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Exam 3: Analyzing Business Transactions Using T Accounts

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Question 31

Multiple Choice

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The Net Income amount from the Income Statement is used as a line item on which statement?

A) The profit and loss statement
B) The statement of owner's equity
C) The balance sheet
D) The trial balance

E) B) and C)
F) B) and D)

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Question 32

Multiple Choice

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The ending balance of the capital account appears as a separate line item on what two statements?

A) The trial balance and the income statement
B) The statement of owner's equity and the income statement
C) The statement of owner's equity and the balance sheet
D) The income statement and the balance sheet

E) A) and B)
F) All of the above

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Question 33

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The error that occurs when the number $272.00 is written as $27.20 is called a(n) ____________________ error.

Debit entries increase asset, drawing, expense and liability accounts.

A statement prepared to test the accuracy of the financial records is called a(n) ____________________.

Revenue is a subdivision of owner's equity.

Received cash from credit customers

When revenue is earned from charge-account sales, the accountant

Increases in the owner's drawing account are recorded with debits.

Issued a check for $3,400 to pay salaries

Increases in assets and expenses are both recorded with debits.

Which of the following would cause the Debit column and the Credit column of the Trial Balance to be unequal?

Utilities Expense would be debited when a company receives a bill for utilities that it will pay later.

Purchased office supplies for $250 on credit

The T account balances for the accounts of Rya's Planning Services as of January 31, 2013 are listed below. $\begin{array} { l r } \text { Cash } & \$ 21,500 \\\text { Accounts Receivable } & 17,500 \\\text { Office Supplies } & 500 \\\text { Equipment } & 15,000 \\\text { Accounts Payable } & 9,750 \\\text { Rya Page, Capital } & 28,200 \\\text { Rya Page, Drawing } & 5,000 \\\text { Planning Fees Income } & 26,250 \\\text { Office Supplies Expense } & 200 \\\text { Rent Expense } & 800 \\\text { Salaries Expense } & 3,000 \\\text { Utilities Expense } & 700\end{array}$ -Using the information given for Rya's Planning Services, create an Income Statement, Statement of Owner's Equity, and Balance Sheet for January 2013.

When there are several entries to one or both sides of an account, the total of those entries is entered in pencil. This is called

A trial balance usually has no mathematical errors if the total debit amount equals total the credit amount.

If assets are numbered from 100-199, which of the following accounts would not be given a number in the 100 series?

Which of the following entries records the withdrawal of cash for personal use by Ty Knott, the owner of a business?

Another name for temporary accounts is real accounts.