Accounting (Text Only)
26th Edition
ISBN: 9781285743615
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Question
Chapter 2, Problem 2.3CP
To determine
Journal:
Journal is the book of original entry. Journal consists of the day today financial transactions in a chronological order. The journal has two aspects; they are debit aspect and the credit aspect.
The recording process:
The recording process of any accounting transaction starts with analyzing the transaction,
Journalizing the transaction, and Posting them into the relevant account.
To discuss: What Person T should say to Person C.
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Students have asked these similar questions
Which of the following is false?
Select one:
a. Recording transactions in separate special journals provides users with a more efficient system and access to specific information.
b. Source documents provide evidence for journal entries, which are then posted to the general ledger accounts.
c. The opening balances from the general ledger accounts are used to create a trial balance, the financial statements and other reports.
d. All of the choices are true
Determine whether the following statements are True or False and provide an essay worthy explanation.
A user who logs in to the computer-based accounting system to enter invoices should also have access to the portion of the system that would allow her/him to order goods.
It is necessary that managers remember that they are stewards of funds expended by a business - that the funds are not owned by the managers.
1) Why is it not necessary to model activities such as data entry of information about customers or suppliers, mailing invoices to customers, and recording invoices received from suppliers as events in an REA diagram?
2) How can REA diagrams help an auditor understand a client’s business processes?
3) How would accounts payable be reflected in an REA diagram? Why?
Chapter 2 Solutions
Accounting (Text Only)
Ch. 2 - What is the difference between an account and a...Ch. 2 - Prob. 2.2DQCh. 2 - Prob. 2.3DQCh. 2 - eCatalog Services Company performed services in...Ch. 2 - If the two totals of a trial balance are equal,...Ch. 2 - Assume that a trial balance is prepared with an...Ch. 2 - Assume that when a purchase of supplies of 2,650...Ch. 2 - Assume that Muscular Consulting erroneously...Ch. 2 - Assume that Sunshine Realty Co. borrowed 300,000...Ch. 2 - Checking accounts are a common form of deposits...
Ch. 2 - Rules of debit and credit and normal balances...Ch. 2 - Rules of debit and credit and normal balances...Ch. 2 - Journal entry for asset purchase Prepare a journal...Ch. 2 - Journal entry for asset purchase Prepare a journal...Ch. 2 - Journal entry for fees earned Prepare a journal...Ch. 2 - Journal entry for fees earned Prepare a journal...Ch. 2 - Journal entry for owner's withdrawal Prepare a...Ch. 2 - Journal entry for owner's withdrawal Prepare a...Ch. 2 - Prob. 2.5APECh. 2 - Missing amount from an account On August 1, the...Ch. 2 - Trial balance errors For each of the following...Ch. 2 - Trial balance errors For each of the following...Ch. 2 - Correcting entries The following errors took place...Ch. 2 - Correcting entries The following errors took place...Ch. 2 - Prob. 2.8APECh. 2 - Prob. 2.8BPECh. 2 - Chart of accounts The following accounts appeared...Ch. 2 - Chart of accounts Innerscape Interiors is owned...Ch. 2 - Prob. 2.3EXCh. 2 - Rules of debit and credit The following table...Ch. 2 - Prob. 2.5EXCh. 2 - Normal balances of accounts Identify each of the...Ch. 2 - Transactions Jardine Consulting Co. has the...Ch. 2 - Journalizing and posting On January 7, 2016,...Ch. 2 - Transactions and T accounts The following selected...Ch. 2 - Prob. 2.10EXCh. 2 - Account balances a.During February, 186,500 was...Ch. 2 - Capital account balance As of January 1, Terrace...Ch. 2 - Identifying transactions Wyoming Tours Co. is a...Ch. 2 - Prob. 2.14EXCh. 2 - Trial balance Based upon the data presented in...Ch. 2 - Trial balance The accounts in the ledger of...Ch. 2 - Effect of errors on trial balance Indicate which...Ch. 2 - Errors in trial balance The following preliminary...Ch. 2 - Effect of errors on trial balance The following...Ch. 2 - Errors in trial balance Identify the errors in the...Ch. 2 - Entries to correct errors The following errors...Ch. 2 - Entries to correct errors The following errors...Ch. 2 - Horizontal analysis of income statement The...Ch. 2 - Horizontal analysis of income statement The...Ch. 2 - Entries into T accounts and trial balance Kimberly...Ch. 2 - Journal entries and trial balance On August 1,...Ch. 2 - Journal entries and trial balance On November 1,...Ch. 2 - Journal entries and trial balance Elite Realty...Ch. 2 - Corrected trial balance The Colby Group has the...Ch. 2 - Entries into T accounts and trial balance Ken...Ch. 2 - Journal entries and trial balance On August 1,...Ch. 2 - Journal entries and trial balance On October 1,...Ch. 2 - Journal entries and trial balance Valley Realty...Ch. 2 - Corrected trial balance Tech Support Services has...Ch. 2 - The transactions completed by PS Music during June...Ch. 2 - Ethics and professional conduct in business At the...Ch. 2 - Prob. 2.2CPCh. 2 - Prob. 2.3CPCh. 2 - Prob. 2.5CP
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- So far, computer systems cannot yet ________. A. receive data and instructions from input devices such as a scanner. B. decide how to record a business transaction. C. communicate with other computers electronically. D. recognize that you made a mistake entering $100 when you meant to enter $101.arrow_forwardBig data is mined ________. A. to find business trends B. to record transactions C. as an alternative to creating an accounting information system D. as an alternative to the darknetarrow_forwardV4. Hayden Corporation uses an enterprise resource planning (ERP) system. In their audit of receivables and revenues, the auditors have identified the following data elements in the corporation’s database that may be used for data analytics applications: Customer balance Customer credit limit and credit rating Customer total annual sales Customer purchases by date Customer returns by date Customer name Customer shipping address Required: a. Describe two data analytic applications that might be used to audit the existence of receivables and occurrence of sales. b. Describe one data analytic application that might be used to audit the valuation of receivables.arrow_forward
- Choose only one answer as well as state their reasons/rationale for the answer chosen. A customer entered the wrong account number on the memo line of the check mailed to the company. Consequently, another customer’s account was credited for that payment. The most effective way to prevent such problems would be to use:a. Turnaround documentsb. A validity check of customer account numbersc. Closed loop verificationd. Check digit verification of customer account numbersarrow_forwardSelect one of the journal entry testing analytics from the following list and explain why it is useful in detecting journal entry fraud risk. Use the internet to find examples to support your answer. Round dollar entries Revenue reversals Unusual dates Management override General ledger close Dormant accountsarrow_forwardA trial balance is prepared After preparation of financial statement After recording transactions in subsidiary books After posting to ledger is After posting to ledger is complete and accounts have been balanced If suspense account does balance even after rectification of error it implies that There are no more errors to be located There are some two side errors only in the books yet to be located There are some one side errors only in the books yet to be located There are both one side and two sided errors in the books yet to be located If an error is not detected in spite of all efforts and trial balance does not agree then what measure will be taken for the agreement of a trial balance? Should opened a rectification account Should opened an error account Should opened a compensation account Should opened a suspense account If some credit sale to customer is correctly recorded in Sale book but is omitted to be recorded to Customer’s account then what type of error…arrow_forward
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