Chapter 2 - Analyzing Transactions

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{\colortbl;\red0\green0\blue0;\red255\green255\blue255;\red0\green0\blue0;\red128\g
reen128\blue128;\red255\green0\blue0;}{\f\title Chapter 2--Analyzing
Transactions}\paperw12240\paperh15840\margb720\margl720\margr720\margt720\htmautsp\
sectd\pgnstarts1\pgnrestart\pard\plain\sa532\li0\ri0\sb532\ql\plain\cf3\f4\fs40\b1{
{Chapter 2--Analyzing
Transactions}}\par\pard\plain\sa319\li0\ri0\sb319\ql\plain\cf3\f4\i\fs24\b0{{Studen
t:
___________________________________________________________________________}}\par\p
ard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{1.}{\~}{Accounts
are records of increases and decreases in individual financial statement
items.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
{}}\plain\cf3\f4\fs24\b0{{True}{\~}{\~}{\~}{\~}
{False}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{2.}{\~}{A chart of
accounts is a listing of accounts that make up the
journal.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
ne{}}\plain\cf3\f4\fs24\b0{{True}{\~}{\~}{\~}{\~}
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{3.}{\~}{Accounts
payable are accounts that you expect will be paid to
you.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}
}\plain\cf3\f4\fs24\b0{{True}{\~}{\~}{\~}{\~}
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{4.}{\~}{The chart of
accounts should be the same for each
business.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
ine{}}\plain\cf3\f4\fs24\b0{{True}{\~}{\~}{\~}{\~}
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{5.}{\~}{Consuming
goods and services in the process of generating revenues results in
expenses.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{6.}{\~}{Prepaid
expenses are an example of an
expense.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{7.}{\~}{The unearned
revenues account is an example of a
liability.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\
line{}}\plain\cf3\f4\fs24\b0{{True}{\~}{\~}{\~}{\~}
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{8.}{\~}{The
dividends account is an example of an
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{9.}{\~}{Accounts in
the ledger are usually maintained in alphabetical
order.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{10.}{\~}{Depending
on the account title, the right side of the account is referred to as the credit
side.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{
}}\plain\cf3\f4\fs24\b0{{True}{\~}{\~}{\~}{\~}
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{11.}{\~}{To
determine the balance in an account, always subtract credits from
debits.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\lin
e{}}\plain\cf3\f4\fs24\b0{{True}{\~}{\~}{\~}{\~}
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{12.}{\~}{An account
has three parts to it; a title, an increase side, and a decrease
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{13.}{\~}{The right
hand side of a T account is known as a debit and the left hand side is known as a
credit.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\lin
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{14.}{\~}{A debit is
abbreviated
as }}\plain\cf3\f4\i\fs24\b0{\plain\cf3\f4\i\fs24\b0{{Db}}}\plain\cf3\f4\fs24\b0{{
and a credit is abbreviated
as }}\plain\cf3\f4\i\fs24\b0{\plain\cf3\f4\i\fs24\b0{{Cr}}}\plain\cf3\f4\fs24\b0{{.
}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\pl
ain\cf3\f4\fs24\b0{{True}{\~}{\~}{\~}{\~}
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{15.}{\~}{Debiting
the cash account will increase the
account.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{16.}{\~}{The T
account got its name because it resembles the letter }{{\u8220}}{T.}
{{\u8221}}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
recording of cash receipts to the cash account will be done by debiting the
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{18.}{\~}{A credit to
the cash account will increase the
recording of cash payments from the cash account is done by entering the amount as
a
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{20.}{\~}{The cash
account will always be
debited.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{21.}{\~}{The balance
of the account can be determined by adding all of the debits, adding all of the
credits, and adding the amounts
together.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{22.}{\~}{Liabilities
are debts owed by the business
entity.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\lin
accounts payable account is listed in the chart of accounts as an
asset.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{24.}{\~}{A dividends
account records amounts paid to
stockholders.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\
b0\line{}}\plain\cf3\f4\fs24\b0{{True}{\~}{\~}{\~}{\~}
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{25.}{\~}{Revenues
are equal to the difference between cash receipts and cash
payments.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{26.}{\~}{Expenses
use up assets or consume services in the process of generating
revenues.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
\pla
in\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{27.}{\~}{Retained
earnings will be reduced by the amount in the dividends
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{28.}{\~}{When a
company issues new shares of stock, the capital stock account increases due to
revenue being
earned.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\lin
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{29.}{\~}{When an
accounts payable account is paid in cash, company expenses
increase.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{30.}{\~}{When an
account receivable is collected in cash, the total assets of the business
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{31.}{\~}
{Journalizing eliminates
fraud.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{32.}{\~}{The double-
entry accounting system records each transaction
twice.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
increase side of all accounts is the normal
balance.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
{Transactions are initially entered into a record called a
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{35.}{\~}{The process
of recording a transaction in the journal is called
journalizing.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\
b0\line{}}\plain\cf3\f4\fs24\b0{{True}{\~}{\~}{\~}{\~}
{Journalizing is the process of entering amounts in the
ledger.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\lin
{Transactions are listed in the journal
chronologically.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs
24\b0\line{}}\plain\cf3\f4\fs24\b0{{True}{\~}{\~}{\~}{\~}
{Journalizing transactions using the double-entry bookkeeping system will eliminate
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{39.}{\~}{Liability
accounts are increased by
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{40.}{\~}{Expense
credits.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{41.}{\~}{Revenue
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{42.}{\~}{The normal
balance of a capital stock account is a
debit.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
balance of the dividends account is a
balance of an expense account is a
balance of revenue accounts is a
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{46.}{\~}{Dividends
decrease retained earnings and are listed on the income statement as a deduction
from
revenue.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{47.}{\~}{For a
month's transactions for a typical medium-sized business, the salary expense
account is likely to have only credit
entries.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{48.}{\~}{For a
month's transactions for a typical medium-sized business, the accounts payable
account is likely to have only credit
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{49.}{\~}{When a
business receives a bill from the utility company, no entry should be made until
the invoice is
paid.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{50.}{\~}{The journal
includes both debit and credit accounts for each
transaction.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b
0\line{}}\plain\cf3\f4\fs24\b0{{True}{\~}{\~}{\~}{\~}
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{51.}{\~}{A
transaction that is recorded in the journal is called a journal
entry.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{52.}{\~}{Assets are
increased with debits and decreased with
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{53.}{\~}{Liabilities
are increased with debits and decreased with
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{54.}{\~}{Debits will
increase Unearned Revenues and
Revenues.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{55.}{\~}{All
stockholders}{{\u8217}}{ equity
accounts record increases to the accounts with
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{56.}{\~}{Journal
entries can have more than two accounts as long as the debits equal the
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{57.}{\~}{Normal
balances appear on the side that increases the account
of transferring the data from the journal to the ledger accounts is
posting.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{59.}{\~}{The post
reference notation used in the ledger is the account
number.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\lin
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{60.}{\~}{The post
reference notation used in the journal is the page
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{61.}{\~}{A notation
in the post reference column of the general journal indicates that the amount has
been posted to the
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{62.}{\~}{The order
of the flow of accounting data is (1) record in the ledger, (2) record in the
journal, (3) prepare the financial
statements.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0
\line{}}\plain\cf3\f4\fs24\b0{{True}{\~}{\~}{\~}{\~}
of transferring the debits and credits from the journal entries to the accounts is
known as }{{\u8220}}{updating the accounts}{{\u8221}}
{.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\
plain\cf3\f4\fs24\b0{{True}{\~}{\~}{\~}{\~}
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{64.}{\~}{Once
journal entries are posted to accounts, each account will show a new balance after
each
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{65.}{\~}{A group of
related accounts that make up a complete unit is called a trial
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{66.}{\~}{A trial
balance determines the accuracy of the
numbers.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{67.}{\~}{Even when a
trial balance is in balance, there may be errors in the individual
accounts.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{68.}{\~}{The totals
at the bottom of the trial balance and the totals at the bottom of the balance
sheet both show equality and balancing, and therefore should be
equal.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{69.}{\~}{A proof of
the equality of debits and credits in the ledger at the end of an accounting period
is called a balance
sheet.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{70.}{\~}{If the
trial balance is in balance, it can be assumed that all journal entries were posted
correctly and no errors were
made.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{71.}{\~}{Posting a
part of a transaction to the wrong account will cause the trial balance totals to
be
unequal.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
erroneous arrangement of digits, such as writing $45 as $54, is called a
slide.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
{Journalizing a transaction with both the debit and the credit for $69 instead of
$96 will cause the trial balance to be out of
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{74.}{\~}{Posting a
transaction twice will cause the trial balance totals to be
erroneous moving of an entire number one or more spaces to the right or left, such
as writing $85 as $850, is called a
transposition.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24
\b0\line{}}\plain\cf3\f4\fs24\b0{{True}{\~}{\~}{\~}{\~}
{Accounts}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
ine{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{do not reflect money
amounts}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
B.}{\~}{are not used by entities that manufacture
products}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{C.}{\~}{are records of increases and decreases in individual financial statement
items}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.
}{\~}{are only used by large entities with many
transactions}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain
\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4
\fs24\b0{{77.}{\~}{Accounts are classified in the
ledger}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}
{chronologically}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\
fs24\b0{{B.}{\~}
{alphabetically}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\f
s24\b0{{C.}{\~}{in accordance with their appearance in the financial
statements}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b
0{{D.}{\~}{so that accounts used most often are listed
first}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b
0{{78.}{\~}{Revenue should be recognized
when}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}
}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{cash is
received}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{B.}{\~}{the service is
performed}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0
{{C.}{\~}{the customer places an
order}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.
}{\~}{the
customer charges an
order}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{79.}{\~}{Which of the following accounts is a stockholders}{{\u8217}}{ equity
account?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
ne{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}
{Cash}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B.
}{\~}{Accounts
Payable}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
C.}{\~}{Prepaid
Insurance}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0
{{D.}{\~}
{Dividends}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\c
f3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\f
s24\b0{{80.}{\~}{The gross increases in retained earnings attributable to business
activities are
called}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
{assets}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
B.}{\~}
{liabilities}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24
\b0{{C.}{\~}
{revenues}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0
{{D.}{\~}{net
income}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f
4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\
b0{{81.}{\~}{A chart of accounts
is}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\
plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{the same as a balance
sheet}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B.
}{\~}{usually a listing of accounts in alphabetical
order}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C.
}{\~}{usually a listing of accounts in financial statement
order}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.
}{\~}{used in place of a
ledger}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f
b0{{82.}{\~}{The debit side of an
account}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\lin
e{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{depends on whether the
account is an asset, liability or stockholders}{{\u8217}}{ equity
item}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B.}
{\~}{can be either side of the account depending on how the accountant set up the
system}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C
.}{\~}{is the right side of the
account}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
D.}{\~}{is the left side of the
account}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\
f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24
\b0{{83.}{\~}{An account is said to have a debit balance
if}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\
plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{the amount of the debits
exceeds the amount of the
credits}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
B.}{\~}{there are more entries on the debit side than on the credit
side}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C.}
{\~}{its normal balance is debit without regard to the amounts or number of entries
on the debit
side}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.}
{\~}{the first entry of the accounting period was posted on the debit
side}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\
fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0
{{84.}{\~}{Which statement(s) concerning cash is (are)
true?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{
}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{cash will always have more
debits than
B.}{\~}{cash will never have a credit
balance}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
C.}{\~}{cash is increased by
debiting}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{D.}{\~}{all of the
above}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{85.}{\~}{Which of the following is true about a T
ne{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{The left-hand side of the
T account is called the debit
side.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B.
}{\~}{The left-hand side of the T account is called the credit
side.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C.
}{\~}{The right-hand side of the T account is called the debit
side.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.
}{\~}{None of these are
true.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{86.}{\~}{Which of the following abbreviations are
correct?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
ne{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Debit }{{\u8220}}{Dr}
{{\u8221}}{, Credit }{{\u8220}}{Cd}
{{\u8221}}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0
{{B.}{\~}{Debit }{{\u8220}}{Db}{{\u8221}}{, Credit }{{\u8220}}{Cr}
{{C.}{\~}{Debit }{{\u8220}}{Db}{{\u8221}}{, Credit }{{\u8220}}{Cd}
{{D.}{\~}{Debit }{{\u8220}}{Dr}{{\u8221}}{, Credit }{{\u8220}}{Cr}
{{\u8221}}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf
3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs
24\b0{{87.}{\~}{Which side of the account increases a cash
{credit}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
B.}{\~}{neither a debit or a
credit}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C
.}{\~}
{debit}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D
.}{\~}{either a debit or a
credit}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f
b0{{88.}{\~}{A cash payment is recorded on the cash account as
a }}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\
plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{neither a debit or a
credit}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B
.}{\~}
{credit}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
C.}{\~}
{debit}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D
.}{\~}{either a debit or a
b0{{89.}{\~}{The balance of the account is determined
by}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\
plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{adding all of the debits to all
of the
credits.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{B.}{\~}{always subtracting the debits from the
{C.}{\~}{always subtracting the credits from the
debits. }}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{D.}{\~}{adding all of the debits, adding all of the credits, and then subtracting
the smaller sum from the larger
sum.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\
{{90.}{\~}{A list of the accounts is
{ledger}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
B.}{\~}{chart of
accounts}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{C.}{\~}{T
D.}{\~}
{debit}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f
b0{{91.}{\~}{On the chart of accounts, the balance sheet accounts are normally
listed in the following
order}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{
}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{liabilities, assets,
stockholders}{{\u8217}}
{ equity}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{B.}{\~}{assets, liabilities, stockholders}{{\u8217}}
{C.}{\~}{stockholders}{{\u8217}}{ equity, assets,
liabilities}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\
b0{{D.}{\~}{assets,
stockholders}{{\u8217}}{ equity,
liabilities}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\
cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\
fs24\b0{{92.}{\~}{In which order are the accounts listed in the chart of
accounts?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
ine{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{assets, expenses,
liabilities, stockholders}{{\u8217}}{ equity,
revenues}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{B.}{\~}{stockholders}{{\u8217}}{ equity, assets, liabilities, revenues,
expenses}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{C.}{\~}{assets, liabilities, stockholders}{{\u8217}}{ equity, revenues,
{D.}{\~}{assets, liabilities, revenues, expenses, stockholders}{{\u8217}}
{ equity}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs2
4\b0{{93.}{\~}{Which are the parts of the T
ne{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{title, date,
total}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B.
}{\~}{date, debit side, credit
side}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C.}
{\~}{title, debit side, credit
side}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.}
{\~}{title, debit side,
total}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{94.}{\~}{Which group of accounts is comprised of only
assets?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\lin
e{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Cash, Accounts Payable,
Buildings}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0
{{B.}{\~}{Accounts Receivable, Revenue,
Cash}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C.}
{\~}{Prepaid Expenses,}{\~}{ Buildings,
Patents}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
D.}{\~}{Unearned Revenues, Prepaid Expenses,
Cash}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\
{{95.}{\~}{Of the following, which is}}\plain\cf3\f4\fs24\b0{{true about
e{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Assets include physical
items and intangibles that have
value.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B
.}{\~}{Assets include only physical items of
value.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C
.}{\~}{Assets are owned solely by the stockholders of the
company.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{D.}{\~}{Assets are the result of selling products or services to
customers.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\c
s24\b0{{96.}{\~}{Which of the following
is }}\plain\cf3\f4\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{not
}}}}\plain\cf3\f4\fs24\b0{{ considered to be a
liability?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\
line{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Wages
B.}{\~}{Accounts
Receivable}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b
0{{C.}{\~}{Unearned
Revenues}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{D.}{\~}{Accounts
Payable}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\
\b0{{97.}{\~}{Which of the following statements
}}}}\plain\cf3\f4\fs24\b0{{ true about
liabilities?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b
0\line{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Liabilities are debts
owed to
outsiders.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b
0{{B.}{\~}{Account titles of liabilities often include the term }{{\u8220}}
{payable.}
{{C.}{\~}{Receiving cash before a service is performed creates a
liability.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b
0{{D.}{\~}{Liabilities do not include wages owed to employees of the
company.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{98.}{\~}{Retained earnings will be reduced by all of the
following }}\plain\cf3\f4\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\
b1{{except}}}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b
0\line{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}
{{B.}{\~}
{expenses}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0
{{C.}{\~}
{dividends}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b
0{{D.}{\~}{all of
these}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{99.}{\~}{Expenses can result
from}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}
}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{paying
dividends}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0
{{B.}{\~}{consuming
services}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{C.}{\~}{using up
b0{{D.}{\~}{all of
0{{100.}{\~}{Proof that the dollar amount of the debits equals the dollar amount of
the credits in the ledger
means}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{
}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}
{\~}}\plain\cf3\f4\i\fs24\b0{\plain\cf3\f4\i\fs24\b0{{all}}}\plain\cf3\f4\fs24\b0{{
of the information from the journal was correctly transferred to the
ledger}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B
.}
{\~}}\plain\cf3\f4\i\fs24\b0{\plain\cf3\f4\i\fs24\b0{{all}}}\plain\cf3\f4\fs24\b0{{
accounts have their correct balances in the
ledger}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C
.}
{\~}}\plain\cf3\f4\i\fs24\b0{\plain\cf3\f4\i\fs24\b0{{only}}}\plain\cf3\f4\fs24\b0{
{ the journal is accurate; the ledger may be
incorrect}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0
{{D.}
{\~}}\plain\cf3\f4\i\fs24\b0{\plain\cf3\f4\i\fs24\b0{{only}}}\plain\cf3\f4\fs24\b0{
{ that the debit dollar amounts equal the credit dollar
amounts}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\
\b0{{101.}{\~}{The chart of accounts is designed
to}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\
plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{alphabetize the accounts to
make reading easier for its financial statement
users}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B.
}{\~}{analyze the accounts and organize them in order of dollar amount to simplify
the accounting information for
users}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C.
}{\~}{summarize the transactions and determine their ending
balances}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{D.}{\~}{meet the information needs of a company and other financial statement
users}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{102.}{\~}{The chart of accounts classifies the accounts to make identification
of the accounts easier. This is done by way of assigning a number to each account.
The first number identifies the classification of the type of account.}{\~}{ Which
of the following indicates the use of this
classification?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs2
4\b0\line{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{1-Assets, 2-
Liabilities, 3-Stockholders}{{\u8217}}{ Equity, 4-Expenses, 5-
{B.}{\~}{1-Assets, 2-Liabilities, 3-Stockholders}{{\u8217}}{ Equity, 4-Revenues, 5-
Expenses}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{C.}{\~}{1-Assets, 2-Stockholders}{{\u8217}}{ Equity, 3-Revenues, 4-Expenses, 5-
Dividends}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0
{{D.}{\~}{1-Stockholders}{{\u8217}}{ Equity, 2-Dividends, 3-Revenues, 4-
Expenses}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{103.}{\~}{Which
of the following
}}}}\plain\cf3\f4\fs24\b0{{ a correct rule of debits and
credits? }}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
ine{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{assets, expenses, and
dividends are increased by
debits}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B
.}{\~}{assets are decreased by credits and have a normal debit
C.}{\~}{liabilities, revenues, and retained earnings are increased by
D.}{\~}{the normal balance for revenues and expenses is a
b0{{104.}{\~}{The ____ is where a transaction can first be found on the accounting
records.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
ne{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{chart of
{B.}{\~}{income
statement}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0
{{C.}{\~}{balance
sheet}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.
}{\~}
{journal}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{105.}{\~}{A debit may signify
a(n)}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}
}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{decrease in an asset
B.}{\~}{decrease in a liability
C.}{\~}{increase in the retained earnings
D.}{\~}{decrease in the dividends
\b0{{106.}{\~}{Which of the following types of accounts have a normal credit
balance?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
ne{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{assets and
b0{{B.}{\~}{liabilities and
{C.}{\~}{revenues and
b0{{D.}{\~}{capital stock and
dividends}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf
24\b0{{107.}{\~}{Which of the following groups of accounts have a normal debit
ne{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{revenues,
b0{{B.}{\~}{assets,
b0{{C.}{\~}{liabilities,
{D.}{\~}{assets,
expenses}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{108.}{\~}{Which one of the statements below
}}}}\plain\cf3\f4\fs24\b0{{ a purpose for the
journal?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
ne{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{to show increases and
decreases in
{B.}{\~}{to show a chronological order by
date}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C.}
{\~}{to show a complete transaction in one
place}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.
}{\~}{to help locate
errors}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f
b0{{109.}{\~}{A credit may signify
a}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\p
lain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{decrease in
assets}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B
.}{\~}{decrease in
b0{{C.}{\~}{decrease in retained
earnings}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{D.}{\~}{decrease in
revenue}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\
\b0{{110.}{\~}{A debit signifies a decrease
in}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\
plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}
B.}{\~}
{{C.}{\~}
0{{D.}{\~}
{revenues}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf
24\b0{{111.}{\~}{Which of the following applications of the rules of debit and
credit is
}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{decrease Prepaid Insurance
with a credit and the normal balance is a
.}{\~}{increase Accounts Payable with a credit and the normal balance is a
debit}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C.
}{\~}{increase Supplies Expense with a debit and the normal balance is a
debit}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.
}{\~}{decrease Cash with a debit and the normal balance is a
b0{{112.}{\~}{Which of the following describes the classification and normal
balance of the fees earned
ne{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{an asset with a credit
B.}{\~}{a liability with a credit
C.}{\~}{an expense with a debit
D.}{\~}{a revenue with a credit
balance}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\
\b0{{113.}{\~}{The classification and normal balance of the accounts payable
account
plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{an asset with a credit
B.}{\~}{a liability with a credit
C.}{\~}{an asset with a debit
D.}{\~}{an expense with a debit
\b0{{114.}{\~}{The classification and normal balance of the dividends account
plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{an expense with a credit
B.}{\~}{an expense with a debit
C.}{\~}{a liability with a credit
D.}{\~}{a stockholders}{{\u8217}}{ equity item with a debit
\b0{{115.}{\~}{The classification and normal balance of the supplies expense
account is
}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{asset with a debit
B.}{\~}{asset with a credit
C.}{\~}{expense with a debit
D.}{\~}{liability with a credit
\b0{{116.}{\~}{In
which of the following types of accounts are increases recorded by
debits?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\lin
e{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{assets,
b0{{B.}{\~}{dividends,
b0{{C.}{\~}{expenses,
b0{{D.}{\~}{assets,
4\b0{{117.}{\~}{In which of the following types of accounts are increases recorded
by
credits?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
ne{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{revenues,
b0{{B.}{\~}{dividends,
assets}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C
.}{\~}{liabilities,
{{D.}{\~}{expenses,
fs24\b0{{118.}{\~}{In which of the following types of accounts are decreases
recorded by
e{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}
B.}{\~}
{{C.}{\~}
{{D.}{\~}
{dividends}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\c
s24\b0{{119.}{\~}{In which of the following types of accounts are decreases
recorded by
\b0{{B.}{\~}{retained
{C.}{\~}
0{{D.}{\~}
24\b0{{120.}{\~}{A credit balance in which of the following accounts would indicate
a likely
error?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Fees
Earned}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B
.}{\~}{Salary
Expense}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
C.}{\~}{Retained
Earnings}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{D.}{\~}{Accounts
\b0{{121.}{\~}{A debit balance in which of the following accounts would indicate a
likely
{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Salaries
B.}{\~}{Notes
C.}{\~}
{Dividends}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b
0{{D.}{\~}
{Supplies}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf
24\b0{{122.}{\~}{Which of the following entries records the payment of an account
payable?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
ne{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{debit Cash; credit
Accounts
B.}{\~}{debit Accounts Receivable; credit
{\~}{debit Cash; credit Supplies
D.}{\~}{debit Accounts Payable; credit
{{123.}{\~}{Which of the following entries records the receipt of a utility bill
from the water
company?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
ne{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{debit Utilities Expense;
credit Accounts
B.}{\~}{debit Utilities Payable; credit Accounts
0{{C.}{\~}{debit Accounts Payable; credit
Cash}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.}
{\~}{debit Accounts Payable; credit Utilities
\b0{{124.}{\~}{Which of the following entries records the cash sale of capital
stock to
stockholders?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\
b0\line{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{debit Capital Stock;
credit
Cash}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B.}
{\~}{debit Cash; credit Capital
Stock}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C.
}{\~}{debit Cash; credit
Revenue}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
D.}{\~}{debit Revenue; credit
{{125.}{\~}{Office supplies were sold by Ari}{{\u8217}}{s Alarm Service at cost to
another repair shop, with cash received.}{\~}{ Which of the following entries for
Ari}{{\u8217}}{s Alarm Service records this
transaction?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b
0\line{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Office Supplies,
debit; Cash,
.}{\~}{Office Supplies, debit; Accounts Payable,
.}{\~}{Cash, debit; Office Supplies,
credit}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D
.}{\~}{Accounts Payable, debit; Office Supplies,
b0{{126.}{\~}{Office supplies purchased by Ari}{{\u8217}}{s Alarm Service on
account were returned.}{\~}{ Which of the following entries for Ari}{{\u8217}}{s
Alarm Service records this
0\line{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Cash, debit; Office
Supplies,
.}{\~}{Office Supplies, debit; Accounts Receivable,
.}{\~}{Accounts Payable, debit; Office Supplies,
b0{{127.}{\~}{Cash was paid by Ari}{{\u8217}}{s Alarm Service to creditors on
account.}{\~}{ Which of the following entries for Ari}{{\u8217}}{s Alarm Service
records this
0\line{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Cash, debit; Retained
Earnings,
.}{\~}{Accounts Payable, debit; Cash,
.}{\~}{Accounts Receivable, debit; Cash,
.}{\~}{Accounts Payable, debit; Account Receivable,
b0{{128.}{\~}{The process of initially recording a business transaction is
{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{trial
balancing}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0
{{B.}{\~}
{posting}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{C.}{\~}
{journalizing}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs2
4\b0{{D.}{\~}
{balancing}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\c
s24\b0{{129.}{\~}{Which
of the following entries records the acquisition of office supplies on
ne{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Office Supplies, debit;
Cash,
.}{\~}{Cash, debit; Office Supplies,
.}{\~}{Accounts Receivable, debit; Office Supplies,
b0{{130.}{\~}{Which of the following entries records the payment of rent for the
current
month?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Cash, debit; Rent Expense,
.}{\~}{Rent Expense, debit; Cash,
.}{\~}{Rent Expense, debit; Accounts Receivable,
.}{\~}{Accounts Payable, debit; Rent Expense,
b0{{131.}{\~}{Which of the following entries records the receipt of cash from
patients on
ne{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Accounts Payable, debit;
Fees Earned,
.}{\~}{Accounts Receivable, debit; Fees Earned,
.}{\~}{Accounts Receivable, debit; Cash,
.}{\~}{Cash, debit; Accounts Receivable,
b0{{132.}{\~}{Which of the following entries records the collection of cash from
cash
customers?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\
line{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Fees Earned, debit;
Cash,
.}{\~}{Fees Earned, debit; Accounts Receivable,
.}{\~}{Cash, debit; Fees Earned,
b0{{133.}{\~}{Which of the following entries records the receipt of cash for two
months' rent? The cash was received in advance of providing the
service.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
ne{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Prepaid Rent, debit; Rent
Revenue,
credit.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
B.}{\~}{Cash, debit; Unearned Rent,
C.}{\~}{Cash, debit; Prepaid Rent,
D.}{\~}{Cash, debit; Rent Expense
credit.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\
\b0{{134.}{\~}{A patient has a physical examination and asks the bookkeeper to mail
the bill.}{\~}{ The bookkeeper
should}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{make no entry until the
cash is
{B.}{\~}{Cash, debit; Accounts Receivable,
.}{\~}{Cash, debit; Fees Earned,
b0{{135.}{\~}{Prarie Clinic purchased X-ray equipment for $4,000, paid $1,275 down,
with the remainder to be paid later.}{\~}{ The correct entry would
be}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\p
lain\cf3\f4\fs24\b0\line{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}
{Equipment}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}
{ 1,275}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{\~}{\~}{\~}{\~}{\~}
{ Cash}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ }{\~}{\~}{\~}
{\~}{\~}
{ 1,275}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
B.}{\~}{Cash}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{
1,275}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Accounts Payable}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}
{ Equipment}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}
{ 4,000}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
C.}{\~}{Equipment Expense}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ }{\~}{\~}
{\~}{\~}{\~}{ 4,000}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{\~}{\~}{\~}
{\~}{\~}{ Accounts Payable}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}
{ Cash}{\~}{\~}{\~}{\~}{\~}{ 2,725}{\~}{\~}{\~}{\~}{\~}
{ }}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.}
{\~}{Equipment}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ }
{\~}{\~}{\~}{\~}{\~}{ 4,000}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{\~}
{\~}{\~}{\~}{\~}{ Accounts Payable}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}
{ Cash}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ }{\~}{\~}
{\~}{\~}{\~}
{ 1,275}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\
\b0{{136.}{\~}{The process of recording a transaction in the journal is
{recording}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b
0{{B.}{\~}
4\b0{{C.}{\~}
{D.}{\~}
{summarizing}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain
\fs24\b0{{137.}{\~}{Scott, Inc. sold $65,000 of stock.}{\~}{ How would this
transaction be entered in the
ne{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Cash}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ }
{\~}{\~}{\~}{\~}{\~}
{ 65,000}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{\~}{\~}{ }{\~}{\~}{\~}
{\~}{\~}{ Capital Stock}{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}{
65,000}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{\~}{\~}{\~}{\~}{\~}{ }
{\~}{\~}{\~}{\~}{\~}{ Sold stock for
cash.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B.
}{\~}{Cash}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}
{ Capital Stock}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}{ }{\~}
{\~}{\~}{\~}{\~}{ 65,000}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{ }{\~}
{\~}{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}{ Sold stock for
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}{\~}{Capital Stock}{\~}{\~}{\~}{\~}{\~}
{ 65,000}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{\~}{ }{\~}{\~}{\~}{\~}
{\~}{ Cash}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}{ Sold stock for
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{\~}{\~}{ Sold stock for
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0{{138.}
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{D.}{\~}{decrease Cash and decrease Stockholders}{{\u8217}}
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{ Cash}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
brdrcf0\cellx6095\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brd
rcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx6416\clvertal
t\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20
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rw20\brdrcf0\cellx9578\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\b
rdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\
brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\t
rpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb
\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\
clbrdrt\brdrs\brdrw20\brdrcf0\cellx1067\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clb
rdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdr
cf0\cellx1761\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0
\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx6095\clvertalt\cl
brdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brd
rcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx6416\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf
0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20
\brdrcf0\cellx7857\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\br
drcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx9578\pard\pl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cel
l\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\
itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~
}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ Purchased land for
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cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\
ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\s
b0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\br
drw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\b
rdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\tr
left0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt
0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\c
w20\brdrcf0\cellx9578\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
l0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\
brdrcf0\cellx1067\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brd
rcf0\cellx1761\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf
0\cellx6095\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\c
ellx6416\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdr
cf0\cellx7857\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx9578\pard\plain\intbl\it
ap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\i
tap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft
0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\tr
paddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx1067\clvertalt\clbrdrl\brdrs\b
rdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx1761\clvertalt\clbrdrl\brdrs\brdr
w20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx6095\clvertalt\clbrdrl\brdrs\brdrw20
\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx6416\clvertalt\clbrdrl\brdrs\brdrw20\br
drcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx7857\clvertalt\clbrdrl\brdrs\brdrw20\brdrc
f0\cellx9578\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0\line
{}\plain\cf3\f4\fs18\b0{{What effect does this journal entry have on the
ine{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Increase to Cash and
increase to
Land}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B.}
{\~}{Increase to Land and decrease to
{\~}{Decrease to Cash and decrease to
Land}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.}
{\~}{Increase to Cash and decrease to
Land}}}\plain\cf3\f4\fs18\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\
{{140.}
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Supplies}}\intbl\i
tap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}
}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs1
8\b0{{120}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx5821\clvertalt\clbrdrb\brdrs\brd
rw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\br
drs\brdrw20\brdrcf0\cellx7040\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs
\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx8
102\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbr
drl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrc
f0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\t
rpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdr
cf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw
20\brdrcf0\cellx1062\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\
brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx1810\clver
talt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdr
w20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx5466\clvertalt\clbrdrb\brdrs\brdrw20
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clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs
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\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\pla
in\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}
{ Accounts
Payable}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql
\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0
\keepn\ql\plain\cf3\f4\fs18\b0{{120}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brd
rw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\br
drs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trl
eft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0
\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\cl
brdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx1062\clvertalt\clbrd
rb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf
0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx1810\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\c
lbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\br
drcf0\cellx5466\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrc
f0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx5821\clvertalt\
clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\b
rdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7040\clvertalt\clbrdrb\brdrs\brdrw20\brdr
20\brdrcf0\cellx8102\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brd
rw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\br
drs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trp
addfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\b
rdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cl
brdrt\brdrs\brdrw20\brdrcf0\cellx1062\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrd
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{ ????????????}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\p
lain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\k
eepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\
ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brd
rs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbr
drr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrc
f0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\tr
paddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdr
w20\brdrcf0\cellx5466\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20
rw20\brdrcf0\clbrdrt\brdrs\brdrw20\br
f0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx8102\row\trowd\
trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\
trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx1062\clvertalt\clbr
drl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx1810\clvertalt\clbrdrl
\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx5466\clvertalt\clbrdrl\br
drs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx5821\clvertalt\clbrdrl\brdrs
\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx7040\clvertalt\clbrdrl\brdrs\br
drw20\brdrcf0\cellx8102\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\par
d\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pa
rd\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
ellx5821\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cell
x7040\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx8102\row\pard\plain\sa0\li0\ri0\
sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{What is the
best explanation for this journal
entry?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Purchased supplies with
cash.}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B.
}{\~}{Returned supplies previously
purchased.}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b
0{{C.}{\~}{Purchased supplies on
account.}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{D.}{\~}{Paid accounts
payable.}}}\plain\cf3\f4\fs18\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{141.}
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ntbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{10}}\intbl\itap1\cell\par
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
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}{\~}{\~}{\~}{\~}
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{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ Paid creditors on
account.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
f3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\q
l\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb
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b
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drcf0\cellx1097\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrc
f0\cellx1754\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\
952\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx9049\pard\plain\intbl\itap1\cell\p
ard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\
pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\tr
keep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\cl
vertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx1097\clvertalt\clbrdrl\brdrs\brdrw20\brd
rcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx1754\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf
0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx6286\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\c
lbrdrr\brdrs\brdrw20\brdrcf0\cellx6855\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbr
drr\brdrs\brdrw20\brdrcf0\cellx7952\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx90
49\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0\line{}\plain\c
f3\f4\fs18\b0{{What effect does this journal entry have on the
ine{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Decrease accounts
payable, increase
cash}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B.}
{\~}{Increase cash, decrease accounts
payable}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
C.}{\~}{Increase accounts payable, increase
cash}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.}
{\~}{Decrease accounts payable, decrease
cash}}}\plain\cf3\f4\fs18\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\
{{142.}{\~}{Which of the following accounts would be increased with a
credit?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\lin
e{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Land, Accounts Payable,
{{B.}{\~}{Accounts Payable, Unearned Revenue, Capital
Stock}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C.
}{\~}{Capital Stock, Accounts Receivable, Unearned
Revenue}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
D.}{\~}{Cash, Accounts Receivable, Capital
Stock}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{143.}{\~}{In accordance with the rules of debit and credit, which of the
following is
}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Debits increase
assets.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
B.}{\~}{Credits increase
assets.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
C.}{\~}{Debits increase both assets and retained
earnings.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0
{{D.}{\~}{Credits increase both assets and
liabilities.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain
\fs24\b0{{144.}{\~}{All of the following accounts are increased with a
debit }}\plain\cf3\f4\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{
except}}}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
ne{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Unearned
{B.}{\~}
{Land}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C.
}{\~}{Accounts
0{{D.}{\~}
{Cash}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{145.}{\~}{Which of the following stockholder equity accounts follow the same
debit and credit rules as
0\line{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Capital Stock
only}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B.}
{\~}{Dividends
only}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C.}
{\~}{Retained Earnings and Capital
Stock}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.
}{\~}{Retained Earnings, Capital Stock, and
Dividends}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf
24\b0{{146.}{\~}{The payment for the monthly rent will require which of the
following
entries?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
ne{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{debit Cash and debit Rent
B.}{\~}{credit Cash and credit Rent
C.}{\~}{debit Rent Expense and credit
Cash}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.}
{\~}{credit Rent Expense and debit
{{147.}{\~}{Expenses follow the same debit and credit rules
as}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\
{{B.}{\~}
0{{C.}{\~}{capital
stock}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.
}{\~}
{liabilities}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain
\fs24\b0{{148.}{\~}{Net income will result
}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{revenues (credits) > expenses
(debits)}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{B.}{\~}{revenues (debits) > expenses
(credits)}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0
{{C.}{\~}{expenses (credits) < revenues
{D.}{\~}{revenues (credits) = expenses
(debits)}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{149.}{\~}{Which of the following will increase retained
earnings?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
ine{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Expenses >
revenues.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0
{{B.}{\~}{Dividends are declared and
paid.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C.
}{\~}{Revenues >
expenses.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0
{{D.}{\~}{Cash is received from customers on
account.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{150.}{\~}{Which of the following will decrease retained
ine{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Supplies are purchased
on
{B.}{\~}{Dividends are declared and
paid.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C.
}{\~}{Cash is received from
customers.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b
0{{D.}{\~}{Payment is made on an accounts
4\b0{{151.}{\~}{Which of the following group of accounts are increased with a
debit?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{assets, liabilities,
stockholders}{{\u8217}}
{B.}{\~}{assets,
dividends,
{C.}{\~}{assets, revenues,
{D.}{\~}{assets, liabilities,
revenues}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{152.}{\~}{Which of the following accounts increase with a
e{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{capital stock, revenues,
{B.}{\~}{assets, capital stock,
{C.}{\~}{liabilities, capital stock,
{D.}{\~}{retained earnings, capital stock,
assets}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f
b0{{153.}{\~}{Which of the following is true regarding normal balances of
ine{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{All accounts have a
normal debit
balance.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{B.}{\~}{All expense accounts have a normal negative
{C.}{\~}{Accounts that have a normal debit balance will only have debit entries,
never credit
entries.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{D.}{\~}{The normal balance appears on the side of the account that also receives
increase
entries.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{154.}{\~}{All of the following occur with a double-entry accounting
system }}\plain\cf3\f4\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{
{except}}}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
ine{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{The accounting equation
remains in
{B.}{\~}{The sum of all debits is always equal to the sum of all credits in each
journal
entry.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C
.}{\~}{Each business transaction will have only two
{D.}{\~}{Every transaction affects at least two
accounts.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf
24\b0{{155.}
ntbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{6}}\intbl\itap1\cell\pard
0{{375}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb
\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\
trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\tr
paddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt
\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl
\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\
trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpa
ddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0
drw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx8103\pard\plain\intbl\itap1\sa0\li
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\ita
p1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\
intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}
{ Unearned
Fees}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pl
ain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\ke
epn\ql\plain\cf3\f4\fs18\b0{{375}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw2
0\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs
\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft
paddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrd
rr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx1141\clvertalt\clbrdrb\
brdrcf0\cellx8103\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw2
0\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs
\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpadd
fb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdr
s\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrd
rt\brdrs\brdrw20\brdrcf0\cellx1141\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\
brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\c
ellx1732\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbr
drr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx5388\clvertalt\clbrdrb
\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx8103\pard\plain\i
ntbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\par
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1
\cell\pard\plain
\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}
\brdrw20\brdrcf0\cellx8103\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\t
rpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brd
rw20\brdrcf0\cellx1141\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw2
0\brdrcf0\cellx1732\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\b
rdrcf0\cellx5388\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdr
cf0\cellx5900\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0
\cellx7041\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx8103\pard\plain\intbl\itap1
\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap
1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\t
rrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpad
dft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx1141\clvertalt\clbrdrl\brdrs\brdr
f0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx7041\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\
cellx8103\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0\line{}\
plain\cf3\f4\fs18\b0{{What is the best explanation for this journal
{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Received cash for services
performed.}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b
0{{B.}{\~}{Received cash for services to be performed in the
future.}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
C.}{\~}{Paid cash in advance for services to be
done.}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.
