Solutions and Test Bank For Accounting 28th Edition By Carl Warren PDF

Preview

Summary

Testbank, Solution Manual, eBook Accounting 28th Edition By Carl Warren, Christine Jonick, Jennifer Schneider ; 9781337902687, 1337902683 + APLIA, MINDTAP Assignments & Quizzes Available....

Description

For All Chapters --> [email protected] Name:

Class:

Date:

Chap02_28e Indicatewhetherthestatementistrueorfalse. 1. Journalentriesincludebothdebitandcreditaccountsforeachtransaction. a. True b. False 2. AdebitisabbreviatedasDbandacreditisabbreviatedasCr. a. True b. False 3. Theprocessoftransferringthedebitsandcreditsfromthejournalentriestotheaccountsisknownasposting. a. True b. False 4. Whenanaccountpayableispaidwithcash,theowner'sequityinthebusinessdecreases. a. True b. False 5. Achartofaccountsisalistingofaccountsthatmakeupthejournal. a. True b. False 6. Thechartofaccountsshouldbethesameforeachbusiness. a. True b. False 7. Consuminggoodsandservicesintheprocessofgeneratingrevenuesresultsinexpenses. a. True b. False 8. Journalizingatransactionwithboththedebitandthecreditfor$69insteadof$96willcausethetrialbalanceto beoutofbalance. a. True b. False 9. Expenseaccountsareincreasedbycredits. a. True b. False 10. Transactionsareinitiallyenteredintoarecordcalledajournal. a. True b. False 11. Liabilityaccountsareincreasedbydebits. a. True b. False Copyright Cengage Learning. Powered by Cognero.

For All Chapters --> [email protected]

Page 1

For All Chapters --> [email protected] Name:

Class:

Date:

Chap02_28e 12.Postingthecreditpartofajournalentrytothewrongaccountwillcausethetrialbalancetotalstobeunequal. a.True b.False 13.Foramonth'stransactionsforatypicalmedium-sizedbusiness,thesalaryexpenseaccountislikelytohaveonly creditentries. a.True b.False 14.Theunearnedrevenueaccountisanexampleofaliability. a.True b.False 15.Acreditentrytothecashaccountwillincreasetheaccount. a.True b.False 16.AnotationinthePost.Ref.columnofthegeneraljournalindicatesthattheamounthasbeenpostedtothe ledger. a.True b.False 17.Agroupofrelatedaccountsthatmakeupacompleteunitiscalledatrialbalance. a.True b.False 18.Prepaidexpensesareanexampleofanexpense. a.True b.False 19.Journalizingtransactionsusingthedouble-entrybookkeepingsystemwilleliminatefraud. a.True b.False 20.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. a.True b.False 21.Allowner’sequityaccountsrecordincreasestotheaccountswithcredits. a.True b.False 22.Theaccountspayableaccountislistedinthechartofaccountsasanasset. a.True b.False Copyright Cengage Learning. Powered by Cognero.

For All Chapters --> [email protected]

Page 2

For All Chapters --> [email protected] Name:

Class:

Date:

Chap02_28e 23.TherightsideofaTaccountisknownasadebitandtheleftsideisknownasacredit. a.True b.False 24.Theorderoftheflowofaccountingdatais(1)recordintheledger,(2)recordinthejournal,and(3)preparethe financialstatements. a.True b.False 25.Thepostingreferencenotationusedinthejournalisthepagenumber. a.True b.False 26.Liabilitiesaredebtsowedbythebusinessentity. a.True b.False 27.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. a.True b.False 28.Thedouble-entryaccountingsystemrecordseachtransactiontwice. a.True b.False 29.Assetsareincreasedwithdebitsanddecreasedwithcredits. a.True b.False 30.Theerroneousarrangementofdigits,suchaswriting$45as$54,iscalledaslide. a.True b.False 31.Evenwhenatrialbalanceisinbalance,theremaybeerrorsintheindividualaccounts. a.True b.False 32.Accountsarerecordsofincreasesanddecreasesinindividualfinancialstatementitems. a.True b.False 33.Thepostingreferencenotationusedintheledgeristheaccountnumber. a.True b.False

Copyright Cengage Learning. Powered by Cognero.

