Exam 2 (Chapters 3-5)

Front 1

Assuming the use of a two-column (all-purpose) general journal, a revenue journal, and a cash receipts journal, indicate the journal in which each of the transactions should be recorded:

Closing of drawing account at the end of the year.

Back 1

General

Front 2

Assuming the use of a two-column (all-purpose) general journal, a revenue journal, and a cash receipts journal, indicate the journal in which each of the transactions should be recorded:

Providing services for cash.

Back 2

Cash receipts

Front 3

Assuming the use of a two-column (all-purpose) general journal, a revenue journal, and a cash receipts journal, indicate the journal in which each of the transactions should be recorded:

Sale of office supplies on account, at cost, to a neighboring business.

Back 3

General

Front 4

Assuming the use of a two-column (all-purpose) general journal, a revenue journal, and a cash receipts journal, indicate the journal in which each of the transactions should be recorded:

Receipt of cash from sale of office equipment.

Back 4

Cash receipts

Front 5

Assuming the use of a two-column (all-purpose) general journal, a revenue journal, and a cash receipts journal, indicate the journal in which each of the transactions should be recorded:

Receipt of cash for rent.

Back 5

Cash receipts

Front 6

Assuming the use of a two-column (all-purpose) general journal, a revenue journal, and a cash receipts journal, indicate the journal in which each of the transactions should be recorded:

Receipt of cash on account from a customer.

Back 6

Cash receipts

Front 7

Assuming the use of a two-column (all-purpose) general journal, a revenue journal, and a cash receipts journal, indicate the journal in which each of the transactions should be recorded:

Providing services on account.

Back 7

Revenue

Front 8

Assuming the use of a two-column (all-purpose) general journal, a revenue journal, and a cash receipts journal, indicate the journal in which each of the transactions should be recorded:

Investment of additional cash in the business by the owner.

Back 8

Cash receipts

Front 9

Assuming the use of a two-column (all-purpose) general journal, a revenue journal, and a cash receipts journal, indicate the journal in which each of the transactions should be recorded:

Receipt of cash refund from overpayment of taxes.

Back 9

Cash receipts

Front 10

Assuming the use of a two-column (all-purpose) general journal, a revenue journal, and a cash receipts journal, indicate the journal in which each of the transactions should be recorded:

Adjustment to record accrued salaries at the end of the year.

Back 10

General

Front 11

If I am receiving cash for services provided, what account do I credit on the cash receipts journal?

Back 11

Fees earned

Front 12

The follow basic types of accounts that require adjusting entries:

Back 12

Prepaid expenses

Unearned revenues

Accrued revenues

Accrued expenses

Front 13

What type of account is prepaid expense?

Back 13

Asset

Front 14

What type of account is unearned revenue?

Back 14

Liability

Front 15

What type of account is accrued revenue?

Back 15

Asset

Front 16

What type of account is accrued expense?

Back 16

Liability

Front 17

The journal entries that bring the accounts up to date at the end of the accounting period are called

Back 17

adjusting entries

Front 18

An adjusting entry will always involve a _________ or __________ account AND an ________ or __________ account.

Back 18

revenue or expense; asset or liability

Front 19

Expense adjusting entry =

Back 19

matching concept

Front 20

Revenue adjusting entry =

Back 20

revenue recognition concept

Front 21

Does this account normally require an adjusting entry?

Cash

Back 21

No

Front 22

Does this account normally require an adjusting entry?

Prepaid rent

Back 22

Yes

Front 23

Does this account normally require an adjusting entry?

Wages expense

Back 23

Yes

Front 24

Does this account normally require an adjusting entry?

Land

Back 24

No

Front 25

Does this account normally require an adjusting entry?

Accounts receivable

Back 25

Yes

Front 26

Does this account normally require an adjusting entry?

Unearned rent

Back 26

Yes

Front 27

Prepaid expenses and unearned revenues are sometimes referred to as ________. This is because the recording of the related expense or revenue is deferred to a future period.

Back 27

deferrals

Front 28

Accrued revenues and expenses are sometimes referred to as __________. This is because the related revenue or expense should be recorded in the current period.

Back 28

Accruals

Front 29

Does this account normally require an adjusting entry?

Building

Back 29

No

Front 30

Does this account normally require an adjusting entry?

Cash

Back 30

No

Front 31

Does this account normally require an adjusting entry?

Interest Expense

Back 31

Yes

Front 32

Does this account normally require an adjusting entry?

Miscellaneous Expense

Back 32

No

Front 33

Does this account normally require an adjusting entry?

Nathan Archer, Capital

Back 33

No

Front 34

Does this account normally require an adjusting entry?

Prepaid insurance

Back 34

Yes

Front 35

Revenue earned but not yet received

Back 35

Accrued revenue

Front 36

Cash received for use of land next month

Back 36

Unearned revenue

Front 37

Expense owed but not yet paid

Back 37

Accrued expense

Front 38

Supplies on hand

Back 38

Prepaid expense

Front 39

Closing entries transfer the balance of _______________ to the owner's __________.

Back 39

temporary accounts; capital account

Front 40

__________ is a ____________ used only during the closing process.

Back 40

Income Summary; temporary account

Front 41

Only _________ accounts appear on the post close trial balance.

Back 41

Permanent

Front 42

Assets, liabilities, and capital accounts are what type?

Back 42

Permanent

Front 43

A balance sheet with subsections for assets and liabilities is a

Back 43

classified balance sheet

Front 44

Notes receivable, accounts receivable, supplies, and other prepaid expenses are

Back 44

current assets

Front 45

Assets are divided into what two sections on the classified balance sheet?

Back 45

1. Current assets

2. Property, plant, and equipment

Front 46

Assets that include equipment, machinery, buildings, and land

Back 46

Property, plant, and equipment or fixed assets

Front 47

Current assets or property, plant, and equipment?

Cash

Back 47

Current asset

Front 48

Current assets or property, plant, and equipment?

Accounts Receivable

Back 48

Current asset

Front 49

Current assets or property, plant, and equipment?

Supplies

Back 49

Current asset

Front 50

Current assets or property, plant, and equipment?

Prepaid Rent

Back 50

Current asset

Front 51

Current assets, current liability, or property, plant, and equipment?

Prepaid Insurance

Back 51

Current asset

Front 52

Current assets, current liability, or property, plant, and equipment?

Office equipment

Back 52

Property, plant, and equipment

Front 53

Current assets, current liability, or property, plant, and equipment?

Accumulated depreciation

Back 53

Property, plant, and equipment

Front 54

Current assets, current liability, or property, plant, and equipment?

Building

Back 54

Property, plant, and equipment

Front 55

Current assets, current liability, or property, plant, and equipment?

Land

Back 55

Property, plant, and equipment

Front 56

Flows into which financial statement?

Unearned revenue

Back 56

Balance sheet

Front 57

Flows into which financial statement?

Deprecation Expense--Building

Back 57

Income statement

Front 58

Flows into which financial statement?

Fees Earned

Back 58

Income statement

Front 59

Flows into which financial statement?

Tina Greer, Drawing

Back 59

Statement of owner's equity

Front 60

Flows into which financial statement?

Tom Jones, Capital

Back 60

Statement of owner's equity

Front 61

Flows into which financial statement?

Supplies

Back 61

Balance sheet

Front 62

Current assets, current liability, long-term liability, or property, plant, and equipment?

Notes payable

Back 62

Long-term liability

Front 63

Current assets, current liability, long-term liability, or property, plant, and equipment?

Accounts Receivable

Back 63

Current Asset

Front 64

Current assets, current liability, long-term liability, or property, plant, and equipment?

Accounts Payable

Back 64

Current Liability

Front 65

What are the 4 journal entries necessary to close the books?

Back 65

1. Close revenues to Income Summary

2. Close expenses to Income Summary

3. Close Income Summary to Capital

4. Close Drawing to Capital

Front 66

Close Income Summary to Capital is the 3rd journal entry necessary to close the books. How is a net loss journalized?

Back 66

Income Summary

xxxxx, Capital

Front 67

Close Income Summary to Capital is the 3rd journal entry necessary to close the books. How is a net profit journalized?

Back 67

xxxxx, Capital

Income Summary

Front 68

Close revenues to Income Summary is the 1st journal entry necessary to close the books. How is it journalized?

Back 68

Revenues

Income Summary

Front 69

Close revenues to Income Summary is which # journal entry to close the books?

Back 69

1

Front 70

Close expenses to Income Summary is which # journal entry to close the books?

Back 70

2

Front 71

Close Income Summary to Capital is which # journal entry to close the books?

Back 71

3

Front 72

Close Drawing to Capital is which # journal entry to close the books?

Back 72

4

Front 73

Close Drawing to Capital is the 4th journal entry necessary to close the books. How is it journalized?

Back 73

xxxxx, Capital

xxxxx, Drawing

Front 74

Close expenses to Income Summary is the 2nd journal entry necessary to close the books. How is it journalized?

Back 74

Income Summary

Expenses