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Exam 3: Analyzing Business Transactions Using T Accounts

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Question 1

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Issued a check for $250 to pay creditor for office supplies

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Debit Acco...

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Question 2

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The order in which financial statements are prepared is determined by the fact that information from one is needed to prepare the next. Which statement is prepared last? _____________________.

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The consulting firm of Martin and Associates uses the accounts listed below. On a separate sheet of paper, set up T accounts for each of the accounts listed and record the balances on the normal balance side of the accounts. $\begin{array}{lrll}\text { Cash } & \$ 5,800 & \text { Fees Income } & -0- \\\text { Accounts Receivable } & 9,500 & \text { Rent Expense } & -0- \\\text { Office Equipment } & 8,900 & \text { Utilities Expense } & -0- \\\text { Accounts Payable } & 5,000 & \text { Salaries Expense } & -0- \\\text { Joan Martin, Capital } & 19,200 & & \\\text { Joan Martin, Drawing } & -0- & &\end{array}$ The firm has the following transactions during the month of December 2013. Record the effects of these transactions in the T accounts. a. Paid $1,300 for one month's rent b. Collected $5,600 in cash from credit customers c. Performed services for $7,500 in cash d. Paid $4,800 for salaries e. Issued a check for $3,400 to a creditor f. Performed services for $10,200 on credit g. Purchased office equipment for $1,800 on credit h. The owner withdrew $3,500 in cash for personal expenses i. Issued a check for $650 to pay the monthly utility bill Determine the account balances after the transactions have been recorded. Prepare a trial balance as of December 31, 2013.

Increases in assets and revenue are both recorded with debits.

Accountants use the term ____________________ when referring to the right side of an account.

The account used to record increases in owner's equity from the sale of goods or services is

The accounts with their respective balances for Dom's Delivery Service as of June 1 are given below. All accounts have normal balances. $\begin{array} { l r l r } \text { Cash } & \$ 23,350 & & \\\text { Accounts Receivable } & 14,600 & \text { Dominic Goggin, Capital } & 64,300 \\\text { Supplies } & 450 & \text { Dominic Goggin, Drawing } & - 0 - \\& & \text { Delivery Fees Income } & - 0 - \\\text { Office Equipment } & 12,800 & \text { Rent Expense } & - 0 - \\\text { Delivery Equipment } & 20,000 & \text { Salaries Expense } & - 0 - \\\text { Accounts Payable } & 6,900 & \text { Utilities Expense } & - 0 - \\& & \text { Advertising Expense } & - 0 -\end{array}$ Dom's had the following transactions during the month of June. a. Paid rent for June, $1,000 b. Dominic Goggin withdrew $4,500 from the business for personal use c. Performed services for $4,000 in cash d. Performed services for $22,750 on credit e. Received $12,000 from credit customers on account f. Paid the administrative assistant salary of $2,000 and delivery service messenger/driver salary of $3,000 for the month by check g. Paid the electric and phone bills by check for a total of $600 h. Paid creditors $6,000 on account i. Purchased $7,500 in supplies on account. j. Paid $1,800 cash for advertising in the local newspaper in June -Using the information above, set up T accounts and enter transactions a-j. Foot each account as of June 30, 2013. Prepare a Trial Balance.

The Income Statement is prepared first because the Net Income amount is a line item on the Balance Sheet.

In a Chart of Accounts, each category of accounts is given a __________ of numbers with gaps so that additional accounts can be added when needed.

Cash Accounts Receivable Office Equipment Office Supplies Accounts Payable Brandon Phipps, Capital Brandon Phipps, Drawing Fees Income Rent Expense Salaries Expense Utilities Expense Read each of the following transactions. Determine the accounts to be debited and credited. -Issued checks to pay salaries

Expense accounts are increased by ____________________ the accounts.

Which of the following increase owner's equity?

If the trial balance totals are not equal, the error may have been caused by a transposition if the difference is divisible by

Which of the following accounts is NOT a nominal account?

Paid $6,000 in cash for the next six months rent

Purchased copier equipment for $8,500 in cash

A chart of accounts is a list of accounts that makes it possible to easily identify account ____________________ and names.

The accounts and balances for Paw Prints Pet Sitters on November 1 are provided below. $\begin{array} { l r l } \text { Cash } & 19,450 & \text { Fees Income } &-0-\\\text { Accounts Receivable } & 890 & \text { Rent Expense } &-0-\\\text { Office Equipment } & 2,300 & \text { Utilities Expense }&-0- \\\text { Supplies } & 250 & \text { Salaries Expense }&-0- \\\text { Accounts Payable } & 1,400 & \\\text { Kelly Connor, Capital } & 21,490 & \\\text { Kelly Connor, Drawing } & - 0 - &\end{array}$ The following transactions occurred during the month of November. a. Collected $350 from credit customers b. Issued a check for $700 for rent c. Paid $1,900 for salaries d. The owner withdrew $500 in cash for personal expenses e. Issued a check for $200 to pay the monthly utility bill f. Received $2,845 in cash for services performed g. Purchased office equipment for $1,350 on credit -Using the information shown, set up T accounts for all accounts. Determine the balance for each account after all transactions have been recorded.

Received a credit for damaged office equipment that was returned

Which of the following types of accounts normally have debit balances?