Question 1

Debits to which accounts result in an increased balance?

Accepted Answer

A)   Assets and common stock
B)   Revenues and assets
C)   Common stock and expenses
D)   Assets and expenses
E)   Liabilities and expensesF) B) and E)
G) B) and C)

Question 2

Transactions are first recorded in a journal and then posted to the general ledger.

Accepted Answer

A) True 
 B)False

Question 3

Likert Company calculates that interest of $900 has accrued at December 31 on outstanding notes payable. How should Likert record this on December 31?

Accepted Answer

A)   Prepaid Interest 900Interest Expense 900
B)   Interest Expense 900Interest Payable 900
C)   Interest Expense 900Cash 900
D)   Interest Payable 900Interest Expense 900
E)   None of the aboveF) A) and B)
G) B) and E)

Question 4

One reason for preparing a trial balance is to determine if the debits and credits in the general ledger are equal.

Accepted Answer

A) True 
 B)False

Question 5

Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first) 
-Received and immediately paid repair bill.

Accepted Answer

A)   Debit an asset
B)   Credit an asset
C)   Debit a liability
D)   Credit a liability
E)   Debit common stockF)  Credit common stockG)  Debit dividendsH)  Credit dividendsI)  Debit revenueJ)  Credit revenueK)  Debit expenseL)  Credit expenseM) E) and F)
N) F) and L)

Question 6

At the end of the accounting period, the Legal Fees Earned account has a normal balance of $75,000. The accountant makes two adjustments--one to accrue unbilled legal fees earned of $2,500, and the other to reduce the Unearned Legal Fees liability account by $500.
After the adjustments are posted, the Legal Fees Earned account has a balance of

Accepted Answer

A)   $77,500
B)   $78,000
C)   $81,500
D)   $82,500
E)   None of the aboveF) A) and B)
G) B) and D)

Question 7

Best Graphics has the following accounts in its general ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Common Stock; Dividends; Service Fees Earned; Rent Expense; and Salaries Expense. Prepare general journal entries to record the following transactions:

Accepted Answer

May

Cash received for stock.
Paid May ...

Question 8

Forrester Company signed a two-year lease on July 1 and paid the $17,400 total rent in advance. Forrester recorded the transaction as a debit to Prepaid Rent and a credit to Cash.
What adjusting entry should Forrester make on December 31 (no previous adjustment has been made) ?

Accepted Answer

A)   Prepaid Rent 13,050Rent Expense 13,050
B)   Prepaid Rent 4,350Rent Expense 4,350
C)   Rent Expense 8,700Prepaid Rent 8,700
D)   Rent Expense 4,350Prepaid Rent 4,350
E)   None of the aboveF) C) and E)
G) A) and D)

Exam 13: Appendix A: The Language of Accountants: Debits and Credits

Forrester Company signed a two-year lease on July 1 and paid the $17,400 total rent in advance. Forrester recorded the transaction as a debit to Prepaid Rent and a credit to Cash. What adjusting entry should Forrester make on December 31 (no previous adjustment has been made) ?

Correct Answer
verified

Best Graphics has the following accounts in its general ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Common Stock; Dividends; Service Fees Earned; Rent Expense; and Salaries Expense. Prepare general journal entries to record the following transactions:

Correct Answer
verified
May
Cash received for stock.
Paid May ...
View Answer

One reason for preparing a trial balance is to determine if the debits and credits in the general ledger are equal.

Correct Answer
verified

Transactions are first recorded in a journal and then posted to the general ledger.

Correct Answer
verified

Likert Company calculates that interest of $900 has accrued at December 31 on outstanding notes payable. How should Likert record this on December 31?

Correct Answer
verified

Debits to which accounts result in an increased balance?

Correct Answer
verified

Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first) -Received and immediately paid repair bill.

Correct Answer
verified

Correct Answer
verified

Exam 13: Appendix A: The Language of Accountants: Debits and Credits

Forrester Company signed a two-year lease on July 1 and paid the $17,400 total rent in advance. Forrester recorded the transaction as a debit to Prepaid Rent and a credit to Cash. What adjusting entry should Forrester make on December 31 (no previous adjustment has been made) ?

Correct AnswerverifiedShow Answer

Best Graphics has the following accounts in its general ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Common Stock; Dividends; Service Fees Earned; Rent Expense; and Salaries Expense. Prepare general journal entries to record the following transactions:

Correct AnswerverifiedMay Cash received for stock.Paid May ...View AnswerShow Answer

One reason for preparing a trial balance is to determine if the debits and credits in the general ledger are equal.

Correct AnswerverifiedShow Answer

Transactions are first recorded in a journal and then posted to the general ledger.

Correct AnswerverifiedShow Answer

Likert Company calculates that interest of $900 has accrued at December 31 on outstanding notes payable. How should Likert record this on December 31?

Correct AnswerverifiedShow Answer

Debits to which accounts result in an increased balance?

Correct AnswerverifiedShow Answer

Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first) -Received and immediately paid repair bill.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
May
Cash received for stock.
Paid May ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified