1 Role Of Accounting In Society 2 Introduction To Financial Statements 3 Analyzing And Recording Transactions 4 The Adjustment Process 5 Completing The Accounting Cycle 6 Merchandising Transactions 7 Accounting Information Systems 8 Fraud, Internal Controls, And Cash 9 Accounting For Receivables 10 Inventory 11 Long-term Assets 12 Current Liabilities 13 Long-term Liabilities 14 Corporation Accounting 15 Partnership Accounting 16 Statement Of Cash Flows Chapter3: Analyzing And Recording Transactions
Chapter Questions Section: Chapter Questions
Problem 1MC: That a business may only report activities on financial statements that are specifically related to... Problem 2MC: That companies can present useful information in shorter time periods such as years, quarters, or... Problem 3MC: The system of using a monetary unit, such as the US dollar, to value the transaction is known as... Problem 4MC: Which of the following terms is used when assuming a business will continue to operate in the... Problem 5MC: The independent, nonprofit organization that sets financial accounting and reporting standards for... Problem 6MC: The standards, procedures, and principles companies must follow when preparing their financial... Problem 7MC: These are used by the FASB, and it is a set of concepts that guide financial reporting. A. Financial... Problem 8MC: This is the independent federal agency protecting the interests of investors, regulating stock... Problem 9MC: Which of the following is the principle that a company must recognize revenue in the period in which... Problem 10MC: Which of the following is the principle that a business must report any business activities that... Problem 11MC: Also known as the historical cost principle, ________ states that everything the company owns or... Problem 12MC: Which of the following principles matches expenses with associated revenues in the period in which... Problem 13MC: Which of the following does not accurately represent the accounting equation? A. B. C. D. Problem 14MC: Which of these statements is false? A. B. C. D. Problem 15MC: Which of these accounts is an asset? A. Common Stock B. Supplies C. Accounts Payable D. Fees Earned Problem 16MC: Which of these accounts is a liability? A. Accounts Receivable B. Supplies C. Salaries Expense D.... Problem 17MC: If equity equals $100,000, which of the following is true? A. Assets exceed liabilities by $100,000.... Problem 18MC: Which process of the accounting cycle often requires the most analytical thought? A. making a... Problem 19MC: The step-by-step process to record business activities and events to keep financial records up to... Problem 20MC: One operating cycle of a business, which could be a month, quarter, or year, is commonly referred to... Problem 21MC: ________ takes all transactions from the journal during a period and moves the information to a... Problem 22MC: Which of these events will not be recognized? A. A service is performed, but the payment is not... Problem 23MC: A company purchased a building twenty years ago for $150,000. The building currently has an... Problem 24MC: What is the impact on the accounting equation when a current months utility expense is paid? A. both... Problem 25MC: What is the impact on the accounting equation when a payment of account payable is made? A. both... Problem 26MC: What is the impact on the accounting equation when an accounts receivable is collected? A. both... Problem 27MC: What is the impact on the accounting equation when a sale occurs? A. both sides increase B. both... Problem 28MC: What is the impact on the accounting equation when stock is issued, in exchange for assets? A. both... Problem 29MC: Which of the following accounts is increased by a debit? A. Common Stock B. Accounts Payable C.... Problem 30MC: Which of the following accounts does not increase with a debit entry? A. Retained Earnings B.... Problem 31MC: Which of the following pairs increase with credit entries? A. supplies and retained earnings B. rent... Problem 32MC: Which of the following pairs of accounts are impacted the same with debits and credits? A. Cash and... Problem 33MC: Which of the following accounts will normally have a debit balance? A. Common Stock B. Fees Earned... Problem 34MC: What type of account is prepaid insurance? A. Stockholders Equity B. Expense C. Liability D. Asset Problem 35MC: Unearned service revenue occurs when which of the following occurs? A. company receives cash from a... Problem 36MC: Which set of accounts has the same type of normal balance? A. Cash, accounts payable B. Prepaid... Problem 37MC: Which of these transactions requires a debit entry to Cash? A. paid balance due to suppliers B. sold... Problem 38MC: Which of these transactions requires a credit entry to Revenue? A. received cash from services... Problem 39MC: Which of these accounts commonly requires both debit and credit entries? A. Sales Revenue B.... Problem 40MC: Which of the following accounting records is the main source of information used to prepare the... Problem 41MC: Which of the following financial statements should be prepared first? A. Balance Sheet B. Income... Problem 1Q: Explain what conservatism means, and give an example in your own words. Problem 2Q: State the accounting equation, and explain what each part represents. Problem 3Q: How do revenues and expenses affect the accounting equation? Problem 4Q: Does every transaction affect both sides of the accounting equation? Explain your answer. Problem 5Q: Which is the book of original entry? Problem 6Q: What is the effect on the accounting equation when a business purchases supplies on account? Problem 7Q: What is the effect on the accounting equation when a business pays the balance due on accounts... Problem 8Q: Is it still necessary to record a transaction if it has no net effect on the accounting equation?... Problem 9Q: Why does the combined total of the companys liabilities and equity always equal the total of the... Problem 10Q: What do the terms debit and credit mean? Problem 11Q: Will an accounts receivable balance increase with a debit or a credit entry? How do you know? Problem 12Q: What types of accounts will increase with a credit? Problem 13Q: What is a journal? Problem 14Q: Why is a journal referred to as the book of original entry? Problem 15Q: What does the term recognize mean? Problem 16Q: What are the rules you should follow when recording journal entries? Problem 17Q: What is the general ledger? Problem 18Q: Explain the steps in posting. Problem 19Q: What is a T-account? When would we use T-accounts? Problem 20Q: Explain normal balances. Give three examples of accounts that will normally have a debit balance and... Problem 21Q: What is a prepaid account? What type of account is it? Problem 22Q: What is an unearned account? What type of account is it? Problem 23Q: Explain what a T-account is and what purpose it serves. Problem 24Q: Can a credit entry be described as a generally positive or negative transaction? Explain. Problem 25Q: What types of accounts are increased with a debit? Problem 26Q: What types of accounts are increased with a credit? Problem 27Q: What does an accounts normal balance indicate? Problem 28Q: Does the order in which financial statements are prepared matter? Problem 29Q: Answer the following questions about the trial balance: What is the purpose of it? What is the... Problem 1EA: Match the correct term with its definition. A. cost principle i. if uncertainty in a potential... Problem 2EA: Consider the following accounts, and determine if the account is an asset (A), a liability (L), or... Problem 3EA: Provide the missing amounts of the accounting equation for each of the following companies. Problem 4EA: Identify the financial statement on which each of the following accounts would appear: the income... Problem 5EA: Cromwell Company has the following trial balance account balances, given in no certain order, as of... Problem 6EA: From the following list, identify which items are considered original sources: A. prepaid insurance... Problem 7EA: Indicate what impact the following transactions would have on the accounting equation, . Table 3.4 Problem 8EA: For the following accounts please indicate whether the normal balance is a debit or a credit. A.... Problem 9EA: Indicate what impact the following transactions would have on the accounting equation, . Table 3.5 Problem 10EA: Identify the normal balance for each of the following accounts. Choose Dr for Debit; Cr for Credit.... Problem 11EA: Identify whether each of the following transactions would be recorded with a debit (Dr) or credit... Problem 12EA: Identify whether each of the following transactions would be recorded with a debit (Dr) or credit... Problem 13EA: Identify whether ongoing transactions posted to the following accounts would normally have only... Problem 14EA: Determine whether the balance in each of the following accounts increases with a debit or a credit.... Problem 15EA: Journalize for Harper and Co. each of the following transactions or state no entry required and... Problem 16EA: Discuss how each of the following transactions for Watson, International, will affect assets,... Problem 17EA: For each item that follows, indicate whether a debit or a credit applies. A. increase in prepaid... Problem 18EA: Indicate whether each account that follows has a normal debit or credit balance. A. Unearned Revenue... Problem 19EA: A business has the following