For All Chapters --> [email protected]

Page 3

For All Chapters --> [email protected] Name:

Class:

Date:

Chap02_28e 34.Accountspayableareaccountsthatyouexpectwillbepaidtoyou. a.True b.False 35.Accountsintheledgerareusuallymaintainedinalphabeticalorder. a.True b.False 36.Thenormalbalanceofrevenueaccountsisacredit. a.True b.False 37.Thenormalbalanceofthedrawingaccountisadebit. a.True b.False 38.Aproofoftheequalityofdebitsandcreditsintheledgerattheendofanaccountingperiodiscalledabalance sheet. a.True b.False 39.Expensesresultfromusingupassetsorconsumingservicesintheprocessofgeneratingrevenues. a.True b.False 40.Theincreasesideofanaccountisalsothesideofthenormalbalance. a.True b.False 41.Journalentriescanhavemorethantwoaccountsaslongasthedebitsequalthecredits. a.True b.False 42.Whenanownerinvestsassetsinthebusiness,thecapitalaccountincreasesduetorevenuebeingearned. a.True b.False 43.Thenormalbalanceofanexpenseaccountisacredit. a.True b.False 44.Thebalanceofanaccountcanbedeterminedbyaddingallofthedebits,addingallofthecredits,andaddingth amountstogether. a.True b.False

Copyright Cengage Learning. Powered by Cognero.

For All Chapters --> [email protected]

Page 4

For All Chapters --> [email protected] Name:

Class:

Date:

Chap02_28e 45.Owner’sequitywillbereducedbytheamountinthedrawingaccount. a.True b.False 46.Debitswillincreaseunearnedrevenuesandrevenues. a.True b.False 47.Revenuesareequaltothedifferencebetweencashreceiptsandcashpayments. a.True b.False 48.Therecordingofcashreceiptstothecashaccountwillbedonebydebitingtheaccount. a.True b.False 49.Transactionsarelistedinthejournalchronologically. a.True b.False 50.Theprocessofrecordingatransactioninthejournaliscalledjournalizing. a.True b.False 51.Journalizingistheprocessofenteringamountsintheledger. a.True b.False 52.Liabilitiesareincreasedwithdebitsanddecreasedwithcredits. a.True b.False 53.Withdrawalsdecreaseowner'sequityandarelistedontheincomestatementasadeductionfromrevenue. a.True b.False 54.Ifthetrialbalanceisinbalance,itcanbeassumedthatalljournalentrieswerepostedcorrectlyandnoerrors weremade. a.True b.False 55.Theprocessoftransferringdatafromthejournaltotheledgeraccountsiscalledposting. a.True b.False

Copyright Cengage Learning. Powered by Cognero.

For All Chapters --> [email protected]

Page 5

For All Chapters --> [email protected] Name:

Class:

Date:

Chap02_28e 56.Adebitentrytothecashaccountwillincreasetheaccount. a.True b.False 57.Atransactionthatisrecordedinthejournaliscalledajournalentry. a.True b.False 58.Foramonth'stransactionsforatypicalmedium-sizedbusiness,theaccountspayableaccountislikelytohave onlycreditentries. a.True b.False 59.Atrialbalancedeterminestheaccuracyofthenumbers. a.True b.False 60.Anaccountinitssimplestformhasthreepartstoit:atitle,anincreaseside,andadecreaseside. a.True b.False 61.TheTaccountgotitsnamebecauseitresemblestheletter“T.” a.True b.False 62.Whenabusinesspurchasessuppliesonaccount,noentryshouldbemadeuntiltheinvoiceispaid. a.True b.False 63.Revenueaccountsareincreasedbycredits. a.True b.False 64.Thenormalbalanceofacapitalaccountisadebit. a.True b.False 65.Thecashaccountwillalwaysbedebited. a.True b.False 66.Postingsmadetofour-columnaccountformsshowanewbalanceaftereachentry. a.True b.False

Copyright Cengage Learning. Powered by Cognero.

