accounting information system involves assessing B u s i n e s s F i n a n c e

1) Which step in the accounting information system involves assessing the equality of total debits and total credits?

2) A list of all account names used to record transactions of a company is referred to as a __________

3) Consider the following T-account for Accounts payable. Compute the ending balance.

Accounts PayableDebit Credit 10,2008,000 5,000 4,600

4) Prepare the journal entries for these transactions

• Purchased equipment for $25,000 for 10% cash and the rest on credit
• Provided services to customers on credit of $5,100.
• Pay the current month’s rent of $1,700.
• Purchase office supplies on account for $1,900.
• Pay employee salaries of $1,500 for the current month

5) Prepare journal entries for the following transactions in September.

September		1		Provide services to customers for cash, $3,600.
September		2		Purchase land with a long-term note for $5,300 from Crimson Company.
September		4		Receive an invoice for $390 from the local newspaper for an advertisement that appeared on September 2.
September		8		Provide services to customers on account for $4,900.
September		10		Purchase supplies on account for $1,200.
September		13		Pay $2,900 to Crimson Company for a long-term note.
September		18		Receive $3,900 from customers on account.
September		20		Pay $790 for September’s rent.
September		30		Pay September’s utility bill of $1,450.
September		30		Pay employees $2,900 for salaries for the month of September.
September		30		Pay a cash dividend of $1,200 to shareholders.

6) Consider the recorded transactions below. a) describe the business event behind each journal entry and b) calculate the ending balances in the Cash and Accounts Receivable accounts

		Debit	Credit
A)	Accounts Receivable	9,100
	Service Revenue		9,100
B)	Supplies	1,450
	Accounts Payable		1,450
C)	Cash	8,500
	Accounts Receivable		8,500
D).	Advertising Expense	1,100
	Cash		1,100
E)	Accounts Payable	2,000
	Cash		2,000
F)	Cash	1,200
	Deferred Revenue		1,200

7) From this list, prepare a trial balance in the proper order. accounts have their normal debit or credit balance. Supplies, $1,100; Buildings, $38,000; Salaries Payable, $300; Common Stock, $18,000; Accounts Payable, $1,350; Utilities Expense, $2,000; Prepaid Insurance, $1,100; Service Revenue, $17,800; Accounts Receivable, $2,500; Cash, $1,800; Salaries Expense, $4,700; Retained Earnings, $13,750.