transactions: The business is started by receiving cash from an... Problem 20EA: Prepare journal entries to record the following transactions. A. January 22, purchased, an asset,... Problem 21EA: Prepare journal entries to record the following transactions. A. July 1, issued common stock for... Problem 22EA: Prepare journal entries to record the following transactions. A. March 1, purchased land for cash,... Problem 23EA: Post the following February transactions to T-accounts for Accounts Receivable and Cash, indicating... Problem 24EA: Post the following November transactions to T-accounts for Accounts Payable and Inventory,... Problem 25EA: Prepare an unadjusted trial balance, in correct format, from the alphabetized account information as... Problem 1EB: Match the correct term with its definition. A. Financial Accounting Standards Board FASB) i. used by... Problem 2EB: Consider the following accounts and determine if the account is an asset (A), a liability (L), or... Problem 3EB: Provide the missing amounts of the accounting equation for each of the following companies. Problem 4EB: From the following list, identify which items are considered original sources: A. accounts... Problem 5EB: Indicate what impact the following transactions would have on the accounting equation, . Table 3.10 Problem 6EB: For the following accounts indicate whether the normal balance is a debit or a credit. A. Unearned... Problem 7EB: Which two accounts are affected by each of the following transactions? Table 3.11 Problem 8EB: Identify the normal balance for each of the following accounts. Choose Dr for Debit; Cr for Credit.... Problem 9EB: Identify whether each of the following transactions would be recorded with a debit (Dr) or credit... Problem 10EB: Identify whether each of the following transactions would be recorded with a debit (Dr) or credit... Problem 11EB: Identify whether ongoing transactions posted to the following accounts would normally have only... Problem 12EB: West End Inc., an auto mechanic shop, has the following account balances, given in no certain order,... Problem 13EB: State whether the balance in each of the following accounts increases with a debit or a credit. A.... Problem 14EB: Journalize each of the following transactions or state no entry required and explain why. Be sure to... Problem 15EB: Discuss how each of the following transactions will affect assets, liabilities, and stockholders... Problem 16EB: For each of the following items, indicate whether a debit or a credit applies. A. increase in... Problem 17EB: Indicate whether each of the following accounts has a normal debit or credit balance. A. prepaid... Problem 18EB: Krespy Corp. has a cash balance of $7,500 before the following transactions occur: A. received... Problem 19EB: A business has the following transactions: A. The business is started by receiving cash from an... Problem 20EB: Prepare journal entries to record the following transactions. A. November 19, purchased merchandise... Problem 21EB: Prepare journal entries to record the following transactions: A. December 1, collected balance due... Problem 22EB: Prepare journal entries to record the following transactions: A. October 9, issued common stock in... Problem 23EB: Post the following August transactions to T-accounts for Accounts Payable and Supplies, indicating... Problem 24EB: Post the following July transactions to T-accounts for Accounts Receivable and Cash, indicating the... Problem 25EB: Prepare an unadjusted trial balance, in correct format, from the alphabetized account information as... Problem 1PA: For each of the following situations write the principle, assumption, or concept that justifies or... Problem 2PA: Assuming the following account balances, what is the missing value? Problem 3PA: Assuming the following account balance changes for the period, what is the missing value? Problem 4PA: Assuming the following account balance changes for the period, what is the missing value? Problem 5PA: Identify the financial statement on which each of the following account categories would appear: the... Problem 6PA: Indicate what impact ( for increase; for decrease) the following transactions would have on the... Problem 7PA: Indicate how changes in the following types of accounts would be recorded (Dr for debit; Cr for... Problem 8PA: Identify the normal balance (Dr for Debit; Cr for Credit) and type of account (A for asset, L for... Problem 9PA: Indicate the net effect ( for increase; for decrease; 0 for no effect) of each of the following... Problem 10PA: Identify whether the following transactions would be recorded with a debit (Dr) or credit (Cr)... Problem 11PA: The following information is provided for the first month of operations