For All Chapters --> [email protected]

Page 6

For All Chapters --> [email protected] Name:

Class:

Date:

Chap02_28e 67.Therecordingofcashpaymentsfromthecashaccountisdonebyenteringtheamountasacredit. a.True b.False 68.Thedrawingaccountisanexpense. a.True b.False 69.Journalizingalwayseliminatesfraudulentactivity. a.True b.False 70.Normalaccountbalancesareontheincreasesideoftheaccounts. a.True b.False 71.Whenanaccountreceivableiscollectedincash,thetotalassetsofthebusinessincrease. a.True b.False 72.Dependingontheaccounttitle,therightsideoftheaccountisreferredtoasthecreditside. a.True b.False 73.Adrawingaccountrepresentstheamountofwithdrawalsmadebytheowner. a.True b.False 74.Todeterminethebalanceinanaccount,alwayssubtractcreditsfromdebits. a.True b.False

Copyright Cengage Learning. Powered by Cognero.

For All Chapters --> [email protected]

Page 7

For All Chapters --> [email protected] Name:

Class:

Date:

Chap02_28e Indicatetheanswerchoicethatbestcompletesthestatementoranswersthequestion. ThechartofaccountsforCorningCompanyincludesthefollowing: AccountName

AccountNumber 11 13 15 21 24 31 32 41 54 56

Cash AccountsReceivable PrepaidInsurance AccountsPayable UnearnedRevenue Corning,Capital Corning,Drawing FeesEarned SalariesExpense RentExpense Page3ofthejournalcontainsthefollowingentry: PrepaidInsurance Cash

1,530 

1,530

75.Whatisthepostingreferencethatwillbefoundintheprepaidinsuranceaccount? a.11 b.15 c.3 d.13 76. May  

23  

Cash  ScottClark,Capital  Investedcashinbusiness. 

22,000  

22,000 

Thisjournalentrywill a.increaseCapitalanddecreaseCash b.increaseCashanddecreaseCapital c.increaseCashandincreaseCapital d.decreaseCashanddecreaseCapital 77.Whichofthefollowingtransactionsincreasesowner’sequity? a.Purchasesuppliesonaccount b.Provideservicesonaccount c.Receivecashfromcustomersonaccount d.Receiveutilitybilltobepaidnextmonth Copyright Cengage Learning. Powered by Cognero.

For All Chapters --> [email protected]

Page 8

For All Chapters --> [email protected] Name:

Class:

Date:

Chap02_28e 78.Whichofthefollowingaccountsisanowner'sequityaccount? a.Cash b.AccountsPayable c.PrepaidInsurance d.RossMorris,Capital 79.Inwhichofthefollowingtypesofaccountsareincreasesrecordedbycredits? a.revenuesandliabilities b.drawingandassets c.liabilitiesanddrawing d.expensesandliabilities 80.ThepurchaseofsuppliesonaccountwasrecordedandpostedasadebittoSuppliesfor$500andacreditto AccountsReceivablefor$500.Thecorrectingentrywouldincludea a.credittoAccountsReceivablefor$500 b.credittoAccountsReceivablefor$1,000 c.credittoAccountsPayablefor$500 d.credittoAccountsPayablefor$1,000 81.Whichofthefollowingisnottruewithadouble-entryaccountingsystem? a.Theaccountingequationremainsinbalance. b.Thesumofalldebitsisalwaysequaltothesumofallcreditsineachjournalentry. c.Eachbusinesstransactionwillhavetwodebits. d.Everytransactionaffectsatleasttwoaccounts. 82.Whichofthefollowingentriesrecordsthecollectionofcashfromcashcustomers? a.FeesEarned,debit;Cash,credit b.FeesEarned,debit;AccountsReceivable,credit c.Cash,debit;FeesEarned,credit d.AccountsReceivable,debit;FeesEarned,credit

Copyright Cengage Learning. Powered by Cognero.

For All Chapters --> [email protected]

Page 9

For All Chapters --> [email protected] Name:

Class:

Date:

Chap02_28e 83.ThechartofaccountsforMiguelCompanyincludesthefollowing: AccountName

AccountNumber 11 13 15 21 24 31 32 41 54 56

Cash AccountsReceivable PrepaidInsurance AccountsPayable UnearnedRevenue Miguel,Capital Miguel,Drawing FeesEarned SalariesExpense RentExpense Page3ofthejournalcontainsthefollowingtransaction: Cash FeesEarned

640 

640

Whatpostingreferenceswillbefoundinthejournalentry? a.41,3 b.3,11 c.11,41 d.11,3 84.OfficesuppliesweresoldbyJaner'sCleaningServiceatcosttoanotherrepairshop,withcashreceived.Which ofthefollowingentriesforJaner'sCleaningServicerecordsthistransaction? a.OfficeSupplies,debit;Cash,credit b.OfficeSupplies,debit;AccountsPayable,credit c.Cash,debit;OfficeSupplies,credit d.AccountsPayable,debit;OfficeSupplies,credit 85.Adebitbalanceinwhichofthefollowingaccountswouldlikelyindicateanerror? a.SalariesExpense b.NotesPayable c.EdgarMartin,Drawing d.Supplies 86.Whichofthefollowingtypesofaccountshaveanormalcreditbalance? a.assetsandliabilities b.liabilitiesandexpenses c.revenuesandcapital d.capitalanddrawing

Copyright Cengage Learning. Powered by Cognero.

For All Chapters --> [email protected]

Page 10

For All Chapters --> [email protected] Name:

Class:

Date:

Chap02_28e 87.Whichofthefollowingstatementsisnottrueaboutliabilities? a.Liabilitiesaredebtsowedtooutsiders. b.Accounttitlesofliabilitiesoftenincludetheterm“payable.” c.Cashreceivedbeforeaserviceisperformedcreatesaliability. d.Liabilitiesdonotincludewagesowedtoemployeesofthecompany. 88.Owner’sequitywillbereducedbyallofthefollowingexcept a.revenues b.expenses c.withdrawals d.Allofthesechoices 89.Inwhichofthefollowingtypesofaccountsaredecreasesrecordedbydebits? a.assets b.liabilities c.expenses d.drawing 90.Whichofthefollowingistrueregardingnormalbalancesofaccounts? a.Allaccountshaveanormaldebitbalance. b.Thenormalbalanceofallaccountswillhaveeitherapositiveornegativebalance. c.Accountsthathaveanormaldebitbalancewillonlyhavedebitentries,nevercreditentries. d.Thenormalbalanceisontheincreasesideoftheaccount. 91.Whichofthefollowingentriesrecordsthereceiptofcashfromclientsonaccount? a.AccountsPayable,debit;FeesEarned,credit b.AccountsReceivable,debit;FeesEarned,credit c.AccountsReceivable,debit;Cash,credit d.Cash,debit;AccountsReceivable,credit 92.ThePostingReferencecolumnsareusedtotracetransactionsfromtheledgertothejournal.Whatwillbe enteredinthePostingReferencecolumnof(1)thejournaland(2)theledger? a.(1)theamountofthedebitorcreditand(2)thejournalpagenumber b.(1)thejournalpagenumberand(2)thedateofthetransaction c.(1)thejournalpagenumberand(2)theaccountnumber d.(1)theaccountnumberand(2)thejournalpagenumber 93.Whichofthefollowingentriesrecordstheacquisitionofofficesuppliesonaccount? a.OfficeSupplies,debit;Cash,credit b.Cash,debit;OfficeSupplies,credit c.OfficeSupplies,debit;AccountsPayable,credit d.AccountsReceivable,debit;OfficeSupplies,credit

Copyright Cengage Learning. Powered by Cognero.

For All Chapters --> [email protected]

Page 11

For All Chapters --> [email protected] Name:

Class:

Date:

Chap02_28e 94.CashwaspaidbyJaner'sCleaningServicetocreditorsonaccount.WhichofthefollowingentriesforJaner's CleaningServicerecordsthistransaction? a.Cash,debit;DebbiJaner,Capital,credit b.AccountsPayable,debit;Cash,credit c.AccountsReceivable,debit;Cash,credit d.AccountsPayable,debit;AccountsReceivable,credit 95.ThefollowingaccountsappearintheledgerofMonroeEntertainmentCo.Allaccountshavenormalbalances. AccountsPayable AccountsReceivable Cash KimMonroe,Drawing PrepaidInsurance

$1,500 1,800 3,200 1,200 2,000

FeesEarned InsuranceExpense KimMonroe,Capital Land WagesExpense

$3,600 1,300 8,800 3,000 1,400

Whenatrialbalanceisprepared,thetotalofthedebitswillbe a.$13,900 b.$11,200 c.$12,700 d.$9,700 96.Aclienthasamassageandasksthecompanybookkeepertomailherthebill.Thebookkeepershouldmake whichentrytorecordtheinvoice? a.noentryuntilthecashisreceived b.FeesEarned,debit;AccountsReceivable,credit c.Cash,debit;FeesEarned,credit d.AccountsReceivable,debit;FeesEarned,credit 97.McNallyIndustrieshasacondensedincomestatementasshown.  Sales Totaloperatingexpenses Netincome

Year2 $198,000

Year1 $165,500

163,000

147,500

$35,000

$18,000

Usinghorizontalanalysis,computetheamountandpercentchangeforsales.Roundtoonedecimalplace. a.$32,500,19.6% b.$18,000,10.9% c.$35,000,17.7% d.$17,000,9.4%

Copyright Cengage Learning. Powered by Cognero.

For All Chapters --> [email protected]

Page 12

For All Chapters --> [email protected] Name:

Class:

Date:

Chap02_28e 98.Whichofthefollowingentriesrecordsthepaymentofaninsurancepremiumcoveringthenextyear? a.debitPrepaidInsurance;creditCash b.debitInsurancePayable;creditAccountsReceivable c.debitAccountsPayable;creditCash d.debitCash;creditPrepaidInsurance 99.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confirmthissuspicion? a.Determinetheamountoftheerrorandlookforthatamountonthetrialbalance. b.Determinetheamountoftheerroranddivideby2,thenlookforthatamountonthetrialbalance. c.Determinetheamountoftheerrorandrefertothejournalentriesforthatamount. d.Determinetheamountoftheerroranddivideby9.Iftheresultisevenlydivided,thenthistypeoferroris likely. ThechartofaccountsforCorningCompanyincludesthefollowing: AccountName

AccountNumber 11 13 15 21 24 31 32 41 54 56

Cash AccountsReceivable PrepaidInsurance AccountsPayable UnearnedRevenue Corning,Capital Corning,Drawing FeesEarned SalariesExpense RentExpense Page3ofthejournalcontainsthefollowingentry: PrepaidInsurance Cash

1,530 

1,530

100.Whatpostingreferenceswillbefoundinthejournalentry? a.15,11 b.15,3 c.11,3 d.3,15

Copyright Cengage Learning. Powered by Cognero.

For All Chapters --> [email protected]

Page 13

For All Chapters --> [email protected] Name:

Class:

Date:

Chap02_28e 101. Mar. 10 AccountsPayable    Cash     Paidcreditorsonaccount.   Whateffectsdoesthisjournalentryhaveonthe...