}{\~}{Paid cash for services to be
performed.}}}\plain\cf3\f4\fs18\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\c
s24\b0{{156.}
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{April}}\intbl\itap1\cell\pard\plain\i
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Equipment}}\intb
l\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{
\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\
fs18\b0{{6,700}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\p
lain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0
\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\
brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\t
rkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\c
466\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\b
rdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx5978\clvertalt\clbrdrb\brdr
ellx8102\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0
\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\
brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
dl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20
\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx5466\clvertalt\clbrdrb\brdrs\br
drw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\b
rdrs\brdrw20\brdrcf0\cellx5978\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdr
s\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx
7040\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\
brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx8102\pard\plain\intbl\itap
1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\i
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}
{\~}
keepn\ql\plain\cf3\f4\fs18\b0{{\~}
{ 2,000}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\b
drcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx8102\row\tro
wd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\b
rdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\
brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\tr
paddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl
\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\
cellx1062\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clb
\clbrdrt\b
brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7040\clvertalt\clbrdrb\brd
rs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbr
drt\brdrs\brdrw20\brdrcf0\cellx8102\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql
\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}{ Note
\keepn\ql\plain\cf3\f4\fs18\b0{{\~}
drcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx8102\pard\plain\intbl\itap1\sa0\li0\ri0\sb
0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\l
ap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}
plain\cf3\f4\fs18\b0{{Which is the best explanation for this journal
{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Purchased equipment, paid
cash of $2,000, with the remainder to be paid in the
B.}{\~}{Purchased equipment, paid cash of $4,700, with the remainder to be received
in the
C.}{\~}{Purchased equipment, paid cash for the entire
amount.}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
D.}{\~}{Purchased equipment on
\b0{{157.}{\~}{The verification that the total dollar amount of the debits equals
the total dollar amount of the credits in the ledger is called
lain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}
{ledger}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
B.}{\~}{trial
C.}{\~}
{account}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{D.}{\~}{balance
sheet}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{158.}{\~}{The process of transferring the debits and credits from the journal
entries to the ledger accounts is
{sliding}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{B.}{\~}
{transposing}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24
\b0{{C.}{\~}
4\b0{{D.}{\~}
{posting}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{159.}{\~}{The posting process will include the transfer of the following
information from the journal to the
ne{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{date, amount (debit or
credit)}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
B.}{\~}{date, amount (debit or credit), journal page
number}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C
.}{\~}{amount (debit or credit), account
number}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D
.}{\~}{date, amount (debit or credit) account
number}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f
b0{{160.}{\~}{The Post. Ref. columns are used to trace transactions from the
journal to the accounts.}{\~}{ What will be entered in the Post. Ref. column of (a)
the journal and (b) the
ne{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{(a) the amount of the
debit or credit (b) the journal page
number}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B
.}{\~}{(a)
the journal page number (b) the date of the
transaction}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\
b0{{C.}{\~}{(a) the journal page number, (b) the account
number}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D
.}{\~}{(a) the account number, (b) the journal page
b0{{161.}{\~}{The chart of accounts for the Corning Corporation includes the
following:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trbr
drt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrc
f0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw2
0\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpad
dfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw
rdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10256\pard\plain\intbl\itap1\sa0\
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Account
Name}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Account
Number}}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\b
cf0\cellx10256\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\b
rdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\br
drw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3
\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\b
rdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\
brdrs\brdrw20\brdrcf0\cellx6756\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brd
rs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cell
x10256\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}}
\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18
\b0{{11}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\b
x10256\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accoun
ts
Receivable}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\cf3\f4\fs18\b0{{13}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trb
rdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdr
cf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkee
brdrw20\brdrcf0\cellx10256\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brd
rs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbr
drh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpadd
b0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clb
brdrcf0\cellx10256\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs1
8\b0{{Prepaid
Insurance}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
cf3\f4\fs18\b0{{15}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbr
rdrw20\brdrcf0\cellx10256\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdr
s\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrd
rh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb
0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbr
rdrcf0\cellx10256\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18
\b0{{Accounts
3\f4\fs18\b0{{21}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdr
b\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0
\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\t
rpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertal
rw20\brdrcf0\cellx10256\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\
brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh
\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\
trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdr
rcf0\cellx10256\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b
0{{Unearned
Revenue}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
0{{Capital
Stock}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
f4\fs18\b0{{31}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\
brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\t
rbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trp
addb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\
cf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw2
0\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10256\row\trowd\trql\trbrdrt\brdrs\brd
0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10256\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\k
eepn\ql\plain\cf3\f4\fs18\b0{{Retained
Earnings}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
f3\f4\fs18\b0{{32}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrd
drw20\brdrcf0\cellx10256\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs
\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdr
h\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0
\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrd
drcf0\cellx10256\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\
b0{{Dividends}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pl
ain\cf3\f4\fs18\b0{{33}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\
trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\b
rdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\tr
rs\brdrw20\brdrcf0\cellx10256\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\
20\brdrcf0\cellx10256\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\
fs18\b0{{Fees
Earned}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
\f4\fs18\b0{{41}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb
w20\brdrcf0\cellx10256\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\b
cf0\cellx10256\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0
{{Salaries
Expense}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
0{{Insurance
0{{Rent
rw20\brdrcf0\cellx10256\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpa
ddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw2
0\brdrcf0\cellx6756\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx10256\pard\plain\i
ntbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb
256\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0\line{}\plain\
cf3\f4\fs18\b0{{On journal page 3, the following transaction was
found:}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{}\par\trowd\trql\trbrdrt\
brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\t
rbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\br
drcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3
\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\b
rdrw20\brdrcf0\cellx7139\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
f4\fs18\b0{{Prepaid
cf3\f4\fs18\b0{{1,530}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\kee
pn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\
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rdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\
trrh0\trkeep\trpaddb0\trpaddfb3\trp
addl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw
rs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7139\row\trowd\trql\trbrdrt\b
rdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\tr
brdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brd
rcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\
trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\br
drw20\brdrcf0\cellx7139\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
4\fs18\b0{{\~}{\~}{\~}{\~}{\~}
plain\cf3\f4\fs18\b0{{1,530}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brd
rcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdr
w20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trr
h0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddf
t3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\br
drs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx3479\clvertalt\clbrdrb\brdrs
\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdr
t\brdrs\brdrw20\brdrcf0\cellx5274\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\b
rdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\ce
llx7139\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\t
rpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx3
\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep
alt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx3479\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0
\clbrdrr\brdrs\brdrw20\brdrcf0\cellx5274\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\ce
llx7139\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0\line{}\pl
ain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{ What is the posting reference that
will be found in the Cash
{11}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B.}
{\~}
{15}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C.}
{\~}
{3}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.}
{\~}{none of
0{{162.}{\~}{The chart of accounts for the Corning Corporation includes the
ts
8\b0{{Prepaid
\b0{{Accounts
b\brdrs\brdrw20\br
drcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brd
rw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\
trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\br
10256\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\tr
0\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10256\pa
rd\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Unearned
0{{Capital
20\brdrcf0\cellx10256\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\br
f0\cellx10256\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{
{Retained
fs18\b0{{Fees
{{Salaries
0{{Insurance
brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\b
rs\brdrw20\brdrcf0\cellx10256\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\cf3\f4\fs18\b0{{Rent
f4\fs18\b0{{Prepaid
trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpa
ddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr
\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx3479\clvertalt\clbrdrb\br
drs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clb
rdrt\brdrs\brdrw20\brdrcf0\cellx5274\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdr
l\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0
\cellx7139\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrc
f0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw2
0\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}
will be found in the Prepaid Insurance
{\~}
{\~}
{\~}{none of
rdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\b
\cf3\f4\fs18\b0{{Accounts
8\b0{{Prepaid
\b0{{Accounts
0{{Unearned
0{{Capital
{Retained
fs18\b0{{Fees
paddb0\trpaddfb3\trpa
ddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw2
6\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdr
l\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0
\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trp
addfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf
drcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10256\pard\p
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Salaries
0{{Insurance
0{{Rent
f4\fs18\b0{{Prepaid
ain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{ What are the posting references
that will be found in the journal
{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{15 and 11,
respectively}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24
\b0{{B.}{\~}{11 and 15,
\b0{{C.}{\~}{11 and 55,
\b0{{D.}{\~}{3
only}}}\plain\cf3\f4\fs18\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\
{{164.}{\~}{The
chart of accounts for Miguel Corporation includes the
ts
8\b0{{Prepaid
\b0{{Accounts
0{{Unearned
0{{Capital
lbrdrt\brdrs\brdrw20\brdrcf0\cellx6756\clvertalt\clbrdrb\brdrs\b
brdrs\brdrw20\brdrcf0\cellx10256\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pl
ain\cf3\f4\fs18\b0{{Retained
fs18\b0{{Fees
{{Salaries
0{{Insurance
0{{Rent
cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{ On journal page 3, the following
transaction was
f4\fs18\b0{{Cash}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql
\plain\cf3\f4\fs18\b0{{640}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb
drcf0\cellx6402\row\trowd\trql\trbrd
rt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf
0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20
\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpadd
fr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw2
s\brdrw20\brdrcf0\cellx6402\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
f3\f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{ Fees
plain\cf3\f4\fs18\b0{{640}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrc
f0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw2
0\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0
\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3
s\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx3495\clvertalt\clbrdrb\brdrs\b
x6402\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trp
addr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx349
5\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx4980\c
lvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx6402\pard\plain\intbl\itap1\cell\pard\p
lain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\t
t\clbrdrr\brdrs\brdrw20\brdrcf0\cellx3495\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\c
lbrdrr\brdrs\brdrw20\brdrcf0\cellx4980\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cell
x6402\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0\line{}\plai
n\cf3\f4\fs18\b0{{What are the posting references that will be found in the journal
{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{41 and 11,
\b0{{B.}{\~}{3
only}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C.}
{\~}{11 and 41,
\b0{{D.}{\~}{11 and 32,
respectively}}}\plain\cf3\f4\fs18\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain
\fs24\b0{{165.}{\~}{The chart of accounts for Miguel Corporation includes the
ts
8\b0{{Prepaid
\b0{{Accounts
drcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdr
cf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10256\row\trowd\trql\trbrdrt\brdrs\brdrw20\b
rdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\br
drw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\t
dft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\
drt\brdrs\brdrw20\brdrcf0\cellx10256\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\q
l\plain\cf3\f4\fs18\b0{{Unearned
0{{Capital
{Retained
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{{Salaries
0{{Insurance
rcf0\cellx10256\pard\plain\int
bl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Rent
transaction was
rdrw20\brdrcf0\cellx10296\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
\f4\fs18\b0{{Salaries
3\f4\fs18\b0{{525}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\q
l\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdr
cf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw
20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh
0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft
rs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx3500\clvertalt\clbrdrb\brdrs\
brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt
\brdrs\brdrw20\brdrcf0\cellx6898\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\br
drs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cel
lx10296\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\
trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\b
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l0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\
brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10296\pard\plain\intbl\itap1\sa0
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}
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paddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx35
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lain\cf3\f4\fs18\b0{{What is the posting reference that will be found in the
Salaries Expense
{\~}
{\~}
{\~}{none of
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below.}{\~}{ All accounts have normal
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\cf3\f4\fs18\b0{{1,800}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\ke
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\clvertalt\cellx4574\clvertalt\cellx5227\clvertalt\cellx9249\clvertalt\cellx10413\r
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\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{3
,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0
\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx3308\clvertalt\cell
x4574\clvertalt\cellx5227\clvertalt\cellx9249\clvertalt\cellx10413\row\trowd\trql\t
t0\trpaddft3\clvertalt\cellx3308\clvertalt\cellx4574\clvertalt\cellx5227\clvertalt\
cellx9249\clvertalt\cellx10413\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plai
n\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\ke
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p1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Wages
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\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0
\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx3308\clvertalt\cellx4574\clvertalt\cel
lx5227\clvertalt\cellx9249\clvertalt\cellx10413\pard\plain\intbl\itap1\sa0\li0\ri0\
sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Capital
f4\fs18\b0{{2,500}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\q
0\keepn\ql\plain\cf3\f4\fs18\b0{{Retained Earnings}{\~}
{ }}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\
fs18\b0{{6,300}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb
3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx3308\clve
rtalt\cellx4574\clvertalt\cellx5227\clvertalt\cellx9249\clvertalt\cellx10413\row\tr
owd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpadd
fr3\trpaddt0\trpaddft3\clvertalt\cellx3308\clvertalt\cellx4574\clvertalt\cellx5227\
clvertalt\cellx9249\clvertalt\cellx10413\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\kee
pn\ql\plain\cf3\f4\fs18\b0{{Dividends}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{1,200}}\intbl\itap1\cell\pard\plain\int
bl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\
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lt\cellx3308\clvertalt\cellx4574\clvertalt\cellx5227\clvertalt\cellx9249\clvertalt\
cellx10413\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl
3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx3308\clvertalt\cellx4574\clv
ertalt\cellx5227\clvertalt\cellx9249\clvertalt\cellx10413\pard\plain\intbl\itap1\ce
ll\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\c
ell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\
trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx3308\clvert
alt\cellx4574\clvertalt\cellx5227\clvertalt\cellx9249\clvertalt\cellx10413\row\pard
\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\
b0{{Prepare a trial balance.}{\~}{ The total of the debits
{$13,300}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{B.}{\~}
{$9,400}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
C.}{\~}
{$9,100}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
D.}{\~}
{$9,600}}}\plain\cf3\f4\fs18\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\
\b0{{167.}{\~}{Randomly listed below are the steps for preparing a trial
balance:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft
paddft3\clvertalt\cellx740\clvertalt\cellx10080\pard\plain\intbl\itap1\sa0\li0\ri0\
sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(1)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Verify that the total of the Debit
column equals the total of the Credit
column.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
dl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx740\clvertalt\ce
llx10080\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\
trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx740\clvertalt\cellx10080\pard\
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(2)}}\intbl\itap1\
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{List the
accounts from the ledger and enter their debit or credit balance in the Debit or
Credit column of the trial
balance.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpa
ddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx740\clvertalt\c
ellx10080\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3
\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx740\clvertalt\cellx10080\pard
\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(3)}}\intbl\itap1
\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{List
the name of the company, the title of the trial balance, and the date the trial
balance is
prepared.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
addl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx740\clvertalt\
3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx740\clvertalt\cellx10080\par
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(4)}}\intbl\itap
1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Total
the Debit and Credit columns of the trial
alt\cellx740\clvertalt\cellx10080\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plai
n\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{What is the proper order of these
steps?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{(3), (2), (4),
(1)}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B.}
{\~}{(2), (3), (4),
(1)}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C.}
{\~}{(3), (2), (1),
(4)}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.}
{\~}{(4), (3), (2),
(1)}}}\plain\cf3\f4\fs18\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\f
s18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{
{168.}{\~}{Of the following, which will determine if the accounting equation is in
ne{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{journal
entry}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B.
}{\~}{income
{{C.}{\~}{trial
D.}{\~}{account
reconciliation}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\pla
in\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\
f4\fs24\b0{{169.}{\~}{An overpayment error was discovered in computing and paying
the wages of a Jamison Tree Trimming employee.}{\~}{ When Jamison receives cash
from the employee for the amount of the overpayment, which of the following entries
will Jamison
make?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{
}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Cash, debit; Wages Expense,
.}{\~}{Wages Payable, debit; Wages Expense,
.}{\~}{Wages Expense, debit, Cash,
.}{\~}{Cash, debit; Wages Payable,
b0{{170.}{\~}{If the two totals of a trial balance are not equal, it could be due
to }}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}
\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{failure to record a
b0{{B.}{\~}{recording the same erroneous amount for both the debit and the credit
parts of a
b0{{C.}{\~}{an error in determining the account balances, such as a balance being
incorrectly
computed}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{D.}{\~}{recording the same transaction more than
once}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\
{{171.}{\~}{When a transposition error is made on the trial balance, the difference
between the debit and credit totals on the trial balance will
be}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\
{zero}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B.
}{\~}{twice the amount of the
transposition}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs2
4\b0{{C.}{\~}{one-half the amount of the
4\b0{{D.}{\~}{divisible by
9}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs1
8\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{1
72.}{\~}{Which
of the following errors would cause the trial balance totals to be
unequal?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
ne{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{A transaction was not
posted.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
B.}{\~}{A payment of $67 for insurance was posted as a debit of $42 to Prepaid
Insurance and a credit of $42 to
Cash.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C.
}{\~}{A payment of $1,311 to a creditor was posted as a debit of $3,111 to Accounts
Payable and a debit of $311 to Accounts
Receivable.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\
b0{{D.}{\~}{Cash received from customers on account was posted as a debit of $680
to Cash and a credit of $680 to Accounts
Payable.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{173.}{\~}{Supplies purchased on account were incorrectly recorded as Office
Equipment.}{\~}{ The correcting entry would
plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Supplies, debit; Office
Equipment,
B.}{\~}{Accounts Receivable, debit; Supplies,
C.}{\~}{Office Equipment, debit; Supplies Expense,
D.}{\~}{Supplies, debit; Accounts Payable,
\b0{{174.}{\~}{Which of the following errors will cause the trial balance totals to
be
ne{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{post the debit portion of
a journal entry incorrectly and the credit portion of the entry is correctly
posted}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B
.}{\~}{failure to record a transaction or to post a
b0{{C.}{\~}{recording the same transaction more than
once}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.}
{\~}{recording the same erroneous amount for both the debit and the credit parts of
a
b0{{E.}{\~}{posting a part of a transaction correctly as a debit or credit but to
the wrong
\b0{{175.}{\~}{The trial balance is out of balance and the accountant suspects that
a transposition or slide error has occurred.}{\~}{ What will the accountant do to
find the
{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Determine the amount of the
error and look for that amount on the trial
{B.}{\~}{Determine the amount of the error and divide by two, then look for that
amount on the trial
{C.}{\~}{Determine the amount of the error and refer to the journal entries for
that
D.}{\~}{Determine the amount of the error and divide by nine. If the result is
evenly divided, then this type of error is
likely.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\
\b0{{176.}{\~}{Which of the following
}}}\plain\cf3\f4\fs24\b1{{ }}}\plain\cf3\f4\fs24\b0{{a short-cut in finding errors
on the trial
ne{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Determine the difference
between debits and credits and look for the
B.}{\~}{Determine the amount and change any account to make the trial balance
correct.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{C.}{\~}{Determine the difference between debits and credits, divide the amount by
2, look for the
D.}{\~}{Determine the difference between debits and credits, divide the amount by
9, if it divides evenly, look for a transposition or slide
error.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f
b0{{177.}{\~}{All of the following statements regarding a horizontal analysis are
true }}\plain\cf3\f4\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{e
xcept}}}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\lin
e{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{A horizontal analysis is
used to compare an item in a current statement with the same item in prior
statements.}{\~}
{ }}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B.}
{\~}{A horizontal analysis can be performed on a balance sheet and income
statement, but not on a statement of cash
flows.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C
.}{\~}{If fees earned in 2010 are $150,000 and fees earned in 2011 are $187,500, a
horizontal analysis will indicate a 25% increase over this
period.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
D.}{\~}{When two statements are compared in horizontal analysis, the earlier
statement is used as the base for computing the amount and the percent of
change.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\
\b0{{178.}{\~}{The chart of accounts classifies the accounts to make identification
of the accounts easier. Discuss how companies set up a chart of accounts for use in
their
business.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}
}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf
3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b
0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\pl
ain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0
\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plai
n\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\s
b319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{179.}{\~}{On January 1, 2010, Cary Parsons
established a catering service.}{\~}{ Listed below are accounts she would like to
open in the general ledger. List the accounts in the order in which they should
appear in the ledger and propose a two-digit account numbering scheme that is
consistent with the rules of a proper chart of
accounts.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trlef
rpaddft3\clvertalt\cellx956\clvertalt\cellx9238\pard\plain\intbl\itap1\sa0\li0\ri0\
sb0\keepn\ql\plain\cf3\f4\fs18\b0{{1.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\cell\trowd\trql\trle
ft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\
trpaddft3\clvertalt\cellx956\clvertalt\cellx9238\row\trowd\trql\trleft0\trrh0\trkee
talt\cellx956\clvertalt\cellx9238\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\p
lain\cf3\f4\fs18\b0{{2.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\k
eepn\ql\plain\cf3\f4\fs18\b0{{Supplies}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\
trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\
clvertalt\cellx956\clvertalt\cellx9238\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0
\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx
956\clvertalt\cellx9238\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
4\fs18\b0{{3.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pl
ain\cf3\f4\fs18\b0{{Equipment}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\tr
\cellx956\clvertalt\cellx9238\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb
3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx956\clver
talt\cellx9238\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0
{{4.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
4\fs18\b0{{Accounts
Payable}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
rpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx956\clvertalt\cellx9238\pard\pl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{5.}}\intbl\itap1\cel
l\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Capital
Stock}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl
0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx956\clvertalt\cell
addr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx956\clvertalt\cellx9238\pard\plai
n\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{6.}}\intbl\itap1\cell\
pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Wages
Expense}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
l\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Rent
l\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Truck}}\int
bl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3
\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx956\clvertalt\cellx9238\row\t
rowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpad
dfr3\trpaddt0\trpaddft3\clvertalt\cellx956\clvertalt\cellx9238\pard\plain\intbl\ita
p1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{9.}}\intbl\itap1\cell\pard\plain\
intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Utilities
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{10.}}\intbl\itap1\ce
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Dividends}
}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpa
ddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx956\clvertalt\cellx9238\
row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\
trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx956\clvertalt\cellx9238\pard\plain\intb
l\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{11.}}\intbl\itap1\cell\pard\
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Truck
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Prepaid
Insurance}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
cellx9238\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3
\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx956\clvertalt\cellx9238\pard\
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{13.}}\intbl\itap1\
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Fees
Earned}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
l0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx956\clvertalt\cel
lx9238\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\tr
paddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx956\clvertalt\cellx9238\pard\pla
in\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{14.}}\intbl\itap1\cel
l\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Miscellaneo
us
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Insurance
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Notes
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Retained
Earnings}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpa
ellx9238\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\
trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx956\clvertalt\cellx9238\pard\p
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{18.}}\intbl\itap1\c
ell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
Receivable}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\tr
paddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx956\clvertalt
\cellx9238\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl
3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx956\clvertalt\cellx9238\pard
alt\cellx956\clvertalt\cellx9238\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain
\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\
sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}
0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\pl
ain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0
\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\q
l\plain\cf3\f4\fs24\b0{{180.}{\~}{On September 1st, Erika Company purchased land
for $47,500 cash.}{\~}{ Prepare the journal entry to record this
0{}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain
\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs2
2\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql
\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\
sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\p
lain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri
0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{181.}{\~}{(a) On October 10th, Nikle
Company purchased supplies worth $2,750 on account. Prepare the journal entry to
record this transaction.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{(b)
Nikle Company paid for the supplies purchased in (a) on October 25th. Prepare the
journal entry to record this
0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{182.}{\~}{On October 17th, Nikle
Company purchased a building and a plot of land for $750,000. The building was
valued at $500,000 while the land carried a value of $250,000. Nikle paid $300,000
down in cash and signed a note payable for the balance.}{\~}{ Prepare the journal
entry to record this
\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\s
a0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}
\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\s
a319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{183.}{\~}{On November 1st,
Nikle Company made a cash payment of $200,000 on a note payable that was generated
in the purchase of a building and land.}{\~}{ Prepare the journal entry to record
this
0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{184.}{\~}{On January 7th, Damien
Lawson}{\~}{ deposited $95,000 in a bank account in the name of JumpStart in return
for shares of stock in the corporation.}{\~}{ Prepare the journal entry to record
this
0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{185.}{\~}{On January 8th, JumpStart
purchased $20,000 worth of office equipment.}{\~}{ Prepare the journal entry to
record this
0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{186.}{\~}{On August 30th, JumpStart
paid numerous bills which
include:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{ }}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ Payment to the landlord for August rent,
$950}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{ Payment to the Gas & Electric Company for August}{{\u8217}}{s
bill, $525}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{ Payment of employee wages for the last half of August,
$1,880}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{ Payment of shopping center}{{\u8217}}{s parking lot cleaning
fee,
$275}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0
{{Journalize these payments as one compound journal
entry.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\p
ar\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f
4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\l
ine{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain
\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\ke
ep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\s
a0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb31
9\keep\keepn\ql\plain\cf3\f4\fs24\b0{{187.}{\~}{On October 30th, JumpStart paid its
only stockholder, Damien Lawson, a $3,300 cash dividend. Journalize this
event.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\p
9\keep\keepn\ql\plain\cf3\f4\fs24\b0{{188.}{\~}{Prepare a journal entry for the
purchase of a truck on April 4 for $85,700, paying $15,000 cash and the remainder
on
account.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}
\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3
\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0
\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\pla
in\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\
keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain
\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb
319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{189.}{\~}{Prepare a journal entry on
October 12 for the fees earned on account,
$14,600.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}
keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain
\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb
319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{190.}{\~}{Prepare a journal entry on March
27 for the payment of $8,000 in
dividends.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{
}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\c
f3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\
b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\p
lain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb
0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\pla
in\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\
sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{191.}{\~}{State for each account whether
it is likely to have from normal business operations (a) debit entries only, (b)
credit entries only, or (c) both debit and credit entries. Also, indicate the
normal balance of each
account.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft
paddft3\clvertalt\cellx755\clvertalt\cellx5288\clvertalt\cellx5941\clvertalt\cellx1
0372\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{1.}}\int
bl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{
{Fees
\f4\fs18\b0{{4.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\
plain\cf3\f4\fs18\b0{{Supplies}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\t
t\cellx755\clvertalt\cellx5288\clvertalt\cellx5941\clvertalt\cellx10372\row\trowd\t
rql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\t
rpaddt0\trpaddft3\clvertalt\cellx755\clvertalt\cellx5288\clvertalt\cellx5941\clvert
alt\cellx10372\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0
4\fs18\b0{{Utilities
3\f4\fs18\b0{{5.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql
\plain\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpa
ddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\c
ellx755\clvertalt\cellx5288\clvertalt\cellx5941\clvertalt\cellx10372\row\trowd\trql
\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpa
ddt0\trpaddft3\clvertalt\cellx755\clvertalt\cellx5288\clvertalt\cellx5941\clvertalt
\cellx10372\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{3
.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\f
s18\b0{{Accounts
\plain\cf3\f4\fs18\b0{{Accounts
\cellx5288\clvertalt\cellx5941\clvertalt\cellx10372\row\trowd\trql\trleft0\trrh0\tr
vertalt\cellx755\clvertalt\cellx5288\clvertalt\cellx5941\clvertalt\cellx10372\pard\
plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard
\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpadd
fb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx755\clv
ertalt\cellx5288\clvertalt\cellx5941\clvertalt\cellx10372\row\pard\plain\sa0\li0\ri
0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\f
s24\b0{}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\
plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f
4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\kee
pn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0
\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\p
ard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\l
i0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{192.}{\~}{For the following, enter
a }{{\u8220}}{D}{{\u8221}}{ if the account normally has a debit balance and enter a
}{{\u8220}}{C}{{\u8221}}{ if the account normally has a credit
balance.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs2
4\b0{{_____1. Notes
Payable}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{_____2. Mortgage
Payable}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{_____3.
Dividends}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{_____4. Accounts
Receivable}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{_____5. Capital
Stock}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{_____6. Rent
Revenue}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{_____7. Unearned
Income}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{_____8. Utility
Expense}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{_____9.
Automobiles}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0
{}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\
cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22
\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\
plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\s
b0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\pl
ain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0
\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{193.}{\~}{Several transactions are
listed below, with the accounting equation stated to the right side of each. Use
the following identification codes to indicate the effects of each transaction on
the accounting equation. Write your answers in the space provided under the
accounting equation. You need an identification code
for }}\plain\cf3\f4\ul1\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{{each}}}\plain\cf3\f4\fs2
4\b0{{ element of the accounting equation. An example is given before the first
transaction.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\tr
0\trpaddft3\clvertalt\cellx2285\clvertalt\cellx4829\clvertalt\cellx8753\pard\plain\
intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{I-
Increase}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
f3\f4\fs18\b0{{D-
Decrease}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
f3\f4\fs18\b0{{NE-No
Effect}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
l0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx2285\clvertalt\ce
llx4829\clvertalt\cellx8753\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\
alt\cellx4829\clvertalt\cellx8753\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap
1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddf
b3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx2285\clv
ertalt\cellx4829\clvertalt\cellx8753\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\p
lain\cf3\f4\fs18\b0{}\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
llx5136\clvertalt\cellx6724\clvertalt\cellx7074\clvertalt\cellx8455\clvertalt\cellx
8805\clvertalt\cellx10599\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0
\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Stockholders}
{{\u8217}}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
addl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx1485\clvertalt
\cellx5136\clvertalt\cellx6724\clvertalt\cellx7074\clvertalt\cellx8455\clvertalt\ce
llx8805\clvertalt\cellx10599\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3
\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx1485\clver
talt\cellx5136\clvertalt\cellx6724\clvertalt\cellx7074\clvertalt\cellx8455\clvertal
t\cellx8805\clvertalt\cellx10599\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pl
i0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{ Assets}{\~}
fs18\b0{{=}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\cf3\f4\fs18\b0{{Liabilities}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\
sb0\keepn\ql\plain\cf3\f4\fs18\b0{{+}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{ Equity}{\~}
{ }}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\t
rpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx1485\clvertalt\cellx5
\clvertalt\cellx10599\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
\f4\i\fs18\b0{\plain\cf3\f4\i\fs18\b0{{Example}}}\intbl\itap1\cell\pard\plain\intbl
\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\i\fs18\b0{\plain\cf3\f4\i\fs18\b0{{Joh
n Smith invests in a new business by purchasing $3,500 of capital
stock.}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
3\f4\fs18\b0\line{}\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}
{\~}{\~}{\~}
{ }}\plain\cf3\f4\i\ul1\fs18\b0{\plain\cf3\f4\i\ul1\fs18\b0{{I}}}\plain\cf3\f4\ul1\
fs18\b0{{\~}{\~}{\~}{\~}
{ }}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4
\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pla
in\cf3\f4\fs18\b0\line{}\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}
{\~}{\~}
{ }}\plain\cf3\f4\i\ul1\fs18\b0{\plain\cf3\f4\i\ul1\fs18\b0{{NE}}}\plain\cf3\f4\ul1
\fs18\b0{{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}
fs18\b0{{\~}{\~}{\~}{\~}
{ }}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\
trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx1485\clvertalt\cellx
5\clvertalt\cellx10599\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
dl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx1485\clvertalt\c
ellx5136\clvertalt\cellx6724\clvertalt\cellx7074\clvertalt\cellx8455\clvertalt\cell
x8805\clvertalt\cellx10599\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{A)}}\intbl\itap1\cell\pard\plain\intbl\it
ap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Cash
sales are
made.}}\plain\cf3\f4\fs18\b0{}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\
sb0\keepn\ql\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1
\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
x8805\clvertalt\ce
llx10599\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{B)}}
\b0{{Equipment is purchased on
credit.}}\plain\cf3\f4\fs18\b0{}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri
0\sb0\keepn\ql\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\u
l1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
3\f4\fs18\b0{{C)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql
\plain\cf3\f4\fs18\b0{{Payment is made for the equipment purchased on credit in
(B).}}\plain\cf3\f4\fs18\b0{}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\s
b0\keepn\ql\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\ul
1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}
in\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\ul1\fs18\b0{\plai
n\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
n\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}
3\f4\fs18\b0{{D)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql
\plain\cf3\f4\fs18\b0{{The company sold excess supplies to another company on
0\sb0\keepn\ql\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4
\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}
n\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
n\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}
3\f4\fs18\b0{{E)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql
\plain\cf3\f4\fs18\b0{{Cash is collected from customers for accounts receivable
balances.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\ul1\fs18\b0{\plain\c
f3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
n\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
n\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}
x8805\clvertalt\cellx10599\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\
pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell
\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\t
lvertalt\cellx1485\clvertalt\cellx5136\clvertalt\cellx6724\clvertalt\cellx7074\clve
rtalt\cellx8455\clvertalt\cellx8805\clvertalt\cellx10599\row\pard\plain\sa0\li0\ri0
\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}
{\~}{\~}
{ }}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\p
ard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs
22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{
}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3
\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\k
eepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\l
i0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\ke
ep\keepn\ql\plain\cf3\f4\fs24\b0{{194.}{\~}{Journalize the five transactions for
Mirmax Tool Rentals described
below.}}\plain\cf3\f4\i\fs24\b0{\plain\cf3\f4\i\fs24\b0\line{}}\plain\cf3\f4\fs24\b
0{}\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpad
dr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx449\clvertalt\cellx1204\clvertalt\c
ellx1959\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}
\b0{{Aug.}{\~}{\~}
{ 1}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4
\fs18\b0{{Mirmax purchases two new saws on credit at $375 each.}{\~}{ The saws are
added to Mirmax}{{\u8217}}{s rental inventory.}{\~}{ Payment is due in 30
days.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl
x1204\clvertalt\cellx1959\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\tr
\cellx1204\clvertalt\cellx1959\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plai
n\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keep
n\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0
\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\
clvertalt\cellx449\clvertalt\cellx1204\clvertalt\cellx1959\row\trowd\trql\trleft0\t
dft3\clvertalt\cellx449\clvertalt\cellx1204\clvertalt\cellx1959\pard\plain\intbl\it
\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{ 8}}\intbl\itap1\cell\p
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Mirmax accepts
advance deposits for tool rentals of $75 that will be applied to the cash rental
when the tools are
returned.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
cellx1204\clvertalt
\
\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx449\clvertalt\cellx1204\clver
{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
ain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\
trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx4
49\clvertalt\cellx1204\clvertalt\cellx1959\row\trowd\trql\trleft0\trrh0\trkeep\trpa
ellx449\clvertalt\cellx1204\clvertalt\cellx1959\pard\plain\intbl\itap1\sa0\li0\ri0\
sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{15}}\intbl\itap1\cell\pard\plain\intbl\
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Mirmax receives a bill from
Macon Utility Company for $150.}{\~}{ Payment is due in 30
\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{20}}\intbl\itap1\cell\p
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Customers are
charged $750 by Mirmax for tool rentals.}{\~}{ Payment is due from the customers in
30
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Mirmax
receives $500 in payments from the customers that were billed for rentals on August
20.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\
trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx449\clvertalt\cellx1
204\clvertalt\cellx1959\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpa
ellx1204\clvertalt\cellx1959\clvertalt\cellx10372\pard\plain\intbl\itap1\cell\pard\
plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trow
d\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr
3\trpaddt0\trpaddft3\clvertalt\cellx449\clvertalt\cellx1204\clvertalt\cellx1959\clv
ertalt\cellx10372\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0
{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa0\li0\ri0\sb0
n\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\
~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\
\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\
fs24\b0{{195.}{\~}{Journalize the following five transactions for Nexium &
Associates, Inc.}{\~}{ Omit
explanations. }}\plain\cf3\f4\ul1\fs24\b0{\plain\cf3\f4\ul1\fs24\b0\line{}}\plain\c
f3\f4\fs24\b0{}\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trp
addfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx462\clvertalt\cellx1029
\clvertalt\cellx1491\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\f
s18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\cf3\f4\fs18\b0{{Mar.}{\~}{\~}
\fs18\b0{{Bills are sent to clients for services provided in February in the amount
of
$800.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl
\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}
\fs18\b0{{Corner Office, Inc. delivers office furniture ($1,060) and office
supplies ($160) to Nexium leaving an invoice for
$1,220.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx462\clverta
lt\cellx1029\clvertalt\cellx1491\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pl
i0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh
3\clvertalt\cellx462\clvertalt\cellx1029\clvertalt\cellx1491\row\trowd\trql\trleft0
\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trp
addft3\clvertalt\cellx462\clvertalt\cellx1029\clvertalt\cellx1491\pard\plain\intbl\
in\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{ 15}}\intbl\itap1\cel
l\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Payment is
made to Corner Office, Inc. for the furniture and office supplies delivered on
March
9.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\t
llx1029\clvertalt\cellx1491\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trk
eep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clv
ertalt\cellx462\clvertalt\cellx1029\clvertalt\cellx1491\row\trowd\trql\trleft0\trrh
3\clvertalt\cellx462\clvertalt\cellx1029\clvertalt\cellx1491\pard\plain\intbl\itap1
\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\in
tbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{ 23}}\intbl\itap1\cell\par
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{A bill for $430
for electricity for the month of March is received and will be paid on its due date
in
April.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
l0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\ce
llx462\clvertalt\cellx1029\clvertalt\cellx1491\row\trowd\trql\trleft0\trrh0\trkeep\
lt\cellx462\clvertalt\cellx1029\clvertalt\cellx1491\pard\plain\intbl\itap1\sa0\li0\
ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1
tbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trow
3\trpaddt0\trpaddft3\clvertalt\cellx462\clvertalt\cellx1029\clvertalt\cellx1491\row
\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trp
addfr3\trpaddt0\trpaddft3\clvertalt\cellx462\clvertalt\cellx1029\clvertalt\cellx149
1\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\
itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{ 3
1}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\f
s18\b0{{Salaries of $850 are paid to
employees.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\tr
\cellx1029\clvertalt\cellx1491\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddf
b3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx462\clve
rtalt\cellx1029\clvertalt\cellx1491\clvertalt\cellx1742\clvertalt\cellx1782\clverta
lt\cellx10454\clvertalt\cellx10810\pard\plain\intbl\itap1\cell\pard\plain\intbl\ita
p1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\it
ap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0
addft3\clvertalt\cellx462\clvertalt\cellx1029\clvertalt\cellx1491\clvertalt\cellx17
42\clvertalt\cellx1782\clvertalt\cellx10454\clvertalt\cellx10810\row\pard\plain\sa0
\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\c
f3\f4\fs24\b0{}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\
line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plai
n\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\k
eep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\
}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\
sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{196.}{\~}{On January 1,
2011, Cary Parsons established Cary}{{\u8217}}{s Catering Service.}{\~}{ Listed
below are accounts to use for transactions (a) through (d), each identified by a
number.}{\~}{ Following this list are the transactions that occurred during the
first month of operations.}{\~}{ You are to indicate for each transaction the
accounts that should be debited and credited by placing the account number(s) in
the appropriate
box. }}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0\t
dft3\clvertalt\cellx696\clvertalt\cellx9449\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\
keepn\ql\plain\cf3\f4\fs18\b0{{1.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0
\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\cell\trowd\trql\trleft0\
ddft3\clvertalt\cellx696\clvertalt\cellx9449\row\trowd\trql\trleft0\trrh0\trkeep\tr
\cellx696\clvertalt\cellx9449\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\cf3\f4\fs18\b0{{2.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn
\ql\plain\cf3\f4\fs18\b0{{Accounts
\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{3.}}\intbl\itap1\
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Supplies
}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trp
\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx696\clvertalt\cellx9449\pard\plain\int
bl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{4.}}\intbl\itap1\cell\pard\
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Prepaid
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{5.}}\intbl\itap1\c
ell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Equipment
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Truck}}\intbl\itap
1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpadd
r0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx696\clvertalt\cellx9449\row\trowd\tr
ql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\tr
paddt0\trpaddft3\clvertalt\cellx696\clvertalt\cellx9449\pard\plain\intbl\itap1\sa0\
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{7.}}\intbl\itap1\cell\pard\plain\intbl\i
tap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Notes
l\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
n\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{10.}}\intbl\itap1\cell
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Dividends}}\
intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpadd
fl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx696\clvertalt\cellx9449\ro
paddfr3\trpaddt0\trpaddft3\clvertalt\cellx696\clvertalt\cellx9449\pard\plain\intbl\
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{11.}}\intbl\itap1\cell\pard\pl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Fees
l\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Wages
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Rent
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Utilities
dl0\trpaddfl3\trpaddr0\trpaddfr3\t
rpaddt0\trpaddft3\clvertalt\cellx696\clvertalt\cellx9449\row\trowd\trql\trleft0\trr
t3\clvertalt\cellx696\clvertalt\cellx9449\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\ke
epn\ql\plain\cf3\f4\fs18\b0{{15.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\
ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Truck
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Miscellane
ous
ain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\tr
\cellx696\clvertalt\cellx9449\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf
3\f4\fs18\b0{}\par\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\b
x7433\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr
\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10193\pard\plain\intbl\it
ap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Transactions}}\intbl\itap1\cell\
pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Account(s)
Debited}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
3\f4\fs18\b0{{Account(s)
Credited}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\
0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10193\row\trowd\
trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdr
w20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brd
rs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpad
dr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\br
lx4673\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdr
r\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7433\clvertalt\clbrdrb\b
brdrt\brdrs\brdrw20\brdrcf0\cellx10193\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn
\ql\plain\cf3\f4\fs18\b0{{a.}{\~}{ Cary transferred cash from a}{\~}{ personal bank
account to an account for the business in exchange for
plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf
0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20
\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\
drw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10193\pard\plain\intbl\itap1\sa0\l
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{b.}{\~}{ Paid rent for the period of
January 3 to the end of the
month.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{c.}{\~}{ Purchased a truck for $30,000
with a cash down payment of $5,000 and the remainder on a
note.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\p
0193\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trb
rdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdr
cf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\
trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brd
rw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10193\pard\plain\intbl\itap1\sa0\li
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{d. Purchased equipment on
lx10193\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\t
\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx10193\pard\plain\intbl\itap1\cell\par
talt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx4673\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf
ellx10193\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{\plain\
cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ke
epn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li
0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\
pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\f
s22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line
{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\f
{197.}{\~}{On January 1, 2011, Cary Parsons established Cary}{{\u8217}}{s Catering
Service.}{\~}{ Listed below are accounts to use for transactions (a) through (e),
each identified by a number.}{\~}{ Following this list are the transactions that
occurred during the first month of operations.}{\~}{ You are to indicate for each
transaction the accounts that should be debited and credited by placing the account
number(s) in the appropriate
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Truck
ous
\ql\plain\cf3\f4\fs18\b0{{a.}{\~}{ Purchased supplies for
cash.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{b.}{\~}{ Paid the annual premiums on
property and casualty
insurance.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn
\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\br
drcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brd
rw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\tr
rh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpadd
ft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\b
ellx10297\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf
0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20
\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpa
s\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10297\pard\plain\intbl\itap1\s
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{c.}{\~}{ Received cash for a job
previously recorded on
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{d. Paid a creditor a portion of the
amount owed for equipment previously purchased on
3\clvertalt\clbrdrb\brdrs\brdrw20\br
drw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10297\row\trowd\trql\trbrdrt\brdrs
\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdr
r\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0
ddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf
0\brdrcf0\cellx10297\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\f
s18\b0{{e.}{\~}{ Received cash for a completed
job.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
ain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\
297\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpad
dr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx4823\
clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx7611\clv
ertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx10297\pard\plain\intbl\itap1\cell\pard\pl
brdrr\brdrs\brdrw20\brdrcf0\cellx7611\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx
10297\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{\plain\cf3\
f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\
ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri
0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard
b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\p
lain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\
b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{198
.}{\~}{On January 1, 2011, Cary Parsons established Cary}{{\u8217}}{s Catering
Service.}{\~}{ Listed below are accounts to use for transactions (a) through (f),
each identified by a number.}{\~}{ Following this list are the transactions that
occurred during the first month of operations.}{\~}{ You are to indicate for each
transaction the accounts that should be debited and credited by placing the account
rpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx696\clvertalt\cellx9449\pa
rd\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{13.}}\intbl\ita
p1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Rent
ous
\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx9876\pard\plain\intbl\ita
p1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Transactions}}\intbl\itap1\cell\p
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Account(s)
0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx9876\row\trowd\t
rql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw
20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdr
s\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpadd
r0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brd
rdrt\brdrs\brdrw20\brdrcf0\cellx9876\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\q
l\plain\cf3\f4\fs18\b0{{a.}{\~}{ Recorded jobs completed on account and sent
invoices to
customers.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{b.}{\~}{ Received an invoice for truck
expenses to be paid in
February.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brd
llx9876\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{c.}{\~}{ Paid utilities
expense}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrc
x9876\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\tr
\trp
0\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx9876\pard\plain\intbl\itap1\sa0\li0\ri
0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{d.}{\~}{ Received cash from customers on
lx9876\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\t
rbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\br
drcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl
0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\b
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{e.}{\~}{ Paid employee
wages.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
rw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx9876\pard\plain\intbl\itap1\sa0\li0
\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{f.}{\~}{ Paid Cary a cash
dividend.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
llx9876\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{\plain\cf
3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keep
n\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\
ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pa
rd\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs2
2\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}
\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs1
99.}{\~}{Listed below are accounts to use for transactions (a) through (d), each
identified by a number.}{\~}{ Following this list are the transactions.}{\~}{ You
are to indicate for each transaction the accounts that should be debited and
credited by placing the account number(s) in the appropriate
dft3\clvertalt\cellx1089\clvertalt\cellx8817\pard\plain\intbl\itap1\sa0\li0\ri0\sb0
\keepn\ql\plain\cf3\f4\fs18\b0{{1.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\cell\trowd\trql\trleft0
addft3\clvertalt\cellx1089\clvertalt\cellx8817\row\trowd\trql\trleft0\trrh0\trkeep\
ain\cf3\f4\fs18\b0{{2.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\ke
epn\ql\plain\cf3\f4\fs18\b0{{Accounts
paddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx1089\clvertal
t\cellx8817\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddf
l3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx1089\clvertalt\cellx8817\pa
rd\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{3.}}\intbl\itap
1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Office
Supplies}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpa
ddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx1089\clvertalt\
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Land}}\i
ntbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddf
l3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx1089\clvertalt\cellx8817\ro
paddfr3\trpaddt0\trpaddft3\clvertalt\cellx1089\clvertalt\cellx8817\pard\plain\intbl
\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{5.}}\intbl\itap1\cell\pard\pl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Interest
1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Buildi
ng}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\t
dr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx1089\clvertalt\cellx8817\pard\plain
\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{7.}}\intbl\itap1\cell\p
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accumulated
Depreciation -
Building}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpa
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Deprecia
tion Expense -
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Interest
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Insuranc
e
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Utility
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Notes
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Prepaid
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{15.}}\intbl\itap
1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Servic
e
Revenue}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Capital
0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx1089\clvertalt\cel
paddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx1089\clvertalt\cellx8817\pard\pl
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Office
Supplies
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Unearned
Service
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Dividend
s}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\tr
paddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx1089\clvertalt\cellx88
17\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpadd
r0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx1089\clvertalt\cellx8817\pard\plain\
intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{22.}}\intbl\itap1\cell\p
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Interest
lt\cellx1089\clvertalt\cellx8817\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain
\cf3\f4\fs18\b0{}\par\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw2
drr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10086\pard\plain\intbl
\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Transactions}}\intbl\itap1\ce
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Account(s)
w20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh
\
\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10086\pard\plain\
intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{a.}{\~}{\~}{\~}{\~}{\~}{
Utility bill is received; payment will be made in 10
days.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{b.}{\~}{\~}{\~}{\~}{\~}{ Paid the utility
bill previously recorded in transaction
(a).}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
w20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10086\pard\plain\intbl\itap1\sa0\li0
\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{c.}{\~}{\~}{\~}{\~}{\~}{ Bought a three-
year insurance policy and paid in
full.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{d.}{\~}{\~}{\~}{\~}{\~}{ Received $7,000
from a contract to perform accounting services over the next two
years.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
10086\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trp
lvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx10086\pard\plain\intbl\itap1\cell\pard\
lt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx4624\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\
clbrdrr\brdrs\brdrw20\brdrcf0\cellx7255\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cel
lx10086\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{\plain\cf
3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keep
n\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\
ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pa
2\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}
\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs1
00.}{\~}{The following two situations are independent of each
other.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\
b0{{1.}{\~}{ On June 1, the cash account balance was $38,750.}{\~}{ During June,
cash payments totaled $239,140 and the June 30 balance was $42,175.}{\~}{ Determine
the cash receipts during June and show your
calculation.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4
\fs24\b0{{2.}{\~}{ On March 1, the supplies account balance was $1,340.}{\~}
{ During March, supplies of $4,335 were purchased and $890 of supplies were on hand
as of March 31.}{\~}{ Determine the supplies expense for March and show your
calculation.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b
0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{201.}{\~}{On June 1, the cash account
balance was $75,880.}{\~}{ During June, cash receipts totaled $305,000 and the June
30 balance was $96,750.}{\~}{ Determine the cash payments made during
June.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\pa
r\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4
\fs22\b0{{\~}}\par
\
{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf
3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\
ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plai
n\cf3\f4\fs24\b0{{202.}{\~}{For each of the following errors, considered
individually, indicate whether the error would cause the trial balance totals to be
unequal.}{\~}{ If the error would cause the trial balance totals to be unequal,
indicate whether the debit or credit total is higher and by how
much.}}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddf
rtalt\cellx10291\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\
b0{{a.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
\f4\fs18\b0{{Payment of a cash dividend of $6,800 was journalized and posted as a
debit of $8,600 to Salaries Expense and a credit of $8,600 to
Cash.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{b.}}\intbl\itap1\cel
l\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{A fee of
$9,780 earned was debited to Accounts Receivable for $7,980 and credited to Fees
Earned for
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{c.}}\intbl\itap1\c
ell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{A payment
of $3,000 to a creditor was posted as a credit of $3,000 to Accounts Payable and a
credit of $3,000 to
\cellx755\clvertalt\cellx10291\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\c
f3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa
0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\
par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\
f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\
eep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\
plain\cf3\f4\fs24\b0{{203.}{\~}{The following errors took place in journalizing and
posting
transactions:}}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0
755\clvertalt\cellx10291\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
f4\fs18\b0{{a.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\p
lain\cf3\f4\fs18\b0{{A payment of $5,000 in cash dividends was recorded as a debit
to Office Salaries Expense and a credit to
l\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{An accounts
receivable payment of $7,800 was recorded as a debit to Cash and a credit to Fees
Earned.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Journalize the entries to correct the
errors.}{\~}{ Omit the
explanations.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\
b0{}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plai
n\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs
22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\q
l\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0
\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\
plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\r
i0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{204.}{\~}{On November 30th, it was
discovered that a $550 of a transaction recording the purchase of office supplies
was really office equipment. Prepare the journal entry to correct this
situation.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{
}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\c
f3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\
b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\p
lain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb
0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\pla
sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{205.}{\~}{Journalize the entries to
correct the following
errors:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0
addft3\clvertalt\cellx711\clvertalt\cellx9659\pard\plain\intbl\itap1\sa0\li0\ri0\sb
0\keepn\ql\plain\cf3\f4\fs18\b0{{(a)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{A purchase of supplies for $200 on
account was recorded and posted as a debit to Supplies for $500 and as a credit to
Accounts Receivable for
n\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(b)}}\intbl\itap1\cell
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{A receipt of
$4,000 for services performed was recorded and posted as a debit to Fees Earned for
$4,000 and a credit to Cash for
3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa0
\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\p
ep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\p
lain\cf3\f4\fs24\b0{{206.}{\~}{Below is the unadjusted trial balance for Dawson
Designs at December 31, 2011 - the end of its first year in
business.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs
24\b0{{(1) Identify the errors in the following trial balance.}{\~}{ All accounts
have normal balances.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{(2)
Prepare a corrected trial
balance.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trbrdr
t\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0
\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\
brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddf
r3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20
\brdrcf0\clbrdrr\brdrs\
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Dawson
Designs}}\plain\cf3\f4\fs18\b1\line{}\plain\cf3\f4\fs18\b1{{Unadjusted Trial
Balance}}\plain\cf3\f4\fs18\b1\line{}\plain\cf3\f4\fs18\b1{{For the Year Ended
December 31,
2011}}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brd
brdrt\brdrs\brdrw20\brdrcf0\cellx3493\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\
27\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl
\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{D
ebit
Balances}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
f3\f4\fs18\b0{{Credit
Balances}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\
l\plain\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\
sb0\keepn\ql\plain\cf3\f4\fs18\b0{{23,000}}\intbl\itap1\cell\pard\plain\intbl\itap1
\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\tr
brdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brd
rcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdr
w20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trp
addfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brd
rdrs\brdrw20\brdrcf0\cellx7627\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb
\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7627\pard
\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
\ql\plain\cf3\f4\fs18\b0{{49,700}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw2
f0\cellx7627\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brd
rcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdr
w20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\t
rpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brd
rdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7627\pard\plain\intbl\itap1
\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Prepaid
cf3\f4\fs18\b0{{11,300}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\ke
epn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20
\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\
brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0
addft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdr
0\cellx7627\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdr
cf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw
20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\tr
paddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdr
60\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\br
drs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7627\pard\plain\intbl\itap1\
sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Equipment}}\intbl\itap1\cell\pard\pl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{150,500}}\intbl\itap
ntbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdr
drs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7627\row\trowd\trql\trbrdrt\
brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brd
\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Salaries
\plain\cf3\f4\fs18\b0{{4,250}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\br
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Capital
lain\cf3\f4\fs18\b0{{110,000}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\br
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Dividends}}\intbl\itap1\cell\pard\plain
\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\p
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{18,500}}\intbl
\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\
brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7627\row\trowd\trql\trbrdrt\brdr
s\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrd
rr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf
0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trp
addt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrc
s18\b0{{Service
\plain\cf3\f4\fs18\b0{{236,600}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Salary
3\f4\fs18\b0{{98,930}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keep
n\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\b
drt\brdrs\brdrw20\brdrcf0\cellx5560\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl
cellx7627\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf
0\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brd
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Miscellaneous
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Totals}}\intbl\itap1\cell\pard\plain\in
tbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{424,020}}\intbl\itap1\cell
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{424,020}}\in
tbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrc
rs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7627\row\trowd\trql\trleft0\t
drcf0\cellx7707\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\
intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpadd
rdrr\brdrs\brdrw20\brdrcf0\cellx3493\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdr
r\brdrs\brdrw20\brdrcf0\cellx5560\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\b
rdrs\brdrw20\brdrcf0\cellx7627\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx7707\ro
w\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\
b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain
\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}
\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{207.}{\~}
{McMann Company has condensed income statements as
follows:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trbrdr
\brdrw20\brdrcf0\cellx6087\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{2011}}}\intbl\itap1\cell\pard\plain\in
tbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{2010
}}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20
\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\
brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddf
b3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs
llx4317\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrd
rr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx6087\row\trowd\trql\trb
rdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdr
cf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw
20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpa
ddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdr
drs\brdrw20\brdrcf0\cellx6087\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\cf3\f4\fs18\b0{{Sales}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\ke
epn\ql\plain\cf3\f4\fs18\b0{{$178,400}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$162,500}}\intbl\itap1\cell\trowd\trql\
trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\b
rdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\br
drw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\t
rpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\b
\brdrs\brdrw20\brdrcf0\cellx6087\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrd
rd\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Wage
expenses}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
f3\f4\fs18\b0{{100,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\ke
epn\ql\plain\cf3\f4\fs18\b0{{92,500}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brd
drcf0\cellx6087\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\
brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\b
rdrw20
\
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Rent
f3\f4\fs18\b0{{33,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\kee
pn\ql\plain\cf3\f4\fs18\b0{{30,000}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdr
w20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brd
rs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trle
trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clb
rcf0\cellx6087\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\b
p1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Utilities
p1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Total operating
epn\ql\plain\cf3\f4\fs18\b0{{147,500}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\br
rdrcf0\cellx6087\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20
rr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx6087\pard\plain\intbl\i
tap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Net
income}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
\f4\fs18\b0{{15,400}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn
f0\cellx6087\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpadd
fl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\c
x4317\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx6087\pard\plain\intbl\itap1\cell
lvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx2606\clvertalt\clbrdrl\brdrs\brdrw20\br
{}\plain\cf3\f4\fs18\b0{{REQUIRED:}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\
b0\line{}\plain\cf3\f4\fs18\b0{{Prepare a horizontal analysis of McMann Company}
{{\u8217}}{s income statements. Comment on the trends, both favorable and
unfavorable.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b
0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{208.}{\~}{Georgia Company has condensed
income statements as
rdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brd
\brdrcf0\cellx6824\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw
20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdr
s\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpad
dfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brd
rdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx6824\pard\plain\intbl
\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Sales}}\intbl\itap1\cell\pard
\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$158,400}}\intbl\
itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$1
62,500}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\br
clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx6824\row\trowd\trq
l\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20
\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\
brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0
\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs
rt\brdrs\brdrw20\brdrcf0\cellx6824\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\
plain\cf3\f4\fs18\b0{{Wage
p1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Rent
0\trrh0\trkeep\trpaddb0\
rpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx3861\clvertalt\clbrd
rl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx5443\clvertalt\clbrdrl\
brdrs\brdrw20\brdrcf0\cellx6824\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\
cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3
\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\b
rdrw20\brdrcf0\cellx3861\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdr
w20\brdrcf0\cellx5443\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx6824\row\pard\pl
ain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{
{REQUIRED:}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Prepare a horizontal
analysis of Georgia Company}{{\u8217}}{s income statements. Comment on the trends,
both favorable and
0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{209.}{\~}{Organize the following
accounts into the usual sequence of a chart of
accounts.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs
24\b0{{Miscellaneous
Expense}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Accounts
Payable}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Retained
Earnings}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Accounts
Receivable}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Cash}}\plain\cf3\f4\
fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Capital
Stock}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Fees
Earned}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Prepaid
Rent}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Salaries
Expense}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Unearned
Revenue}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Dividends}}\plain\cf3\f
4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa0\li
0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\
{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf
3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\
ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plai
n\cf3\f4\fs24\b0{{210.}{\~}{Selected accounts from the ledger of Garrison Company
appear below.}{\~}{ For each account, indicate the
following:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trle
trpaddft3\clvertalt\cellx733\clvertalt\cellx5424\pard\plain\intbl\itap1\sa0\li0\ri0
\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(a)}}\intbl\itap1\cell\pard\plain\intbl\itap1\s
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{In the first column at the right,
indicate the nature of each account, using the following
abbreviations:}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb
talt\cellx5424\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpa
ap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}
\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpad
dfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx733\clvertalt\cellx5424\r
rpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx733\clvertalt\cellx5424\clvertalt\cellx5
761\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intb
Asset -
A}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\f
s18\b0{{Revenue -
R}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\tr
4\clvertalt\cellx5761\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
lx5424\clvertalt\cellx5761\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
\plain\cf3\f4\fs18\b0{{Liability -
L}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\f
s18\b0{{Expense -
E}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\tr
\plain\cf3\f4\fs18\b0{{None of the above -
N}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\f
s18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\tr
rtalt\cellx5424\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b
0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb
pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(b)}}\intbl\i
tap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{In
the second column, indicate the increase side of each account by inserting Dr. or
Cr.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\
ellx5761\clvertalt\cellx8077\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
b0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0
r0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx733\clvertalt\cellx5424\clvertalt\ce
l\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{Account}}}\intbl\itap1\cell\p
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\
f4\ul1\fs18\b0{{Type of
Account}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
f3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{Increase
Side}}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl
x5424\clvertalt\cellx5761\clvertalt\cellx8077\row\trowd\trql\trleft0\trrh0\trkeep\t
t\cellx733\clvertalt\cellx5424\clvertalt\cellx5761\clvertalt\cellx8077\pard\plain\i
ntbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(1)}}\intbl\itap1\cell\pa
rd\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Supplies}}\intb
_______}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
3\f4\fs18\b0{{________}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\
trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\t
alt\cellx8077\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpad
dfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx733\clvertalt\cellx5424\c
lvertalt\cellx5761\clvertalt\cellx8077\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn
\ql\plain\cf3\f4\fs18\b0{{(2)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0
\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Notes
\cf3\f4\fs18\b0{{_______}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\
keepn\ql\plain\cf3\f4\fs18\b0{{________}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0
\clvertalt\cellx733\clvertalt\cellx5424\clvertalt\cellx5761\clvertalt\cellx8077\row
1\clvertalt\cellx8077\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\
fs18\b0{{(3)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pla
in\cf3\f4\fs18\b0{{Fees
\f4\fs18\b0{{_______}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keep
n\ql\plain\cf3\f4\fs18\b0{{________}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trk
ertalt\cellx733\clvertalt\cellx5424\clvertalt\cellx5761\clvertalt\cellx8077\row\tro
wd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddf
r3\trpaddt0\trpaddft3\clvertalt\cellx733\clvertalt\cellx5424\clvertalt\cellx5761\cl
vertalt\cellx8077\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18
\b0{{(4)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
f3\f4\fs18\b0{{Dividends}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\
keepn\ql\plain\cf3\f4\fs18\b0{{_______}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{________}}\intbl\itap1\cell\trowd\trql
3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx733\clvertalt\cellx5424\clve
rtalt\cellx5761\clvertalt\cellx8077\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql
\plain\cf3\f4\fs18\b0{{(5)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb
0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
3\f4\fs18\b0{{_______}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\kee
pn\ql\plain\cf3\f4\fs18\b0{{________}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\tr
vertalt\cellx733\clvertalt\cellx5424\clvertalt\cellx5761\clvertalt\cellx8077\row\tr
fr3\trpaddt0\trpaddft3\clvertalt\cellx733\clvertalt\cellx5424\clvertalt\cellx5761\c
lvertalt\cellx8077\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs1
8\b0{{(6)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
cf3\f4\fs18\b0{{Salaries
cf3\f4\fs18\b0{{Capital
f4\fs18\b0{{_______}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn
\ql\plain\cf3\f4\fs18\b0{{________}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trke
ep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clve
rtalt\cellx733\clvertalt\cellx5424\clvertalt\cellx5761\clvertalt\cellx8077\row\trow
ertalt\cellx8077\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\
b0{{(8)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
3\f4\fs18\b0{{Accounts
in\cf3\f4\fs18\b0{{Equipment}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\
sb0\keepn\ql\plain\cf3\f4\fs18\b0{{_______}}\intbl\itap1\cell\pard\plain\intbl\itap
1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{________}}\intbl\itap1\cell\trowd\
trpaddt0\trpaddft3\clvertalt\cellx733\clvertalt\cellx5424\clvertalt\cellx5761\clver
clvertalt\cellx5761\clvertalt\cellx8077\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keep
n\ql\plain\cf3\f4\fs18\b0{{(10)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\r
i0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Notes
lvertalt\cellx8077\clvertalt\cellx10096\pard\plain\intbl\itap1\cell\pard\plain\intb
l\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\int
talt\cellx5761\clvertalt\cellx8077\clvertalt\cellx10096\row\pard\plain\sa0\li0\ri0\
sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs2
4\b0{}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\pl
ain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\
fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn
\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\r
i0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\par
d\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0
\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{211.}{\~}{All nine transactions for
Dalton Survey Company for September, the first month of operations, are recorded in
the following T
accounts:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trbrd
0\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx775\clve
3\f4\fs18\b0{{Cash}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\
b0\keepn\ql\plain\cf3\f4\fs18\b0{{Capital
Stock}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brd
brdrt\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdr
\cell
\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx3374\row\trowd\trql\trbrd
rdrt\brdrs\brdrw20\brdrcf0\cellx10856\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\
ql\plain\cf3\f4\fs18\b0{{(1)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\
sb0\keepn\ql\plain\cf3\f4\fs18\b0{{20,000}
{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4
\fs18\b0{{ (3)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\p
lain\cf3\f4\fs18\b0{{7,500}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb
\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{ (1)}}\intbl\itap1\cell
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{20,000}}\int
bl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf
\brdrw20\brdrcf0\cellx775\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brd
rdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10856\row\trowd\trql\
\cellx8362\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\cl
eepn\ql\plain\cf3\f4\fs18\b0{{(7)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0
\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{6,900}
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\ita
p1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbr
rdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10856\row\trowd\trql\trbrdr
\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx775\clver
l\plain\cf3\f4\fs18\b0{{(9)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\s
b0\keepn\ql\plain\cf3\f4\fs18\b0{{4,700}
lain\cf3\f4\fs18\b0{{5,500}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\
tbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard
\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\int
\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{ (8)}}\intbl\itap1\cell\pard\plain\
intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{2,000}}\intbl\itap1\cell
8\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
rs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\clbrdrb\brdrs\b
drcf0\cellx10856\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\tr
paddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrc
f0\cellx775\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\c
x3374\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx51
ertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx8362\clvert
alt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx9032\clvertalt
\clbrdrl\brdrs\brdrw20\brdrcf0\cellx10856\pard\plain\intbl\itap1\cell\pard\plain\in
tbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\i
ntbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\
rdrr\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr
\brdrs\brdrw20\brdrcf0\cellx2704\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\br
drs\brdrw20\brdrcf0\cellx3374\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs
\brdrw20\brdrcf0\cellx5198\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\br
drw20\brdrcf0\cellx5868\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw
20\brdrcf0\cellx6538\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\
rcf0\cellx9032\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx10856\row\pard\plain\sa
0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0{}\par\trowd\trql\trbrdrt\brdrs\brd
brdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\clbrdr
rcf0\cellx3374\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0
{{Accounts
\ql\plain\cf3\f4\fs18\b0{{Dividends}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brd
brdrs\brdrw20\brdrcf0\cellx775\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdr
s\brdrw20\brdrcf0\clbrdrr\br
cf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10856\pard\plain\intbl\itap1\sa0\li0\ri0\sb0
\keepn\ql\plain\cf3\f4\fs18\b0{{(4)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\l
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{4,900}
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{ (8)}}\intbl\itap1\cell\pard\plain\intbl\
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{2,000}{\~}
in\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\t
rbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\br
drcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trk
drw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\clbrdrb\brdrs\brdrw2
\cellx10856\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddf
l3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\ce
llx775\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx2
\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx5198\cl
vertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx5868\clver
talt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx6538\clvertal
t\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx8362\clvertalt\c
lbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx9032\clvertalt\clbr
drl\brdrs\brdrw20\brdrcf0\cellx10856\pard\plain\intbl\itap1\cell\pard\plain\intbl\i
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cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{The
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f3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{Accounted
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l\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\c
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pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpa
cellx4780\clvertalt\cellx6680\clvertalt\cellx8483\clvertalt\cellx9992\row\pard\plai
n\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\pl
ain\cf3\f4\fs24\b0{}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs2
lain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0
{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\p
lain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{212.}{\~}{Increases
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or a
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f4\fs18\b0{{Recorded}}\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0\line{}\pl
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b0\keepn\ql\plain\cf3\f4\fs18\b0{{Normal}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4
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paddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx733\clvertalt\cellx6314\clvertal
ain\cf3\f4\fs18\b0{{(1)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\k
eepn\ql\plain\cf3\f4\fs18\b0{{Increase in Capital
f4\fs18\b0{{________}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keep
n\ql\plain\cf3\f4\fs18\b0{{_______}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trke
rtalt\cellx733\clvertalt\cellx6314\clvertalt\cellx8333\clvertalt\cellx10056\row\tro
cf3\f4\fs18\b0{{Increase in
Dividends}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
cf3\f4\fs18\b0{{________}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\
keepn\ql\plain\cf3\f4\fs18\b0{{_______}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\
trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\
trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx733\clvertalt\cellx6314\clvert
alt\cellx8333\clvertalt\cellx10056\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trp
addfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx733\
clvertalt\cellx6314\clvertalt\cellx8333\clvertalt\cellx10056\pard\plain\intbl\itap1
\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(3)}}\intbl\itap1\cell\pard\plain\i
ntbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Decrease in Accounts
\cf3\f4\fs18\b0{{________}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0
\keepn\ql\plain\cf3\f4\fs18\b0{{_______}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0
\clvertalt\cellx733\clvertalt\cellx6314\clvertalt\cellx8333\clvertalt\cellx10056\ro
4\fs18\b0{{(4)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\p
lain\cf3\f4\fs18\b0{{Increase in Note
3\f4\fs18\b0{{________}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\ke
epn\ql\plain\cf3\f4\fs18\b0{{_______}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\tr
vertalt\cellx733\clvertalt\cellx6314\clvertalt\cellx8333\clvertalt\cellx10056\row\t
dfr3\trpaddt0\trpaddft3\clvertalt\cellx733\clvertalt\cellx6314\clvertalt\cellx8333\
clvertalt\cellx10056\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\f
s18\b0{{(5)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plai
n\cf3\f4\fs18\b0{{Increase in Accounts
n\cf3\f4\fs18\b0{{Decrease in
Supplies}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
f3\f4\fs18\b0{{________}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\k
eepn\ql\plain\cf3\f4\fs18\b0{{_______}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\t
lvertalt\cellx733\clvertalt\cellx6314\clvertalt\cellx8333\clvertalt\cellx10056\row\
trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpa
ddfr3\trpaddt0\trpaddft3\clvertalt\cellx733\clvertalt\cellx6314\clvertalt\cellx8333
\clvertalt\cellx10056\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\
in\cf3\f4\fs18\b0{{Decrease in Salaries
lain\cf3\f4\fs18\b0{{Increase in
Cash}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
4\fs18\b0{{________}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn
\ql\plain\cf3\f4\fs18\b0{{_______}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkee
talt\cellx733\clvertalt\cellx6314\clvertalt\cellx8333\clvertalt\cellx10056\row\trow
ertalt\cellx10056\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18
\b0{{(10)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
cf3\f4\fs18\b0{{Decrease in
Land}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
ertalt\cellx10056\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plai
n\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpa
ellx733\clvertalt\cellx6314\clvertalt\cellx8333\clvertalt\cellx10056\row\pard\plain
\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\pla
in\cf3\f4\fs24\b0{}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22
\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\
plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\s
b0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\pl
ain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{
{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\pl
ain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{213.}{\~}{Record the
following selected transactions for April in a two-column journal, identifying each
entry by
letter:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Received $12,000 from Katie Long in
exchange for
stock.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
in\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(b)}}\intbl\itap1\cel
l\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Purchased
equipment for $25,000, paying $10,000 in cash and giving a note payable for the
remainder.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\tr
\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(c)}}\intbl\itap1
\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Paid
$1,800 for rent for
in\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(d)}}\intbl\itap1\cel
$9,800 of supplies on
account.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpa
trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx733\clvertalt\cellx9975
\
pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(e)}}\intbl\i
tap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Rec
orded $2,250 of fees earned on
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(f)}}\intbl\itap1\c
ell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Received
$9,000 in cash for fees
earned.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(g)}}\intbl\itap1\ce
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Paid $300
to creditors on
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(h)}}\intbl\itap1\c
ell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Paid
wages of
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(i)}}\intbl\itap1\ce
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Received
$1,190 from customers on
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(j)}}\intbl\itap1\c
ell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Recorded
the payment of a $2,350
dividend.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\s
keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql
\plain\cf3\f4\fs24\b0{{214.}{\~}{On January 12th, JumpStart Co. purchased $870 in
office
supplies. }}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\f
s24\b0{{(a) Journalize this transaction as if JumpStart paid
cash.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b
0{{(b) (1) Journalize this transaction as if JumpStart placed it on
account.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs2
4\b0{{(b) (2) On January 18th, JumpStart pays the amount due. Journalize this
9\keep\keepn\ql\plain\cf3\f4\fs24\b0{{215.}{\~}{On December 1st, JumpStart Company
provides $2,800 in services to
clients.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs2
4\b0{{(a) Journalize this event as if the clients had paid cash at the time the
services were
rendered.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs
24\b0{{(b) (1) Journalize this event as if the clients had placed this on
4\b0{{(b) (2) Assume that the clients paid $1,200 of the amount on account on
December 30th. Journalize this
0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{216.}{\~}{On November 10th, JumpStart
Co. provides $2,900 in services to clients. At the time of service, the clients
paid $600.00 in cash and put the balance on
4\b0{{(a)}{\~}{ Journalize this
event.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\
b0{{(b)}{\~}{ On November 20th, JumpStart Co. clients paid an additional $900 on
their accounts due. Journalize this
b0{{(c)}{\~}{ Calculate the amount of accounts receivable on November
30th.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\pa
\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\li
ne{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\
cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\kee
p\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa
0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{217.}{\~}{Journalize the following selected
transactions for April 2011 in a two-column journal.}{\~}{ Journal entry
explanations may be
omitted.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft
paddft3\clvertalt\cellx1164\clvertalt\cellx10291\pard\plain\intbl\itap1\sa0\li0\ri0
\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{April
s18\b0{{Received cash for capital stock,
$14,000.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpa
3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx1164\clvertalt\cellx10291\pa
rd\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{2}}\intbl\itap1
\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Receive
d cash for providing accounting services,
\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx1164\clvertalt\cellx10291\par
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{3}}\intbl\itap1\
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Billed
customers on account for providing services,
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Paid
advertising expense,
rpaddr0\trpaddfr3\
trpaddt0\trpaddft3\clvertalt\cellx1164\clvertalt\cellx10291\pard\plain\intbl\itap1\
sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{5}}\intbl\itap1\cell\pard\plain\intb
l\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Received cash from customers
on account,
cash dividends,
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Received
telephone bill,
rpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx1164\clvertalt\cellx10291\pard\
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{8}}\intbl\itap1\ce
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Paid
telephone bill,
lt\cellx1164\clvertalt\cellx10291\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plai
n\cf3\f4\fs18\b0{}\par\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw
1{\plain\cf3\f4\fs18\b1\line{}\plain\cf3\f4\fs18\b1{{Date}}}\intbl\itap1\cell\pard\
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\
b1\line{}\plain\cf3\f4\fs18\b1{{Description}}}\intbl\itap1\cell\pard\plain\intbl\it
ap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Post.
