Gia02 tb chapter 04 - Intermediate Accounting 2E - Gordon - TB PDF

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Intermediate Accounting, 2e (Gordon/Raedy/Sannella)Chapter 4 Review of the Accounting Cycle4 The Accounting Cycle1) The first step in the accounting cycle is recording transactions in the general journal. Answer: FALSE Diff: 1 Var: 1 Objective: 4. IFRS/GAAP: GAAP/IFRS AACSB: Application of knowledge...

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Intermediate Accounting, 2e (Gordon/Raedy/Sannella) Chapter 4 Review of the Accounting Cycle 4.1 The Accounting Cycle 1 )Thefir s ts t e pi nt heac c ount i ngc yc l ei sr e c or di ngt r a ns ac t i onsi nt hege ne r alj our na l . Ans we r :F ALSE Di ff: 1Va r : 1 Obj e c t i ve :4 . 1 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

2 )Thefinals t epi nt heac c ount i ngc yc l ei st hepr epa r a t i onofapos t c l os i ngt r i a lba l a nc e . Ans we r :TRUE Di ff: 1Var : 1 Obj e c t i ve :4 . 1 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

3 )Fi nanc i als t at e me nt sar epr epa r e da f t e rt het e mpor ar yac c ount sa r ec l os e d. Ans we r :F ALSE Di ff: 1Var : 1 Obj e c t i ve :4 . 1 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

4 )Thea c c ount i ngc yc l ede s c r i be sapr oc e s st ha ti nc l udesa l loft hef ol l owi nge xc e p t___ ___ __ . A)r e c or di ngbus i ne s st r a ns ac t i ons B)aggr e ga t i ngbus i nes st r ans a c t i onsi nt ot hefina nc i als t a t eme nt s C)c r e a t i ngar oa dmapofe ve nt s D)s ummar i z i ngbus i ne s st r ans ac t i onsi nt ot hefinanc i als t a t e me nt s Ans we r :C Di ff: 1Var : 1Pa geRe f : 88 Obj e c t i ve :4 . 1 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

5 )Af t e rt r ans ac t i onsa r er ec or de di nt hege ne r alj our na l ,t hene xts t epi nt heac c ount i ngc yc l ei st o _ __ ___ __. A)pr epar eadj us t i ngj our na lent r i e s B)pr epar eanadj us t edt r i alba l a nc e C)pr e par efinanc i als t a t eme nt s D)pos tj our nale nt r i e st ot hege ner a ll e dge r Ans we r :D Di ff: 1Var : 1 Obj e c t i ve :4 . 1 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

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6 )Thefir s ts t epi nt heac c ount i ngc yc l ei st o_ ___ __ __. A)j our na l i zet r ans ac t i ons B)ana l yzet r a ns a c t i ons C)pos tj our na le nt r i e st ot hege ne r all edge r D)pr epar eawor ks he e t Ans we r :B Di ff: 1Var : 1 Obj e c t i ve :4 . 1 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

7 )Thefinals t epi nt heac c ount i ngc yc l ei st o__ __ ___ _. A)pr epar eana dj us t e dt r i alba l a nc e B)c l os et e mpor ar yac c ount s C)pr e par eapos t c l os i ngt r i albal anc e D)pr epar efinanc i a ls t a t e me nt s Ans we r :C Di ff: 1Var : 1 Obj e c t i ve :4 . 1 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

8 )Thefir s tf ours t e psi nt hea c c ount i ngc yc l e ,i npr ope rs e que nc e ,ar e__ ___ ___ . A)j our na l i ze ,anal yzet het r ans ac t i ons , pos tt ot hege ne r all edge r ,pr e pa r eanuna dj us t e dt r i a lbal a nc e B)ana l yzet het r a ns a c t i ons ,j our na l i ze ,pos tt ot hege ne r a ll e dge r ,pr epa r eanunadj us t e dt r i a lbal anc e C)anal yz et het r ans a c t i ons ,pr e par ea nunadj us t e dt r i a lbal anc e , pos tt ot hege ne r a ll edge r ,pr e par ean a dj us t e dt r i a lbal a nc e D)pr epar eanunadj us t e dt r i albal anc e , j our nal i ze , pos tt ot hege ne r all e dger ,pr e par eana dj us t e dt r i al ba l anc e Ans we r :B Di ff: 1Var : 1 Obj e c t i ve :4 . 1 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

9 )Onc et hea dj us t i nge nt r i e sha vebe e npr epar ed( j our nal i zedandpos t e d) ,whi c hoft hef ol l owi ngs t e psof t hea c c ount i ngc yc l ea r ec ar r i edouti npr ope rs e que nc e ? A)Pr epar eana dj us t e dt r i albal anc e ,pr e pa r efina nc i a ls t at e ment s ,c l os et empor a r yac c ount s , pr epar ea pos t c l os i ngt r i alba l a nc e . B)Pr epar eanunadj us t e dt r i a lbal anc e ,pr e pa r efina nc i a ls t a t e me nt s ,c l os et e mpor ar yac c ount s ,pr e pa r ea pos t c l os i ngt r i alba l a nc e . C)Pr e par ec l os i ngent r i e s , pr epar efinanc i a ls t a t eme nt s ,pr e pa r eanadj us t e dt r i a lbal anc e ,pr e pa r eapos t c l os i ngt r i albal anc e . D)Pr epar efinanc i a ls t a t e me nt s ,pr e pa r ea nadj us t e dt r i albal anc e ,pr e par ec l os i ngent r i e s , pr e pa r eapos t c l os i ngt r i albal anc e . Ans we r :A Di ff: 2Var : 1 Obj e c t i ve :4 . 1 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

1 0)Li s tt hes t e psi nt heac c ount i ngc yc l ei nt hec or r e c tor de r . Ans we r : 1 .Anal yz et het r ans ac t i ons . 2 .J our nal i zet het r ans a c t i ons . 3 .Pos tj our na lent r i e st ot hegene r all e dger . 4 .Pr e pa r ea nuna dj us t e dt r i albal anc e . 2 Copyr i ght©2 0 19Pe a r s onEduc a t i on, I nc .

5 .Pr e pa r ea dj us t i ngj our nale nt r i e s . 6 .Pr e pa r ea nadj us t edt r i a lba l anc e . 7 .Pr e pa r efina nc i a ls t a t eme nt s . 8 .Cl os et e mpor a r yac c ount s . 9 .Pr e pa r eapos t c l os i ngt r i a lbal a nc e . Di ff: 1Var : 1 Obj e c t i ve :4 . 1 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

4.2 Analyze the Transaction 1 )Li a bi l i t i esr e pr e s e ntc l ai msoft hi r dpar t i e sa gai ns tt heas s e t sofabus i ne s s . Ans we r :TRUE Di ff: 1Var : 1 Obj e c t i ve :4 . 2 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

2 )T ober ec or de di nt hege ne r alj our nal , at r ans ac t i onmus tbeane c onomi ce ve nt . Ans we r :TRUE Di ff: 1Var : 1 Obj e c t i ve :4 . 2 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

3 )Ac c umul at e dot he rc ompr e hens i vei nc omei si nc l ude di nr e t a i nedear ni ngs . Ans we r :F ALSE Di ff: 1Var : 1 Obj e c t i ve :4 . 2 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

4 )Gai nsa ndl os s esr e s ul tf r om pe r i phe r alt r ans a c t i onsofac ompa ny . Ans we r :TRUE Di ff: 1Var : 1 Obj e c t i ve :4 . 2 I FRS/GAAP:GAAP AACSB:Appl i c a t i onofknowl e dge

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5 )Re nte xpens ei snor mal l yc ons i de r e dape r i phe r a lt r ans ac t i onofac ompa ny . Ans we r :F ALSE Di ff: 1Var : 1 Obj e c t i ve :4 . 2 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

6 )Thea c c ount i nge qua t i onma ybes t a t e dasAs s et s=Li abi l i t i e s+Sha r e hol de r s ' Equi t y . Ans we r :TRUE Di ff: 1Var : 1 Obj e c t i ve :4 . 2 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

7 )Re ve nue sa ndgai nswi l li nc r e as er et ai nede a r ni ngs . Ans we r :TRUE Di ff: 1Var : 1Pa geRe f : 91 Obj e c t i ve :4 . 2 I FRS/GAAP:GAAP/I FRS AACSB:Anal yt i c a lt hi nki ng

8 )Expe ns esandl os s e swi l lde c r e as el i a bi l i t i e s . Ans we r :F ALSE Di ff: 1Var : 1Pa geRe f : 91 Obj e c t i ve :4 . 2 I FRS/GAAP:GAAP/I FRS AACSB:Anal yt i c a lt hi nki ng

