the credit account balances that will be shown on the adjusted trial balance?

A) $62,100
B) $64,100
C) $63,100
D) $44,400

E) None of the above
F) C) and D)

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Question 52

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What is a trial balance? Why do accountants regularly prepare trial balances?

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A trial balance is an internal accountin...

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Question 53

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How would the trial balance column totals be affected if a $600 credit to Service Revenue was erroneously posted as a $600 debit to Salaries Expense?

Packard Company engaged in the following transactions during Year 1, its first year of operations: (Assume all transactions are cash transactions.) 1) Acquired $1,070 cash from the issue of common stock.2) Borrowed $540 from a bank.3) Earned $890 of revenues.4) Paid expenses of $370.5) Paid a $110 dividend. During Year 2, Packard engaged in the following transactions: (Assume all transactions are cash transactions.) 1) Issued an additional $445 of common stock.2) Repaid $340 of its debt to the bank.3) Earned revenues of $870.4) Incurred expenses of $480.5) Paid dividends of $220. What is the after-closing amount of retained earnings that will be reported on Packard's balance sheet at the end of Year 2? (Assume that closing entries have been made) .

Which of the following is decreased with a credit?

Nelson Company began operations on December 1, Year 1. The following transactions and adjustments were recorded in December and posted to the company's ledger accounts:1) Acquired $9,000 cash from the issue of common stock to its stockholders.2) Provided services on account for $7,500.3) Paid $4,500 cash for land.4) Owed $3,000 of salaries expenses to employees for work done in December that will be paid during January.5) Purchased $900 of supplies on account to be used in January.6) Collected $3,900 from customers. What is the total of the debit account balances that will be reported on the company's adjusted trial balance at December 31, Year 1?

Which of the following errors would cause the debit side of a trial balance to be larger than the credit side?

The trial balance of Barger Company at the end of the accounting period, immediately prior to recording closing entries, showed the following: What will the balance of the retained earnings accountbe after the closing entries are recorded?

A transaction has been recorded in the general journal of Todd Company as follows: Which of the following could be an explanation for this transaction?

The following transaction has been recorded in the general journal entry: Which of the following could be an explanation for this transaction?

A trial balance can be in balance, even if there are errors in the accounting system.

Which of the following statements is true?

A transaction has been recorded in the general journal of Van Buren Company as follows: Which of the following describes how this entry affects the company's financial statements when it is posted to the ledger accounts?

Which of the following statements about the entry to record depreciation is true?

To record the purchase of supplies on account, an accountant would credit Supplies.

A liability account normally has a credit balance.

Closing entries move all current year data for revenues, expenses, and dividends into the retained earnings account.

The following account balances were taken from the adjusted trial balance of Kendall Company: What is the Retained Earnings account balance that will be included on the post-closing trial balance?

Indicate how each event affects the financial statements. Use the following letters to record your answer in the box shown below. If an event increases one account and decreases another account equally within the same element, record I/D. If an event has no impact on the element, record NA. You do not need to enter amounts. Increase = I Decrease = DNot Affected = NA A transaction recorded as a debit to Accounts Payable and a credit to Cash.

Indicate how each event affects the financial statements. Use the following letters to record your answer in the box shown below. If an event increases one account and decreases another account equally within the same element, record I/D. If an event has no impact on the element, record NA. You do not need to enter amounts. Increase = I Decrease = DNot Affected = NA An adjusting entry recorded as a debit to Unearned Revenue and a credit to Service Revenue.