Ref.}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
f4\fs18\b1{\plain\cf3\f4\fs18\b1\line{}\plain\cf3\f4\fs18\b1{{Debit}}}\intbl\itap1\
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf
3\f4\fs18\b1\line{}\plain\cf3\f4\fs18\b1{{Credit}}}\intbl\itap1\cell\trowd\trql\trb
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intb
l\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\p
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\ce
f0\cellx10378\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\br
cellx10378\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~
brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10378\row\trowd\trql\trbrdrt\
}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\b
\cellx10378\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdr
llx10378\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}
\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdr
drcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10378\row\trowd\trql\trbrdrt\brdrs\brdrw20
\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdr
20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10378\r
ow\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\b
rdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\tr
brdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpadd
fl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\c
brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10378\pard
\brdrs\brdrw20\brdrcf0\cellx10378\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbr
\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\
trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrd
cf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10378\pard\pla
brdrw20\brdrcf0\cellx10378\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
p1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\
r\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10378\row\trowd\trql\trb
rdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10378\pard\plain\intbl\itap
{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdr
w20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brd
rs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpa
ddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\br
drcf0\cellx10378\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20
in\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\kee
pn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri
0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs
20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10378\row\trowd\trql\trbrdrt\brdrs\br
drb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs
\
llx10378\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}
\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdr
drs\brdrw20\brdrcf0\cellx10378\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plai
\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\t
brdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10378\row\trowd\trql
t\brdrs\brdrw20\brdrcf0\cellx6329\clve
\brdrw20\brdrcf0\cellx10378\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
ap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql
rr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10378\row\trowd\trql\tr
intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pa
rd\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap
0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brd
i0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdr
w20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10378\row\trowd\trql\trbrdrt\brdrs\b
\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10378\pard\plain\intbl\itap1\sa0\li0\ri
0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\s
drw20\brdrcf0\clbrdrr\brdrs\brdrw20\brd
rcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10378\pard\plain\intbl\itap1\sa0\li0\ri0\sb
rw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10378
rt\brdrs\brdrw20\brdrcf0\cellx10378\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\tr
brdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brd
rcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trke
i0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\
sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\int
bl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd
\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brd
rw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\br
drs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpa
ddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\b
clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10378\row\trowd\tr
ql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw2
0\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs
\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr
0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdr
rdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10378\pard\plain\intb
~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\f
s18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdr
\brdrcf0\cellx10378\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs
cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\p
p1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\
intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\
b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\br
brdrcf0\cellx10378\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\
trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brd
x8099\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx10378\pard\plain\intbl\itap1\cel
l\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\ce
ll\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\t
cf0\cellx8099\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx10378\row\pard\plain\sa0
f3\f4\fs24\b0{}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\
}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\
sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{218.}{\~}{Analyze the
following transactions as to their effect on the accounting
equation.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trlef
sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(a)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{The company paid $725 to a vendor for
supplies purchased previously on
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(b)}}\intbl\itap1\c
ell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{The
company performed $850 of services and billed the
customer.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(c)}}\intbl\itap1\
company received a utility bill for $395 and will pay it next
month.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
l\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{The
stockholder of the company received a cash dividend of
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(e)}}\intbl\itap1\ce
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{The
company paid $315 in salaries to its
\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(f)}}\intbl\itap1
\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{The
company collected $730 of cash from its customers on
t\cellx733\clvertalt\cellx9975\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\c
f3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Some of the possible effects of a
transaction on the accounting equation are listed
below:}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{}\par\trowd\trql\trleft0\
ddft3\clvertalt\cellx726\clvertalt\cellx9870\pard\plain\intbl\itap1\sa0\li0\ri0\sb0
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Asset, dr.; Asset,
cr.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\
dr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx726\clvertalt\cellx9870\pard\plain\
intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(2)}}\intbl\itap1\cell\p
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Asset, dr.;
Revenue,
Liability,
Revenue,
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Liability,
dr.; Assets,
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Equity, dr.;
Asset,
trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx726\clvert
dfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx726\clvertalt\cellx9870\p
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(7)}}\intbl\it
ap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Expe
nse, dr.; Assets,
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Expense, dr.;
Liability,
b0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cel
lx726\clvertalt\cellx9870\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4
\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Put the appropriate letter next to each
0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{219.}{\~}{Calculate the
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Determine the cash receipts for April
based on the following
data:}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl
addr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx689\clvertalt\cellx6380\clvertalt
\cellx9385\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~
cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpa
ddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx689\c
lvertalt\cellx6380\clvertalt\cellx9385\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0
689\clvertalt\cellx6380\clvertalt\cellx9385\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\
\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash payments during
April}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
f4\fs18\b0{{$45,500}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trp
clvertalt\cellx6380\clvertalt\cellx9385\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb
0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cell
x689\clvertalt\cellx6380\clvertalt\cellx9385\pard\plain\intbl\itap1\sa0\li0\ri0\sb0
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash account balance, April
s18\b0{{6,750}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3
\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx689\clvert
alt\cellx6380\clvertalt\cellx9385\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpa
sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash account balance, April
30}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\
fs18\b0{{10,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddf
rtalt\cellx6380\clvertalt\cellx9385\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\tr
paddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx689
\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trp
clvertalt\cellx6380\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0
\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx689\clvertalt\cellx
6380\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(b)}}\in
{{Determine the cash received from customers on account during April based on the
following
\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts receivable account balance, April
s18\b0{{$10,500}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddf
\clvertalt\cellx6380\clvertalt\cellx9385\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\kee
0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts receivable account balance, April
talt\cellx6380\clvertalt\cellx9385\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trp
\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Fees billed to customers during
f4\fs18\b0{{26,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpa
689\clvertalt\cellx6380\clvertalt\cellx9385\pard\plain\intbl\itap1\cell\pard\plain\
lx689\clvertalt\cellx6380\clvertalt\cellx9385\row\pard\plain\sa0\li0\ri0\sb0\keep\k
eepn\ql\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\pa
0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\l
i0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{220.}{\~}{The bookkeeper for
Brockton Industries prepared the following journal entries and posted the entries
to the general ledger as indicated in the T accounts presented. Assume that the
dollar amounts and the descriptions of the entries are
correct.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft
paddft3\clvertalt\cellx1304\clvertalt\cellx8186\clvertalt\cellx9490\clvertalt\cellx
10688\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{July}
{\~}{\~}
\fs18\b0{{Accounts
Receivable }}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plai
n\cf3\f4\fs18\b0{{1,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\k
eepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep
alt\cellx1304\clvertalt\cellx8186\clvertalt\cellx9490\clvertalt\cellx10688\row\trow
3\trpaddt0\trpaddft3\clvertalt\cellx1304\clvertalt\cellx8186\clvertalt\cellx9490\cl
f3\f4\fs18\b0{{\~}{\~}{\~}{\~}{ Service
Revenue }}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
l\plain\cf3\f4\fs18\b0{{1,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\tr
\cellx1304\clvertalt\cellx8186\clvertalt\cellx9490\clvertalt\cellx10688\row\trowd\t
rpaddt0\trpaddft3\clvertalt\cellx1304\clvertalt\cellx8186\clvertalt\cellx9490\clver
talt\cellx10688\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b
f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ Customers were billed for services
completed.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trp
cellx1304\clvertalt\cellx8186\clvertalt\cellx9490\clvertalt\cellx10688\row\trowd\tr
paddt0\trpaddft3\clvertalt\cellx1304\clvertalt\cellx8186\clvertalt\cellx9490\clvert
epn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\
lt\cellx1304\clvertalt\cellx8186\clvertalt\cellx9490\clvertalt\cellx10688\row\trowd
\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3
\trpaddt0\trpaddft3\clvertalt\cellx1304\clvertalt\cellx8186\clvertalt\cellx9490\clv
\b0{{11}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
3\f4\fs18\b0{{Cash }}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn
\ql\plain\cf3\f4\fs18\b0{{500}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0
lain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}{ Service Revenue}{\~}
n\cf3\f4\fs18\b0{{500}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\t
rpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx13
trpaddft3\clvertalt\cellx1304\clvertalt\cellx8186\clvertalt\cellx9490\clvertalt\cel
lx10688\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\
b0{{\~}{\~}{\~}{\~}{\~}{ Payment is received from a customer billed for services on
July
1.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\
n\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\tr
4\clvertalt\cellx8186\clvertalt\cellx9490\clvertalt\cellx10688\row\trowd\trql\trlef
rpaddft3\clvertalt\cellx1304\clvertalt\cellx8186\clvertalt\cellx9490\clvertalt\cell
lain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0
1304\clvertalt\cellx8186\clvertalt\cellx9490\clvertalt\cellx10688\row\trowd\trql\tr
0\trpaddft3\clvertalt\cellx1304\clvertalt\cellx8186\clvertalt\cellx9490\clvertalt\c
ellx10688\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{12}
8\b0{{Office
f3\f4\fs18\b0{{600}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\
ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpa
ellx1304\clvertalt\cellx8186\clvertalt\cellx9490\clvertalt\cellx10688\row\trowd\trq
addt0\trpaddft3\clvertalt\cellx1304\clvertalt\cellx8186\clvertalt\cellx9490\clverta
lt\cellx10688\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{
\fs18\b0{{\~}{\~}{\~}{\~}{ Accounts Payable}{\~}
b0{{\~}{\~}{\~}{\~}{\~}{ Purchased office furniture on credit; payment is due in 30
ellx10688\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}
l\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpad
db0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\ce
llx1304\clvertalt\cellx8186\clvertalt\cellx9490\clvertalt\cellx10688\row\trowd\trql
ddt0\trpaddft3\clvertalt\cellx1304\clvertalt\cellx8186\clvertalt\cellx9490\clvertal
t\cellx10688\pard\plain\intbl\itap1\sa0\li0\ri0\sb
0\keepn\ql\plain\cf3\f4\fs18\b0{{25}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\l
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Office
Furniture }}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\cf3\f4\fs18\b0{{600}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keep
n\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\tr
f4\fs18\b0{{\~}{\~}{\~}{\~}
{ Cash }}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
\plain\cf3\f4\fs18\b0{{600}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpad
t\cellx10688\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{
fs18\b0{{\~}{\~}{\~}{\~}{\~}{ Payment is made for office furniture received
on }}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}{ July
12.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4
in\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\t
lx10688\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\it
ap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpad
dfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx1304\c
lvertalt\cellx8186\clvertalt\cellx9490\clvertalt\cellx10688\row\pard\plain\sa0\li0\
ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0{}\par\trowd\trql\trbrdrt\brdrs\brdrw20\b
cellx2970\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Acc
ounts
\ql\plain\cf3\f4\fs18\b0{{Service
Revenue}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\b
\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx2970\row\trowd\tr
rdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10618\pard\
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{7/3}}\intbl\itap1\
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{1,000}}\
b0{{{\u189}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plai
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{7/3}}\intbl\itap1\cell\pard\plain\intb
l\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{1,000}}\intbl\itap1\cell\par
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{{\u189}}}\intbl\
18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs
rdrs\brdrw20\brdrcf0\cellx10618\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdr
drw20\brdrcf0\
drw20\brdrcf0\cellx10618\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
eepn\ql\plain\cf3\f4\fs18\b0{{{\u189}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0
8\b0{{{\u189}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pl
ain\cf3\f4\fs18\b0{{7/11}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\
keepn\ql\plain\cf3\f4\fs18\b0{{500}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdr
brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10618\row\trowd\trql\trleft0\trr
t3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx1058\clvertalt\clbrdrl\brdrs\brdrw2
rr\brdrs\brdrw20\brdrcf0\cellx6794\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\
brdrs\brdrw20\brdrcf0\cellx7750\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brd
rs\brdrw20\brdrcf0\cellx8706\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\
brdrw20\brdrcf0\cellx9662\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx10618\pard\p
lain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\
drr\brdrs\brdrw20\brdrcf0\cellx3926\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr
brdrcf0\cellx9662\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx10618\row\pard\plain
\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0{}\par\trowd\trql\trbrdrt\brdrs\
brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr
\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\
trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpad
dt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0
\brdrcf0\cellx2970\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs1
8\b0{{Cash}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
Payable}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\b
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{7/11}}\intbl\itap1
\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{500}}\i
0{{{\u189}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\cf3
\
f4\fs18\b0{{7/25}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{7/12}}\intbl\itap1\cell\pard\plain\intbl\
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{600}}\intbl\itap1\cell\pard\pl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{{\u189}}}\intbl\itap
\brdrw20\brdrcf0\cellx10618\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\
trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\br
ain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\p
\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0
\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\br
lbrdrl\brdrs\brdrw20\brdrcf0\cellx10618\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\q
l\plain\cf3\f4\fs18\b0{}\par\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs
\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Office
l\plain\cf3\f4\fs18\b0{{Office
Furniture}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs
\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10618\par
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{7/12}}\intbl\ita
p1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{600}}
\b0{{{\u189}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pla
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{7/25}}\intbl\itap1\cell\pard\plain\in
tbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{600}}\intbl\itap1\cell\par
f0\clbrdrr\brdrs\brdrw2
trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx
s\brdrw20\brdrcf0\cellx10618\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cel
ell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\
cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0
\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx1058\clv
0\brdrcf0\cellx10618\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18
\b0\line{}\plain\cf3\f4\fs18\b0{{REQUIRED:}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\
f4\fs18\b0{{If you assume that all journal entries have been recorded correctly,
use the above information
to: }}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{(1) Identify the postings
to the general ledger that were made
incorrectly. }}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{(2) Describe how
each incorrect posting should have been
made.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\pa
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{221.}{\~}{Set up T accounts for Cash, Accounts
Receivable, Supplies, Accounts Payable, Capital Stock, Dividends, Professional
Fees, and Operating
Expenses.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trlef
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{In the T accounts, record the
following transactions of Potter Pool Services for June, 2011, identifying each
entry by
number:}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
rpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx733\clvertalt\cellx1367\clverta
\fs18\b0{{(1)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pl
ain\cf3\f4\fs18\b0{{Dan Potter invested $12,500 cash in the business in exchange
for
lx1367\clvertalt\cellx10015\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\
lt\cellx1367\clvertalt\cellx10015\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\p
\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Purchased supplies on account,
alt\cellx1367\clvertalt\cellx10015\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Paid operating expenses,
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Billed clients for fees,
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Received cash from cash clients,
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Paid creditors on account,
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Received $3,100 from clients on
ellx1367\clvertalt\cellx10015\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb
t
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{The company paid Dan $1,500 in cash
dividends.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\tr
\cellx1367\clvertalt\cellx10015\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpadd
b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddf
rtalt\cellx1367\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trp
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(b)}}\intbl\
itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Pr
epare a trial balance as of June 30, 2011 for Potter Pool
Services.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\c
ell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intb
l\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\
trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx733\clvertalt\cellx1367\row\tr
fr3\trpaddt0\trpaddft3\clvertalt\cellx733\clvertalt\cellx1367\pard\plain\intbl\itap
1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(c)}}\intbl\itap1\cell\pard\plain\
intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Assuming that supplies
expense (which has not been recorded) amounts to $1,500 for June, determine net
income for the
t\cellx10015\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\int
talt\cellx10015\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{\
plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa0\li0\ri0\sb0\k
0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf
24\b0{{222.}{\~}{Prepare a trial balance, listing the following accounts in proper
sequence.}{\~}{ The accounts (all normal balances) were taken from the ledger of
Sophie Designs Co. on April 30,
2010.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0\t
dft3\clvertalt\cellx3207\clvertalt\cellx5028\clvertalt\cellx5563\clvertalt\cellx817
6\clvertalt\cellx10096\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4
\fs18\b0{{Accounts
3\f4\fs18\b0{{$
4,100}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
lain\cf3\f4\fs18\b0{{Rent
3\f4\fs18\b0{{$11,500}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\t
sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
i0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Salary
3\f4\fs18\b0{{14,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\tr
7\clvertalt\cellx5028\clvertalt\cellx5563\clvertalt\cellx8176\clvertalt\cellx10096\
trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx3207\clvertalt\cellx5028\clvertalt\cell
x5563\clvertalt\cellx8176\clvertalt\cellx10096\pard\plain\intbl\itap1\sa0\li0\ri0\s
b0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{7,375}}\intbl\itap1\cell\pard\plain\in
\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Fees
\f4\fs18\b0{{54,100}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trp
0\keepn\ql\plain\cf3\f4\fs18\b0{{Capital
f4\fs18\b0{{10,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\
b0\keepn\ql\plain\cf3\f4\fs18\b0{{Supplies}}\intbl\itap1\cell\pard\plain\intbl\itap
1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{3,125}}\intbl\itap1\cell\trowd\trq
lt\cellx8176\clvertalt\cellx10096\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpa
clvertalt\cellx5028\clvertalt\cellx5563\clvertalt\cellx8176\clvertalt\cellx10096\pa
rd\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Dividends}}\int
plain\cf3\f4\fs18\b0{{Supplies
0\keepn\ql\plain\cf3\f4\fs18\b0{{Equipment}}\intbl\itap1\cell\pard\plain\intbl\itap
1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{24,500}}\intbl\itap1\cell\pard\pla
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Utilities
0\keepn\ql\plain\cf3\f4\fs18\b0{{Miscellaneous
0\keepn\ql\plain\cf3\f4
\fs18\b0{{Retained
f3\f4\fs18\b0{{7,800}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\tr
x5563\clvertalt\cellx8176\clvertalt\cellx10096\pard\plain\intbl\itap1\cell\pard\pla
in\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\pl
ain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\tr
28\clvertalt\cellx5563\clvertalt\cellx8176\clvertalt\cellx10096\row\pard\plain\sa0\
li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf
3\f4\fs24\b0{}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\l
\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\s
a319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{223.}
{\~}}\plain\cf3\f4\fs24\b1{\plain\cf3\f4\fs24\b1{{Exhibit 2-
1}}\plain\cf3\f4\fs24\b1\line{}}\plain\cf3\f4\fs24\b0{{All nine transactions for
Ralston Sports Co. for September 2011, the first month of operations, are recorded
in the following T
brdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx3374\row\trowd\trql\
lain\cf3\f4\fs18\b0{{12,500}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\s
n\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{ (1)}}\intbl\itap1\cel
l\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{25,000}}\in
s\brdrw20\brdrcf0\cellx775\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\br
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p1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0
\
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drcf0\cellx9032\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx10856\row\pard\plain\s
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lbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\clbrd
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0{{Accounts
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i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(8)}}\intbl\itap1\cell\pard\plain\intbl\i
tap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{7,000}
paddfb3\trpaddl0\trpaddfl3\trpadd
x775\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\
drt\brdrs\brdrw20\brdrcf0\cellx3374\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\tr
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d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{ (4)}}\intbl\ita
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llx775\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdr
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cf3\f4\fs18\b0{{ (7)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keep
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alt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\
clbrdrr\brdrs\brdrw20\brdrcf0\cellx2704\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clb
rdrw20\brdrcf0\cellx8362\clvertalt\clbr
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drr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx3374\pard\plain\intbl\
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Equipment}}\intbl\itap1\cell\p
p1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Opera
ting
Expenses}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\
\clbrdrt\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clb
0\keepn\ql\plain\cf3\f4\fs18\b0{{(2)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{9,500 }}\intbl\itap1\cell\pard\plain\int
\fs18\b0{{10,500 }}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\q
rdrw20\brdrcf0\cellx10856\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\tr
paddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdr
w20\brdrcf0\cellx775\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\
rd\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trke
rtalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf
drw20\brdrcf0\cellx9032\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx10856\row\pard
\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0{}\par\trowd\trql\trbrdrt\
rdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx775\clverta
4\fs18\b0{{Accounts
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a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{7,600 }}\intbl\itap1\cell\pard\plain\
intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{ (2)}}\intbl\itap1\cell\
pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{9,500}}\intbl
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drw20\brdrcf0\cellx775\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw2
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2\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx10856\pard\plain\intbl\itap1\cell\pa
rd\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\p
vertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\clbrdrl\brdrs\brdrw20\brdr
brdrs\brdrw20\brdrcf0\cellx6538\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brd
brdrw20\brdrcf0\cellx9032\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx10856\row\pa
8\b0\line{}\plain\cf3\f4\fs18\b0{{ Refer
to }}\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Exhibit 2-
1}}}\plain\cf3\f4\fs18\b0{{.}{\~}{ Prepare a trial balance, listing the accounts in
their proper
order.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\p
9\keep\keepn\ql\plain\cf3\f4\fs24\b0{{224.}
{\~}}\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trp
n\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(a)}}\intbl\itap1\cell
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{List the
errors in the following trial balance. All accounts have normal
balances.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{What
would be the new totals of the trial balance after errors are corrected? What would
be the balance of Accounts
Receivable?}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\t
rpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx733\clvertal
l3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx733\clvertalt\cellx9975\par
talt\cellx733\clvertalt\cellx9975\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plai
n\cf3\f4\fs18\b0{}\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\
trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx7089\pard\plain\intb
l\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Winslo
w}{{\u8217}}{s Auto Body}}\plain\cf3\f4\fs18\b1\line{}\plain\cf3\f4\fs18\b1{{Trial
Balance}}\plain\cf3\f4\fs18\b1\line{}}\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{
For Month Ending April 30,
2011}}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl
0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx7089\row\trowd\trq
addt0\trpaddft3\clvertalt\cellx7089\clvertalt\cellx8500\clvertalt\cellx9911\pard\pl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\c
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lain\cf3\f4\fs18\b0{{Accounts
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p1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\tr
cf3\f4\fs18\b0{{Equipment}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0
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0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trlef
rpaddft3\clvertalt\cellx7089\clvertalt\cellx8500\clvertalt\cellx9911\row\trowd\trql
ddt0\trpaddft3\clvertalt\cellx7089\clvertalt\cellx8500\clvertalt\cellx9911\pard\pla
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cellx7089\clvertalt\cellx8500\clvertalt\cellx9911\row\trowd\trql\trleft0\trrh0\trke
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li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Capital
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0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Retained
pn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\t
t\cellx7089\clvertalt\cellx8500\clvertalt\cellx9911\row\trowd\trql\trleft0\trrh0\tr
vertalt\cellx7089\clvertalt\cellx8500\clvertalt\cellx9911\pard\plain\intbl\itap1\sa
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Dividends}}\intbl\itap1\cell\pard\plai
\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\t
dfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx7089\clvertalt\cellx8500\
clvertalt\cellx9911\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs
18\b0{{Fees
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li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Salary
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ertalt\cellx7089\clvertalt\cellx8500\clvertalt\cellx9911\pard\plain\intbl\itap1\sa0
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Utilities
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li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Miscellaneous
3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}
{ 250}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{
}}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\tr
ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{55,000}}}\intbl\itap1\cell\p
f4\ul1\fs18\b0{{81,575}}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0
7089\clvertalt\cellx8500\clvertalt\cellx9911\row\trowd\trql\trleft0\trrh0\trkeep\tr
\cellx7089\clvertalt\cellx8500\clvertalt\cellx9911\pard\plain\intbl\itap1\cell\pard
alt\cellx7089\clvertalt\cellx8500\clvertalt\cellx9911\row\pard\plain\sa0\li0\ri0\sb
0\keep\keepn\ql\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\
b0{}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plai
n\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs
22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\q
l\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0
\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\
i0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{225.}{\~}{Answer the following
questions for each of the errors listed below, considered
individually:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\t
t0\trpaddft3\clvertalt\cellx718\clvertalt\cellx9764\pard\plain\intbl\itap1\sa0\li0\
ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(a)}}\intbl\itap1\cell\pard\plain\intbl\itap
1\sa0\li0\ri0
\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Did the error cause the trial balance totals to
be
unequal?}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpa
ell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{What is
the amount of the difference between the trial balance totals (where
applicable)?}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\
lt\cellx9764\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpadd
fl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx718\clvertalt\cellx9764\pa
rd\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(c)}}\intbl\ita
p1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Which
of the trial balance totals, debit or credit, is the larger (where
rtalt\cellx718\clvertalt\cellx9764\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\pla
in\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Present your answers in columnar
form, using the following
headings:}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{}\par\trowd\trql\trlef
x10687\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Error}
8\b0{{Totals}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pla
in\cf3\f4\fs18\b0{{Difference in
Totals}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
\f4\fs18\b0{{Larger of
Totals}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
llx5449\clvertalt\cellx8226\clvertalt\cellx10687\row\trowd\trql\trleft0\trrh0\trkee
talt\cellx2882\clvertalt\cellx5449\clvertalt\cellx8226\clvertalt\cellx10687\pard\pl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1
\fs18\b0{{(identifying
number)}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
f3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{(equal or
unequal)}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{(amount)}}}\intbl\itap1\cell\pard\pla
in\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\
fs18\b0{{(debit or
credit)}}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpa
cellx5449\clvertalt\cellx8226\clvertalt\cellx10687\row\trowd\trql\trleft0\trrh0\trk
ertalt\cellx2882\clvertalt\cellx5449\clvertalt\cellx8226\clvertalt\cellx10687\pard\
x5449\clvertalt\cellx8226\clvertalt\cellx10687\row\pard\plain\sa0\li0\ri0\sb0\keep\
keepn\ql\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Errors:}}\plain\cf3\f4\f
s18\b0{}\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(1)}}\intbl\itap1\c
ell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{A
dividend of $3,000 cash paid to the company}{{\u8217}}{s owner and only stockholder
was recorded by a debit of $3,000 to Salary Expense and a credit of $3,000 to
n\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(2)}}\intbl\itap1\cell
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{A $650
purchase of supplies on account was recorded as a debit of $1,650 to Equipment and
a credit of $1,650 to Accounts
Payable.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpa
purchase of equipment for $3,450 on account was not
recorded.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{A $870
receipt on account was recorded as a $870 debit to Cash and a $780 credit to
Accounts
Receivable.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\t
1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{A
payment of $1,530 cash on account was recorded only as a credit to
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash sales
of $8,500 were recorded as a credit of $8,500 to Cash and a credit of $8,500 to
Fees
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(7)}}\intbl\itap1\ce
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{The debit
to record a $4,000 cash receipt on account was posted twice; the credit was posted
once.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{The credit
to record a $300 cash payment on account was posted twice; the debit was posted
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{The debit
balance of $7,400 in Accounts Receivable was recorded in the trial balance as a
debit of
3\f4\fs24\b0
{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa0\li0\ri0\sb0
n\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\
~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\
\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\
cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\ql\plain\cf3\f4\fs18\b0{}\par\s
bkpage\sect\sectd\pgnstarts1\pgnrestart\pard\plain\sa532\li0\ri0\sb532\ql\plain\cf3
\f4\fs40\b0{{Chapter 2--Analyzing
Transactions }}\plain\cf5\f4\fs40\b0{\plain\cf5\f4\fs40\b0{{Key}}}\plain\cf3\f4\fs4
0\b0\line{}\plain\cf3\f4\fs40\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keep
n\ql\plain\cf3\f4\fs24\b0{{1.}{\~}{Accounts are records of increases and decreases
in individual financial statement
items.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
{}}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{TRUE}}}\par\pard\plain\sa0\
li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\k
eep\keepn\ql\plain\cf3\f4\fs24\b0{{2.}{\~}{A chart of accounts is a listing of
accounts that make up the
ne{}}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{FALSE}}}\par\pard\plain\s
9\keep\keepn\ql\plain\cf3\f4\fs24\b0{{3.}{\~}{Accounts payable are accounts that
you expect will be paid to
you.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}
}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{FALSE}}}\par\pard\plain\sa0\l
ep\keepn\ql\plain\cf3\f4\fs24\b0{{4.}{\~}{The chart of accounts should be the same
for each
business.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
ine{}}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{FALSE}}}\par\pard\plain\
sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb3
19\keep\keepn\ql\plain\cf3\f4\fs24\b0{{5.}{\~}{Consuming goods and services in the
process of generating revenues results in
expenses.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
ine{}}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{TRUE}}}\par\pard\plain\s
9\keep\keepn\ql\plain\cf3\f4\fs24\b0{{6.}{\~}{Prepaid expenses are an example of an
9\keep\keepn\ql\plain\cf3\f4\fs24\b0{{7.}{\~}{The unearned revenues account is an
example of a
liability.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\
line{}}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{TRUE}}}\par\pard\plain\
19\keep\keepn\ql\plain\cf3\f4\fs24\b0{{8.}{\~}{The dividends account is an example
of an
9\keep\keepn\ql\plain\cf3\f4\fs24\b0{{9.}{\~}{Accounts in the ledger are usually
maintained in alphabetical
order.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
{}}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{FALSE}}}\par\pard\plain\sa0
\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\
keep\keepn\ql\plain\cf3\f4\fs24\b0{{10.}{\~}{Depending on the account title, the
right side of the account is referred to as the credit
}}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{FALSE}}}\par\pard\plain\sa0\
eep\keepn\ql\plain\cf3\f4\fs24\b0{{11.}{\~}{To determine the balance in an account,
always subtract credits from
e{}}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{FALSE}}}\par\pard\plain\sa
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{12.}{\~}{An account has three parts to it; a
title, an increase side, and a decrease
}}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{TRUE}}}\par\pard\plain\sa0\l
ep\keepn\ql\plain\cf3\f4\fs24\b0{{13.}{\~}{The right hand side of a T account is
known as a debit and the left hand side is known as a
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{14.}{\~}{A debit is abbreviated
as }}\plain\cf3\f4\i\fs24\b0{\plain\cf3\f4\i\fs24\b0{{Db}}}\plain\cf3\f4\fs24\b0{{
and a credit is abbreviated
as }}\plain\cf3\f4\i\fs24\b0{\plain\cf3\f4\i\fs24\b0{{Cr}}}\plain\cf3\f4\fs24\b0{{.
}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\pl
ain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{FALSE}}}\par\pard\plain\sa0\li0\r
i0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\k
eepn\ql\plain\cf3\f4\fs24\b0{{15.}{\~}{Debiting the cash account will increase the
ne{}}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{TRUE}}}\par\pard\plain\sa
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{16.}{\~}{The T account got its name because it
resembles the letter }{{\u8220}}{T.}
{{\u8221}}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
9\keep\keepn\ql\plain\cf3\f4\fs24\b0{{17.}{\~}{The recording of cash receipts to
the cash account will be done by debiting the
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{18.}{\~}{A credit to the cash account will
increase the
9\keep\keepn\ql\plain\cf3\f4\fs24\b0{{19.}{\~}{The recording of cash payments from
the cash account is done by entering the amount as a
e{}}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{TRUE}}}\par\pard\plain\sa0
keep\keepn\ql\plain\cf3\f4\fs24\b0{{20.}{\~}{The cash account will always be
debited.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
9\keep\keepn\ql\plain\cf3\f4\fs24\b0{{21.}{\~}{The balance of the account can be
determined by adding all of the debits, adding all of the credits, and adding the
amounts
together.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
19\keep\keepn\ql\plain\cf3\f4\fs24\b0{{22.}{\~}{Liabilities are debts owed by the
business
entity.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\lin
keep\keepn\ql\plain\cf3\f4\fs24\b0{{23.}{\~}{The accounts payable account is listed
in the chart of accounts as an
asset.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
keep\keepn\ql\plain\cf3\f4\fs24\b0{{24.}{\~}{A dividends account records amounts
paid to
stockholders.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\
b0\line{}}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{TRUE}}}\par\pard\pla
sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{25.}{\~}{Revenues are equal to the
difference between cash receipts and cash
payments.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\
sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{26.}{\~}{Expenses use up assets or
consume services in the process of generating
revenues.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
9\keep\keepn\ql\plain\cf3\f4\fs24\b0{{27.}{\~}{Retained earnings will be reduced by
the amount in the dividends
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{28.}{\~}{When a company issues new shares of
stock, the capital stock account increases due to revenue being
earned.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\lin
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{29.}{\~}{When an accounts payable account is
paid in cash, company expenses
19\keep\keepn\ql\plain\cf3\f4\fs24\b0{{30.}{\~}{When an account receivable is
collected in cash, the total assets of the business
19\keep\keepn\ql\plain\cf3\f4\fs24\b0{{31.}{\~}{Journalizing eliminates
keep\keepn\ql\plain\cf3\f4\fs24\b0{{32.}{\~}{The double-entry accounting system
records each transaction
twice.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
keep\keepn\ql\plain\cf3\f4\fs24\b0{{33.}{\~}{The increase side of all accounts is
the normal
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{34.}{\~}{Transactions are initially entered
into a record called a
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{35.}{\~}{The process of recording a
transaction in the journal is called
journalizing.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\
b0\line{}}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{TRUE}}}\par\pard\pla
sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{36.}{\~}{Journalizing is the process of
entering amounts in the
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{37.}{\~}{Transactions are listed in the
journal
chronologically.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs
24\b0\line{}}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{TRUE}}}\par\pard\
i0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{38.}{\~}{Journalizing transactions
using the double-entry bookkeeping system will eliminate
keep\keepn\ql\plain\cf3\f4\fs24\b0{{39.}{\~}{Liability accounts are increased by
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{40.}{\~}{Expense accounts are increased by
9\keep\keepn\ql\plain\cf3\f4\fs24\b0{{41.}{\~}{Revenue accounts are increased by
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{42.}{\~}{The normal balance of a capital stock
account is a
keep\keepn\ql\plain\cf3\f4\fs24\b0{{43.}{\~}{The normal balance of the dividends
account is a
eep\keepn\ql\plain\cf3\f4\fs24\b0{{44.}{\~}{The normal balance of an expense
account is a
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{45.}{\~}{The normal balance of revenue
accounts is a
keep\keepn\ql\plain\cf3\f4\fs24\b0{{46.}{\~}{Dividends decrease retained earnings
and are listed on the income statement as a deduction from
revenue.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
9\keep\keepn\ql\plain\cf3\f4\fs24\b0{{47.}{\~}{For a month's transactions for a
typical medium-sized business, the salary expense account is likely to have only
credit
9\keep\keepn\ql\plain\cf3\f4\fs24\b0{{48.}{\~}{For a month's transactions for a
typical medium-sized business, the accounts payable account is likely to have only
credit
9\keep\keepn\ql\plain\cf3\f4\fs24\b0{{49.}{\~}{When a business receives a bill from
the utility company, no entry should be made until the invoice is
paid.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{
eep\keepn\ql\plain\cf3\f4\fs24\b0{{50.}{\~}{The journal includes both debit and
credit accounts for each
0\line{}}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{TRUE}}}\par\pard\plai
b319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{51.}{\~}{A transaction that is recorded in
the journal is called a journal
eep\keepn\ql\plain\cf3\f4\fs24\b0{{52.}{\~}{Assets are increased with debits and
decreased with
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{53.}{\~}{Liabilities are increased with debits
and decreased with
a0\li0\ri0\s
b0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn
\ql\plain\cf3\f4\fs24\b0{{54.}{\~}{Debits will increase Unearned Revenues and
Revenues.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
19\keep\keepn\ql\plain\cf3\f4\fs24\b0{{55.}{\~}{All stockholders}{{\u8217}}{ equity
accounts record increases to the accounts with
9\keep\keepn\ql\plain\cf3\f4\fs24\b0{{56.}{\~}{Journal entries can have more than
two accounts as long as the debits equal the
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{57.}{\~}{Normal balances appear on the side
that increases the account
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{58.}{\~}{The process of transferring the data
from the journal to the ledger accounts is
posting.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{59.}{\~}{The post reference notation used in
the ledger is the account
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{60.}{\~}{The post reference notation used in
the journal is the page
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{61.}{\~}{A notation in the post reference
column of the general journal indicates that the amount has been posted to the
keep\keepn\ql\plain\cf3\f4\fs24\b0{{62.}{\~}{The order of the flow of accounting
data is (1) record in the ledger, (2) record in the journal, (3) prepare the
financial
statements.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0
\line{}}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{FALSE}}}\par\pard\plai
b319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{63.}{\~}{The process of transferring the
debits and credits from the journal entries to the accounts is known as }{{\u8220}}
{updating the accounts}{{\u8221}}
{.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\
plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{FALSE}}}\par\pard\plain\sa0\li0
\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep
\keepn\ql\plain\cf3\f4\fs24\b0{{64.}{\~}{Once journal entries are posted to
accounts, each account will show a new balance after each
eep\keepn\ql\plain\cf3\f4\fs24\b0{{65.}{\~}{A group of related accounts that make
up a complete unit is called a trial
9\keep\keepn\ql\plain\cf3\f4\fs24\b0{{66.}{\~}{A trial balance determines the
accuracy of the
numbers.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
9\keep\keepn\ql\plain\cf3\f4\fs24\b0{{67.}{\~}{Even when a trial balance is in
balance, there may be errors in the individual
accounts.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
9\keep\keepn\ql\plain\cf3\f4\fs24\b0{{68.}{\~}{The totals at the bottom of the
trial balance and the totals at the bottom of the balance sheet both show equality
and balancing, and therefore should be
keep\keepn\ql\plain\cf3\f4\fs24\b0{{69.}{\~}{A proof of the equality of debits and
credits in the ledger at the end of an accounting period is called a balance
sheet.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
keep\keepn\ql\plain\cf3\f4\fs24\b0{{70.}{\~}{If the trial balance is in balance, it
can be assumed that all journal entries were posted correctly and no errors were
made.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{
eep\keepn\ql\plain\cf3\f4\fs24\b0{{71.}{\~}{Posting a part of a transaction to the
wrong account will cause the trial balance totals to be
unequal.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
9\keep\keepn\ql\plain\cf3\f4\fs24\b0{{72.}{\~}{The erroneous arrangement of digits,
such as writing $45 as $54, is called a
slide.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
keep\keepn\ql\plain\cf3\f4\fs24\b0{{73.}{\~}{Journalizing a transaction with both
the debit and the credit for $69 instead of $96 will cause the trial balance to be
out of
9\keep\keepn\ql\plain\cf3\f4\fs24\b0{{74.}{\~}{Posting a transaction twice will
cause the trial balance totals to be
eep\keepn\ql\plain\cf3\f4\fs24\b0{{75.}{\~}{The erroneous moving of an entire
number one or more spaces to the right or left, such as writing $85 as $850, is
called a
transposition.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24
\b0\line{}}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{FALSE}}}\par\pard\p
0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{76.}{\~}
{Accounts}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
ine{}}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain\cf4\f4\fs24\b0{{A.}}}\plai
n\cf3\f4\fs24\b0{{\~}{do not reflect money
amounts}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{are not used by entities that
manufacture
products}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24
\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{C.}}}}\plain\cf3\f4\fs24\b
0{{\~}{are records of increases and decreases in individual financial statement
items}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pl
ain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{are only used by large entities
with many
transactions}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain
\fs24\b0{{77.}{\~}{Accounts are classified in the
ledger}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
{}}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain\cf4\f4\fs24\b0{{A.}}}\plain\c
f3\f4\fs24\b0{{\~}
{chronologically}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\
fs24\b0{\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{alp
habetically}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\f
s24\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{C.}}}}\plain\cf3\f4\fs2
4\b0{{\~}{in accordance with their appearance in the financial
statements}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b
0{\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{so that accounts used most
often are listed
first}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{78.}{\~}{Revenue should be recognized
}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain\cf4\f4\fs24\b0{{A.}}}\plain\cf3
\f4\fs24\b0{{\~}{cash is
received}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24
\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{B.}}}}\plain\cf3\f4\fs24\b
0{{\~}{the service is
performed}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0
{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{the customer places an
order}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pl
ain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{the customer charges an
order}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{79.}{\~}{Which of the following accounts is a stockholders}{{\u8217}}{ equity
ne{}}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain\cf4\f4\fs24\b0{{A.}}}\plain
\cf3\f4\fs24\b0{{\~}
{Cash}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pl
ain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{Accounts
Payable}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Prepaid
Insurance}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs2
4\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{D.}}}}\plain\cf3\f4\fs24\
b0{{\~}
{Dividends}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\c
s24\b0{{80.}{\~}{The gross increases in retained earnings attributable to business
activities are
f3\f4\fs24\b0{{\~}
{assets}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}
{liabilities}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\
fs24\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{C.}}}}\plain\cf3\f4\fs
24\b0{{\~}
{\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{net
income}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f
b0{{81.}{\~}{A chart of accounts
plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain\cf4\f4\fs24\b0{{A.}}}\plain\cf3\f
4\fs24\b0{{\~}{the same as a balance
sheet}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pl
ain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{usually a listing of accounts
in alphabetical
order}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0
{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{C.}}}}\plain\cf3\f4\fs24\b0{{
\~}{usually a listing of accounts in financial statement
order}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pl
ain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{used in place of a
ledger}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f
b0{{82.}{\~}{The debit side of an
account}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\lin
e{}}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain\cf4\f4\fs24\b0{{A.}}}\plain\
cf3\f4\fs24\b0{{\~}{depends on whether the account is an asset, liability or
stockholders}{{\u8217}}{ equity
item}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pla
in\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{can be either side of the
account depending on how the accountant set up the
system}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\p
lain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{is the right side of the
account}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\
b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{D.}}}}\plain\cf3\f4\fs24\b0
{{\~}{is the left side of the
\b0{{83.}{\~}{An account is said to have a debit balance
if}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\
plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3
\f4\ul1\fs24\b1{{A.}}}}\plain\cf3\f4\fs24\b0{{\~}{the amount of the debits exceeds
the amount of the
credits}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{there are more entries on the
debit side than on the credit
side}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pla
in\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{its normal balance is debit
without regard to the amounts or number of entries on the debit
in\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{the first entry of the
accounting period was posted on the debit
side}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\
{{84.}{\~}{Which statement(s) concerning cash is (are)
}}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain\cf4\f4\fs24\b0{{A.}}}\plain\cf
3\f4\fs24\b0{{\~}{cash will always have more debits than
credits}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{cash will never have a credit
balance}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\
b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{C.}}}}\plain\cf3\f4\fs24\b0
{{\~}{cash is increased by
debiting}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{
\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{all of the
above}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{85.}{\~}{Which of the following is true about a T
ne{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{\plain\cf3\f4\ul1\fs24\b1{\pla
in\cf3\f4\ul1\fs24\b1{{A.}}}}\plain\cf3\f4\fs24\b0{{\~}{The left-hand side of the T
account is called the debit
side.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pl
ain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{The left-hand side of the T
account is called the credit
ain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{The right-hand side of the T
account is called the debit
ain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{None of these are
true.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{86.}{\~}{Which of the following abbreviations are
correct?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
\cf3\f4\fs24\b0{{\~}{Debit }{{\u8220}}{Dr}{{\u8221}}{, Credit }{{\u8220}}{Cd}
{\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{Debit }{{\u8220}}{Db}
{{\u8221}}{, Credit }{{\u8220}}{Cr}
{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Debit }{{\u8220}}{Db}
{{\u8221}}{, Credit }{{\u8220}}{Cd}
{{\u8221}}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs2
b0{{\~}{Debit }{{\u8220}}{Dr}{{\u8221}}{, Credit }{{\u8220}}{Cr}
{{\u8221}}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf
24\b0{{87.}{\~}{Which side of the account increases a cash
\cf3\f4\fs24\b0{{\~}
{credit}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{neither a debit or a
credit}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b
0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1
\fs24\b1{{C.}}}}\plain\cf3\f4\fs24\b0{{\~}
{debit}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\p
lain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{either a debit or a
b0{{88.}{\~}{A cash payment is recorded on the cash account as
a }}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\
4\fs24\b0{{\~}{neither a debit or a
0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{B.}}}}\plain\cf3\f4\fs24\b0{
{\~}
{credit}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}
{debit}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\p
lain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{either a debit or a
b0{{89.}{\~}{The balance of the account is determined
by}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\
4\fs24\b0{{\~}{adding all of the debits to all of the
\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{always subtracting the
debits from the
\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{always subtracting the
credits from the
debits. }}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24
\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{D.}}}}\plain\cf3\f4\fs24\b
0{{\~}{adding all of the debits, adding all of the credits, and then subtracting
the smaller sum from the larger
sum.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\
{{90.}{\~}{A list of the accounts is
f3\f4\fs24\b0{{\~}
{ledger}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\
b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{B.}}}}\plain\cf3\f4\fs24\b0
{{\~}{chart of
\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{T
account}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}
{debit}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f
b0{{91.}{\~}{On the chart of accounts, the balance sheet accounts are normally
listed in the following
order}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{
3\f4\fs24\b0{{\~}{liabilities, assets, stockholders}{{\u8217}}
{ equity}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24
0{{\~}{assets, liabilities, stockholders}{{\u8217}}
\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{stockholders}{{\u8217}}
{ equity, assets,
b0{\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{assets, stockholders}
{{\u8217}}{ equity,
fs24\b0{{92.}{\~}{In which order are the accounts listed in the chart of
n\cf3\f4\fs24\b0{{\~}{assets, expenses, liabilities, stockholders}{{\u8217}}
{ equity,
\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{stockholders}{{\u8217}}
{ equity, assets, liabilities, revenues,
expenses}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24
0{{\~}{assets, liabilities, stockholders}{{\u8217}}{ equity, revenues,
\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{assets, liabilities,
revenues, expenses, stockholders}{{\u8217}}
{ equity}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{93.}{\~}{Which are the parts of the T
\cf3\f4\fs24\b0{{\~}{title, date,
total}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pl
ain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{date, debit side, credit
side}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{
\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{C.}}}}\plain\cf3\f4\fs24\b0{{\
~}{title, debit side, credit
in\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{title, debit side,
total}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{94.}{\~}{Which group of accounts is comprised of only
cf3\f4\fs24\b0{{\~}{Cash, Accounts Payable,
Buildings}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0
{\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{Accounts Receivable,
Revenue,
Cash}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{
~}{Prepaid Expenses,}{\~}{ Buildings,
Patents}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Unearned Revenues, Prepaid
Expenses,
{{95.}{\~}{Of the following, which is}}\plain\cf3\f4\fs24\b0{{true about
e{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{\plain\cf3\f4\ul1\fs24\b1{\plai
n\cf3\f4\ul1\fs24\b1{{A.}}}}\plain\cf3\f4\fs24\b0{{\~}{Assets include physical
items and intangibles that have
value.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\p
lain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{Assets include only physical
items of
value.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\p
lain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Assets are owned solely by the
stockholders of the
company.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{
\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Assets are the result of
selling products or services to
customers.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\c
s24\b0{{96.}{\~}{Which of the following
}}}}\plain\cf3\f4\fs24\b0{{ considered to be a
liability?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\
line{}}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain\cf4\f4\fs24\b0{{A.}}}\pla
in\cf3\f4\fs24\b0{{\~}{Wages
Payable}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\
{{\~}{Accounts
0{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Unearned
\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Accounts
\b0{{97.}{\~}{Which of the following statements
}}}}\plain\cf3\f4\fs24\b0{{ true about
0\line{}}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain\cf4\f4\fs24\b0{{A.}}}\p
lain\cf3\f4\fs24\b0{{\~}{Liabilities are debts owed to
outsiders.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b
0{\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{Account titles
of liabilities often include the term }{{\u8220}}{payable.}
{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Receiving cash before a
service is performed creates a
liability.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs
24\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{D.}}}}\plain\cf3\f4\fs24
\b0{{\~}{Liabilities do not include wages owed to employees of the
company.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{98.}{\~}{Retained earnings will be reduced by all of the
following }}\plain\cf3\f4\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\
b1{{except}}}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b
0\line{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{\plain\cf3\f4\ul1\fs24\b1{
\plain\cf3\f4\ul1\fs24\b1{{A.}}}}\plain\cf3\f4\fs24\b0{{\~}
{\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}
{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}
0{\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{all of
0{{99.}{\~}{Expenses can result
from}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}
\f4\fs24\b0{{\~}{paying
dividends}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs2
4\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{B.}}}}\plain\cf3\f4\fs24\
b0{{\~}{consuming
services}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{
\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{using up
b0{\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{all of
0{{100.}{\~}{Proof that the dollar amount of the debits equals the dollar amount of
the credits in the ledger
means}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{
3\f4\fs24\b0{{\~}}\plain\cf3\f4\i\fs24\b0{\plain\cf3\f4\i\fs24\b0{{all}}}\plain\cf3
\f4\fs24\b0{{ of the information from the journal was correctly transferred to the
ledger}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\p
lain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\i\fs24\b0{\plain
\cf3\f4\i\fs24\b0{{all}}}\plain\cf3\f4\fs24\b0{{ accounts have their correct
balances in the
ledger}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\p
lain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\i\fs24\b0{\plain
\cf3\f4\i\fs24\b0{{only}}}\plain\cf3\f4\fs24\b0{{ the journal is accurate; the
ledger may be
incorrect}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs2
b0{{\~}}\plain\cf3\f4\i\fs24\b0{\plain\cf3\f4\i\fs24\b0{{only}}}\plain\cf3\f4\fs24\
b0{{ that the debit dollar amounts equal the credit dollar
amounts}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\
\b0{{101.}{\~}{The chart of accounts is designed
to}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\
4\fs24\b0{{\~}{alphabetize the accounts to make reading easier for its financial
statement
users}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pl
ain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{analyze the accounts and
organize them in order of dollar amount to simplify the accounting information for
users}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pl
ain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{summarize the transactions and
determine their ending
balances}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24
0{{\~}{meet the information needs of a company and other financial statement
users}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{102.}{\~}{The chart of accounts classifies the accounts to make identification
of the accounts easier. This is done by way of assigning a number to each account.
