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Exam 2: The Recording Process

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Question 71

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Some of the following errors would cause the debit and credit columns of the trial balance to have unequal totals. For each of the four cases, state whether the error would cause unequal totals in the trial balance. If the error causes unequal totals, indicate the amount of difference between the columns and state whether the debit or credit is larger. Each case is to be considered independently of the others. 1. A payment of $500 to a creditor was recorded by a debit to Accounts Payable of $50 and a credit to Cash of $500. 2. A $480 payment for a printer was recorded by a debit to Equipment of $48 and a credit to Cash for $48. 3. An account receivable in the amount of $2,500 was collected in full. The collection was recorded by a debit to Cash for $2,500 and a debit to Accounts Payable for $2,500. 4. An account payable was paid by issuing a check for $800. The payment was recorded by debiting Accounts Payable $800 and crediting Accounts Receivable $800.

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1. The trial balance totals will be uneq...

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Question 72

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The entire group of accounts and their balances maintained by a company is called the ________________.

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Question 73

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Which one of the following is not a part of an account?

The standard format of a journal would not include

The four subdivisions of stockholders' equity are: ________________, ________________, ________________, and ________________.

Posting is the process of proving the equality of debits and credits in the trial balance.

If the sum of the debit column equals the sum of the credit column in a trial balance, it indicates

Which of the following statements is true?

On June 1, 2018, Portugal Inc. reported a cash balance of $12,000. During June, Portugal made deposits of $5,000 and made disbursements totalling $14,000. What is the cash balance at the end of June?

Which of the following rules is incorrect?

For each of the following transactions of Neon Garden, identify the account to be debited and the account to be credited. 1. Purchased 18-month insurance policy for cash. 2. Paid weekly payroll. 3. Purchased supplies on account. 4. Received utility bill to be paid at later date.

Prepare a trial balance from the ledger accounts of Black Diamond Express as of January 31, 2018. $\begin{array} { l r l r } \text { Accounts Payable } & \$ 1,100 & \text { Rent Expense } & \$ 500 \\\text { Accounts Receivable } & 1,700 & \text { Service Revenue } & 3,000 \\\text { Cash } & 1,400 & \text { Supplies } & 200 \\\text { Common stock } & 2,000 & \text { Salaries and Wages Expense } & 1,300 \\\text { Dividends } & 1,000 & &\end{array}$

The normal balance of all accounts is a debit.

If a company has overdrawn its bank balance, then

A compound journal entry requires several debits to one account and several credits to one account.

The trial balance will not balance when incorrect account titles are used in journalizing or posting.

An account will have a credit balance if the

Credits

A simple journal entry requires only one debit to an account and one credit to an account.

When two accounts are required in one journal entry, the entry is referred to as a