for Legal Services Inc.: A.... Problem 12PA: Sewn for You had the following transactions in its first week of business. A. Jessica Johansen... Problem 13PA: George Hoskin started his own business, Hoskin Hauling. The following transactions occurred in the... Problem 14PA: Prepare journal entries to record the following transactions. Create a T-account for Cash, post any... Problem 15PA: Prepare journal entries to record the following transactions. Create a T-account for Accounts... Problem 16PA: Prepare journal entries to record the following transactions for the month of July: A. on first day... Problem 17PA: Prepare journal entries to record the following transactions for the month of November: A. on first... Problem 18PA: Post the following July transactions to T-accounts for Accounts Receivable, Sales Revenue, and Cash,... Problem 19PA: Post the following November transactions to T-accounts for Accounts Payable, Inventory, and Cash,... Problem 20PA: Prepare an unadjusted trial balance, in correct format, from the following alphabetized account... Problem 21PA: Prepare an unadjusted trial balance, in correct format, from the following alphabetized account... Problem 1PB: Assuming the following account balances, what is the missing value? Problem 2PB: Assuming the following account balance changes for the period, what is the missing value? Problem 3PB: Assuming the following account balance changes for the period, what is the missing value? Problem 4PB: Identify the financial statement on which each of the following account categories would appear: the... Problem 5PB: Indicate what impact ( for increase; for decrease) the following transactions would have on the... Problem 6PB: Indicate how changes in these types of accounts would be recorded (Dr for debit; Cr for credit).... Problem 7PB: Identify the normal balance (Dr for Debit; Cr for Credit) and type of account (A for asset, L for... Problem 8PB: Indicate the net effect ( for increase; for decrease; 0 for no effect) of each of the following... Problem 9PB: Prepare journal entries to record the following transactions. Create a T-account for Cash, post any... Problem 10PB: Prepare journal entries to record the following transactions. Create a T-account for Accounts... Problem 11PB: Prepare journal entries to record the following transactions that occurred in April: A. on first day... Problem 12PB: Prepare journal entries to record the following transactions that occurred in March: A. on first day... Problem 13PB: Post the following November transactions to T-accounts for Accounts Payable, Inventory, and Cash,... Problem 14PB: Post the following July transactions to T-accounts for Accounts Receivable, Sales Revenue, and Cash,... Problem 15PB: Prepare an unadjusted trial balance, in correct format, from the following alphabetized account... Problem 16PB: Prepare an unadjusted trial balance, in correct format, from the following alphabetized account... Problem 17PB: Prepare an unadjusted trial balance, in correct format, from the following alphabetized account... Problem 18PB: Prepare an unadjusted trial balance, in correct format, from the following alphabetized account... Problem 1TP: Is it possible to be too conservative? Explain your answer. Problem 2TP: Why is it important to learn all of this terminology when accounting is a quantitative subject? Problem 3TP: Assume that you are the controller of a business that provides legal services to clients. Suppose... Problem 5TP: Is the order in which we place information in the journal and ledger important? Problem 8TP: Analyze Trusty Companys trial balance and the additional information provided to determine the... Problem 26MC: What is the impact on the accounting equation when an accounts receivable is collected? A. both...
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Concept explainers
The following accounts were taken from the unadjusted trial balance of Legislative Resultsadjusting entry . If the account normally requires an adjusting entry, use the
Transcribed Image Text: To illustrate, the answer for the first account follows:
Account
Answer
Accounts Receivable
Normally requires adjustment (AR).
Cash
Harriet Kasun, Capital
Interest Expense
Interest Receivable
Land
Office Equipment
Prepaid Rent
Supplies
Unearned Fees
Wages Expense
Definition Definition Entries made at the end of every accounting period to precisely replicate the expenses and revenue of the current period. This is also known as end of period adjustment. It can also refer to financial reporting that corrects errors made previously in the accounting period. Every adjustment entry affects at least one real account and one nominal account.
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