The first number identifies the classification of the type of account.}{\~}{ Which
of the following indicates the use of this
classification?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs2
4\b0\line{}}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain\cf4\f4\fs24\b0{{A.}}
}\plain\cf3\f4\fs24\b0{{\~}{1-Assets, 2-Liabilities, 3-Stockholders}{{\u8217}}
{ Equity, 4-Expenses, 5-
Revenues}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24
0{{\~}{1-Assets, 2-Liabilities, 3-Stockholders}{{\u8217}}{ Equity, 4-Revenues, 5-
Expenses}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{
\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{1-Assets, 2-Stockholders}
{{\u8217}}{ Equity, 3-Revenues, 4-Expenses, 5-
{\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{1-Stockholders}{{\u8217}}
{ Equity, 2-Dividends, 3-Revenues, 4-
Expenses}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{103.}{\~}{Which of the following
}}}}\plain\cf3\f4\fs24\b0{{ a correct rule of debits and
credits? }}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
n\cf3\f4\fs24\b0{{\~}{assets, expenses, and dividends are increased by
debits}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\p
lain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{assets are decreased by
credits and have a normal debit
balance}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{liabilities, revenues, and
retained earnings are increased by
credits}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\
{{\~}{the normal balance for revenues and expenses is a
b0{{104.}{\~}{The ____ is where a transaction can first be found on the accounting
records.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
\cf3\f4\fs24\b0{{\~}{chart of
\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{income
{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{balance
sheet}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0
{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{D.}}}}\plain\cf3\f4\fs24\b0{{
\~}
{journal}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{105.}{\~}{A debit may signify
\f4\fs24\b0{{\~}{decrease in an asset
account}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\
{{\~}{decrease in a liability
plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{increase in the retained
earnings
plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{decrease in the dividends
\b0{{106.}{\~}{Which of the following types of accounts have a normal credit
\cf3\f4\fs24\b0{{\~}{assets and
b0{\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{liabilities
and
0{{\~}{revenues and
b0{\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{capital stock and
dividends}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf
24\b0{{107.}{\~}{Which of the following groups of accounts have a normal debit
\cf3\f4\fs24\b0{{\~}{revenues,
b0{\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{assets,
b0{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{liabilities,
0{{\~}{assets,
4\b0{{108.}{\~}{Which one of the statements below
}}}}\plain\cf3\f4\fs24\b0{{ a purpose for the
in\cf3\f4\ul1\fs24\b1{{A.}}}}\plain\cf3\f4\fs24\b0{{\~}{to show increases and
decreases in
\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{to show a chronological
order by
date}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pla
in\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{to show a complete transaction
in one
place}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pl
ain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{to help locate
errors}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f
b0{{109.}{\~}{A credit may signify
lain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\
f4\ul1\fs24\b1{{A.}}}}\plain\cf3\f4\fs24\b0{{\~}{decrease in
assets}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\p
lain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{decrease in
b0{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{decrease in retained
\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{decrease in
revenue}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\
\b0{{110.}{\~}{A debit signifies a decrease
in}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\
4\fs24\b0{{\~}
{assets}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}
{dividends}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs
24\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{D.}}}}\plain\cf3\f4\fs24
\b0{{\~}
24\b0{{111.}{\~}{Which of the following applications of the rules of debit and
credit is
3\f4\fs24\b0{{\~}{decrease Prepaid Insurance with a credit and the normal balance
is a
credit}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\p
lain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{increase Accounts Payable with
a credit and the normal balance is a
debit}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0
\~}{increase Supplies Expense with a debit and the normal balance is a
debit}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pl
ain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{decrease Cash with a debit and
the normal balance is a
b0{{112.}{\~}{Which of the following describes the classification and normal
balance of the fees earned
\cf3\f4\fs24\b0{{\~}{an asset with a credit
plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{a liability with a credit
plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{an expense with a debit
{{\~}{a revenue with a credit
\b0{{113.}{\~}{The classification and normal balance of the accounts payable
account
4\fs24\b0{{\~}{an asset with a credit
{{\~}{a liability with a credit
plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{an asset with a debit
plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{an expense with a debit
\b0{{114.}{\~}{The classification and normal balance of the dividends account
4\fs24\b0{{\~}{an expense with a credit
plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{an expense with a debit
plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{a liability with a credit
{{\~}{a stockholders}{{\u8217}}{ equity item with a debit
\b0{{115.}{\~}{The classification and normal balance of the supplies expense
account is
\f4\fs24\b0{{\~}{asset with a debit
plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{asset with a credit
{{\~}{expense with a debit
plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{liability with a credit
\b0{{116.}{\~}{In which of the following types of accounts are increases recorded
by
cf3\f4\fs24\b0{{\~}{assets,
b0{\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{dividends,
b0{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{expenses,
liabilities}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\f
s24\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{D.}}}}\plain\cf3\f4\fs2
4\b0{{\~}{assets,
4\b0{{117.}{\~}{In which of the following types of accounts are increases recorded
by
in\cf3\f4\ul1\fs24\b1{{A.}}}}\plain\cf3\f4\fs24\b0{{\~}{revenues,
b0{\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{dividends,
assets}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\p
lain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{liabilities,
{\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{expenses,
fs24\b0{{118.}{\~}{In which of the following types of accounts are decreases
recorded by
cf3\f4\fs24\b0{{\~}
{assets}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\
{{\~}
{\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}
{dividends}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\c
s24\b0{{119.}{\~}{In which of the following types of accounts are decreases
recorded by
\cf3\f4\fs24\b0{{\~}
\b0{\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{retained
earnings}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24
0{{\~}
0{\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}
24\b0{{120.}{\~}{A credit balance in which of the following accounts would indicate
a likely
f3\f4\fs24\b0{{\~}{Fees
Earned}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b
{\~}{Salary
Expense}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Retained
Earnings}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{
\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Accounts
\b0{{121.}{\~}{A debit balance in which of the following accounts would indicate a
likely
f3\f4\fs24\b0{{\~}{Salaries
Expense}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\
{{\~}{Notes
{Dividends}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b
{Supplies}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf
24\b0{{122.}{\~}{Which of the following entries records the payment of an account
payable?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
\cf3\f4\fs24\b0{{\~}{debit Cash; credit Accounts
plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{debit Accounts Receivable;
credit
Cash}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pla
in\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{debit Cash; credit Supplies
{{\~}{debit Accounts Payable; credit
{{123.}{\~}{Which of the following entries records the receipt of a utility bill
from the water
company?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
in\cf3\f4\ul1\fs24\b1{{A.}}}}\plain\cf3\f4\fs24\b0{{\~}{debit Utilities Expense;
credit Accounts
plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{debit Utilities Payable;
credit Accounts
0{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{debit Accounts Payable;
credit
in\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{debit Accounts Payable; credit
Utilities
\b0{{124.}{\~}{Which of the following entries records the cash sale of capital
stock to
stockholders?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\
b0\line{}}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain\cf4\f4\fs24\b0{{A.}}}\
plain\cf3\f4\fs24\b0{{\~}{debit Capital Stock; credit
Cash}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{
\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{B.}}}}\plain\cf3\f4\fs24\b0{{\
~}{debit Cash; credit Capital
Stock}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pl
ain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{debit Cash; credit
Revenue}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{debit Revenue; credit
{{125.}{\~}{Office supplies were sold by Ari}{{\u8217}}{s Alarm Service at cost to
another repair shop, with cash received.}{\~}{ Which of the following entries for
Ari}{{\u8217}}{s Alarm Service records this
lain\cf3\f4\fs24\b0{{\~}{Office Supplies, debit; Cash,
lain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{Office Supplies, debit;
Accounts Payable,
0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{C.}}}}\plain\cf3\f4\fs24\b0{
{\~}{Cash, debit; Office Supplies,
lain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Accounts Payable, debit;
Office Supplies,
b0{{126.}{\~}{Office supplies purchased by Ari}{{\u8217}}{s Alarm Service on
account were returned.}{\~}{ Which of the following entries for Ari}{{\u8217}}{s
Alarm Service records this
lain\cf3\f4\fs24\b0{{\~}{Cash, debit; Office Supplies,
lain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{Office Supplies, debit;
Accounts Receivable,
{\~}{Accounts Payable, debit; Office Supplies,
lain\cf4\f4\fs24\b0{{D.}}}\plain\cf
3\f4\fs24\b0{{\~}{Office Supplies, debit; Accounts Payable,
b0{{127.}{\~}{Cash was paid by Ari}{{\u8217}}{s Alarm Service to creditors on
account.}{\~}{ Which of the following entries for Ari}{{\u8217}}{s Alarm Service
records this
lain\cf3\f4\fs24\b0{{\~}{Cash, debit; Retained Earnings,
{\~}{Accounts Payable, debit; Cash,
lain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Accounts Receivable, debit;
Cash,
lain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Accounts Payable, debit;
Account Receivable,
b0{{128.}{\~}{The process of initially recording a business transaction is
f3\f4\fs24\b0{{\~}{trial
balancing}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0
{\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}
{posting}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24
0{{\~}
4\b0{\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}
{balancing}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\c
s24\b0{{129.}{\~}{Which of the following entries records the acquisition of office
supplies on
\cf3\f4\fs24\b0{{\~}{Office Supplies, debit; Cash,
lain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{Cash, debit; Office Supplies,
{\~}{Office Supplies, debit; Accounts Payable,
lain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Accounts Receivable, debit;
Office Supplies,
b0{{130.}{\~}{Which of the following entries records the payment of rent for the
current
month?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
f3\f4\fs24\b0{{\~}{Cash, debit; Rent Expense,
{\~}{Rent Expense, debit; Cash,
lain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Rent Expense, debit; Accounts
Receivable,
lain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Accounts Payable, debit; Rent
Expense,
b0{{131.}{\~}{Which of the following entries records the receipt of cash from
patients on
\cf3\f4\fs24\b0{{\~}{Accounts Payable, debit; Fees Earned,
lain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{Accounts Receivable, debit;
Fees Earned,
lain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Accounts Receivable, debit;
Cash,
0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{D.}}}}\plain\cf3\f4\fs24\b0{
{\~}{Cash, debit; Accounts Receivable,
b0{{132.}{\~}{Which of the following entries records the collection of cash from
cash
customers?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\
line{}}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain\cf4\f4\fs24\b0{{A.}}}\pla
in\cf3\f4\fs24\b0{{\~}{Fees Earned, debit; Cash,
lain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{Fees Earned, debit; Accounts
Receivable,
{\~}{Cash, debit; Fees Earned,
lain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Accounts Receivable, debit;
Fees Earned,
b0{{133.}{\~}{Which of the following entries records the receipt of cash for two
months' rent? The cash was received in advance of providing the
service.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
\cf3\f4\fs24\b0{{\~}{Prepaid Rent, debit; Rent Revenue,
credit.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\
{{\~}{Cash, debit; Unearned Rent,
credit.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Cash, debit; Prepaid Rent,
plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Cash, debit; Rent Expense
\b0{{134.}{\~}{A patient has a physical examination and asks the bookkeeper to mail
the bill.}{\~}{ The bookkeeper
should}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
f3\f4\fs24\b0{{\~}{make no entry until the cash is
\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{Cash, debit; Accounts
Receivable,
lain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Cash, debit; Fees Earned,
{\~}{Accounts Receivable, debit; Fees Earned,
b0{{135.}{\~}{Prarie Clinic purchased X-ray equipment for $4,000, paid $1,275 down,
with the remainder to be paid later.}{\~}{ The correct entry would
be}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\p
lain\cf3\f4\fs24\b0\line{}}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain\cf4\f
4\fs24\b0{{A.}}}\plain\cf3\f4\fs24\b0{{\~}{Equipment}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}
{ Cash}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ }{\~}{\~}{\~}
{\~}{\~}
{ 1,275}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{Cash}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ }{\~}{\~}{\~}
{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{ 1,275}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Accounts Payable}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}
{ Equipment}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}
{ 4,000}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Equipment
Expense}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}
{ Accounts Payable}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}
{ Cash}{\~}{\~}{\~}{\~}{\~}{ 2,725}{\~}{\~}{\~}{\~}{\~}
{ }}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{\p
lain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{D.}}}}\plain\cf3\f4\fs24\b0{{\~}
{Equipment}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ }{\~}
{\~}{\~}{\~}{\~}{ 4,000}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{\~}{\~}
{\~}{\~}{\~}{ Accounts Payable}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}
{ Cash}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ }{\~}{\~}
{\~}{\~}{\~}
{ 1,275}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\
\b0{{136.}{\~}{The process of recording a transaction in the journal is
f3\f4\fs24\b0{{\~}
{recording}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs
24\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{B.}}}}\plain\cf3\f4\fs24
\b0{{\~}
4\b0{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}
\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}
{summarizing}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain
\fs24\b0{{137.}{\~}{Scott, Inc. sold $65,000 of stock.}{\~}{ How would this
transaction be entered in the
in\cf3\f4\ul1\fs24\b1{{A.}}}}\plain\cf3\f4\fs24\b0{{\~}{Cash}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ }
{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{ Capital Stock}{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}{
65,000}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{\~}{\~}{\~}{\~}{\~}{ }
{\~}{\~}{\~}{\~}{\~}{ Sold stock for
cash.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pl
ain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{Cash}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}
{ Capital Stock}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}{ }{\~}
{\~}{\~}{\~}{\~}{ 65,000}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{ }{\~}
{\~}{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}{ Sold stock for
ain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Capital Stock}{\~}{\~}{\~}{\~}
{\~}{ 65,000}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{\~}{ }{\~}{\~}{\~}
{\~}{\~}{ Cash}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}{ Sold stock for
ain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Capital Stock}{\~}{\~}{\~}{\~}{
}{\~}{\~}{\~}{\~}{\~}
{ Cash}{\~}{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{ Sold stock for
cash.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{138.}
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{April}}\intbl\itap1\cell\pard\plain\in
tbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{23}}\intbl\itap1\cell\pard
0{{14,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
0\brdrcf0\cellx921\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\br
\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{ Capital
Stock }}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
\clb
rt\brdrs\brdrw20\brdrcf0\cellx921\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\b
clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7578\pard\plain\in
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{ Sold common
keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw
brdrcf0\cellx7578\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\t
rpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdr
cf0\cellx921\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\
talt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx921\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0
brdrs\brdrw20\brdrcf0\cellx6364\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx7578\r
ow\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f
4\fs18\b0{{This journal entry
will}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}
\f4\fs24\b0{{\~}{increase Stockholders}{{\u8217}}{ Equity and decrease
in\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{increase Cash and decrease
Stockholders}{{\u8217}}
{ Equity}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24
0{{\~}{increase Cash and increase Stockholders}{{\u8217}}
\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{decrease Cash and decrease
Stockholders}{{\u8217}}
{ Equity}}}\plain\cf3\f4\fs18\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{139.}
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Land}}\intbl\itap1
{{53,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
n\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}
keepn\ql\plain\cf3\f4\fs18\b0{{53,000}}\intbl\itap1\c
ell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\
brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\t
rbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpad
dfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\
rw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx9578\row\trowd\trql\trbrdrt\brdrs\b
rw20\brdrcf0\cellx9578\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4
pn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ Purchased land for
business.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
w20\brdrcf0\cellx9578\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cel
l\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\
clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx1067\clvertalt\clbrdrl\brdrs\brdrw20\b
9578\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0\line{}\plain
\cf3\f4\fs18\b0{{What effect does this journal entry have on the
n\cf3\f4\fs24\b0{{\~}{Increase to Cash and increase to
Land}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{
\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{B.}}}}\plain\cf3\f4\fs24\b0{{\
~}{Increase to Land and decrease to
in\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Decrease to Cash and decrease to
Land}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pla
in\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Increase to Cash and decrease to
Land}}}\plain\cf3\f4\fs18\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\
{{140.}
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Supplies}}\intbl\i
8\b0{{120}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
brdrw20\brdrcf0\cellx5821\clvertalt\clbrdrb
\
f0\cellx8102\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{
n\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}{ Accounts
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
plain\cf3\f4\fs18\b0{{What is the best explanation for this journal
f3\f4\fs24\b0{{\~}{Purchased supplies with
ain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{Returned supplies previously
purchased.}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs
24\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{C.}}}}\plain\cf3\f4\fs24
\b0{{\~}{Purchased supplies on
\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Paid accounts
4\b0{{141.}
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
\plain\cf3\f4\fs18\b0{{3,300}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\
rw20\brdrcf0\cellx9049\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\tr
x9049\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\in
4\fs18\b0{{\~}{\~}{\~}{\~}{\~}
rcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx9049\pard\pla
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ Paid creditors on
20\brdrcf0\cellx9049\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl
0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\b
7952\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx9049\pard\plain\intbl\itap1\cell\
rdrr\brdrs\brdrw20\brdrcf0\cellx7952\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx9
cf3\f4\fs18\b0{{What effect does this journal entry have on the
n\cf3\f4\fs24\b0{{\~}{Decrease accounts payable, increase
cash}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pla
in\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{Increase cash, decrease accounts
payable}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Increase accounts payable,
increase
cash}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{
\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{D.}}}}\plain\cf3\f4\fs24\b0{{\
~}{Decrease accounts payable, decrease
cash}}}\plain\cf3\f4\fs18\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\
{{142.}{\~}{Which of the following accounts would be increased with a
cf3\f4\fs24\b0{{\~}{Land, Accounts Payable,
Dividends}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs2
b0{{\~}{Accounts Payable, Unearned Revenue, Capital
ain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Capital Stock, Accounts
Receivable, Unearned
Revenue}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Cash, Accounts Receivable,
Capital
Stock}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{143.}{\~}{In accordance with the rules of debit and credit, which of the
following is
}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\
cf3\f4\ul1\fs24\b1{{A.}}}}\plain\cf3\f4\fs24\b0{{\~}{Debits increase
assets.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{Credits increase
assets.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Debits increase both assets
and retained
earnings.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0
{\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Credits increase both
assets and
liabilities.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain
\fs24\b
0{{144.}{\~}{All of the following accounts are increased with a
debit }}\plain\cf3\f4\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{
except}}}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
in\cf3\f4\ul1\fs24\b1{{A.}}}}\plain\cf3\f4\fs24\b0{{\~}{Unearned
\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}
{Land}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pl
ain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Accounts
{Cash}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{145.}{\~}{Which of the following stockholder equity accounts follow the same
debit and credit rules as
lain\cf3\f4\fs24\b0{{\~}{Capital Stock
only}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pla
in\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{Dividends
only}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{
~}{Retained Earnings and Capital
ain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Retained Earnings, Capital
Stock, and
Dividends}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf
24\b0{{146.}{\~}{The payment for the monthly rent will require which of the
following
entries?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
\cf3\f4\fs24\b0{{\~}{debit Cash and debit Rent
Expense}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{credit Cash and credit Rent
{{\~}{debit Rent Expense and credit
in\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{credit Rent Expense and debit
{{147.}{\~}{Expenses follow the same debit and credit rules
as}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\
4\fs24\b0{{\~}
{revenues}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs2
b0{{\~}
0{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{capital
stock}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pl
ain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}
{liabilities}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain
\fs24\b0{{148.}{\~}{Net income will result
}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\c
f3\f4\ul1\fs24\b1{{A.}}}}\plain\cf3\f4\fs24\b0{{\~}{revenues (credits) > expenses
\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{revenues (debits) > expenses
(credits)}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0
{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{expenses (credits) <
revenues
\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{revenues (credits) =
expenses
(debits)}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{149.}{\~}{Which of the following will increase retained
n\cf3\f4\fs24\b0{{\~}{Expenses >
revenues.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0
{\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{Dividends are declared and
paid.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0
\~}{Revenues >
expenses.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0
{\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Cash is received from
customers on
account.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{150.}{\~}{Which of the following will decrease retained
n\cf3\f4\fs24\b0{{\~}{Supplies are purchased on
account.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24
0{{\~}{Dividends are declared and
paid.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pl
ain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Cash is received from
customers.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b
0{\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Payment is made on an
accounts
4\b0{{151.}{\~}{Which of the following group of accounts are increased with a
debit?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
f3\f4\fs24\b0{{\~}{assets, liabilities, stockholders}{{\u8217}}
{ equity}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24
0{{\~}{assets, dividends,
\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{assets, revenues,
\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{assets, liabilities,
revenues}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{152.}{\~}{Which of the following accounts increase with a
cf3\f4\fs24\b0{{\~}{capital stock, revenues,
\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{assets, capital stock,
revenues}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24
0{{\~}{liabilities, capital stock,
\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{retained earnings, capital
stock,
assets}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f
b0{{153.}{\~}{Which of the following is true regarding normal balances of
n\cf3\f4\fs24\b0{{\~}{All accounts have a normal debit
\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{All expense accounts have a
normal negative
\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Accounts that have a normal
debit balance will only have debit entries, never credit
entries.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24
0{{\~}{The normal balance appears on the side of the account that also receives
increase
entries.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{154.}{\~}{All of the following occur with a double-entry accounting
system }}\plain\cf3\f4\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{
{except}}}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4
\
fs24\b0\line{}}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain\cf4\f4\fs24\b0{{A
.}}}\plain\cf3\f4\fs24\b0{{\~}{The accounting equation remains in
\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{The sum of all debits is
always equal to the sum of all credits in each journal
entry.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b
{\~}{Each business transaction will have only two
\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Every transaction affects at
least two
accounts.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf
24\b0{{155.}
ntbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{6}}\intbl\itap1\cell\pard
0{{375}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb
intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}
{ Unearned
\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
\cellx7041\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx8103\p
addfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx1141\clverta
rdrs\brdrw20\brdrcf0\cellx8103\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\c
f3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{What is the best explanation for this
journal
f3\f4\fs24\b0{{\~}{Received cash for services
performed.}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs
24\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{B.}}}}\plain\cf3\f4\fs24
\b0{{\~}{Received cash for services to be performed in the
future.}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Paid cash in advance for
services to be
done.}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pl
ain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Paid cash for services to be
performed.}}}\plain\cf3\f4\fs18\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\c
s24\b0{{156.}
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{April}}\intbl\itap1\cell\pard\plain\i
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Equipment}}\intb
fs18\b0{{6,700}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\p
brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx8102\pard\plain\intbl\itap
{\~}
keepn\ql\plain\cf3\f4\fs18\b0{{\~}
ap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}{ Note
\keepn\ql\plain\cf3\f4\fs18\b0{{\~}
rcf0\c
clbrdrt\brdrs\brdrw20\brdrcf0\cellx8102\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keep
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}
plain\cf3\f4\fs18\b0{{Which is the best explanation for this journal
{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{\plain\cf3\f4\ul1\fs24\b1{\plain
\cf3\f4\ul1\fs24\b1{{A.}}}}\plain\cf3\f4\fs24\b0{{\~}{Purchased equipment, paid
cash of $2,000, with the remainder to be paid in the
plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{Purchased equipment, paid
cash of $4,700, with the remainder to be received in the
plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Purchased equipment, paid
cash for the entire
amount.}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Purchased equipment on
\b0{{157.}{\~}{The verification that the total dollar amount of the debits equals
the total dollar amount of the credits in the ledger is called
lain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain\cf4\f4\fs24\b0{{A.}}}\plain\cf3\f4
\fs24\b0{{\~}
{ledger}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\
{{\~}{trial
{account}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{
\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{balance
sheet}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{158.}{\~}{The process of transferring the debits and credits from the journal
entries to the ledger accounts is
f3\f4\fs24\b0{{\~}
{sliding}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{
{transposing}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24
\b0{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}
{journalizing}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1
\fs24\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{D.}}}}\plain\cf3\f4\f
s24\b0{{\~}
{posting}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{159.}{\~}{The posting process will include the transfer of the following
information from the journal to the
\cf3\f4\fs24\b0{{\~}{date, amount (debit or
credit)}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\
{{\~}{date, amount (debit or credit), journal page
number}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\p
lain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{amount (debit or credit),
account
lain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{date, amount (debit or credit)
account
b0{{160.}{\~}{The Post. Ref. columns are used to trace transactions from the
journal to the accounts.}{\~}{ What will be entered in the Post. Ref. column of (a)
the journal and (b) the
\cf3\f4\fs24\b0{{\~}{(a) the amount of the debit or credit (b) the journal page
lain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{(a) the journal page number
(b) the date of the
b0{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{(a) the journal page
number, (b) the account
number}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b
{\~}{(a) the account number, (b) the journal page
b0{{161.}{\~}{The chart of accounts for the Corning Corporation includes the
f0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brd
rd\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs
18\b1{{Account
ts
8\b0{{Prepaid
\b0{{Accounts
0{{Unearned
0{{Capital
{Retained
fs18\b0{{Fees
{{Salaries
0{{Insurance
0{{Rent
f4\fs18\b0{{Prepaid
0\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trp
lbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7139\pard\plain\int
bl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}
will be found in the Cash
\cf3\f4\fs24\b0{{\~}
{11}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plai
n\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}
{15}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{\
plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{C.}}}}\plain\cf3\f4\fs24\b0{{\~
}
{3}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain
\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{none of
ts
8\b0{{Prepaid
\b0{{Accounts
rw2
Unearned
0{{Capital
{Retained
fs18\b0{{Fees
{{Salaries
0{{Insurance
rcf0\cellx10256\pard\plain\intbl\itap1\sa0\li0\ri0\sb0
\keepn\ql\plain\cf3\f4\fs18\b0{{Rent
f4\fs18\b0{{Prepaid
will be found in the Prepaid Insurance
\cf3\f4\fs24\b0{{\~}
n\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}
{15}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{\
plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{C.}}}}\plain\cf3\f4\fs24\b0{{\~
}
\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{none of
x10256\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0
{{Accounts
8\b0{{Prepaid
\b0{{Accounts
0{{Unearned
0{{Capital
{Retained
fs18\b0{{Fees
rcf0\clbrdrl\brdrs\brdrw20\brdrcf0\c
lbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10256\row\trowd\trq
rdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10256\pard\plain\intbl\itap
1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Salaries
0{{Insurance
0{{Rent
f4\fs18\b0{{Prepaid
ain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{ What are the posting references
that will be found in the journal
\cf3\f4\ul1\fs24\b1{{A.}}}}\plain\cf3\f4\fs24\b0{{\~}{15 and 11,
\b0{\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{11 and 15,
\b0{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{11 and 55,
\b0{\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{3
only}}}\plain\cf3\f4\fs18\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\
{{164.}{\~}{The
chart of accounts for Miguel Corporation includes the
ts
8\b0{{Prepaid
\b0{{Accounts
0{{Unearned
0{{Capital
lbrdrt\brdrs\brdrw20\brdrcf0\cellx6756\clvertalt\clbrdrb\brdrs\b
ain\cf3\f4\fs18\b0{{Retained
fs18\b0{{Fees
{{Salaries
0{{Insurance
0{{Rent
transaction was
f4\fs18\b0{{Cash}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql
drcf0\cellx6402\row\trowd\trql\trbrd
f3\f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{ Fees
lvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx6402\pard\plain\intbl\itap1\cell\pard\p
t\clbrdrr\brdrs\brdrw20\brdrcf0\cellx3495\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\c
x6402\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0\line{}\plai
n\cf3\f4\fs18\b0{{What are the posting references that will be found in the journal
f3\f4\fs24\b0{{\~}{41 and 11,
\b0{\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{3
only}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{
~}{11 and 41,
\b0{\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{11 and 32,
respectively}}}\plain\cf3\f4\fs18\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain
\fs24\b0{{165.}{\~}{The chart of accounts for Miguel Corporation includes the
ts
8\b0{{Prepaid
\b0{{Accounts
t\clbrdrb
\
10256\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Unearne
d
0{{Capital
{Retained
fs18\b0{{Fees
{{Salaries
0{{Insurance
b\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdr
\ql\plain\cf3\f4\fs18\b0{{Rent
transaction was
rdrw20\brdrcf0\cellx10296\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
\f4\fs18\b0{{Salaries
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}
paddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx35
lain\cf3\f4\fs18\b0{{What is the posting reference that will be found in the
Salaries Expense
in\cf3\f4\ul1\fs24\b1{{A.}}}}\plain\cf3\f4\fs24\b0{{\~}
\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}
n\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}
n\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{none of
0{{166.}{\~}{The accounts in the ledger of Monroe Entertainment Co. are listed
below.}{\~}{ All accounts have normal
balances.}}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trp
\clvertalt\cellx4574\clvertalt\cellx5227\clvertalt\cellx9249\clvertalt\cellx10413\p
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Fees
i0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Insurance
0\keepn\ql\plain\cf3\f4\fs18\b0{{Investment}}\intbl\itap1\cell\pard\plain\intbl\ita
p1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{2,000}}\intbl\itap1\cell\pard\pla
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Land}}\intbl
,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0
x4574\clvertalt\cellx5227\clvertalt\cellx9249\clvertalt\cellx10413\row\trowd\trql\t
n\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\ke
epn\ql\plain\cf3\f4\fs18\b0{{2,
600}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4
in\cf3\f4\fs18\b0{{Wages
0\keepn\ql\plain\cf3\f4\fs18\b0{{Retained Earnings}{\~}
pn\ql\plain\cf3\f4\fs18\b0{{Dividends}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{1,200}}\intbl\itap1\cell\pard\plain\int
b0{{Prepare a trial balance.}{\~}{ The total of the debits
\f4\ul1\fs24\b1{{A.}}}}\plain\cf3\f4\fs24\b0{{\~}
{$13,300}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{
{$9,400}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
{$9,100}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}
{$9,600}}}\plain\cf3\f4\fs18\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\
\b0{{167.}{\~}{Randomly listed below are the steps for preparing a trial
balance:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft
paddft3\clvertalt\cellx740\clvertalt\cellx10080\pard\plain\intbl\itap1\sa0\li0\ri0\
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Verify that the total of the Debit
column equals the total of the Credit
column.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{List the
accounts from the ledger and enter their debit or credit balance in the Debit or
Credit column of the trial
\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{List
the name of the company, the title of the trial balance, and the date the trial
balance is
prepared.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Total
the Debit and Credit columns of the trial
alt\cellx740\clvertalt\cellx10080\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plai
n\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{What is the proper order of these
steps?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
\cf3\f4\ul1\fs24\b1{{A.}}}}\plain\cf3\f4\fs24\b0{{\~}{(3), (2), (4),
(1)}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plai
n\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{(2), (3), (4),
n\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{(3), (2), (1),
n\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{(4), (3), (2),
(1)}}}\plain\cf3\f4\fs18\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\f
{168.}{\~}{Of the following, which will determine if the accounting equation is in
\cf3\f4\fs24\b0{{\~}{journal
entry}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pl
ain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{income
statement}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs2
4\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{C.}}}}\plain\cf3\f4\fs24\
b0{{\~}{trial
plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{account
reconciliation}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\pla
f4\fs24\b0{{169.}{\~}{An overpayment error was discovered in computing and paying
the wages of a Jamison Tree Trimming employee.}{\~}{ When Jamison receives cash
from the employee for the amount of the overpayment, which of the following entries
will Jamison
make?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{
}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\
cf3\f4\ul1\fs24\b1{{A.}}}}\plain\cf3\f4\fs24\b0{{\~}{Cash, debit; Wages Expense,
lain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{Wages Payable, debit; Wages
Expense,
lain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Wages Expense, debit, Cash,
lain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Cash, debit; Wages Payable,
b0{{170.}{\~}{If the two totals of a trial balance are not equal, it could be due
to }}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}
\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain\cf4\f4\fs24\b0{{A.}}}\plain\cf3\
f4\fs24\b0{{\~}{failure to record a
b0{\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{recording
the same erroneous amount for both the debit and the credit parts of a
transaction}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\f
s24\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{C.}}}}\plain\cf3\f4\fs2
4\b0{{\~}{an error in determining the account balances, such as a balance being
incorrectly
computed}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{
\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{recording the same
transaction more than
once}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\
{{171.}{\~}{When a transposition error is made on the trial balance, the difference
between the debit and credit totals on the trial balance will
4\fs24\b0{{\~}
{zero}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pl
ain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{twice the amount of the
4\b0{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{one-half the amount of
the
transposition}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1
\fs24\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{D.}}}}\plain\cf3\f4\f
s24\b0{{\~}{divisible by
9}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs1
72.}{\~}{Which of the following errors would cause the trial balance totals to be
\cf3\f4\fs24\b0{{\~}{A transaction was not
posted.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{A payment of $67 for
insurance was posted as a debit of $42 to Prepaid Insurance and a credit of $42 to
Cash.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0
\~}{A payment of $1,311 to a creditor was posted as a debit of $3,111 to Accounts
Payable and a debit of $311 to Accounts
Receivable.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\
b0{\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Cash received from
customers on account was posted as a debit of $680 to Cash and a credit of $680 to
Accounts
Payable.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{173.}{\~}{Supplies purchased on account were incorrectly recorded as Office
Equipment.}{\~}{ The correcting entry would
\f4\ul1\fs24\b1{{A.}}}}\plain\cf3\f4\fs24\b0{{\~}{Supplies, debit; Office
Equipment,
plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{Accounts Receivable, debit;
Supplies,
plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Office Equipment, debit;
Supplies Expense,
plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Supplies, debit; Accounts
Payable,
\b0{{174.}{\~}{Which of the following errors will cause the trial balance totals to
be
in\cf3\f4\ul1\fs24\b1{{A.}}}}\plain\cf3\f4\fs24\b0{{\~}{post the debit portion of a
journal entry incorrectly and the credit portion of the entry is correctly
posted}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\p
lain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{failure to record a
transaction or to post a
b0{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{recording the same
transaction more than
once}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pla
in\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{recording the same erroneous
amount for both the debit and the credit parts of a
b0{\plain\cf4\f4\fs24\b0{{E.}}}\plain\cf3\f4\fs24\b0{{\~}{posting a part of a
transaction correctly as a debit or credit but to the wrong
\b0{{175.}{\~}{The trial balance is out of balance and the accountant suspects that
a transposition or slide error has occurred.}{\~}{ What will the accountant do to
find the
f3\f4\fs24\b0{{\~}{Determine the amount of the error and look for that amount on
the trial
\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{Determine the amount of the
error and divide by two, then look for that amount on the trial
\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Determine the amount of the
error and refer to the journal entries for that
amount.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\
{{\~}{Determine the amount of the error and divide by nine. If the result is evenly
divided, then this type of error is
likely.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\
\b0{{176.}{\~}{Which of the following
}}}\plain\cf3\f4\fs24\b1{{ }}}\plain\cf3\f4\fs24\b0{{a short-cut in finding errors
on the trial
\cf3\f4\fs24\b0{{\~}{Determine the difference between debits and credits and look
for the
amount.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\
{{\~}{Determine the amount and change any account to make the trial balance
correct.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{
\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Determine the difference
between debits and credits, divide the amount by 2, look for the
amount.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Determine the difference
between debits and credits, divide the amount by 9, if it divides evenly, look for
a transposition or slide
error.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f
b0{{177.}{\~}{All of the following statements regarding a horizontal analysis are
true }}\plain\cf3\f4\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{e
xcept}}}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\lin
cf3\f4\fs24\b0{{\~}{A horizontal analysis is used to compare an item in a current
statement with the same item in prior statements.}{\~}
{ }}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{\p
lain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{B.}}}}\plain\cf3\f4\fs24\b0{{\~}
{A horizontal analysis can be performed on a balance sheet and income statement,
but not on a statement of cash
flows.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\p
lain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{If fees earned in 2010 are
$150,000 and fees earned in 2011 are $187,500, a horizontal analysis will indicate
a 25% increase over this
period.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{When two statements are
compared in horizontal analysis, the earlier statement is used as the base for
computing the amount and the percent of
change.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\
\b0{{178.}{\~}{The chart of accounts classifies the accounts to make identification
of the accounts easier. Discuss how companies set up a chart of accounts for use in
their
business.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}
}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{A chart of
accounts is setup by
assigning numbers to each of the accounts.}{\~}{ The account number for assets
will begin with 1, liabilities with 2, stockholders}{{\u8217}}{ equity with 3,
revenues with 4, and expenses with
5.}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\pla
in\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{179.}{\~}{On January 1,
2010, Cary Parsons established a catering service.}{\~}{ Listed below are accounts
she would like to open in the general ledger. List the accounts in the order in
which they should appear in the ledger and propose a two-digit account numbering
scheme that is consistent with the rules of a proper chart of
accounts.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trlef
sb0\keepn\ql\plain\cf3\f4\fs18\b0{{1.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\cell\trowd\trql\trle
trpaddft3\clvertalt\cellx956\clvertalt\cellx9238\row\trowd\trql\trleft0\trrh0\trkee
talt\cellx956\clvertalt\cellx9238\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\p
lain\cf3\f4\fs18\b0{{2.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\k
eepn\ql\plain\cf3\f4\fs18\b0{{Supplies}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\
clvertalt\cellx956\clvertalt\cellx9238\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0
4\fs18\b0{{3.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pl
ain\cf3\f4\fs18\b0{{Equipment}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\tr
\cellx956\clvertalt\cellx9238\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb
4\fs18\b0{{Accounts
n\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{6.}}\intbl\itap1\cell\
pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Wages
l\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Rent
l\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Truck}}\int
\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx956\clvertalt\cellx9238\row\t
dfr3\trpaddt0\trpaddft3\clvertalt\cellx956\clvertalt\cellx9238\pard\plain\intbl\ita
p1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{9.}}\intbl\itap1\cell\pard\plain\
intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Utilities
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Dividends}
trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx956\clvertalt\cellx9238\pard\plain\intb
l\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{11.}}\intbl\itap1\cell\pard\
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Truck
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Prepaid
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Fees
l\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Miscellaneo
us
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Notes
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Retained
Earnings}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpa
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{18.}}\intbl\itap1\c
ell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
alt\cellx956\clvertalt\cellx9238\row\pard\plain\sa0\li0\ri0\sb0\ke
ep\keepn\ql\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}
}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{11
Cash}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{12 Accounts
Receivable}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{13
Supplies}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{14 Prepaid
Insurance}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{15
Equipment}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{16
Truck}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{21 Accounts
Payable}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{22 Notes
Payable}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{31 Capital
Stock}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{32 Retained
Earnings}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{33
Dividends}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{41 Fees
Earned}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{51 Wages
Expense}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{52 Rent
Expense}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{53 Utilities
Expense}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{54 Truck
Expense}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{55 Insurance
Expense}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{56 Miscellaneous
Expense}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\par
d\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{180.}{\~}{On
September 1st, Erika Company purchased land for $47,500 cash.}{\~}{ Prepare the
0{}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\par\trowd\trql\trleft0\trrh0\
clvertalt\cellx959\clvertalt\cellx1510\clvertalt\cellx2163\clvertalt\cellx6287\pard
\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Sep.
s18\b0{{Land}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pla
pn\ql\plain\cf3\f4\fs18\b0{{47,500}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trke
3\trpaddt0\trpaddft3\clvertalt\cellx959\clvertalt\cellx1510\clvertalt\cellx2163\par
\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}}\
b0{{47,500}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\tr
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Purchased land for the
company.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpa
ellx1510\clvertalt\cellx2163\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3
alt\cellx1510\clvertalt\cellx2163\clvertalt\cellx6287\clvertalt\cellx7246\clvertalt
talt\cellx2163\clvertalt\cellx6287\clvertalt\cellx7246\clvertalt\cellx10452\row\par
d\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0
\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{181.}{\~}{(a) On October 10th, Nikle
Company purchased supplies worth $2,750 on account. Prepare the journal entry to
record this transaction.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{(b)
Nikle Company paid for the supplies purchased in (a) on October 25th. Prepare the
clvertalt\cellx857\clvertalt\cellx2225\clvertalt\cellx2776\clvertalt\cellx7615\pard
\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(a)}}\intbl\itap1
\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Oct.
fs18\b0{{Supplies}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\q
\cellx857\clvertalt\cellx2225\clvertalt\cellx2776\clvertalt\cellx7615\row\trowd\trq
addt0\trpaddft3\clvertalt\cellx857\clvertalt\cellx2225\clvertalt\cellx2776\pard\pla
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}{ Purchased supplies on
f3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpad
dfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx857\cl
vertalt\cellx2225\clvertalt\cellx2776\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\
57\clvertalt\cellx2225\clvertalt\cellx2776\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\k
0\trpaddft3\clvertalt\cellx857\clvertalt\cellx2225\clvertalt\cellx2776\row\trowd\tr
paddt0\trpaddft3\clvertalt\cellx857\clvertalt\cellx2225\clvertalt\cellx2776\clverta
lt\cellx7615\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{
(b)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4
\fs18\b0{{Oct.
fs18\b0{{Accounts
clvertalt\cellx2225\clvertalt\cellx2776\clvertalt\cellx7615\row\trowd\trql\trleft0\
ddft3\clvertalt\cellx857\clvertalt\cellx2225\clvertalt\cellx2776\pard\plain\intbl\i
n\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\cel
l\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{2,750}}\int
cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}{ Paid for supplies on
clvertalt\cellx10453\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\p
lain\intbl\itap1\ce
ell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\
trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx857\clvertalt\cellx2225\clvertalt\cellx
2776\clvertalt\cellx7615\clvertalt\cellx8983\clvertalt\cellx10453\row\pard\plain\sa
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{182.}{\~}{On October 17th, Nikle Company
purchased a building and a plot of land for $750,000. The building was valued at
$500,000 while the land carried a value of $250,000. Nikle paid $300,000 down in
cash and signed a note payable for the balance.}{\~}{ Prepare the journal entry to
record this
clvertalt\cellx1164\clvertalt\cellx1817\clvertalt\cellx6860\clvertalt\cellx8942\par
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Oct.
fs18\b0{{Building}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\q
l\plain\cf3\f4\fs18\b0{{500,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\r
3\clvertalt\cellx1164\clvertalt\cellx1817\clvertalt\cellx6860\clvertalt\cellx8942\r
lain\cf3\f4\fs18\b0{{Land}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0
\keepn\ql\plain\cf3\f4\fs18\b0{{250,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\s
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trle
paddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx1164\clvertalt\cellx1817\clverta
i0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\cell\pard\plain\intbl\itap
1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{300,000}}\intbl\itap1\cell\trowd\t
ddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx1164\clvertalt\cellx1817
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Notes
3\f4\fs18\b0{{450,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\t
4\fs18\b0{{\~}{\~}{\~}{\~}{ Purchased building and
land.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
rtalt\cellx1817\clvertalt\cellx6860\clvertalt\cellx8942\row\trowd\trql\trleft0\trrh
3\clvertalt\cellx1164\clvertalt\cellx1817\clvertalt\cellx6860\clvertalt\cellx8942\c
lvertalt\cellx10106\clvertalt\cellx10453\pard\plain\intbl\itap1\cell\pard\plain\int
tbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0
06\clvertalt\cellx10453\row\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0
{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{183.}
{\~}{On November 1st, Nikle Company made a cash payment of $200,000 on a note
payable that was generated in the purchase of a building and land.}{\~}{ Prepare
the journal entry to record this
clvertalt\cellx1061\clvertalt\cellx2122\clvertalt\cellx2571\clvertalt\cellx3122\clv
\f4\fs18\b0{{Nov.
s18\b0{{Notes
3\f4\fs18\b0{{200,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\kee
t\cellx1061\clvertalt\cellx2122\clvertalt\cellx2571\clvertalt\cellx3122\clvertalt\c
trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx1061\clvertalt\cellx2122\clver
talt\cellx2571\clvertalt\cellx3122\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\
\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\cell\pard\plain\intbl\it
ap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{200,000}}\intbl\itap1\cell\trowd
ertalt\cellx3122\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\tr
22\clvertalt\cellx2571\clvertalt\cellx3122\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\k
\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Made payment on note
payable.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
lvertalt\cellx2122\clvertalt\cellx2571\clvertalt\cellx3122\row\trowd\trql\trleft0\t
ll\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0
\clvertalt\cellx1061\clvertalt\cellx2122\clvertalt\cellx2571\clvertalt\cellx3122\cl
vertalt\cellx7757\clvertalt\cellx9125\clvertalt\cellx10186\clvertalt\cellx10533\row
\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319
\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{184.}{\~}{On January 7th, Damien
Lawson}{\~}{ deposited $95,000 in a bank account in the name of JumpStart in return
for shares of stock in the corporation.}{\~}{ Prepare the journal entry to record
this
clvertalt\cellx1470\clvertalt\cellx1919\clvertalt\cellx5941\pard\plain\intbl\itap1\
sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Jan.
s18\b0{{Cash}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pla
in\cf3\f4\fs18\b0{{95,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpadd
b0\trpad
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Capital
x1470\clvertalt\cellx1919\clvertalt\cellx5941\pard\plain\intbl\itap1\sa0\li0\ri0\sb
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{ Issued capital stock for
rtalt\cellx10412\row\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\
par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{185.}{\~}{On
January 8th, JumpStart purchased $20,000 worth of office equipment.}{\~}{ Prepare
the journal entry to record this
clvertalt\cellx1368\clvertalt\cellx1817\clvertalt\cellx6044\pard\plain\intbl\itap1\
sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Jan.
s18\b0{{Office
Equipment}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
cf3\f4\fs18\b0{{20,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\
368\clvertalt\cellx1817\clvertalt\cellx6044\row\trowd\trql\trleft0\trrh0\trkeep\trp
cellx1368\clvertalt\cellx1817\clvertalt\cellx6044\pard\plain\intbl\itap1\sa0\li0\ri
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\cell\pard\plain\in
tbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{20,000}}\intbl\itap1\cell\
4\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr
0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx1368\clvertalt\cellx1817\clvertalt\ce
llx6044\clvertalt\cellx7310\clvertalt\cellx10413\pard\plain\intbl\itap1\cell\pard\p
plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\
1817\clvertalt\cellx6044\clvertalt\cellx7310\clvertalt\cellx10413\row\pard\plain\sa
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{186.}{\~}{On August 30th, JumpStart paid
numerous bills which
include:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{ }}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ Payment to the landlord for August rent,
$950}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{ Payment to the Gas & Electric Company for August}{{\u8217}}{s
bill, $525}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{ Payment of employee wages for the last half of August,
$1,880}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{ Payment of shopping center}{{\u8217}}{s parking lot cleaning
fee,
$275}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0
{{Journalize these payments as one compound journal
entry.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\p
ar\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\par\trowd\trql\trleft0\trrh0\trkeep
alt\cellx1572\clvertalt\cellx2327\clvertalt\cellx7064\clvertalt\cellx8636\pard\plai
n\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Aug.
fs18\b0{{Rent
llx1572\clvertalt\cellx2327\clvertalt\cellx7064\clvertalt\cellx8636\row\trowd\trql\
dt0\trpaddft3\clvertalt\cellx1572\clvertalt\cellx2327\clvertalt\cellx7064\clvertalt
18\b0{{Utilities
18\b0{{Wages
cellx1572\clvertalt\cellx2327\clvertalt\cellx7064\clvertalt\cellx8636\row\trowd\trq
fs18\b0{{Maintenance
18\b0{{Cash}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plai
n\ql\plain\cf3\f4\fs18\b0{{3,630}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep
alt\cellx1572\clvertalt\cellx2327\clvertalt\cellx7064\clvertalt\cellx8636\row\trowd
ertalt\cellx8636\clvertalt\cellx10412\pard\plain\intbl\itap1\cell\pard\plain\intbl\
alt\cellx7064\clvertalt\cellx8636\clvertalt\cellx10412\row\pard\plain\sa0\li0\ri0\s
\ql\plain\cf3\f4\fs24\b0{{187.}{\~}{On
October 30th, JumpStart paid its only stockholder, Damien Lawson, a $3,300 cash
dividend. Journalize this
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Oct.
fs18\b0{{Dividends}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\
ql\plain\cf3\f4\fs18\b0{{3,300}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\t
\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\cell\pard\
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{3,300}}\intbl\itap
r0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx1572\clvertalt\cellx2327\clvertalt\c
talt\cellx5941\clvertalt\cellx7002\clvertalt\cellx10412\pard\plain\intbl\itap1\cell
l\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\tr
t\cellx2327\clvertalt\cellx5941\clvertalt\cellx7002\clvertalt\cellx10412\row\pard\p
0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{188.}{\~}{Prepare a journal entry for
the purchase of a truck on April 4 for $85,700, paying $15,000 cash and the
remainder on
account.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}
\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\par\trowd\trql\trleft0\trrh0\trke
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{April}{\~}
\fs18\b0{{Truck}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\
tap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\cell\pard\pl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{15,000}}\intbl\itap1
\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr
0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx1572\clvertalt\cellx1919\clvertalt\ce
alt\cellx5022\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{
\fs18\b0{{Accounts
2\clvertalt\cellx1919\clvertalt\cellx5022\row\trowd\trql\trleft0\trrh0\trkeep\trpad
10412\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap
8\clvertalt\cellx10412\row\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{
{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{189.}
{\~}{Prepare a journal entry on October 12 for the fees earned on account,
$14,600.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}
\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\par\trowd\trql\trleft0\trrh0\trke
rtalt\cellx1461\clvertalt\cellx2070\clvertalt\cellx6658\clvertalt\cellx8214\pard\pl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Oct.
fs18\b0{{Accounts
\cf3\f4\fs18\b0{{14,600}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\k
\trpaddt0\trpaddft3\clvertalt\cellx1461\clvertalt\cellx2070\clvertalt\cellx6658\par
\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Fees
\clvertalt\cellx2070\clvertalt\cellx6658\row\trowd\trql\trleft0\trrh0\trkeep\trpadd
lx1461\clvertalt\cellx2070\clvertalt\cellx6658\clvertalt\cellx8214\clvertalt\cellx9
675\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\
cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trr
t3\clvertalt\cellx1461\clvertalt\cellx2070\clvertalt\cellx6658\clvertalt\cellx8214\
clvertalt\cellx9675\row\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~
}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{190.}{\~}
{Prepare a journal entry on March 27 for the payment of $8,000 in
dividends.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{
}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\par\trowd\trql\trleft0\trrh0\tr
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Mar.
fs18\b0{{Dividends}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\
ql\plain\cf3\f4\fs18\b0{{8,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri
0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0
4\fs18\b0{{8,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpadd
fb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx1440\cl
ertalt\cellx7570\row\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\
par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{191.}{\~}
{State for each account whether it is likely to have from normal business
operations (a) debit entries only, (b) credit entries only, or (c) both debit and
credit entries. Also, indicate the normal balance of each
account.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft
0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl
rtalt\cellx5941\clvertalt\cellx10372\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\q
l\plain\cf3\f4\fs18\b0{{1.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb
0\keepn\ql\plain\cf3\f4\fs18\b0{{Fees
\f4\fs18\b0{{4.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\
plain\cf3\f4\fs18\b0{{Supplies}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\t
\plain\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpa
\cellx10372\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{3
.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\f
s18\b0{{Accounts
5288\clvertalt\cellx5941\clvertalt\cellx10372\row\pard\plain\sa0\li0\ri0\sb0\keep\k
r\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{1.}{\~}
{ Credit entries only, normal credit
balance}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{2.}{\~}{ Debit entries
only, normal debit balance}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{3.}
{\~}{ Both debit and credit entries, normal credit
balance}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{4.}{\~}{ Both debit and
credit entries, normal debit
balance}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\par
d\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{192.}{\~}{For the
following, enter a }{{\u8220}}{D}{{\u8221}}{ if the account normally has a debit
balance and enter a }{{\u8220}}{C}{{\u8221}}{ if the account normally has a credit
balance.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs2
4\b0{{_____1. Notes
Payable}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{_____2. Mortgage
Payable}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{_____3.
Dividends}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{_____4. Accounts
Receivable}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{_____5. Capital
Stock}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{_____6. Rent
Revenue}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{_____7. Unearned
Income}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{_____8. Utility
Expense}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{_____9.
Automobiles}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0
{}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{1. C}
{\~}{ }}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{2. C}{\~}
{ }}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{3. D}{\~}
{ }}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{5. C}{\~}
{ }}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{9.
D}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plai
n\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{193.}{\~}{Several
transactions are listed below, with the accounting equation stated to the right
side of each. Use the following identification codes to indicate the effects of
each transaction on the accounting equation. Write your answers in the space
provided under the accounting equation. You need an identification code
for }}\plain\cf3\f4\ul1\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{{each}}}\plain\cf3\f4\fs2
4\b0{{ element of the accounting equation. An example is given before the first
transaction.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\tr
0\trpaddft3\clvertalt\cellx2285\clvertalt\cellx4829\clvertalt\cellx8753\pard\plain\
intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{I-
Increase}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
f3\f4\fs18\b0{{D-
Decrease}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
f3\f4\fs18\b0{{NE-No
Effect}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
ertalt\cellx4829\clvertalt\cellx8753\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\p
lain\cf3\f4\fs18\b0{}\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Stockholders}
i0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{ Assets}{\~}
\f4\i\fs18\b0{\plain\cf3\f4\i\fs18\b0{{Example}}}\intbl\itap1\cell\pard\plain\intbl
\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\i\fs18\b0{\plain\cf3\f4\i\fs18\b0{{Joh
n Smith invests in a new business by
purchasing $3,500 of capital
stock.}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
3\f4\fs18\b0\line{}\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}
{\~}{\~}{\~}
fs18\b0{{\~}{\~}{\~}{\~}
{\~}{\~}
{ }}\plain\cf3\f4\i\ul1\fs18\b0{\plain\cf3\f4\i\ul1\fs18\b0{{NE}}}\plain\cf3\f4\ul1
\fs18\b0{{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}
fs18\b0{{\~}{\~}{\~}{\~}
3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{A)}}\intbl\itap1\cell\pard\plain\intbl\it
ap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Cash
sales are
\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
3\f4\fs18\b0{{B)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql
\plain\cf3\f4\fs18\b0{{Equipment is purchased on
l1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}
n\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
n\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}
0\sb0\keepn\ql\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4
\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}
n\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
n\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}
f3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
n\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
n\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}
rkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpadd
ft3\clvertalt\cellx1485\clvertalt\cellx5136\clvertalt\cellx6724\clvertalt\cellx7074
\clvertalt\cellx8455\clvertalt\cellx8805\clvertalt\cellx10599\row\pard\plain\sa0\li
0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{\~}{\~}
{\~}{\~}{\~}
{ }}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\p
ard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trlef
x7073\clvertalt\cellx8454\clvertalt\cellx8804\clvertalt\cellx10598\pard\plain\intbl
ql\plain\cf3\f4\fs18\b0{{Stockholders}
i0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{ Assets}{\~}
\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{A)}}\intbl\itap1\cell\pard\plain\intbl\ita
p1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Cash
sales are
\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{ I}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{ NE}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{ I}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}
3\f4\fs18\b0{{B)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql
\plain\cf3\f4\fs18\b0{{Equipment is purchased on
l1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{ I}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{ I}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{ NE}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}
1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{ D}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}
n\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{ D}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}
n\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{ NE}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
l1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{ NE}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{ NE}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{ NE}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}
f3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{
NE}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
n\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{ NE}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}
n\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{ NE}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
rtalt\cellx8454\clvertalt\cellx8804\clvertalt\cellx10598\row\pard\plain\sa0\li0\ri0
\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\kee
pn\ql\plain\cf3\f4\fs24\b0{{194.}{\~}{Journalize the five transactions for Mirmax
Tool Rentals described
below.}}\plain\cf3\f4\i\fs24\b0{\plain\cf3\f4\i\fs24\b0\line{}}\plain\cf3\f4\fs24\b
0{}\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpad
\b0{{Aug.}{\~}{\~}
\fs18\b0{{Mirmax purchases two new saws on credit at $375 each.}{\~}{ The saws are
added to Mirmax}{{\u8217}}{s rental inventory.}{\~}{ Payment is due in 30
\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{ 8}}\intbl\itap1\cell\p
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Mirmax accepts
advance deposits for tool rentals of $75 that will be applied to the cash rental
when the tools are
returned.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
cellx1204\clvertalt\cellx1959\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb
\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\tr
ft3\clvertalt\cellx449\clvertalt\cellx1204\clvertalt\cellx1959\row\trowd\trql\trlef
rpaddft3\clvertalt\cellx449\clvertalt\cellx1204\clvertalt\cellx1959\pard\plain\intb
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{15}}\intbl\itap1\ce
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Mirmax
receives a bill from Macon Utility Company for $150.}{\~}{ Payment is due in 30
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Customers are
charged $750 by Mirmax for tool rentals.}{\~}{ Payment is due from the customers in
30
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Mirmax
receives $500 in payments from the customers that were billed for rentals on August
20.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\
ellx1204\clvertalt\cellx1959\clvertalt\cellx10372\pard\plain\intbl\itap1\cell\pard\
plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trow
{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa319\li0\ri0\s
b319\keep\keepn\ql\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\
\keepn\ql\plain\cf3\f4\fs18\b0{{Aug.}{\~}{\~}
\fs18\b0{{Equipment}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn
clvertalt\cellx1508\clvertalt\cellx6123\clvertalt\cellx7458\clvertalt\cellx8793\row
in\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{
Accounts
t\cellx8793\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\
~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
\fs18\b0{{Cash}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\p
lain\cf3\f4\fs18\b0{{75}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\k
\f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{ Unearned
\plain\cf3\f4\fs18\b0{{75}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpadd
lx1508\clvertalt\cellx6123\clvertalt\cellx7458\clvertalt\cellx8793\row\trowd\trql\t
cellx8793\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}
}{\~}{\~}{\~}{\~}{\~}{\~}
{ 15}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{ Accounts
Payable }}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
l\plain\cf3\f4\fs18\b0{{150}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpa
\~}{\~}{\~}{\~}{\~}{\~}{\~}
4\fs18\b0{{Accounts
\cellx1508\clvertalt\cellx6123\clvertalt\cellx7458\clvertalt\cellx8793\row\trowd\tr
\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{ Rental
~}{\~}{\~}{\~}{\~}{\~}{\~}
4\fs18\b0{{Cash}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\
plain\cf3\f4\fs18\b0{{500}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0
\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trke
r3\trpaddt0\trpaddft3\clvertalt\cellx1508\clvertalt\cellx6123\clvertalt\cellx7458\c
f3\f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{ Accounts
\ql\plain\cf3\f4\fs18\b0{{500}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\tr
{\~}}\intbl\itap1\cell\pard\p
~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\tr
ellx1508\clvertalt\cellx6123\clvertalt\cellx7458\clvertalt\cellx8793\pard\plain\int
ertalt\cellx7458\clvertalt\cellx8793\row\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\c
s24\b0{{195.}{\~}{Journalize the following five transactions for Nexium &
Associates, Inc.}{\~}{ Omit
explanations. }}\plain\cf3\f4\ul1\fs24\b0{\plain\cf3\f4\ul1\fs24\b0\line{}}\plain\c
f3\f4\fs24\b0{}\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trp
\cf3\f4\fs18\b0{{Mar.}{\~}{\~}
\fs18\b0{{Bills are sent to clients for services provided in February in the amount
of
\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}
\fs18\b0{{Corner Office, Inc. delivers office furniture ($1,060) and office
supplies ($160) to Nexium leaving an invoice for
3\clvertalt\cellx462\clvertalt\cellx1029\clvertalt\cellx1491\row\trowd\trql\trleft0
addft3\clvertalt\cellx462\clvertalt\cellx1029\clvertalt\cellx1491\pard\plain\intbl\
in\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{ 15}}\intbl\itap1\cel
l\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Payment is
made to Corner Office, Inc. for the furniture and office supplies delivered on
March
9.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\t
ertalt\cellx462\clvertalt\cellx1029\clvertalt\cellx1491\row\trowd\trql\trleft0\trrh
3\clvertalt\cellx462\clvertalt\cellx1029\clvertalt\cellx1491\pard\plain\intbl\itap1
tbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{ 23}}\intbl\itap1\cell\par
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{A bill for $430
for electricity for the month of March is received and will be paid on its due date
in
lx1029\clvertalt\cellx1491\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\t
t\cellx1029\clvertalt\cellx1491\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pla
0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0
\clvertalt\cellx462\clvertalt\cellx1029\clvertalt\cellx1491\row\trowd\trql\trleft0\
n\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{ 31}}\intbl\itap1\cell
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Salaries of
$850 are paid to
rtalt\cellx1029\clvertalt\cellx1491\clvertalt\cellx1742\clvertalt\cellx1782\clverta
lt\cellx10454\clvertalt\cellx10810\pard\plain\intbl\itap1\cell\pard\plain\intbl\ita
42\clvertalt\cellx1782\clvertalt\cellx10454\clvertalt\cellx10810\row\pard\plain\sa0
f3\f4\fs24\b0{}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\par\trowd\trql\tr
ellx8583\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Mar.
}{\~}{\~}{\~}
\fs18\b0{{Accounts
\fs18\b0{{\~}{\~}{\~}{\~}{\~}{ Service Revenue}{\~}
tbl\itap1\cell\pard\
\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\t
cellx1388\clvertalt\cellx5639\clvertalt\cellx7195\clvertalt\cellx8583\pard\plain\in
tbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}
\fs18\b0{{Office
Furniture}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
4\fs18\b0{{Office Supplies}{\~}{\~}
fs18\b0{{160}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pla
{{\~}{\~}{\~}{\~}{\~}{ Accounts
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
4\fs18\b0{{Accounts
fs18\b0{{\~}{\~}{\~}{\~}{\~}
plain\cf3\f4\fs18\b0{{1,220}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpa
\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
4\fs18\b0{{Electricity
18\b0{{\~}{\~}{\~}{\~}{\~}{ Accounts
~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
4\fs18\b0{{Salaries
18\b0{{\~}{\~}{\~}{\~}{\~}
plain\cf3\f4\fs18\b0{{850}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpadd
cellx8583\p
ertalt\cellx5639\clvertalt\cellx7195\clvertalt\cellx8583\row\trowd\trql\trleft0\trr
\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
\cellx5639\clvertalt\cellx7195\clvertalt\cellx8583\row\pard\plain\sa0\li0\ri0\sb0\k
eep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\
plain\cf3\f4\fs24\b0{{196.}{\~}{On January 1, 2011, Cary Parsons established Cary}
{{\u8217}}{s Catering Service.}{\~}{ Listed below are accounts to use for
transactions (a) through (d), each identified by a number.}{\~}{ Following this
list are the transactions that occurred during the first month of operations.}{\~}{
You are to indicate for each transaction the accounts that should be debited and
ous
dl0\trpaddfl3\trpaddr0
\
trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx696\clvertalt\cellx9449\row\trowd\trql\
dt0\trpaddft3\clvertalt\cellx696\clvertalt\cellx9449\pard\plain\intbl\itap1\cell\pa
rd\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
lx9449\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0{}\par\trow
d\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\br
drw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\b
rdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trp
addr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\
pn\ql\plain\cf3\f4\fs18\b0{{Transactions}}\intbl\itap1\cell\pard\plain\intbl\itap1\
sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Account(s)
\ql\plain\cf3\f4\fs18\b0{{a.}{\~}{ Cary transferred cash from a}{\~}{ personal bank
account to an account for the business in exchange for
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{b.}{\~}{ Paid rent for the period of
January 3 to the end of the
month.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{c.}{\~}{ Purchased a truck for $30,000
with a cash down payment of $5,000 and the remainder on a
note.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{d. Purchased equipment on
e
llx10193\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{\plain\c
f3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa319\li0\ri0\sb319\keep
\keepn\ql\par\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Transactions}}\intbl\itap1\cell\pard\p
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Account(s)
l\plain\cf3\f4\fs18\b0{{a.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb
0\keepn\ql\plain\cf3\f4\fs18\b0{{1}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{9}}\intbl\itap1\cell\trowd\trql\trbrdrt\br
drs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trb
rdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdr
cf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\t
rpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brd
ntbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{b.}}\intbl\itap1\cell\par
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{13}}\intbl\itap1
\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{1}}\int
s\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7981\row\trowd\trql\trbrdrt\br
rw20\brdrcf0\cellx7981\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4
\fs18\b0{{c.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pla
in\cf3\f4\fs18\b0{{6}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keep
n\ql\plain\cf3\f4\fs18\b0{{1,7}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{d.}}\intbl\itap1\cell\pard\plain\intb
l\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{5}}\intbl\itap1\cell\pard\pl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{8}}\intbl\itap1\cell
\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brd
rs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbr
drv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl
3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clb
rcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7981\row\trowd\trql\trleft0\trrh0\trkeep\tr
7981\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1
\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr
0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx2163\cl
talt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx7981\row\pard\plain\sa0\li0\ri0\sb0\keep\ql
\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\
cf3\f4\fs24\b0{{197.}{\~}{On January 1, 2011, Cary Parsons established Cary}
{{\u8217}}{s Catering Service.}{\~}{ Listed below are accounts to use for
transactions (a) through (e), each identified by a number.}{\~}{ Following this
credited by placing the account
ous
brdrw20\brdrcf0\
brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10297\row\trowd\trql\trbrdrt\brd
w20\brdrcf0\cellx10297\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4
\fs18\b0{{a.}{\~}{ Purchased supplies for
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{b.}{\~}{ Paid the annual premiums on
property and casualty
insurance.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
ellx10297\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{c.}{\~}{ Received cash for a job
previously recorded on
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{d. Paid a creditor a portion of the
amount owed for equipment previously purchased on
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{e.}{\~}{ Received cash for a completed
job.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
dr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx4823\
\clbrdrr\brdrs\brdrw20\brdrcf0\cellx4823\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0
\
3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa319\li0\ri0\sb319\keep\
keepn\ql\par\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Transactions}}\intbl\itap1\cell\pard\pl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Account(s)
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{1}}\intbl\itap1\cell\trowd\trql\trbrdrt\br
ntbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{b.}}\intbl\itap1\cell\par
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{1}}\intb
l\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0
\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7771\row\trowd\trql\trbrdrt\brd
w20\brdrcf0\cellx7771\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\
fs18\b0{{c.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plai
n\cf3\f4\fs18\b0{{1}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn
\ql\plain\cf3\f4\fs18\b0{{2}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brd
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{d.}}\intbl\itap1\cell\pard\plain\intbl\i
tap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{8}}\intbl\itap1\cell\pard\plain
\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{1}}\intbl\itap1\cell\tr
owd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\
brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv
\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\t
rpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdr
0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7771\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdr
lx7771\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{e.}}\i
0{{1}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
4\fs18\b0{{11}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\b
rdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\tr
brdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpa
ddb0\trpaddfb3\trpaddl
rdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7771\row\trowd\trql\trleft0\trrh0
\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx2182\clvertalt\clbrdrl\brdrs\brdrw20\
brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx5053\clvertalt\clbrdrl\brdrs\brdrw20\brd
rcf0\cellx7771\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\i
5053\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx7771\row\pard\plain\sa0\li0\ri0\s
\ql\plain\cf3\f4\fs24\b0{{198.}{\~}{On January 1, 2011, Cary Parsons established
Cary}{{\u8217}}{s Catering Service.}{\~}{ Listed below are accounts to use for
transactions (a) through (f), each identified by a number.}{\~}{ Following this
ous
p1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Transactions}}\intbl\itap1\cell\p
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Account(s)
l\plain\cf3\f4\fs18\b0{{a.}{\~}{ Recorded jobs completed on account and sent
invoices to
customers.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{b.}{\~}{ Received an invoice for truck
expenses to be paid in
February.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{c.}{\~}{ Paid utilities
expense}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
x9876\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\tr
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{d.}{\~}{ Received cash from customers on
rdrw
20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx9876\pard\plain\intbl\itap1\sa0\li0\r
i0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{e.}{\~}{ Paid employee
wages.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{f.}{\~}{ Paid Cary a cash
dividend.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
llx9876\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{\plain\cf
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Transactions}}\intbl\itap1\cell\pard\pl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Account(s)
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{11}}\intbl\itap1\cell\trowd\trql\trbrdrt\b
drw20\brdrcf0\cellx7982\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\
0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7982\pard\plain\
intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{b.}}\intbl\itap1\cell\pa
rd\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{15}}\intbl\itap
1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{8}}\in
rs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7982\row\trowd\trql\trbrdrt\b
4\fs18\b0{{c.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pl
ain\cf3\f4\fs18\b0{{14}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\ke
epn\ql\plain\cf3\f4\fs18\b0{{1}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\
trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\tr
brdrs\brdrw20\brdrcf0\cellx7982\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdr
0\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7982\par
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{d.}}\intbl\itap1
{2}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw2
drr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7982\row\trowd\trql\tr
rdrs\brdrw20\brdrcf0\cellx7982\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plai
n\cf3\f4\fs18\b0{{e.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keep
n\ql\plain\cf3\f4\fs18\b0{{12}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0
\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{1}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\b
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{f.}}\intbl\itap1\cell\pard\pla
in\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{10}}\intbl\itap1\cell
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{1}}\intbl\it
rw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7982\row\trowd\trql\trleft0\trrh0\t
f0\cellx7982\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\int
\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cell
12\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx7982\row\pard\plain\sa0\li0\ri0\sb0
l\plain\cf3\f4\fs24\b0{{199.}{\~}{Listed below are accounts to use for transactions
(a) through (d), each identified by a number.}{\~}{ Following this list are the
transactions.}{\~}{ You are to indicate for each transaction the accounts that
should be debited and credited by placing the account number(s) in the appropriate
dft3\clvertalt\cellx1089\clvertalt\cellx8817\pard\plain\intbl\itap1\sa0\li0\ri0\sb0
\keepn\ql\plain\cf3\f4\fs18\b0{{1.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\cell\trowd\trql\trleft0
addft3\clvertalt\cellx1089\clvertalt\cellx8817\row\trowd\trql\trleft0\trrh0\trkeep\
ain\cf3\f4\fs18\b0{{2.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\ke
epn\ql\plain\cf3\f4\fs18\b0{{Accounts
1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Office
Supplies}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpa
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Land}}\i
l3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx1089\clvertalt\cellx8817\ro
paddfr3\trpaddt0\trpaddft3\clvertalt\cellx1089\clvertalt\cellx8817\pard\plain\intbl
\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{5.}}\intbl\itap1\cell\pard\pl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Interest
1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Buildi
ng}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\t
dr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx1089\clvertalt\cellx8817\pard\plain
\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{7.}}\intbl\itap1\cell\p
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accumulated
Depreciation -
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Deprecia
tion Expense -
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Interest
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Insuranc
e
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Notes
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Prepaid
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{15.}}\intbl\itap
1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Servic
e
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Capital
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Office
Supplies
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Unearned
Service
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Dividend
s}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\tr
r0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx1089\clvertalt\cellx8817\pard\plain\
intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{22.}}\intbl\itap1\cell\p
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Interest
\cf3\f4\fs18\b0{}\par\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw2
drr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10086\pard\plain\intbl
\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Transactions}}\intbl\itap1\ce
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Account(s)
w20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh
\
\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10086\pard\plain\
intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{a.}{\~}{\~}{\~}{\~}{\~}{
Utility bill is received; payment will be made in 10
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{b.}{\~}{\~}{\~}{\~}{\~}{ Paid the utility
bill previously recorded in transaction
(a).}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
w20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10086\pard\plain\intbl\itap1\sa0\li0
\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{c.}{\~}{\~}{\~}{\~}{\~}{ Bought a three-
year insurance policy and paid in
full.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{d.}{\~}{\~}{\~}{\~}{\~}{ Received $7,000
from a contract to perform accounting services over the next two
years.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
10086\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trp
lvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx10086\pard\plain\intbl\itap1\cell\pard\
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Debit}}\intbl\itap1\cell\pard\
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Credit}}\intbl\ita
w20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx6823\row\trowd\trql\trbrdrt\brdrs\br
drb\brdrs\brdrw
3\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{a.}}\intbl\
itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{12
18\b0{{18}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs
brdrt\brdrs\brdrw20\brdrcf0\cellx6823\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\
ql\plain\cf3\f4\fs18\b0{{b.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\s
b0\keepn\ql\plain\cf3\f4\fs18\b0{{18}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{1}}\intbl\itap1\cell\trowd\trql\trbrdrt\
rdrw20\brdrcf0\cellx6823\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs
\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{c.}}\intbl\itap1\cell\p
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{15}}\intbl\ita
p1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{1}}\i
f4\fs18\b0{{d.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\p
lain\cf3\f4\fs18\b0{{1}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\ke
0\cellx6823\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddf
4102\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx6823\pard\plain\intbl\itap1\cell\
vertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx1314\clvertalt\clbrdrl\brdrs\brdrw20\brd
0\cellx6823\row\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\p
ard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{200.}{\~}{The
following two situations are independent of each
other.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\
b0{{1.}{\~}{ On June 1, the cash account balance was $38,750.}{\~}{ During June,
cash payments totaled $239,140 and the June 30 balance was $42,175.}{\~}{ Determine
the cash receipts during June and show your
calculation.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4
\fs24\b0{{2.}{\~}{ On March 1, the supplies account balance was $1,340.}{\~}
{ During March, supplies of $4,335 were purchased and $890 of supplies were on hand
as of March 31.}{\~}{ Determine the supplies expense for March and show your
calculation.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b
0{}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{1.}{\~}
{ $42,175 = $38,750 + Cash Receipts -
$239,140 }}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Cash Receipts =
$242,565}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs2
4\b0{{2.}{\~}{ $890 = $1,340 + $4,335 - Supplies
Expense}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Supplies Expense =
$4,785}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{201.}{\~}{On June 1,
the cash account balance was $75,880.}{\~}{ During June, cash receipts totaled
$305,000 and the June 30 balance was $96,750.}{\~}{ Determine the cash payments
made during
June.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\pa
r\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{96,750 =
75,880 + 305,000 - ?}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Cash
payments =
$284,130}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pa
rd\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{202.}{\~}{For each
of the following errors, considered individually, indicate whether the error would
cause the trial balance totals to be unequal.}{\~}{ If the error would cause the
trial balance totals to be unequal, indicate whether the debit or credit total is
higher and by how
much.}}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddf
b0{{a.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
\f4\fs18\b0{{Payment of a cash dividend of $6,800 was journalized and posted as a
debit of $8,600 to Salaries Expense and a credit of $8,600 to
x10291\row\trowd\trql\trleft0\trrh0\trkeep\trpadd
3\f4\fs18\b0{{b.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql
\plain\cf3\f4\fs18\b0{{A fee of $9,780 earned was debited to Accounts Receivable
for $7,980 and credited to Fees Earned for
ell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{A payment
of $3,000 to a creditor was posted as a credit of $3,000 to Accounts Payable and a
credit of $3,000 to
\cellx755\clvertalt\cellx10291\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\c
f3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa
319\li0\ri0\sb319\keep\keepn\ql\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpadd
\b0{{a.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
3\f4\fs18\b0{{The totals are
equal.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
rpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx755\clvertalt\cellx10291\pard\p
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{b.}}\intbl\itap1\ce
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{The totals
are unequal.}{\~}{ The credit total is higher by
totals are unequal. The credit total is higher by
lt\cellx755\clvertalt\cellx10291\row\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f
b0{{203.}{\~}{The following errors took place in journalizing and posting
transactions:}}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0
f4\fs18\b0{{a.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\p
lain\cf3\f4\fs18\b0{{A payment of $5,000 in cash dividends was recorded as a debit
to Office Salaries Expense and a credit to
l\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{An accounts
receivable payment of $7,800 was recorded as a debit to Cash and a credit to Fees
\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Journalize the entries to correct the
errors.}{\~}{ Omit the
explanations.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\
b0{}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\par\trowd\trql\trleft0\trrh0
\clvertalt\cellx1061\clvertalt\cellx1816\clvertalt\cellx6859\pard\plain\intbl\itap1
\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{a.}}\intbl\itap1\cell\pard\plain\in
tbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Dividends}}\intbl\itap1\ce
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{5,000}}\in
ertalt\cellx6859\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\tr
16\clvertalt\cellx6859\clvertalt\cellx8329\clvertalt\cellx10411\pard\plain\intbl\it
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Office
Salaries
cellx1061\clvertalt\cellx1816\clvertalt\cellx6859\clvertalt\cellx8329\clvertalt\cel
alt\cellx6859\clvertalt\cellx8329\clvertalt\cellx10411\pard\plain\intbl\itap1\cell\
\cellx1816\clvertalt\cellx6859\clvertalt\cellx8329\clvertalt\cellx10411\row\pard\pl
ain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0{}\par\trowd\trql\trleft0\trr
t3\clvertalt\cellx1061\clvertalt\cellx1816\clvertalt\cellx6859\pard\plain\intbl\ita
p1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{b.}}\intbl\itap1\cell\pard\plain\
intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Fees
x1061\clvertalt\cellx1816\clvertalt\cellx6859\clvertalt\cellx8329\clvertalt\cellx10
fs18\b0{{Accounts
\ql\plain\cf3\f4\fs18\b0{{7,800}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\
\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\
{{204.}{\~}{On November 30th, it was discovered that a $550 of a transaction
recording the purchase of office supplies was really office equipment. Prepare the
journal entry to correct this
situation.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{
}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\par\trowd\trql\trleft0\trrh0\tr
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Nov.
fs18\b0{{Office
Equipment}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
cf3\f4\fs18\b0{{550}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trp
lx1470\clvertalt\cellx2225\clvertalt\cellx6962\pard\plain\intbl\itap1\sa0\li0\ri0\s
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Office
f3\f4\fs18\b0{{550}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpa
cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trr
clvertalt\cellx10412\row\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\
~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{205.}
{\~}{Journalize the entries to correct the following
errors:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{A purchase of supplies for $200 on
account was recorded and posted as a debit to Supplies for $500 and as a credit to
Accounts Receivable for
n\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(b)}}\intbl\itap1\cell
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{A receipt of
$4,000 for services performed was recorded and posted as a debit to Fees Earned for
$4,000 and a credit to Cash for
19\li0\ri0\sb319\keep\keepn\ql\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddf
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(a)}}\intbl\itap1\cell\pard\plain\intbl\
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
addt0\trpaddft3\clvertalt\cellx886\clvertalt\cellx5306\clvertalt\cellx6499\clvertal
s18\b0{{\~}{\~}{\~}{\~}
{ Supplies}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\ql\plain\cf3\f4\fs18\b0{{500}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\tr
cellx886\clvertalt\cellx5306\clvertalt\cellx6499\clvertalt\cellx7846\row\trowd\trql
18\b0{{Supplies}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\
\f4\fs18\b0{{\~}{\~}{\~}{\~}{ Accounts
llx886\clvertalt\cellx5306\clvertalt\cellx6499\clvertalt\cellx7846\row\trowd\trql\t
t0\trpaddft3\clvertalt\cellx886\clvertalt\cellx5306\clvertalt\cellx6499\clvertalt\c
\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpadd
lx886\clvertalt\cellx5306\clvertalt\cellx6499\clvertalt\cellx7846\row\trowd\trql\tr
0\trpaddft3\clvertalt\cellx886\clvertalt\cellx5306\clvertalt\cellx6499\clvertalt\ce
llx7846\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(b)}}
\b0{{Cash}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
t\cellx886\clvertalt\cellx5306\clvertalt\cellx6499\clvertalt\cellx7846\row\trowd\tr
fs18\b0{{\~}{\~}{\~}{\~}{\~}{
Fees
ellx886\clvertalt\cellx5306\clvertalt\cellx6499\clvertalt\cellx7846\row\trowd\trql\
dt0\trpaddft3\clvertalt\cellx886\clvertalt\cellx5306\clvertalt\cellx6499\clvertalt\
cellx7846\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}
llx886\clvertalt\cellx5306\clvertalt\cellx6499\clvertalt\cellx7846\row\trowd\trql\t
ellx7846\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\i
tap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpa
lvertalt\cellx5306\clvertalt\cellx6499\clvertalt\cellx7846\row\pard\plain\sa0\li0\r
eepn\ql\plain\cf3\f4\fs24\b0{{206.}{\~}{Below is the unadjusted trial balance for
Dawson Designs at December 31, 2011 - the end of its first year in
business.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs
24\b0{{(1) Identify the errors in the following trial balance.}{\~}{ All accounts
have normal balances.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{(2)
Prepare a corrected trial
balance.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trbrdr
\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18
\b1{{Dawson Designs}}\plain\cf3\f4\fs18\b1\line{}\plain\cf3\f4\fs18\b1{{Unadjusted
Trial Balance}}\plain\cf3\f4\fs18\b1\line{}\plain\cf3\f4\fs18\b1{{For the Year
Ended December 31,
ebit
l\plain\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\
sb0\keepn\ql\plain\cf3\f4\fs18\b0{{23,000}}\intbl\itap1\cell\pard\plain\intbl\itap1
rdrs\brdrw20\brdrcf0\cellx7627\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb
\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
rdrs\brdrw20\brdrcf0\cl
l\plain\cf3\f4\fs18\b0{{Equipment}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0
\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{150,500}}\intbl\itap1\cell\pard\plain\intbl
rdrt\brdrs\brdrw20\brdrcf0\cellx7627\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\t
7\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Capital
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{18,500}}\intbl
s18\b0{{Service
trr
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Miscellaneous
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Totals}}\intbl\itap1\cell\pard\plain\in
tbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{424,020}}\intbl\itap1\cell
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{424,020}}\in
rs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7627\row\trowd\trql\trleft0\t
drcf0\cellx7707\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\
rdrs\brdrw20\brdrcf0\cellx7627\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx7707\ro
w\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\
b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\p
lain\cf3\f4\fs24\b0{{(1)}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{a.}
{\~}{ The debit column is added incorrectly; the sum is actually
$289,780.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{b.}{\~}{ The trial
balance should be dated }{{\u8220}}{December 31, 2011,}{{\u8221}}{ rather than }
{{\u8220}}{For the Year Ended December 31, 2011.}
{{\u8221}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{c.}{\~}{ The accounts
receivable balance should be in the debit
column.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{d.}{\~}{ The accounts
payable should be in the credit
column.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{e.}{\~}{ Dividends
should be in the debit
column.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{f.}{\~}{ Miscellaneous
Expense should be in the debit
column. }}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs2
4\b0{{(2)}{\~}
{ }}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\br
drs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trb
rdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpad
rcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx3493\pard\plain\intbl\itap1\sa0\li0\ri0\sb0
\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Dawson
Designs}}\plain\cf3\f4\fs18\b1\line{}\plain\cf3\f4\fs18\b1{{Unadjusted Trial
Balance}}\plain\cf3\f4\fs18\b1\line{}\plain\cf3\f4\fs18\b1{{December 31,
ebit
trpaddfb3\trpaddl0\trpaddfl3\
trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrd
f0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7627\row\trowd\trql\trbrdrt\brdrs\brdrw20\brd
llx7627\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}
8\b0{{23,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pla
7\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdr
0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
\cf3\f4\fs18\b0{{49,700}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\k
eepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw2
0\cellx7627\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdr
sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Equipment}}\intbl\itap1\cell\pard\pl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{150,500}}\intbl\itap
f4\fs18\b0{{Accounts
\plain\cf3\f4\fs18\b0{{4,250}
}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\b
\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7627\row\trowd\trql\trbrd
f3\f4\fs18\b0{{Capital
\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{18,500}}\intbl\itap1\ce
s18\b0{{Service
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Salary
\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx76
56,900}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
\f4\fs18\b0{{356,900}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\tr
\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx3493\clv
\clbrdrl\brdrs\brdrw20\brdrcf0\cellx7707\pard\plain\intbl\itap1\cell\pard\plain\int
bl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\tr
0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx3493\clvertalt\clbrdrl\brd
rw20\brdrcf0\cellx7707\row\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{
{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{207.}
{\~}{McMann Company has condensed income statements as
epn\ql\plain\cf3\f4\fs18\b0{{92,500}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brd
drcf0\cellx6087\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\
r\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx6087\pard\plain\intbl\it
ap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Rent
pn\ql\plain\cf3\f4\fs18\b0{{25,000}}\intbl\it
rw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx6087\row\trowd\trql\trbrdrt\brdrs\b
\b0{{Total operating
b0\line{}\plain\cf3\f4\fs18\b0{{Prepare a horizontal analysis of McMann Company}
{{\u8217}}{s income statements. Comment on the trends, both favorable and
0{}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\par\trowd\trql\trbrdrt\brdrs\
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1\line{}\plain\cf3
\f4\fs18\b1\line{}\plain\cf3\f4\fs18\b1{{2011}}}\intbl\itap1\cell\pard\plain\intbl\
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1\line{}\pl
ain\cf3\f4\fs18\b1\line{}\plain\cf3\f4\fs18\b1{{2010}}}\intbl\itap1\cell\pard\plain
\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{I
ncrease/}}\plain\cf3\f4\fs18\b1\line{}\plain\cf3\f4\fs18\b1{{Decrease}}\plain\cf3\f
4\fs18\b1\line{}\plain\cf3\f4\fs18\b1{{Amount}}}\intbl\itap1\cell\pard\plain\intbl\
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1\line{}\pl
ain\cf3\f4\fs18\b1{{Percent
Change}}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\b
\brdrcf0\cellx9851\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw
rcf0\cellx9851\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0
{{Sales}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
3\f4\fs18\b0{{$178,400}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\ke
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{15,900}}\intbl\itap1\cell\pard\plain\in
tbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{9.8%}}\intbl\itap1\cell\tr
\cellx3225\clvertalt\clbrdrb\
cf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx9851\row\trowd\trql\trbrdrt\brdrs\brdrw20\br
clbrdrt\brdrs\brdrw20\brdrcf0\cellx9851\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keep
n\ql\plain\cf3\f4\fs18\b0{{Wage
epn\ql\plain\cf3\f4\fs18\b0{{92,500}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\l
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{7,500}}\intbl\itap1\cell\pard\plain\intbl
\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{8.1%}}\intbl\itap1\cell\trowd
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Rent
pn\ql\plain\cf3\f4\fs18\b0{{30,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{3,000}}\intbl\itap1\cell\pard\plain\intbl\
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{10.0%}}\intbl\itap1\cell\trowd
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Utilities
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Total operating
epn\ql\plain\cf3\f4\fs18\b0{{147,500}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{15,500}}\intbl\itap1\cell\pard\plain\int
bl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{10.5%}}\intbl\itap1\cell\tr
brdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx500
51\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Net
\ql\plain\cf3\f4\fs18\b0{{15,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\
ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{400}}\intbl\itap1\cell\pard\plain\intbl\itap
1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{2.7%}}\intbl\itap1\cell\trowd\trql
rr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx9851\row\trowd\trql\trl
\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx3225\clvertalt\clbrdrl\brdr
\brdrcf0\cellx9851\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\pla
in\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\t
rpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx3225\clvertalt\clbrd
brdrw20\brdrcf0\cellx9851\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4
\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{While the trend in sales revenue is
favorable, it is not sufficient enough to offset the rising expenses, resulting in
a positive but small and slowing increase in net
income.}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\par
d\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{208.}{\~}{Georgia
Company has condensed income statements as
rdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brd
lx6824\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Rent
b0{{Prepare a horizontal analysis of Georgia Company}{{\u8217}}{s income
statements. Comment on the trends, both favorable and
0{}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\par\trowd\trql\trbrdrt\brdrs\
0\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10273\pard\plain\intbl\itap1\sa0\li0\r
sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1\line{}\plain\cf
3\f4\fs18\b1\line{}\plain\cf3\f4\fs18\b1{{2011}}}\intbl\itap1\cell\pard\plain\intbl
\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1\line{}\p
lain\cf3\f4\fs18\b1\line{}\plain\cf3\f4\fs18\b1{{2010}}}\intbl\itap1\cell\pard\plai
n\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{
Increase/}}\plain\cf3\f4\fs18\b1\line{}\plain\cf3\f4\fs18\b1{{Decrease}}\plain\cf3\
f4\fs18\b1\line{}\plain\cf3\f4\fs18\b1{{Amount}}}\intbl\itap1\cell\pard\plain\intbl
\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1\line{}\p
lain\cf3\f4\fs18\b1{{Percent
Change}}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\b
cf0\cellx5318\clvertalt\clbrdrb\br
rr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10273\pard\plain\intbl\
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Sales}}\intbl\itap1\cell\pard\
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$158,400}}\intbl\i
tap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$16
f4\fs18\b0{{(4,100)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn
\ql\plain\cf3\f4\fs18\b0{{-
2.5%}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdr
{Wage
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(12,500)}}\intbl\itap1\cell\pard\plain\int
bl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{-
13.5%}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brd
{{Rent
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(2,000)}}\intbl\itap1\cell\pard\plain\intb
l\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{-
{Utilities
lbrdrt\brdrs\brdrw20\brdrcf0\cellx6768\cl
3\f4\fs18\b0{{Total operating
epn\ql\plain\cf3\f4\fs18\b0{{147,500}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(9,500)}}\intbl\itap1\cell\pard\plain\in
tbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{-
{Net
ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{5,400}}\intbl\itap1\cell\pard\plain\intbl\it
ap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{36.0%}}\intbl\itap1\cell\trowd\t
ddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx3666\clvertalt\clbrdrl\
rw20\brdrcf0\cellx10273\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\par
d\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\tr
fr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx3666\clvertalt\
rdrs\brdrw20\brdrcf0\cellx10273\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\
cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{The trend in sales revenue is
unfavorable, but that is more than offset by the declines in operating expenses,
with the exception of utilities, which increased over the period.}{\~}{ Despite the
2.5% drop in sales, the net effect was a favorable increase in net income of 36%,
which was in large part spurred by the drop in wages
expense.}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pa
rd\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{209.}{\~}{Organize
the following accounts into the usual sequence of a chart of
accounts.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs
24\b0{{Miscellaneous
Expense}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Accounts
Payable}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Retained
Earnings}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Accounts
Receivable}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Cash}}\plain\cf3\f4\
fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Capital
Stock}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Fees
Earned}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Prepaid
Rent}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Salaries
Expense}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Unearned
Revenue}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Dividends}}\plain\cf3\f
4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa319\
li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{Cash}}\plain\cf3\f4\fs24\b0\line{
}\plain\cf3\f4\fs24\b0{{Accounts
Receivable}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Prepaid
Rent}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Accounts
Payable}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Unearned
Revenue}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Capital
Stock}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Retained
Earnings}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Dividends}}\plain\cf3\
f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Fees
Earned}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Salaries
Expense}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Miscellaneous
Expense}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\par
d\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{210.}{\~}{Selected
accounts from the ledger of Garrison Company appear below.}{\~}{ For each account,
indicate the
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{In the first column at the right,
indicate the nature of each account, using the following
abbreviations:}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb
dfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx733\clvertalt\cellx5424\r
rpa
tap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Ass
et -
A}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\f
s18\b0{{Revenue -
R}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\tr
\plain\cf3\f4\fs18\b0{{Liability -
L}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\f
s18\b0{{Expense -
E}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\tr
\plain\cf3\f4\fs18\b0{{None of the above -
N}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\f
s18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\tr
pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(b)}}\intbl\i
tap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{In
the second column, indicate the increase side of each account by inserting Dr. or
Cr.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0
l\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{Account}}}\intbl\itap1\cell\p
f4\ul1\fs18\b0{{Type of
x5424\clvertalt\cellx5761\clvertalt\cellx8077\row\trowd\trql\trleft0\trrh0\trkeep\t
t\cellx733\clvertalt\cellx5424\clvertalt\cellx5761\clvertalt\cellx8077\pard\plain\i
rd\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Supplies}}\intb
_______}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
3\f4\fs18\b0{{________}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\
rpaddft3\clvertalt\cellx733\clvertalt\cellx5424\clvertalt\cellx5761\clvertalt\cellx
8077\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(2)}}\in
{{Notes
in\cf3\f4\fs18\b0{{Fees
\f4\fs18\b0{{_______}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keep
n\ql\plain\cf3\f4\fs18\b0{{________}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trk
ertalt\cellx733\clvertalt\cellx5424\clvertalt\cellx5761\clvertalt\cellx8077\row\tro
f3\f4\fs18\b0{{Dividends}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\
keepn\ql\plain\cf3\f4\fs18\b0{{_______}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{________}}\intbl\itap1\cell\trowd\trql
\plain\cf3\f4\fs18\b0{{(5)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb
0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
cf3\f4\fs18\b0{{Salaries
cf3\f4\fs18\b0{{Capital
f4\fs18\b0{{_______}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn
\ql\plain\cf3\f4\fs18\b0{{________}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trke
3\trpaddt0\trpaddft3\clvertalt\cellx733\clvertalt\ce
llx5424\clvertalt\cellx5761\clvertalt\cellx8077\pard\plain\intbl\itap1\sa0\li0\ri0\
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
in\cf3\f4\fs18\b0{{Equipment}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\
sb0\keepn\ql\plain\cf3\f4\fs18\b0{{_______}}\intbl\itap1\cell\pard\plain\intbl\itap
1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{________}}\intbl\itap1\cell\trowd\
n\ql\plain\cf3\f4\fs18\b0{{(10)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\r
i0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Notes
lvertalt\cellx8077\clvertalt\cellx10096\pard\plain\intbl\itap1\cell\pard\plain\intb
talt\cellx5761\clvertalt\cellx8077\clvertalt\cellx10096\row\pard\plain\sa0\li0\ri0\
sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs2
4\b0{}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\par\trowd\trql\trleft0\trr
t3\clvertalt\cellx689\clvertalt\cellx3382\clvertalt\cellx6016\pard\plain\intbl\itap
ntbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18
\b0{{Type of
n\cf3\f4\fs18\b0{{(1)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\kee
pn\ql\plain\cf3\f4\fs18\b0{{A}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0
\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Dr.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0
\clvertalt\cellx689\clvertalt\cellx3382\clvertalt\cellx6016\row\trowd\trql\trleft0\
tap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(2)}}\intbl\itap1\cell\pard\pla
in\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{A}}\intbl\itap1\cell\
pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Dr.}}\intbl\i
tap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trp
0{{(3)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
\f4\fs18\b0{{R}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\p
lain\cf3\f4\fs18\b0{{Cr.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb
x689\clvertalt\cellx3382\clvertalt\cellx6016\row\trowd\trql\trleft0\trrh0\trkeep\tr
\cellx689\clvertalt\cellx3382\clvertalt\cellx6016\pard\plain\intbl\itap1\sa0\li0\ri
0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(4)}}\intbl\itap1\cell\pard\plain\intbl\itap1\
sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{N}}\intbl\itap1\cell\pard\plain\intb
l\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Dr.}}\intbl\itap1\cell\trowd
\trpaddt0\trpaddft3\clvertalt\cellx689\clvertalt\cellx3382\clvertalt\cellx6016\row\
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(5)}}\intbl\
itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{L}
8\b0{{Cr.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
plain\cf3\f4\fs18\b0{{(6)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0
\keepn\ql\plain\cf3\f4\fs18\b0{{E}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0
\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Dr.}}\intbl\itap1\cell\trowd\trql\trleft0\t
dft3\clvertalt\cellx689\clvertalt\cellx3382\clvertalt\cellx6016\row\trowd\trql\trle
trpaddft3\clvertalt\cellx689\clvertalt\cellx3382\clvertalt\cellx6016\pard\plain\int
bl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(7)}}\intbl\itap1\cell\pard
\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{N}}\intbl\itap1\c
ell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cr.}}\int
18\b0{{(8)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\cf3\f4\fs18\b0{{A}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\
ql\plain\cf3\f4\fs18\b0{{Dr.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trp
cellx689\clvertalt\cellx3382\clvertalt\cellx6016\row\trowd\trql\trleft0\trrh0\trkee
talt\cellx689\clvertalt\cellx3382\clvertalt\cellx6016\pard\plain\intbl\itap1\sa0\li
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(9)}}\intbl\itap1\cell\pard\plain\intbl\it
ap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{A}}\intbl\itap1\cell\pard\plain\
intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Dr.}}\intbl\itap1\cell\t
6016\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(10)}}\i
0{{L}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
4\fs18\b0{{Cr.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb
clvertalt\cellx3382\clvertalt\cellx6016\pard\plain\intbl\itap1\cell\pard\plain\intb
l\itap1\cell\pard\plain\intbl\itap1\cell
\
\row\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\s
a319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{211.}{\~}{All nine
transactions for Dalton Survey Company for September, the first month of
operations, are recorded in the following T
032\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\
rt\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\b
rcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10856\pard\pl
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{4,700}
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{2,000}}\intbl\itap1\cell\pard\
n\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\tr
3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cel
rl\brdrs\brdrw20\brdrcf0\cellx10856\pard\plain\intbl\itap1\cell\pard\plain\intbl\it
itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trp
addfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\b
rdrs\brdrw20\brdrcf0\cellx775\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs
ellx9032\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx10856\row\pard\plain\sa0\li0\
drw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0
\
brdrcf0\cellx775\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdr
brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx3374\pard\plain\intbl\itap1\sa0\li0\ri0\
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{2,000}{\~}
lx5198\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\c
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{7,500 }}\intbl\itap1\cell\pard\plain\
lain\cf3\f4\fs18\b0{{ (4)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0
\keepn\ql\plain\cf3\f4\fs18\b0{{4,900}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\b
\brdrw20\brdrcf0\cellx10856\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\br
rcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{ (7)}}\intbl\itap1\cell\pard\p
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{6,900}}\intbl\itap1
\brdrcf0\cellx775\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brd
rs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10856\row\trowd\trql\trleft0\
ddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\clbrdrl\brdrs\brdr
r\brdrs\brdrw20\brdrcf0\cellx9032\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx1085
6\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\ce
\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx775\clve
rdrw20\brdrcf0\cellx10856\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4
\fs18\b0{}\par\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrc
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Equipment}}\intbl\itap1\cell\pard\plai
pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Operating
Expense}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\b
brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw2
s\brdrw20\brdrcf0\cellx3374\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\br
rcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0
56\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(2)}}\intb
4,500 }}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(6)}}\intbl\itap1\cell\pard\plain\intbl\ita
p1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{5,500 }}\intbl\itap1\cell\pard\pl
itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\t
drw20\brdrcf0\cellx775\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw2
r\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10856\row\trowd\trql\trl
\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\clbrdrl\brdrs
drw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx3374\clvertalt\clbrdrl\brdrs\brdrw
20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx5198\clvertalt\clbrdrl\brdrs\brdrw20\
x10856\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\ita
drs\brdrw20\brdrcf0\cellx10856\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\c
f3\f4\fs18\b0{}\par\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\
\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brd
p1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
{4,500}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb
rdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10856\row\trowd\trql\trleft
paddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\clbrdrl\brdrs\br
cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1
r0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx775\cl
\brdrw20\brdrcf0\cellx10856\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\
f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{ Indicate the following for each debit and
each
credit:}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{}\par\trowd\trql\trleft0
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{The type of account affected (asset,
liability, equity, revenue, or
expense).}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
effect on the account, using + for increase and - for
decrease.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Present your answers in the following
form:}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{}\par\trowd\trql\trleft0\t
dft3\clvertalt\cellx2488\clvertalt\cellx4780\clvertalt\cellx6680\pard\plain\intbl\i
n\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\f
s18\b0{{Account
ertalt\cellx4780\clvertalt\cellx6680\clvertalt\cellx8483\clvertalt\cellx9992\pard\p
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul
1\fs18\b0{{Transaction}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\k
eepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{Type}}}\intbl\itap1\cel
l\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\c
f3\f4\ul1\fs18\b0{{Effect}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb
0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{Type}}}\intbl\itap1\
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plai
n\cf3\f4\ul1\fs18\b0{{Effect}}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\tr
alt\cellx6680\clvertalt\cellx8483\clvertalt\cellx9992\pard\plain\intbl\itap1\cell\p
cellx4780\clvertalt\cellx6680\clvertalt\cellx8483\clvertalt\cellx9992\row\pard\plai
n\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\pl
ain\cf3\f4\fs24\b0{}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\par\trowd\tr
paddt0\trpaddft3\clvertalt\cellx2613\clvertalt\cellx4731\clvertalt\cellx6651\pard\p
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\
cf3\f4\ul1\fs18\b0{{Account
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\u
l1\fs18\b0{{Transaction}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\
keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{Type}}}\intbl\itap1\ce
cf3\f4\ul1\fs18\b0{{Effect}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\s
b0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{Type}}}\intbl\itap1
\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\pla
in\cf3\f4\ul1\fs18\b0{{Effect}}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\t
t\cellx2613\clvertalt\cellx4731\clvertalt\cellx6651\clvertalt\cellx8472\clvertalt\c
\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cel
0096\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(1)}}\in
{{asset}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
3\f4\fs18\b0{{+}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\
plain\cf3\f4\fs18\b0{{equity}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\
sb0\keepn\ql\plain\cf3\f4\fs18\b0{{+}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\tr
vertalt\cellx2613\clvertalt\cellx4731\clvertalt\cellx6651\clvertalt\cellx8472\clver
talt\cellx10096\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trp
1\clvertalt\cellx6651\clvertalt\cellx8472\clvertalt\cellx10096\pard\plain\intbl\ita
\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{asset}}\intbl\itap1\cel
l\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{+}}\intbl\i
tap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{lia
bility}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
\f4\fs18\b0{{+}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb
i0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{asset}}\intbl\itap1\cell\pard\plain\intbl\ita
p1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{+}}\intbl\itap1\cell\pard\plain\i
ntbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{asset}}\intbl\itap1\cell\
pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{-}}\intbl\ita
p1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpad
dr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx2613\clvertalt\cellx4731\clvertalt\
ertalt\cellx2613\clvertalt\cellx4731\clvertalt\cellx6651\clvertalt\cellx8472\clvert
{{(4)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
f4\fs18\b0{{asset}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\q
l\plain\cf3\f4\fs18\b0{{+}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0
\keepn\ql\plain\cf3\f4\fs18\b0{{revenue}}\intbl\itap1\cell\pard\plain\intbl\itap1\s
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{+}}\intbl\itap1\cell\trowd\trql\trlef
x8472\clvertalt\cellx10096\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\t
rpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx2613\clverta
lt\cellx4731\clvertalt\cellx6651\clvertalt\cellx8472\clvertalt\cellx10096\pard\plai
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{liability}}\
b0{{-}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
f4\fs18\b0{{asset}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\q
l\plain\cf3\f4\fs18\b0{{-}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpadd
0096\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpa
ddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx2613\clvertalt\cellx4731\clvertalt
\cellx6651\clvertalt\cellx8472\clvertalt\cellx10096\pard\plain\intbl\itap1\sa0\li0\
ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(6)}}\intbl\itap1\cell\pard\plain\intbl\itap
1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{expense}}\intbl\itap1\cell\pard\pl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{+}}\intbl\itap1\cell
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{asset}}\intb
-}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\tr
lx8472\clvertalt\cellx10096\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
f3\f4\fs18\b0{{(7)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\
ql\plain\cf3\f4\fs18\b0{{asset}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri
0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{+}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{revenue}}\intbl\itap1\cell\pard\plain\
intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{+}}\intbl\itap1\cell\tro
r3\trpaddt0\trpaddft3\clvertalt\cellx2613\clvertalt\cellx4731\clvertalt\cellx6651\c
lvertalt\cellx8472\clvertalt\cellx10096\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb
096\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(8)}}\int
{equity}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
3\f4\fs18\b0{{-}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\
plain\cf3\f4\fs18\b0{{asset}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\s
b0\keepn\ql\plain\cf3\f4\fs18\b0{{-}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trk
ertalt\cellx2613\clvertalt\cellx4731\clvertalt\cellx6651\clvertalt\cellx8472\clvert
alt\cellx10096\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpa
ddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx2613\clvertalt\cellx4731
\clvertalt\cellx6651\clvertalt\cellx8472\clvertalt\cellx10096\pard\plain\intbl\itap
1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(9)}}\intbl\itap1\cell\pard\plain\
intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{asset}}\intbl\itap1\cell
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{+}}\intbl\it
ap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{asse
t}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\f
s18\b0{{-}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
talt\cellx8472\clvertalt\cellx10096\pard\plain\intbl\itap1\cell\pard\plain\intbl\it
addr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx2613\clvertalt\cellx4731\clvertal
t\cellx6651\clvertalt\cellx8472\clvertalt\cellx10096\row\pard\plain\sa0\li0\ri0\sb0
l\plain\cf3\f4\fs24\b0{{212.}{\~}{Increases and decreases in various types of
accounts are listed below.}{\~}{ In each case, indicate by "Dr." or "Cr." (a)
whether the change in the account would be recorded as a debit or a credit and (b)
whether the normal balance of the account is a debit or a
credit.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0
fs18\b0{{(a)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pla
in\cf3\f4\fs18\b0{{(b)}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\
ntbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
lain\cf3\f4\fs18\b0{{Recorded}}\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0\
line{}\plain\cf3\f4\ul1\fs18\b0{{As}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Normal}}\plain\cf3\f4\fs18\b0\line{}\pla
in\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{Balance}}}\intbl\itap1\cell\trowd\
\clvertalt\cellx8333\clvertalt\cellx10056\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\ke
epn\ql\plain\cf3\f4\fs18\b0{{(1)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\
ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Increase in Capital
f4\fs18\b0{{________}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keep
n\ql\plain\cf3\f4\fs18\b0{{_______}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trke
cf3\f4\fs18\b0{{Increase in
Dividends}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
cf3\f4\fs18\b0{{________}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\
keepn\ql\plain\cf3\f4\fs18\b0{{_______}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\
clvertalt\cellx733\clvertalt\cellx6314\clvertalt\cellx8333\clvertalt\cellx10056\row
ain\cf3\f4\fs18\b0{{Decrease in Accounts
lain\cf3\f4\fs18\b0{{Increase in Note
n\cf3\f4\fs18\b0{{Decrease in
f3\f4\fs18\b0{{________}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\k
eepn\ql\plain\cf3\f4\fs18\b0{{_______}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\t
lvertalt\cellx733\clvertalt\cellx6314\clvertalt\cellx8333\clvertalt\cellx10056\row\
\clvertalt\cellx10056\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\
in\cf3\f4\fs18\b0{{Decrease in Salaries
lain\cf3\f4\fs18\b0{{Increase in
\b0{{(10)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
cf3\f4\fs18\b0{{Decrease in
Land}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
ertalt\cellx10056\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plai
n\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpa
ellx733\clvertalt\cellx6314\clvertalt\cellx8333\clvertalt\cellx10056\row\pard\plain
\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\pla
in\cf3\f4\fs24\b0{}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\par\trowd\trq
addt0\trpaddft3\clvertalt\cellx697\clvertalt\cellx2462\clvertalt\cellx4227\pard\pla
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf
3\f4\ul1\fs18\b0{{(a)}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\ke
epn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{(b)}}}\intbl\itap1\cell\
\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx697\clvertalt\cellx2462\clvertalt\cell
x4227\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(1)
18\b0{{Cr.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\cf3\f4\fs18\b0{{Cr.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\tr
lx697\clvertalt\cellx2462\clvertalt\cellx4227\pard\plain\intbl\itap1\sa0\li0\ri0\sb
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Dr.}}\intbl\itap1\cell\pard\plain\intbl\
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Dr.}}\intbl\itap1\cell\trowd\t
rpaddt0\trpaddft3\clvertalt\cellx697\clvertalt\cellx2462\clvertalt\cellx4227\row\tr
fr3\trpaddt0\trpaddft3\clvertalt\cellx697\clvertalt\cellx2462\clvertalt\cellx4227\p
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(3)}}\intbl\it
ap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cr.}
8\b0{{Dr.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
plain\cf3\f4\fs18\b0{{(4)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0
\keepn\ql\plain\cf3\f4\fs18\b0{{Cr.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\l
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cr.}}\intbl\itap1\cell\trowd\trql\trleft0
addft3\clvertalt\cellx697\clvertalt\cellx2462\clvertalt\cellx4227\row\trowd\trql\tr
0\trpaddft3\clvertalt\cellx697\clvertalt\cellx2462\clvertalt\cellx4227\pard\plain\i
rd\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cr.}}\intbl\ita
p1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cr.}}
dfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx697\clvertalt\cellx2462\c
lvertalt\cellx4227\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\
lain\cf3\f4\fs18\b0{{Cr.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\
keepn\ql\plain\cf3\f4\fs18\b0{{Dr.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trke
rtalt\cellx697\clvertalt\cellx2462\clvertalt\cellx4227\row\trowd\trql\trleft0\trrh0
\clvertalt\cellx697\clvertalt\cellx2462\clvertalt\cellx4227\pard\plain\intbl\itap1\
sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(7)}}\intbl\itap1\cell\pard\plain\in
tbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cr.}}\intbl\itap1\cell\par
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Dr.}}\intbl\itap
\fs18\b0{{Dr.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pl
ain\cf3\f4\fs18\b0{{Dr.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0
cellx697\clvertalt\cellx2462\clvertalt\cellx4227\pard\plain\intbl\itap1\sa0\li0\ri0
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Dr.}}\intbl\itap1\cell\pard\plain\int
bl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Dr.}}\intbl\itap1\cell\trow
3\trpaddt0\trpaddft3\clvertalt\cellx697\clvertalt\cellx2462\clvertalt\cellx4227\row
7\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(10)}}\intb
Cr.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4
\fs18\b0{{Dr.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3
lvertalt\cellx2462\clvertalt\cellx4227\pard\plain\intbl\itap1\cell\pard\plain\intbl
\clvertalt\cellx2462\clvertalt\cellx4227\row\pard\plain\sa0\li0\ri0\sb0\keep\ql\pla
f4\fs24\b0{{213.}{\~}{Record the following selected transactions for April in a
two-column journal, identifying each entry by
letter:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Received $12,000 from Katie Long in
exchange for
in\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(b)}}\intbl\itap1\cel
equipment for $25,000, paying $10,000 in cash and giving a note payable for the
remainder.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\tr
\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(c)}}\intbl\itap1
\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Paid
$1,800 for rent for
$9,800 of supplies on
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(e)}}\intbl\itap1\c
$2,250 of fees earned on
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(f)}}\intbl\itap1\c
ell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Received
$9,000 in cash for fees
earned.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
rpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx733\clvertalt\cel
lx9975\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(g)}}\
b0{{Paid $300 to creditors on
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(h)}}\intbl\itap1\c
ell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Paid
wages of
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(i)}}\intbl\itap1\ce
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Received
$1,190 from customers on
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(j)}}\intbl\itap1\c
the payment of a $2,350
dividend.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\s
a319\li0\ri0\sb319\keep\keepn\ql\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpad
vertalt\cellx7080\clvertalt\cellx8820\clvertalt\cellx10160\pard\plain\intbl\itap1\s
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(a)}}\intbl\itap1\cell\pard\plain\int
bl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\cell\par
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{12,000}}\intbl\i
clvertalt\cellx8820\clvertalt\cellx10160\row\trowd\trql\trleft0\trrh0\trkeep\trpadd
lx740\clvertalt\cellx7080\clvertalt\cellx8820\clvertalt\cellx10160\pard\plain\intbl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{ Capital
lain\cf3\f4\fs18\b0{{12,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpa
\cellx10160\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\
(b)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4
ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trr
plain\cf3\f4\fs18\b0{{\~}
fs18\b0{{\~}{ Notes
\plain\cf3\f4\fs18\b0{{15,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\tr
{{(c)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
f4\fs18\b0{{Rent
fs18\b0{{\~}
cellx740\clvertalt\cellx7080\clvertalt\cellx8820\clvert
alt\cellx10160\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpa
pn\ql\plain\cf3\f4\fs18\b0{{(d)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\r
i0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Supplies}}\intbl\itap1\cell\pard\plain\intbl\
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{9,800}}\intbl\itap1\cell\pard\
ell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\
8820\clvertalt\cellx10160\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\tr
\cellx7080\clvertalt\cellx8820\clvertalt\cellx10160\pard\plain\intbl\itap1\sa0\li0\
\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{ Accounts
{(e)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
4\fs18\b0{{Accounts
lt\cellx740\clvertalt\cellx7080\clvertalt\cellx8820\clvertalt\cellx10160\row\trowd\
f4\fs18\b0{{\~}{ Fees
(f)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4
ertalt\cellx740\clvertalt\cellx7080\clvertalt\cellx8820\clvertalt\cellx10160\row\tr
lvertalt\cellx10160\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs
cf3\f4\fs18\b0{{\~}{ Fees
(g)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4
\fs18\b0{{Accounts
18\b0{{\~}
plain\cf3\f4\fs18\b0{{300}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpadd
cellx10160\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(h
)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\f
s18\b0{{Wages
addt0\trpaddft3\clvertalt\cellx7
40\clvertalt\cellx7080\clvertalt\cellx8820\clvertalt\cellx10160\pard\plain\intbl\it
\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}
(i)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4
ertalt\cellx740\clvertalt\cellx7080\clvertalt\cellx8820\clvertalt\cellx10160\row\tr
lvertalt\cellx10160\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs
cf3\f4\fs18\b0{{\~}{ Accounts
\ql\plain\cf3\f4\fs18\b0{{1,190}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\
\trpaddt0\trpaddft3\clvertalt\cellx740\clvertalt\cellx7080\clvertalt\cellx8820\clve
b0{{(j)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
3\f4\fs18\b0{{Dividends}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\k
eepn\ql\plain\cf3\f4\fs18\b0{{2,350}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\l
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\
ddft3\clvertalt\cellx740\clvertalt\cellx7080\clvertalt\cellx8820\clvertalt\cellx101
llx8820\clvertalt\cellx10160\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
ql\plain\cf3\f4\fs18\b0{{\~}
l\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\t
0\clvertalt\cellx7080\clvertalt\cellx8820\clvertalt\cellx10160\row\pard\plain\sa0\l
ep\keepn\ql\plain\cf3\f4\fs24\b0{{214.}{\~}{On January 12th, JumpStart Co.
purchased $870 in office
supplies. }}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\f
s24\b0{{(a) Journalize this transaction as if JumpStart paid
cash.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b
0{{(b) (1) Journalize this transaction as if JumpStart placed it on
4\b0{{(b) (2) On January 18th, JumpStart pays the amount due. Journalize this
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Jan.
fs18\b0{{Office
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\cell\pard\plain\intbl\
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{870}}\intbl\itap1\cell\trowd\t
rpaddt0\trpaddft3\clvertalt\cellx1470\clvertalt\cellx1919\clvertalt\cellx5839\row\t
dfr3\trpaddt0\trpaddft3\clvertalt\cellx1470\clvertalt\cellx1919\clvertalt\cellx5839
\clvertalt\cellx7309\clvertalt\cellx10412\pard\plain\intbl\itap1\cell\pard\plain\in
l3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx1470\clvertalt\cellx1919\cl
vertalt\cellx5839\clvertalt\cellx7309\clvertalt\cellx10412\row\pard\plain\sa0\li0\r
i0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0{}\par\trowd\trql\trleft0\trrh0\trkeep\trp
cellx1470\clvertalt\cellx1919\clvertalt\cellx5839\pard\plain\intbl\itap1\sa0\li0\ri
0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}
4\fs18\b0{{Office
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
3\f4\fs18\b0{{870}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpad
12\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\c
ell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh
0
\
{}\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpadd
r0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx1470\clvertalt\cellx1919\clvertalt\c
{\~}{\~}{\~}{\~}{\~}
4\fs18\b0{{Accounts
3\f4\fs18\b0{{870}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpad
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\cell\pard\plain\intbl\i
tap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{870}}\intbl\itap1\cell\trowd\tr
paddt0\trpaddft3\clvertalt\cellx1470\clvertalt\cellx1919\clvertalt\cellx5839\row\tr
clvertalt\cellx7309\clvertalt\cellx10412\pard\plain\intbl\itap1\cell\pard\plain\int
ertalt\cellx5839\clvertalt\cellx7309\clvertalt\cellx10412\row\pard\plain\sa0\li0\ri
0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\ke
epn\ql\plain\cf3\f4\fs24\b0{{215.}{\~}{On December 1st, JumpStart Company provides
$2,800 in services to
clients.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs2
4\b0{{(a) Journalize this event as if the clients had paid cash at the time the
services were
rendered.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs
24\b0{{(b) (1) Journalize this event as if the clients had placed this on
4\b0{{(b) (2) Assume that the clients paid $1,200 of the amount on account on
December 30th. Journalize this
n\ql\plain\cf3\f4\fs18\b0{{(a)}{\~}{\~}{\~}{\~}{\~}{ Dec. 1}{\~}{\~}
x6820\clvertalt\cellx6963\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
plain\cf3\f4\fs18\b0{{Fees
plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb
t\cellx6820\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(
b) (1)}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ 1}{\~}{\~}{ Accounts
\cf3\f4\fs18\b0{{2,800}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\
cellx6820\clvertalt\cellx6963\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\ql\plain\cf3\f4\fs18\b0{{Fees
Earned}}\plain\cf3\f4\fs18\b0{}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0
\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{2,800}}\intbl\itap1\cell\trowd\trql\trleft0\trr
t3\clvertalt\cellx2287\clvertalt\cellx6820\clvertalt\cellx6963\row\trowd\trql\trlef
rpaddft3\clvertalt\cellx2287\clvertalt\cellx6820\pard\plain\intbl\itap1\sa0\li0\ri0
\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(b) (2)}{\~}{\~}{\~}{\~}{\~}{\~}{ 30}{\~}{\~}
plain\cf3\f4\fs18\b0{{Accounts
\cf3\f4\fs18\b0{{1,200}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\
637\clvertalt\cellx10413\row\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b
0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{216.
}{\~}{On November 10th, JumpStart Co. provides $2,900 in services to clients. At
the time of service, the clients paid $600.00 in cash and put the balance on
4\b0{{(a)}{\~}{ Journalize this
b0{{(b)}{\~}{ On November 20th, JumpStart Co. clients paid an additional $900 on
their accounts due. Journalize this
b0{{(c)}{\~}{ Calculate the amount of accounts receivable on November
30th.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\pa
r\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\par\trowd\trql\trleft0\trrh0\trkeep\
lt\cellx1740\clvertalt\cellx2138\clvertalt\cellx6473\clvertalt\cellx7766\pard\plain
\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(a) Nov.
fs18\b0{{Cash}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pl
ain\cf3\f4\fs18\b0{{600}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\k
\f4\fs18\b0{{Accounts
trql\trleft
paddft3\clvertalt\cellx1740\clvertalt\cellx2138\clvertalt\cellx6473\pard\plain\intb
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Fees
ddt0\trpaddft3\clvertalt\cellx1740\clvertalt\cellx2138\clvertalt\cellx6473\row\trow
\b0{{(b)}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
4\fs18\b0{{Cash}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\
r3\trpaddt0\trpaddft3\clvertalt\cellx1740\clvertalt\cellx2138\clvertalt\cellx6473\p
p1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accou
nts
\cf3\f4\fs18\b0{{900}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\tr
0\clvertalt\cellx2138\clvertalt\cellx6473\row\trowd\trql\trleft0\trrh0\trkeep\trpad
\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\tr
ft3\clvertalt\cellx1740\clvertalt\cellx2138\clvertalt\cellx6473\clvertalt\cellx7766
\clvertalt\cellx9149\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18
\b0{}\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trp
n\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(c)}}\intbl\itap1\cell
addr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx935\clvertalt\cellx7686\row\trowd
\trpaddt0\trpaddft3\clvertalt\cellx935\clvertalt\cellx7686\clvertalt\cellx9069\pard
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Original
invoice}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
3\f4\fs18\b0{{$2,900}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\tr
lx935\clvertalt\cellx7686\clvertalt\cellx9069\pard\plain\intbl\itap1\sa0\li0\ri0\sb
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Less cash paid upon
completion}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}
{ 600}}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
pn\ql\plain\cf3\f4\fs18\b0{{Original amount on accounts
receivable}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\cf3\f4\fs18\b0{{$2,300}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0
cellx935\clvertalt\cellx7686\clvertalt\cellx9069\pard\plain\intbl\itap1\sa0\li0\ri0
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Less Nov 20th
payment}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
{ 900}}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
pn\ql\plain\cf3\f4\fs18\b0{{Accounts Receivable
balance}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{$1,400}}}\intbl\itap1\cell\trowd\trql\t
t0\trpaddft3\clvertalt\cellx935\clvertalt\cellx7686\clvertalt\cellx9069\row\trowd\t
rpaddt0\trpaddft3\clvertalt\cellx935\clvertalt\cellx7686\clvertalt\cellx9069\pard\p
lain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd
\trpaddt0\trpaddft3\clvertalt\cellx935\clvertalt\cellx7686\clvertalt\cellx9069\row\
pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\
li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{217.}{\~}{Journalize the
following selected transactions for April 2011 in a two-column journal.}{\~}
{ Journal entry explanations may be
omitted.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft
paddft3\clvertalt\cellx1164\clvertalt\cellx10291\pard\plain\intbl\itap1\sa0\li0\ri0
\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{April
s18\b0{{Received cash for capital stock,
$14,000.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpa
3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx1164\clvertalt\cellx10291\pa
rd\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{2}}\intbl\itap1
\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Receive
d cash for providing accounting services,
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Billed
customers on account for providing services,
advertising expense,
lx10291\row\trowd\trql\trleft0\trr
t3\clvertalt\cellx1164\clvertalt\cellx10291\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\
keepn\ql\plain\cf3\f4\fs18\b0{{5}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\
ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Received cash from customers on account,
cash dividends,
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Received
telephone bill,
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{8}}\intbl\itap1\ce
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Paid
telephone bill,
lt\cellx1164\clvertalt\cellx10291\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plai
1{\plain\cf3\f4\fs18\b1\line{}\plain\cf3\f4\fs18\b1{{Date}}}\intbl\itap1\cell\pard\
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\
b1\line{}\plain\cf3\f4\fs18\b1{{Description}}}\intbl\itap1\cell\pard\plain\intbl\it
ap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Post.
f4\fs18\b1{\plain\cf3\f4\fs18\b1\line{}\plain\cf3\f4\fs18\b1{{Debit}}}\intbl\itap1\
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf
3\f4\fs18\b1\line{}\plain\cf3\f4\fs18\b1{{Credit}}}\intbl\itap1\cell\trowd\trql\trb
brdrc
f0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10378\row\trowd\trql\trbrdrt\brdrs\brdrw20\br
ll\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\b
brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10378\row\
trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdr
s\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrd
rv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3
\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbr
drs\brdrw20\brdrcf0\cellx10378\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb
\brdrw20\brdrcf0\cellx10378\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\
brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10378\row\trowd\trql\trbrdrt\brdrs\brdrw
rw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdr
drcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10378\pard\p
\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trb
rdrs\brdrw20\brdrcf0\cellx10378\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdr
s\brdrw20\brdrcf0\cellx10378\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
tap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trq
drr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10378\row\trowd\trql\t
brdrcf0\cellx10378\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw
rw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10378\row\trowd\trql\trbrdrt\brdrs\
0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr
\
sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\int
bl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd
clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10378\row\trowd\tr
cellx8099\clvertalt\clbrdrb\brdrs\brdr
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\tr
r\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10378\pard\plain\intbl\i
\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\b
\brdrcf0\cellx10378\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdr
\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\br
drw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10378\row\trowd\trql\trbrdrt\brdrs
20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10378\pard\plain\intbl\itap1\sa0\li0\
x10378\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\t
l\itap1\cell\pard\plain\intbl\itap1\sa0
\
8\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr
0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx1465\cl
lbrdrl\brdrs\brdrw20\brdrcf0\cellx10378\pard\plain\intbl\itap1\cell\pard\plain\intb
\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cell
ertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx10378\row\pard\plain\sa0\li0\ri0\sb0\keep
\keepn\ql\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\
par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{}\par\trowd\trql\
r\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10484\pard\plain\intbl\i
tap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1\line{}\pla
in\cf3\f4\fs18\b1{{Date}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\
keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1\line{}\plain\cf3\f4\fs18\b1{{De
scription}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Post.
f4\fs18\b1{\plain\cf3\f4\fs18\b1\line{}\plain\cf3\f4\fs18\b1{{Debit }}}\intbl\itap1
\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\c
f3\f4\fs18\b1\line{}\plain\cf3\f4\fs18\b1{{Credit}}}\intbl\itap1\cell\trowd\trql\tr
brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10484\row\trowd\trql\trbrd
rs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10484\pard\plain\intbl\itap1\
sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{April}{\~}{\~}{ }{\~}{\~}{\~}{\~}
{\~}
eepn\ql\plain\cf3\f4\fs18\b0{{14,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt
\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\
trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\b
rdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr
3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\
\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10484\row\trowd\trql\trbrdrt\br
ap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}{ Capital
eepn\ql\plain\cf3\f4\fs18\b0{{14,000}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\br
rdrcf0\cellx6393\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20
\
4\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\
p1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}
{ Revenues}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
sb0\keepn\ql\plain\cf3\f4\fs18\b0{{9,500}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdr
\brdr
w20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10484\
row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\
{\~}{\~}{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}
\fs18\b0{{Accounts
\ql\plain\cf3\f4\fs18\b0{{4,200}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\r
i0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdr
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}
{ Revenues}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
4\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}
\fs18\b0{{Advertising
rdrcf0\clbrdrt\brd
\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}
\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\
p1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}{ Accounts
rdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\b
drs\brdrw20\brdrcf0\cellx10484\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plai
n\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}{\~}
\fs18\b0{{Dividends}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn
sb0\keepn\ql\plain\cf3\f4\fs18\b0{{1,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\
sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trb
l\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}
trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0
\
s18\b0{{\~}{\~}{\~}{\~}{\~}
\fs18\b0{{Telephone
rdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10484\row\trowd\trql\trbrdrt\brdrs\brdrw2
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}{ Accounts
1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrd
w20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10484\
row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\
{\~}
\fs18\b0{{Accounts
paddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\br
\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}
drcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10484\row\trowd\trql\trleft0\trrh0\trkeep\
r\brdrs\brdrw20\brdrcf0\cellx8490\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx1048
4\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\ce
\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx1480\clvertalt\clbrdrl\brdrs\brdrw20\
ellx10484\row\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\par
d\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{218.}{\~}{Analyze
the following transactions as to their effect on the accounting
equation.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trlef
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{The company paid $725 to a vendor for
supplies purchased previously on
company performed $850 of services and billed the
customer.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(c)}}\intbl\itap1\
company received a utility bill for $395 and will pay it next
l\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{The
stockholder of the company received a cash dividend of
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(e)}}\intbl\itap1\ce
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{The
company paid $315 in salaries to its
\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(f)}}\intbl\itap1
\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{The
company collected $730 of cash from its customers on
t\cellx733\clvertalt\cellx9975\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\c
f3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Some of the possible effects of a
transaction on the accounting equation are listed
below:}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{}\par\trowd\trql\trleft0\
ddft3\clvertalt\cellx726\clvertalt\cellx9870\pard\plain\intbl\itap1\sa0\li0\ri0\sb0
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Asset, dr.; Asset,
Revenue,
Liability,
Revenue,
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Liability,
dr.; Assets,
dr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx726\clvertalt\cellx9870\par
1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Equity
, dr.; Asset,
Assets,
Liability,
lx726\clvertalt\cellx9870\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4
\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Put the appropriate letter next to each
n\ql\plain\cf3\f4\fs18\b0{{Transaction}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Effect on the accounting
equation}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpa
\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(a)}}\intbl\itap1
\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx2161\clvertalt\cellx6922\row\
ddfr3\trpaddt0\trpaddft3\clvertalt\cellx2161\clvertalt\cellx6922\pard\plain\intbl\i
tap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(b)}}\intbl\itap1\cell\pard\pla
in\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{4}}\intbl\itap1\cell\
ddfr3\trpaddt0\trpaddft3\clvertalt\cellx2161\clvertalt\cellx6922\row\trowd\trql\trl
\trpaddft3\clvertalt\cellx2161\clvertalt\cellx6922\pard\plain\intbl\itap1\sa0\li0\r
i0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(c)}}\intbl\itap1\cell\pard\plain\intbl\itap1
\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{8}}\intbl\itap1\cell\trowd\trql\trl
\trpaddft3\clvertalt\cellx2161\clvertalt\cellx6922\row\trowd\trql\trleft0\trrh0\trk
ertalt\cellx2161\clvertalt\cellx6922\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\q
l\plain\cf3\f4\fs18\b0{{(d)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\s
b0\keepn\ql\plain\cf3\f4\fs18\b0{{6}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trk
ertalt\cellx2161\clvertalt\cellx6922\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\t
\fs18\b0{{(e)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pl
ain\cf3\f4\fs18\b0{{7}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\t
ellx6922\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(f)}
8\b0{{1}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
b0{{219.}{\~}{Calculate the
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Determine the cash receipts for April
based on the following
\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash payments during
f4\fs18\b0{{$45,500}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trp
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash account balance, April
s18\b0{{6,750}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3
sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash account balance, April
fs18\b0{{10,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddf
\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trp
6380\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(b)}}\in
{{Determine the
cash received from customers on account during April based on the following
\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts receivable account balance, April
s18\b0{{$10,500}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddf
0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts receivable account balance, April
\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Fees billed to customers during
689\clvertalt\cellx6380\clvertalt\cellx9385\pard\plain\intbl\itap1\cell\pard\plain\
lx689\clvertalt\cellx6380\clvertalt\cellx9385\row\pard\plain\sa0\li0\ri0\sb0\keep\k
r\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\par\trowd\trql\trleft0\trrh0\trkeep\
ain\cf3\f4\fs18\b0{{(a)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\k
eepn\ql\plain\cf3\f4\fs18\b0{{$48,750 ($10,000 + $45,500 -
$6,750)}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$29,250
($10,500 + $26,000 -
b0{{220.}{\~}{The bookkeeper for Brockton Industries prepared the following journal
entries and posted the entries to the general ledger as indicated in the T accounts
presented. Assume that the dollar amounts and the descriptions of the entries are
correct.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft
paddft3\clvertalt\cellx1304\clvertalt\cellx8186\clvertalt\cellx9490\clvertalt\cellx
10688\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{July}
{\~}{\~}
\fs18\b0{{Accounts
Receivable }}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plai
n\cf3\f4\fs18\b0{{1,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\k
f3\f4\fs18\b0{{\~}{\~}{\~}{\~}{ Service
Revenue }}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ Customers were billed for services
completed.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
cellx1304\clvertalt\cellx8186\clvertalt\cellx9490\clvertalt\cellx10688\row\trowd\tr
lt\cellx1304\clvertalt\cellx8186\clvertalt\cellx9490\clvertalt\cellx10688\row\trowd
\b0{{11}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
3\f4\fs18\b0{{Cash }}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn
lain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}{ Service Revenue}{\~}
ft0\trrh0\trkeep\trpaddb
x1304\clvertalt\cellx8186\clvertalt\cellx9490\clvertalt\cellx10688\pard\plain\intbl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}{
Payment is received from a customer billed for services on July
1.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\
n\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\tr
ellx10688\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{12}
8\b0{{Office
f3\f4\fs18\b0{{600}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\
ellx1304\clvertalt\cellx8186\clvertalt\cellx9490\clvertalt\cellx10688\row\trowd\trq
\fs18\b0{{\~}{\~}{\~}{\~}{ Accounts Payable}{\~}
b0{{\~}{\~}{\~}{\~}{\~}{ Purchased office furniture on credit; payment is due in 30
fs18\b0{{Office
Furniture }}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
f4\fs18\b0{{\~}{\~}{\~}{\~}
{ Cash }}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
fs18\b0{{\~}{\~}{\~}{\~}{\~}{ Payment is made for office furniture received
on }}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}{ July
12.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4
ap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpad
lvertalt\cellx8186\clvertalt\cellx9490\clvertalt\cellx10688\row\pard\plain\sa0\li0\
cellx2970\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Acc
ounts
\ql\plain\cf3\f4\fs18\b0{{Service
Revenue}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\b
rs\
cf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10618\pard\pla
in\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{7/3}}\intbl\itap1\cel
l\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{1,000}}\int
{{\u189}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{7/3}}\intbl\itap1\cell\pard\plain\intbl\i
tap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{1,000}}\intbl\itap1\cell\pard\p
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{{\u189}}}\intbl\ita
s\brdrw20\brdrcf0\cellx10618\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\b
rdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\tr
brdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpa
rt\brdrs\brdrw20\brdrcf0\cellx10618\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{{\u189}}}\intbl\itap1\cell\pard\plain\intb
\cf3\f4\fs18\b0{{{\u189}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\
keepn\ql\plain\cf3\f4\fs18\b0{{7/11}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\l
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{500}}\intbl\itap1\cell\trowd\trql\trbrdrt
\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\
trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\b
rdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr
3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\
dt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx1058\clvertalt\clbrdrl\b
1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\ita
p1\cell\pard\plain\intbl\itap1\cell\par
d\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl
0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\b
clbrdrl\brdrs\brdrw20\brdrcf0\cellx10618\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\
ql\plain\cf3\f4\fs18\b0{}\par\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdr
n\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\cel
itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Ac
counts
Payable}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\b
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{7/11}}\intbl\itap1
\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{500}}\i
0{{{\u189}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\cf3\f4\fs18\b0{{7/25}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\kee
pn\ql\plain\cf3\f4\fs18\b0{{600}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\r
sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{7/12}}\intbl\itap1\cell\pard\plain\i
ntbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{600}}\intbl\itap1\cell\pa
rd\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{{\u189}}}\intbl
s18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdr
brdrs\brdrw20\brdrcf0\cellx10618\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpad
dfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brd
brdrw20\brdrcf0\cellx2014\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brd
2\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx10618\pard\plain\intbl\itap1\cell\pa
addl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw
alt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx10618\row\pard\plain\sa0\li0\ri0\sb0\keep\ke
epn\ql\plain\cf3\f4\fs18\b0{}\par\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\
clbrdrb\brdrs\brdrw20\brdrcf0\cl
0\keepn\ql\plain\cf3\f4\fs18\b0{{Office
l\plain\cf3\f4\fs18\b0{{Office
Furniture}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{7/12}}\intbl\ita
p1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{600}}
\b0{{{\u189}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pla
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{7/25}}\intbl\itap1\cell\pard\plain\in
tbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{600}}\intbl\itap1\cell\par
rdrs\brdrw20\brdrcf0\cellx10618\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpadd
fb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdr
lt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx10618\row\pard\plain\sa0\li0\ri0\sb0\keep\kee
pn\ql\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{REQUIRED:}}\plain\cf3\f4\fs
18\b0\line{}\plain\cf3\f4\fs18\b0{{If you assume that all journal entries have been
recorded correctly, use the above information
to: }}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{(1) Identify the postings
to the general ledger that were made
incorrectly. }}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{(2) Describe how
each incorrect posting should have been
made.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\pa
r\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{(1) The
bookkeeper incorrectly posted the July 3, July 11, and July 12 journal
entries. }}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{(2) For the July 3
journal entry, the $1,000 credit to Service Revenue should have been posted to the
Service Revenue account as a credit, not as a debit. For the July 11 journal entry,
the $500 credit should be posted to Accounts Receivable, not to Service Revenue.
For the July 12 journal entry, the $600 credit to Accounts Payable should have been
posted to the Accounts Payable account as a credit, not as a debit.}{\~}{ The debit
side of the entry should have been made to Office Furniture, not Office
Supplies.}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\p
ard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{221.}{\~}{Set up
T accounts for Cash, Accounts Receivable, Supplies, Accounts Payable, Capital
Stock, Dividends, Professional Fees, and Operating
Expenses.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trlef
t0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpa
ddt0\trpaddft3\clvertalt\cellx733\clvertalt\cellx1367\pard\plain\intbl\itap1\sa0\li
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(a)}}\intbl\itap1\cell\pard\plain\intbl\it
ap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{In the T accounts, record the
following transactions of Potter Pool Services for June, 2011, identifying each
entry by
number:}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
ain\cf3\f4\fs18\b0{{Dan Potter invested $12,500 cash in the business in exchange
for
lx1367\clvertalt\cellx10015\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\
\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Purchased supplies on account,
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Paid operating expenses,
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Billed clients for fees,
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Received cash from cash clients,
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Paid creditors on account,
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Received $3,100 from clients on
talt\cellx1367\clvertalt\cellx10015\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{The company paid Dan $1,500 in cash
dividends.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\tr
\cellx1367\clvertalt\cellx10015\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpadd
rtalt\cellx1367\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trp
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(b)}}\intbl\
itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Pr
epare a trial balance as of June 30, 2011 for Potter Pool
Services.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx733\clvertalt\cellx1367\row\tr
fr3\trpaddt0\trpaddft3\clvertalt\cellx733\clvertalt\cellx1367\pard\plain\intbl\itap
1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(c)}}\intbl\itap1\cell\pard\plain\
intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Assuming that supplies
expense (which has not been recorded) amounts to $1,500 for June, determine net
income for the
t\cellx10015\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\int
talt\cellx10015\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{\
plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa319\li0\ri0\sb3
19\keep\keepn\ql\par\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20
t\brdrs\brdrw20\brdrcf0\cellx775\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pl
ain\cf3\f4\fs18\b0{{(a)}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0
brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx775\row\trowd\trql\trbrdrt\brdrs
0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\cl
rcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx2704\clve
\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\cell\pard\plain\intbl\it
\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Capital
\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrc
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{3,100}
rdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10856\row\trowd\trql\trleft
paddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\clbrdrl\brdrs\br
cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1
r0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx775\cl
\brdrw20\brdrcf0\cellx10856\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\
f4\fs18\b0{}\par\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brd
drs\brdrw20\brdrcf0\cellx775\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\
sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
rs\brdrw20\brdrcf0\
rcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10856\row\tro
r3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\cl
rdrcf0\cellx10856\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plai
n\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\pla
paddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrc
f0\cellx775\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\c
\clbrdrl\brdrs\brdrw20\brdrcf0\cellx10856\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn
\ql\plain\cf3\f4\fs18\b0{}\par\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brd
cf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\
n\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Supplies}}\intbl\itap1
{{Professional
Fees}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdr
rdrt\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl
rdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx3374\row\trowd\trql\t
\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10856\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\ke
epn\ql\plain\cf3\f4\fs18\b0{{(2)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\
ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{6,250}
l\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{ (4)}}\intbl\itap1\cell\pard
\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~
ql\plain\cf3\f4\fs18\b0{{ (5)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0
\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{4,700}}\intbl\itap1\cell\trowd\trql\trbrdrt\brd
cf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\
rdrs\brdrw20\brdrcf0\cellx10856\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpadd
fb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdr
s\brdrw20\brdrcf0\cellx775\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\br
x9032\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx10856\pard\plain\intbl\itap1\cel
ell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh
3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\clbrdrl\brdrs\brdrw20\
drs\brdrw20\brdrcf0\cellx9032\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx10856\ro
w\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0{}\par\trowd\trql\tr
rw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx775\c
\cf3\f4\fs18\b0{{Accounts
\plain\cf3\f4\fs18\b0{{Operating
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{1,400}
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{5,500 }}\intbl\itap1\cell\pard
dt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\clbrdrl\br
brdrcf0\clbrdr
s\brdrw20\brdrcf0\cellx9032\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx10856\pard
rd\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\t
dfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\
\brdrcf0\cellx10856\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\
b0\line{}\plain\cf3\f4\fs18\b0{}\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpad
dfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx7040\p
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(b)}}\intbl\it
ap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpa
ddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx7040\row\trowd\trql\trleft0\trrh0\
18\b1{\plain\cf3\f4\fs18\b1{{Potter Pool
Services}}\plain\cf3\f4\fs18\b1\line{}\plain\cf3\f4\fs18\b1{{Trial
June 30,
addt0\trpaddft3\clvertalt\cellx7040\clvertalt\cellx8480\clvertalt\cellx10120\pard\p
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{11,900}}
\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
rtalt\cellx8480\clvertalt\cellx10120\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\q
l\plain\cf3\f4\fs18\b0{{Accounts
lt\cellx7040\clvertalt\cellx8480\clvertalt\cellx10120\row\trowd\trql\trleft0\trrh0\
\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Supplies}}\intbl\itap1\cell\pard\pl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{6,250}}\intbl\itap1\
\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx7040\clvertalt\cellx8480\clve
rtalt\cellx10120\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\tr
4\fs18\b0{{Accounts
ertalt\cellx7040\clvertalt\cellx8480\clvertalt\cellx10120\pard\plain\intbl\itap1\sa
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Capital
ellx7040\clvertalt\cellx8480\clvertalt\cellx10120\row\trowd\trql\trleft0\trrh0\trke
rtalt\cellx7040\clvertalt\cellx8480\clvertalt\cellx10120\pard\plain\intbl\itap1\sa0
\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{1,500}}\intbl\itap1\cel
itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\tr
lt\cellx10120\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpad
s18\b0{{Professional
ain\cf3\f4\fs18\b0{{12,140}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpad
talt\cellx7040\clvertalt\cellx8480\clvertalt\cellx10120\pard\plain\intbl\itap1\sa0\
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Operating
Expenses}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
f3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}
{ 5,500}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
f3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}
8480\clvertalt\cellx10120\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\tr
epn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{29,490}}}\intbl\itap1\ce
cf3\f4\ul1\fs18\b0{{29,490}}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpa
rtalt\cellx7040\clvertalt\cellx8480\clvertalt\cellx10120\pard\plain\intbl\itap1\cel
clvertalt\cellx7040\clvertalt\cellx8480\clvertalt\cellx10120\row\pard\plain\sa0\li0
\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0{}\par\trowd\trql\trleft0\trrh0\trkeep\t
t\cellx733\clvertalt\cellx9975\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plai
n\cf3\f4\fs18\b0{{(c)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\kee
pn\ql\plain\cf3\f4\fs18\b0{{ $5,140 ($12,140 - $5,500 -
\cellx733\clvertalt\cellx9975\row\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\f
{222.}{\~}{Prepare a trial balance, listing the following accounts in proper
sequence.}{\~}{ The accounts (all normal balances) were taken from the ledger of
Sophie Designs Co. on April 30,
2010.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0\t
dft3\clvertalt\cellx3207\clv
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
3\f4\fs18\b0{{$
lain\cf3\f4\fs18\b0{{Rent
3\f4\fs18\b0{{$11,500}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\t
i0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Salary
x5563\clvertalt\cellx8176\clvertalt\cellx10096\pard\plain\intbl\itap1\sa0\li0\ri0\s
b0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{7,375}}\intbl\itap1\cell\pard\plain\in
\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Fees
f4\fs18\b0{{10,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\
b0\keepn\ql\plain\cf3\f4\fs18\b0{{Supplies}}\intbl\itap1\cell\pard\plain\intbl\itap
1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{3,125}}\intbl\itap1\cell\trowd\trq
lt\cellx8176\clvertalt\cellx10096\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpa
clvertalt\cellx5028\clvertalt\cellx5563\clvertalt\cellx8176\clvertalt\cellx10096\pa
rd\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Dividends}}\int
plain\cf3\f4\fs18\b0{{Supplies
0\keepn\ql\plain\cf3\f4\fs18\b0{{Equipment}}\intbl\itap1\cell\pard\plain\intbl\itap
1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{24,500}}\intbl\itap1\cell\pard\pla
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Utilities
0\keepn\ql\plain\cf3\f4\fs18\b0{{Miscellaneous
0\keepn\ql\plain\cf3\f4\fs18\b0{{Retained
f3\f4\fs18\b0{{7,800}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\tr
x5563\clvertalt\cellx8176\clvertalt\cellx10096\pard\plain\intbl\itap1\cell\pard\pla
28\clvertalt\cellx5563\clvertalt\cellx8176\clvertalt\cellx10096\row\pard\plain\sa0\
li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf
3\f4\fs24\b0{}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{}
\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0
\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx6472\pard\plain\intbl\itap1\sa0\li0\ri
0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Sophie Designs
Co.}}\plain\cf3\f4\fs18\b1\line{}\plain\cf3\f4\fs18\b1{{Trial
April 30,
b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
lt\cellx6472\clvertalt\cellx8096\clvertalt\cellx10016\row\trowd\trql\trleft0\trrh0\
\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Supplies}}\intbl\itap1\cell\pard\pl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{3,125}}\intbl\itap1\
rtalt\cellx10016\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\tr
4\fs18\b0{{Equipment}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keep
n\ql\plain\cf3\f4\fs18\b0{{24,500}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0
\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\tr
ft3\clv
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ft3\clvertalt\cellx6472\clvertalt\cellx8096\clvertalt\cellx10016\pard\plain\intbl\i
tap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Retained
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Dividends}}\intbl\itap1\cell\pard\pla
in\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{5,500}}\intbl\itap1\c
\fs18\b0{{Fees
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Salary
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Rent
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Utilities
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Supplies
n\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{76,000}}}\intbl\itap1\cell
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf
3\f4\ul1\fs18\b0{{76,000}}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpadd
lx6472\clvertalt\cellx8096\clvertalt\cellx10016\row\trowd\trql\trleft0\trrh0\trkeep
alt\cellx6472\clvertalt\cellx8096\clvertalt\cellx10016\pard\plain\intbl\itap1\cell\
vertalt\cellx6472\clvertalt\cellx8096\clvertalt\cellx10016\row\pard\plain\sa0\li0\r
eepn\ql\plain\cf3\f4\fs24\b0{{223.}
{\~}}\plain\cf3\f4\fs24\b1{\plain\cf3\f4\fs24\b1{{Exhibit 2-
1}}\plain\cf3\f4\fs24\b1\line{}}\plain\cf3\f4\fs24\b0{{All nine transactions for
Ralston Sports Co. for September 2011, the first month of operations, are recorded
in the following T
drw20\brdrcf0\trleft0\trrh0\trkeep\
0\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\clbrdrb\brdrs\brdrw20\br
lx10856\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(1)}}
\b0{{25,000}
n\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{ (1)}}\intbl\itap1\cel
l\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{25,000}}\in
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{11,900}
l\plain\cf3\f4\fs18\b0{{(9)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\s
b0\keepn\ql\plain\cf3\f4\fs18\b0{{9,700}
pard\plain\intbl\itap1
\
sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trb
w20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx775\cl
lbrdrt\brdrs\brdrw20\brdrcf0\cellx10856\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf
\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\clbrdrb\brdrs\brd
ain\cf3\f4\fs18\b0{{ (8)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\
keepn\ql\plain\cf3\f4\fs18\b0{{7,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\
\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\br
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rpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\clbrdr
f0\cellx10856\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\in
ellx775\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx
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clbrdrt\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbr
clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx3374\pard\plain\in
tbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
drt\brdrs\brdrw20\brdrcf0\cellx5198\clvertalt\clbrdrb\b
f3\f4\fs18\b0{{9,900}
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{12,500 }}\intbl\itap1\cell\pard\plain\intb
\cf3\f4\fs18\b0{{ (4)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\kee
pn\ql\plain\cf3\f4\fs18\b0{{9,900}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw
cf0\clbrdrt\brdrs
\
keepn\ql\plain\cf3\f4\fs18\b0{{ (7)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\l
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{11,900}}\intbl\itap1\cell\trowd\trql\trbr
brdrt\brdrs\brdrw20\brdrcf0\cellx10856\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0
rr\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\b
f0\cellx9032\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx10856\pard\plain\intbl\it
itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trlef
rpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\clbrdrl\brdrs\b
0856\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0{}\par\trowd\
lx775\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr
l\plain\cf3\f4\fs18\b0{{Equipment}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0
1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Operating
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{9,500 }}\intbl\itap1\cell\pard\plain\int
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b
lain\cf3\f4\fs18\b0{{(6)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\
keepn\ql\plain\cf3\f4\fs18\b0{{10,500 }}\intbl\itap1\cell\pard\plain\intbl\itap1\sa
x775\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\
drcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10856\row\trowd\trql\trleft0\trrh0\trkeep\
lt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\c
20\brdrcf0\cellx9032\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx10856\pard\plain\
intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain
\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plai
n\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\tr
paddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\clbrdrl
0\cellx10856\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0{}\pa
r\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\br
drs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trb
rdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddf
l3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\cl
rcf0\cellx775\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0
rcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx3374\pard\plain\intbl\itap1\sa0\li0\ri0\sb0
1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\t
\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10856\row\trowd\trql\trleft0\trrh0\trkeep\trpad
brdrr\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdr
s\brdrw20\brdrcf0\cellx5198\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs
\
brdrw20\brdrcf0\cellx5868\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brd
rdrcf0\cellx9032\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx10856\pard\plain\intb
tbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\t
t0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx775\clvertalt\clbrdrl\brd
lain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{ Refer
to }}\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Exhibit 2-
1}}}\plain\cf3\f4\fs18\b0{{.}{\~}{ Prepare a trial balance, listing the accounts in
their proper
order.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\p
ar\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{}\par\trowd\trql\t
t0\trpaddft3\clvertalt\cellx7040\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pl
ain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Ralston Sports
Company}}\plain\cf3\f4\fs18\b1\line{}\plain\cf3\f4\fs18\b1{{Trial
September 30,
b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Supplies}}\intbl\itap1\cell\pard\plai
n\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{12,500}}\intbl\itap1\c
\ql\plain\cf3\f4\fs18\b0{{9,500}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\r
rpaddft3\clvertalt\cellx7040\clvertalt\cellx8580\clvertalt\cellx10120\pard\plain\in
tbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{7,000}}\intbl\itap1\cel
itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\tr
lt\cellx10120\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpad
s18\b0{{Fees
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Operating
Expenses}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
f3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{10,500}}}\intbl\itap1\cell\pard\plain\
intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs1
8\b0{{\~}{\~}{\~}{\~}{\~}{ }{\~}{\~}{\~}{\~}
{\~}}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0
x8580\clvertalt\cellx10120\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\t
rpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx7040\clverta
eepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{48,700}}}\intbl\itap1\c
ell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain
\cf3\f4\ul1\fs18\b0{{48,700}}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trp
\clvertalt\cellx7040\clvertalt\cellx8580\clvertalt\cellx10120\row\pard\plain\sa0\li
0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\kee
p\keepn\ql\plain\cf3\f4\fs24\b0{{224.}
{\~}}\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trp
n\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(a)}}\intbl\itap1\cell
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{List the
errors in the following trial balance. All accounts have normal
balances.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
cellx9975\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0
\
975\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(b)}}\int
{What would be the new totals of the trial balance after errors are corrected? What
would be the balance of Accounts
Receivable?}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\t
talt\cellx733\clvertalt\cellx9975\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plai
n\cf3\f4\fs18\b0{}\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\
trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx7089\pard\plain\intb
l\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Winslo
w}{{\u8217}}{s Auto Body}}\plain\cf3\f4\fs18\b1\line{}\plain\cf3\f4\fs18\b1{{Trial
For Month Ending April 30,
addt0\trpaddft3\clvertalt\cellx7089\clvertalt\cellx8500\clvertalt\cellx9911\pard\pl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\c
19,475}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
lain\cf3\f4\fs18\b0{{Accounts
\cf3\f4\fs18\b0{{?}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\
talt\cellx7089\clvertalt\cellx8500\clvertalt\cellx9911\pard\plain\intbl\itap1\sa0\l
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Supplies}}\intbl\itap1\cell\pard\plain\in
p1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpad
dr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx7089\clvertalt\cellx8500\clvertalt\
0{{Equipment}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pla
in\cf3\f4\fs18\b0{{15,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0
rtalt\cellx7089\clvertalt\cellx8500\clvertalt\cellx9911\row\trowd\trql\trleft0\trrh
3\clvertalt\cellx7089\clvertalt\cellx8500\clvertalt\cellx9911\pard\plain\intbl\itap
1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Prepaid
ql\plain\cf3\f4\fs18\b0{{500}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trp
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Capital
llx7089\clvertalt\cellx8500\clvertalt\cellx9911\row\trowd\trql\trleft0\trrh0\trkeep
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Retained
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Dividends}}\intbl\itap1\cell\pard\plai
18\b0{{Fees
\cellx7089\clvertalt\cellx8500\clvertalt\cellx9911\row\trowd\trql\trleft0\trrh0\trk
ertalt\cellx7089\clvertalt\cellx8500\clvertalt\cellx9911\pard\plain\intbl\itap1\sa0
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Utilities
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Supplies
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Miscellaneous
ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{55,000}}}\intbl\itap1\cell\p
f4\ul1\fs18\b0{{81,575}}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0
7089\clvertalt\cellx8500\clvertalt\cellx9911\row\trowd\trql\trleft0\trrh0\trkeep\tr
\cellx7089\clvertalt\cellx8500\clvertalt\cellx9911\pard\plain\intbl\itap1\cell\pard
alt\cellx7089\clvertalt\cellx8500\clvertalt\cellx9911\row\pard\plain\sa0\li0\ri0\sb
0\keep\keepn\ql\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\
b0{}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\par\trowd\trql\trleft0\trrh0
\clvertalt\cellx726\clvertalt\cellx1354\clvertalt\cellx9911\pard\plain\intbl\itap1\
sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(a)}}\intbl\itap1\cell\pard\plain\in
tbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(1)}}\intbl\itap1\cell\par
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{In the heading,
the date should be April 30, 2011; not for a period of
time.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl
n\ql\plain\cf3\f4\fs18\b0{{(2)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri
0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{The cash balance should be a
debit.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
i0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Capital Stock and Retained Earnings should be
credits.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpa
\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{The supplies account should be a
i0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Prepaid Insurance should be a debit and
follow Accounts
t\cellx1354\clvertalt\cellx9911\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpadd
ertalt\cellx1354\clvertalt\cellx9911\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\q
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Dividends should be a
i0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Rent Expense should be a
i0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{The trial balance does not
rtalt\cellx1354\clvertalt\cellx9911\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\pl
ain\cf3\f4\fs18\b0{}\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl
x10291\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(b)}}\
b0{{The new total for credits would be accounts payable $2,500 + fees earned
$49,600 + capital stock $5,000 + retained earnings $12,000 = total $69,100.
Accounts receivable would be $69,100 (total credits) - $66,025 (corrected debits) =
b0{{225.}{\~}{Answer the following questions for each of the errors listed below,
considered
individually:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\t
t0\trpaddft3\clvertalt\cellx718\clvertalt\cellx9764\pard\plain\intbl\itap1\sa0\li0\
ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(a)}}\intbl\itap1\cell\pard\plain\intbl\itap
1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Did the error cause the trial
balance totals
to be
unequal?}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpa
ell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{What is
the amount of the difference between the trial balance totals (where
rd\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(c)}}\intbl\ita
p1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Which
of the trial balance totals, debit or credit, is the larger (where
rtalt\cellx718\clvertalt\cellx9764\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\pla
in\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Present your answers in columnar
form, using the following
headings:}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{}\par\trowd\trql\trlef
x10687\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Error}
8\b0{{Totals}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pla
in\cf3\f4\fs18\b0{{Difference in
Totals}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
\f4\fs18\b0{{Larger of
Totals}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
talt\cellx2882\clvertalt\cellx5449\clvertalt\cellx8226\clvertalt\cellx10687\pard\pl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1
\fs18\b0{{(identifying
number)}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
f3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{(equal or
unequal)}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{(amount)}}}\intbl\itap1\cell\pard\pla
in\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\
fs18\b0{{(debit or
credit)}}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpa
x5449\clvertalt\cellx8226\clvertalt\cellx10687\row\pard\plain\sa0\li0\ri0\sb0\keep\
keepn\ql\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Errors:}}\plain\cf3\f4\f
s18\b0{}\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\
dividend of $3,000 cash paid to the company}{{\u8217}}{s owner and only stockholder
was recorded by a debit of $3,000 to Salary Expense and a credit of $3,000 to
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{A $650
purchase of supplies on account was recorded as a debit of $1,650 to Equipment and
a credit of $1,650 to Accounts
Payable.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpa
purchase of equipment for $3,450 on account was not
recorded.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{A $870
receipt on account was recorded as a $870 debit to Cash and a $780 credit to
Accounts
1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{A
payment of $1,530 cash on account was recorded only as a credit to
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash sales
of $8,500 were recorded as a credit of $8,500 to Cash and a credit of $8,500 to
Fees
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{The debit
to record a $4,000 cash receipt on account was posted twice; the credit was posted
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{The credit
to record a $300 cash payment on account was posted twice; the debit was posted
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{The debit
balance of $7,400 in Accounts Receivable was recorded in the trial balance as a
debit of
19\li0\ri
0\sb319\keep\keepn\ql\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
llx4122\clvertalt\cellx6284\clvertalt\cellx7537\pard\plain\intbl\itap1\sa0\li0\ri0\
sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{Error}}}\intbl\ita
p1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\p
lain\cf3\f4\ul1\fs18\b0{{Totals}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\
ri0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{Difference in
Totals}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{Larger of
Totals}}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
ain\cf3\f4\fs18\b0{{(1)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\k
eepn\ql\plain\cf3\f4\fs18\b0{{equal}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\l
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{----}}\intbl\itap1\cell\pard\plain\intbl\
in\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{----}}\intbl\itap1\ce
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(2)}}\intbl\itap1\cell\pard\plain\int
bl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{equal}}\intbl\itap1\cell\pa
rd\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{----}}\intbl\it
\b0{{----}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
ertalt\cellx10346\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\t
6\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(3)}}\intbl
\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{e
qual}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
4\fs18\b0{{----}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\
keepn\ql\plain\cf3\f4\fs18\b0{{----}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\l
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\
ddft3\clvertalt\cellx1960\clvertalt\cellx4122\clvertalt\cellx6284\clvertalt\cellx75
lx9497\clvertalt\cellx10346\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
f3\f4\fs18\b0{{(4)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\
ql\plain\cf3\f4\fs18\b0{{unequal}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\
ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$}{\~}{\~}{\~}{\~}{\~}
{90}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4
in\cf3\f4\fs18\b0{{debit}
\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\
vertalt\cellx6284\clvertalt\cellx7537\clvertalt\cellx9497\clvertalt\cellx10346\pard
\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{unequal
18\b0{{1,530}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pla
pn\ql\plain\cf3\f4\fs18\b0{{credit}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\t
3\f4\fs18\b0{{(6)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\q
l\plain\cf3\f4\fs18\b0{{unequal}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\r
i0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{17,000}}\intbl\itap1\cell\pard\plain\intbl\it
\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{credit}}\intbl\itap1\ce
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(7)}}\intbl\itap1\cell\pard\plain\int
bl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{unequal}}\intbl\itap1\cell\
s18\b0{{debit}
\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\
vertalt\cellx6284\clvertalt\cellx7537\clvertalt\cellx9497\clvertalt\cellx10346\pard
\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{unequal
18\b0{{300}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\ql\plain\cf3\f4\fs18\b0{{credit}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\
ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trr
clvertalt\cellx9497\clvertalt\cellx10346\row\trowd\trql\trleft0\trrh0\trkeep\trpadd
f4\fs18\b0{{(9)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\
plain\cf3\f4\fs18\b0{{unequal}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0
\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{200}}\intbl\itap1\cell\pard\plain\intbl\itap1\s
l\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{credit}}\intbl\itap1\cell\pa
1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trp
\clvertalt\cellx4122\clvertalt\cellx6284\clvertalt\cellx7537\clvertalt\cellx9497\cl
vertalt\cellx10346\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\
46\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\c
lx6284\clvertalt\cellx7537\clvertalt\cellx9497\clvertalt\cellx10346\row\pard\plain\
sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\pa

Chapter 2 - Analyzing Transactions

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Chapter 2 - Analyzing Transactions

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