9 )Thea c c ount i nge qua t i oni sc or r ec t l ys t a t e das__ __ ___ _. A)As s et s=Li abi l i t i e s+Equi t y B)As s et s+Li abi l i t i e s=Equi t y C)As s et s=Li abi l i t i e s-Equi t y D)As s et s=Li a bi l i t i es=Equi t y Ans we r :A Di ff: 1Var : 1 Obj e c t i ve :4 . 2 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

1 0)De c r e as e si ne qui t yt ha tr e s ul tf r om pe r i pher a lt r ans ac t i onsofane nt i t yar er e f e r r e dt oas_ ___ __ __. A)l i abi l i t i e s B)e xpens e s C)l os s es D)di vi de nds Ans we r :C Di ff: 1Var : 1 Obj e c t i ve :4 . 2 I FRS/GAAP:GAAP AACSB:Appl i c a t i onofknowl e dge

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1 1)J e nne rCor por a t i onpa i di t sannualdi vi dend. Thi st r a ns a c t i onr epr e s e nt sa ( n)_ ___ __ __. A)l i abi l i t y B)di s t r i but i ont os har ehol de r s C)l os s D)expens e Ans we r :B Di ff: 1Var : 1 Obj e c t i ve :4 . 2 I FRS/GAAP:GAAP AACSB:Appl i c a t i onofknowl e dge

1 2)Ar nol dCompanypr ovi de ds er vi c e st oi t sc us t omer sonc r e di tf or$2 5, 000 .Thi st r ans a c t i on_ ___ __ __. A)i nc r e a s e da s s e t s B)i nc r ea s edl i a bi l i t i e s C)i nc r e a s e de xpens e s D)dec r e a s e ds ha r ehol de r s ' e qui t y Ans we r :A Di ff: 1Var : 1 Obj e c t i ve :4 . 2 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

1 3)Dougl a sCor por a t i onpai d$6, 0 00f ormont hl yr e nt aloni t swar e hous e .Thi st r a ns a c t i on__ ___ ___ . A)de c r e as e dl i a bi l i t y B)i nc r ea s eds har e hol de r s ' e qui t y C)i nc r e a s e da s s et s D)i nc r e as ede xpe ns e s Ans we r :D Di ff: 1Var : 1 Obj e c t i ve :4 . 2 I FRS/GAAP:GAAP/I FRS AACSB:Anal yt i c a lt hi nki ng

1 4)Br a dl e yCompa nypai d$ 25 , 0 00i ndi vi de ndst oi t ss har e hol de r s .Thi st r ans a c t i on___ ___ __ . A)i nc r e a s e de xpens es B)dec r e a s e dr e ve nue s C)i nc r e a s e dl i abi l i t i e s D)dec r e a s e ds ha r ehol de r s ' e qui t y Ans we r :D Di ff: 1Var : 1 Obj e c t i ve :4 . 2 I FRS/GAAP:GAAP/I FRS AACSB:Anal yt i c a lt hi nki ng

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1 5)Abac usCor por a t i onpur c has e dequi pmentc os t i ng$ 48 , 0 00. I tpa i d$8 , 0 00i nc a s hands i gne danot e pa yabl ef or$4 0, 00 0.Thi st r a ns a c t i on__ ___ __ _. A)i nc r e a s e da s s e t sb y$48 , 0 00, l i a bi l i t i e sby$ 40 , 0 00a nds har e hol de r s ' e qui t yby$8 , 0 00 B)i nc r ea s edas s e t sby$ 48, 00 0andl i a bi l i t i e sby$ 40 , 0 00 C)i nc r e a s e da s s et sa ndl i abi l i t i e se a c hby$40 , 000 D)i nc r e as edas s e t sands har e hol de r s ' equi t yea c hby$48 , 0 00 Ans we r :C Ex pl ana t i on:As s e t swoul di nc r e a s eby$ 48, 00 0wi t ht heac qui s i t i onoft heequi pmentbutde c r e as eby $ 8, 00 0wi t ht hepa ymentofc a s hf orane tc hangeof$40 , 0 00 .Bys i gni nganot epa ya bl ef or$ 40, 00 0, l i a bi l i t i esi nc r e as eby$4 0, 00 0. Di ff: 1Var : 1 Obj e c t i ve :4 . 2 I FRS/GAAP:GAAP/I FRS AACSB:Anal yt i c a lt hi nki ng

