Chapter 3

Question 1 of 12

1

Which of the following groups of accounts are increased with credits?

Select one of the following:

Unearned Revenue, Accounts Payable, and Common Stock
Land, Notes Receivable, and Prepaid Insurance
Sales Revenue, Cash, and Equipment
Rent Expense, Retained Earnings, and Interest Revenue

Explanation

Question 2 of 12

1

The recording rules of double-entry accounting related to assets, liabilities, and stockholders' equity accounts can be summarized as

Select one of the following:

Debits increase asset accounts; credits decrease liability and stockholders' equity accounts
Debits decrease asset accounts; credits increase liability and stockholders' equity accounts
Debits decrease asset accounts; credits decrease liability and stockholders' equity accounts
Debits increase asset accounts; credits increase liability and stockholders' equity accounts

Explanation

Question 3 of 12

1

Hilliard Company experienced an accounting event that was recorded in the company's general journal as indicated below:

Debit Credit
Cash 43,000
Accounts Receivable 43,000

Select one of the following:

Explanation

Question 4 of 12

1

Willard Company purchased $700 of supplies on account. A result of this transaction would be to

Select one of the following:

Credit (right side of T-account) Cash
Debit (left side of T-account) Accounts Receivable
Credit (right side of T-account) Accounts Payable
Credit (right side of T-account) Supplies

Explanation

Question 5 of 12

1

Hanover Company paid $3,600 cash in advance for a one-year insurance policy starting on October 1, 2016. Which of the following is the correct adjusting journal entry to record the portion of insurance used up through December 31, 2016?

Select one of the following:

Explanation

Question 6 of 12

1

Rupert Company provided $12,000 of services on account. Which of the following is the correct general journal entry to record this transaction?

Select one of the following:

Explanation

Question 7 of 12

1

On December 1, 2016, King Company collected $26,000 of cash in advance from a customer for services to be provided from January 1, 2017 through June 30, 2017. Which of the following is the correct general journal entry to record this transaction?

Select one of the following:

Explanation

Question 8 of 12

1

Which of the following best describes where you would find a chronological record of business transactions in the accounting records?

Select one of the following:

General ledger
General journal
Chart of accounts
Trial balance

Explanation

Question 9 of 12

1

Is the normal balance of the following accounts a debit or a credit?

Select one of the following:

Explanation

Question 10 of 12

1

Which of the following represents the closing general journal entry for Jarvis Company's revenue accounts?

Select one of the following:

Explanation

Question 11 of 12

1

What is the balance in Retained Earnings after the closing general journal entries are made? (Hint: Use T-accounts to arrive at your answer)

Select one of the following:

$58,000
$63,000
$75,000
$92,000

Explanation

Question 12 of 12

1

Prepare an adjusted trial balance for Everett Corporation at December 31, 2016, and determine the correct statement.

Select one of the following:

The total debits equal $178,000.
The total debits equal $206,000.
The total debits equal $186,000.
Equal debits and credits in the trial balance ensure that there are no errors in the accounting records.

	Created by Angelica Vannarath over 9 years ago

final

Question 1 of 12

Which of the following groups of accounts are increased with credits?

Select one of the following:

Explanation

Question 2 of 12

The recording rules of double-entry accounting related to assets, liabilities, and stockholders' equity accounts can be summarized as

Select one of the following:

Explanation

Question 3 of 12

Hilliard Company experienced an accounting event that was recorded in the company's general journal as indicated below: Debit Credit Cash 43,000 Accounts Receivable 43,000

Select one of the following:

Explanation

Question 4 of 12

Willard Company purchased $700 of supplies on account. A result of this transaction would be to

Select one of the following:

Explanation

Question 5 of 12

Hanover Company paid $3,600 cash in advance for a one-year insurance policy starting on October 1, 2016. Which of the following is the correct adjusting journal entry to record the portion of insurance used up through December 31, 2016?

Select one of the following:

Explanation

Question 6 of 12

Rupert Company provided $12,000 of services on account. Which of the following is the correct general journal entry to record this transaction?

Select one of the following:

Explanation

Question 7 of 12

On December 1, 2016, King Company collected $26,000 of cash in advance from a customer for services to be provided from January 1, 2017 through June 30, 2017. Which of the following is the correct general journal entry to record this transaction?

Select one of the following:

Explanation

Question 8 of 12

Which of the following best describes where you would find a chronological record of business transactions in the accounting records?

Select one of the following:

Explanation

Question 9 of 12

Is the normal balance of the following accounts a debit or a credit?

Select one of the following:

Explanation

Question 10 of 12

Which of the following represents the closing general journal entry for Jarvis Company's revenue accounts?

Select one of the following:

Explanation

Question 11 of 12

What is the balance in Retained Earnings after the closing general journal entries are made? (Hint: Use T-accounts to arrive at your answer)

Select one of the following:

Explanation

Question 12 of 12

Prepare an adjusted trial balance for Everett Corporation at December 31, 2016, and determine the correct statement.

Select one of the following:

Explanation

Hilliard Company experienced an accounting event that was recorded in the company's general journal as indicated below:

Debit Credit
Cash 43,000
Accounts Receivable 43,000