1 6)At l asCor por a t i ons ol daus e dma c hi nef orl es st ha ni t sc ar r yi ngva l ue .Thi st r a ns a c t i onr es ul t si n a ( n)_ ___ __ __. A)r e ve nue B)e xpens e C)ga i n D)l os s Ans we r :D Di ff: 1Var : 1 Obj e c t i ve :4 . 2 I FRS/GAAP:GAAP AACSB:Appl i c a t i onofknowl e dge

1 7)J a c ks onCompa nys ol dl andt ha thadbe enhe l df orf ut ur epl ante xpa ns i onf ormor et ha ni t sc ar r yi ng va l ue .Thi st r a ns a c t i onr e s ul t si na( n)___ ___ __ . A)r e ve nue B)e xpens e C)ga i n D)l os s Ans we r :C Di ff: 1Var : 1 Obj e c t i ve :4 . 2 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

1 8)He l ms l e yCor por a t i onr e c e i ve doney e a r ' sr enti na dvanc eonawar e hous e .Thi st r ans a c t i onr es ul t si n a ( n)_ ___ __ __. A)e xpe ns e B)l i abi l i t y C)a s s et D)r e ve nue Ans we r :B Di ff: 1Var : 1 Obj e c t i ve :4 . 2 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

1 9)Na t ur e' sWa yus edandpai df ort hes er vi c e sofi t se mpl o ye e s .Asar e s ul t ,i twi l l___ __ ___ . A)de c r e as eas s e t sandde c r e as es t oc khol de r s ' equi t y B)dec r e a s ea s s e t sa ndi nc r e as es t oc khol de r s ' e qui t y C)i nc r e a s eas s e t sa ndi nc r e a s es t oc khol de r s ' e qui t y D)i nc r e as eas s e t sandde c r e as es t oc khol de r s ' e qui t y Ans we r :A 6 Copyr i ght©2 0 19Pe ar s onEduc a t i on, I nc .

Di ff: 1Var : 1Pa geRe f : 92 Obj e c t i ve :4 . 2 I FRS/GAAP:GAAP/I FRS AACSB:Anal yt i c a lt hi nki ng

2 0)TheDar kChoc ol a t eShoppec ol l e c t e dc as hf oramount sowe dt ot hec ompany .Asar e s ul t , i twi l l _ __ ___ __. A)i nc r e a s er e ve nueandi nc r e as ec a s h B)i nc r ea s er e ve nueandde c r e as eac c ount sr e c e i vabl e C)i nc r e a s eac c ount sr e c e i vabl eandde c r e as er e ve nue D)i nc r e as ec as handde c r e as eac c ount sr ec e i vabl e Ans we r :D Di ff: 1Var : 1Pa geRe f : 92 Obj e c t i ve :4 . 2 I FRS/GAAP:GAAP/I FRS AACSB:Anal yt i c a lt hi nki ng

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2 1)Li s ta ndde finet hee l e ment soft hea c c ount i nge qua t i on. El ement De fini t i on As s e t s Li a bi l i t i es S ha r e hol de r s ' Equi t y Re ve nue s Ex pe ns e s Gai ns Los s e s Di s t r i but i onst o Owne r s I nve s t me nt sby Owne r s Ans we r : El ement De fini t i on Pr obabl ef ut ur ee c onomi cbene fit sobt a i nedor As s e t s c ont r ol l e db yane nt i t yasar e s ul tofpa s t e c onomi ce ve nt s Pr obabl ef ut ur es ac r i fic esofec onomi cbe ne fit s Li a bi l i t i es ar i s i ngf r om pr es entobl i ga t i onsofapa r t i c ul ar e nt i t y S ha r e hol de r s ' Ne ta s s et sorr e s i dua li nt er e s ti nt hea s s e t sofan Equi t y e nt i t yt ha tr e mai nsa f t e rde duc t i ngt hel i abi l i t i e s I nflowsorot herenha nc e me nt sofane nt i t y' s as s e t sors et t l e me ntofi t sl i a bi l i t i e sf r om Re ve nue s de l i ve r i ngorpr oduc i nggoodsand/ors er vi c e s t oe xt e r na lpar t i e s Out flo wsofas s e t sand/ori nc ur r enc eof l i abi l i t i esr es ul t i ngf r om a nent i t yde l i ve r i ngor Ex pe ns e s pr oduc i nggoodsand/ors er vi c est oext er nal pa r t i e s I nc r e as e si nane nt i t y' sne tas s e t sr e s ul t i ngf r om Gai ns pe r i phe r alt r ans ac t i onswi t he x t e r na lpa r t i e s De c r ea s e si nane nt i t y' sne ta s s e t sr e s ul t i ngf r om Los s e s pe r i phe r alt r ans ac t i onswi t ht hi r dpar t i es De c r e as e si nane nt i t y' sne tas s e t sr e s ul t i ngf r om Di s t r i but i onst o r ende r i ngs e r vi c e s ,i nc ur r i ngl i abi l i t i e s , or Owne r s t r ans f er r i nga s s e t st oowne r soft heent i t y I nc r eas e si ne qui t yofapar t i c ul a rbus i ne s s I nve s t me nt sby e nt e r pr i s er e s ul t i ngf r om t r ans f er st oi tf r om Owne r s ot here nt i t i e sofs ome t hi ngval ua bl et oobt ai nor i nc r e as eowne r s hi pi nt e r es t s( orequi t y)i ni t Di ff: 2Var : 1 Obj e c t i ve :4 . 2 I FRS/GAAP:GAAP AACSB:Appl i c a t i onofknowl e dge

2 2)Mur phyCor por a t i one nga gedi nt hef ol l owi ngt r ans a c t i onsdur i ngt hemont hofJ anua r y .Pl e as e a na l yzet he s et r a ns ac t i onsa ndi ndi c a t ewhe t he rt he yc aus eani nc r e as e( +)orde c r e a s e( )i nt hebal a nc e s hee tandi nc omes t a t e mentac c ount s . Tr ans ac t i on

As s e t Li a bi l i t

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Re ve nue Expens e Gai n

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a .I s s ue d10, 0 00s har e sofnoparc ommons t oc kf or $ 25 0, 000 . b .Si gne dana gr e eme ntwi t h CompuSour c et opur c has e t hr e ene wc omput er sc os t i nga t ot a lof$ 6, 00 0i n10da ys . c .Pur c has e ds uppl i e son a c c ountf or$6 0, 000f r om Bi r mi ngha m Company . d.Pur c has e dat woye a r i ns ur anc epol i c yf or$3 , 6 00 . Thi spol i c ywi l lbec ome e ffe c t i v eFe br uar y1. e .Pa i d$ 1, 500i noffic er entf or t hemont hofJ anuar y . f .Ac c e pt e dde l i ver yoft he ne wc omput e r sa ndpai dc as h. g .Pa i dwa ge sof$5 , 0 00t o e mpl oye e s . h.Sol dapar c e lofl a ndf or $ 50 , 0 00. Mur phyCompany hadpur c has e dt hel and or i gi na l l yf or$4 5, 000 . i .Pa i d$5 0, 000t oBi r mi ngham Companyonac c ount . j .Rec e i ved$ 45, 0 00f r om c us t ome r sf ors e r vi c es r ende r e d.

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As s e t

a .I s s ue d10, 0 00s har e sof nopa rc ommons t oc kf or + $ 25 0, 000 . b .Si gne dana gr e eme nt wi t hCompuSour c et o No pur c ha s et hr e ene w e nt r y c omput e r sc os t i ngat ot a lof $ 6, 00 0i n10da ys . c .Pur c has e ds uppl i e son a c c ountf or$6 0, 000f r om + Bi r mi ngha m Company . d.Pur c has e dat woye a r i ns ur anc epol i c yf or$3 , 6 00 . +/Thi spol i c ywi l lbec ome e ffe c t i v eFe br uar y1. e .Pa i d$ 1, 500i noffic er ent f ort hemont hofJ anua r y . f .Ac c e pt e dde l i ver yoft he ne wc omput e r sa ndpai d +/c as h. g .Pa i dwa ge sof$5 , 0 00t o e mpl oye e s . h.Sol dapar c e lofl a ndf or $ 50 , 0 00. Mur phyCompany +/hadpur c has e dt hel and or i gi na l l yf or$4 5, 000 . i .Pa i d$5 0, 000t o Bi r mi ngha m Companyon a c c ount . j .Rec e i ved$ 45, 0 00f r om c us t ome r sf ors e r vi c es + r ende r e d.

Expens Li abi l i t S H Re ve nue Ga i n e y Equi t y +

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-

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Di ff: 2Var : 1 Obj e c t i ve :4 . 2 I FRS/GAAP:GAAP AACSB:Anal yt i c a lt hi nki ng

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2 3)Mur phyCor por a t i one nga gedi nt hef ol l owi ngt r ans a c t i onsdur i ngt hemont hofFe br uar y .Pl e a s e a na l yzet he s et r a ns ac t i onsa ndi ndi c a t ewhe t he rt he yc aus eani nc r e as e( +)orde c r e a s e( )i nt hebal a nc e s hee tandi nc omes t a t e mentac c ount s . Tr ans ac t i on

As s e t

Li abi l i t SH Re ve nue Expens e Gai n y Equi t y

a .I s s ue d10, 0 00s har e sofnoparc ommons t oc kf or $ 25 0, 000 . b .Si gne dana gr e eme ntwi t h CompuSour c et opur c has e t hr e ene wc omput er sc os t i nga t ot a lof$ 6, 00 0i n10da ys . c .Pur c has e ds uppl i e son a c c ountf or$6 0, 000f r om Bi r mi ngha m Company . d.Pur c has e dat woye a r i ns ur anc epol i c yf or$3 , 6 00 . Thi spol i c ywi l lbec ome e ffe c t i v eFe br uar y1. e .Pa i d$ 1, 500i noffic er entf or t hemont hofFe br uar y . f .Pr ovi de d$ 10, 00 0of s e r vi c est oac us t ome rf orc a s h. g .Pa i dwa ge sof$5 , 0 00t o e mpl oye e s . h.Pr ovi de d$ 12, 00 0of s e r vi c est oac us t ome ron a c c ount . i .I nc ur r e dl e galf e esof$1 , 200 t obepa i di nMa r c h. j .Rec e i ved$ 45, 0 00c a s hf r om c us t ome r sf ors e r vi c es r ende r e di nJ anuar ya nd i ni t i al l yonac c ount .

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Ans we r : Tr a ns a c t i on

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a .I s s ue d10, 0 00s har e sof nopa rc ommons t oc kf or + $ 25 0, 000 . b .Si gne dana gr e eme nt wi t hCompuSour c et o No pur c ha s et hr e ene w e nt r y c omput e r sc os t i ngat ot a lof $ 6, 00 0i n10da ys . c .Pur c has e ds uppl i e son + a c c ountf or$6 0, 000f r om d.Pur c has e dat woye a r i ns ur anc epol i c yf or$3 , 6 00 . +/Thi spol i c ywi l lbec ome e ffe c t i v eFe br uar y1. e .Pa i d$ 1, 500i noffic er ent f ort hemont hofFe br uar y . f .Pr ovi de d$10 , 0 00of s e r vi c est oac us t ome rf or + c as h. g .Pai dwa gesof$5, 00 0t o e mpl oye e s . h.Pr ovi de d$ 12, 00 0of s e r vi c est oac us t ome ron +/a c c ount . i .I nc ur r e dl e galf e esof $ 1, 20 0t obepa i di nMa r c h. j .Rec e i ved$ 45, 0 00c a s h f r om c us t ome r sf ors e r vi c es +/r ende r e di nJ anuar ya nd i ni t i al l yonac c ount .

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Di ff: 2Var : 1 Obj e c t i ve :4 . 2 I FRS/GAAP:GAAP AACSB:Anal yt i c a lt hi nki ng

4.3 Journalize the Transactions 1 )Thenor malba l anc eofa nac c ounti st hes i deonwhi c hani nc r e a s ei nt hea c c ountbal anc ei sr e c or de d. Ans we r :TRUE Di ff: 1Var : 1 Obj e c t i ve :4 . 3 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

2 )Thenor malba l anc eofal i a bi l i t yac c ounti sade bi t . Ans we r :F ALSE Di ff: 1Var : 1 Obj e c t i ve :4 . 3 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge 1 2 Copyr i ght©2 0 19Pe ar s onEduc a t i on, I nc .

3 )Ar e ve nuea c c ounthasanor malde bi tbal anc e . Ans we r :F ALSE Di ff: 1Var : 1 Obj e c t i ve :4 . 3 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

4 )Theba l a nc ei nt hec ommons t oc kac c ounti si nc r e a s e dbyac r e di t . Ans we r :TRUE Di ff: 1Var : 1 Obj e c t i ve :4 . 3 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofkno...