BAF 3M 🚨 Ch. 4 Assignment A

Last updated about 1 year ago

3 questions

Questions 1-4 are in the Formative
1. Fill in the Blank
2. Drop Down (Classification)
3. Drop Down (Trial Balance)
4. Short Answer

Questions 5 & 6 are to be completed in your Google Sheets Workbook. Exit the Formative.

Fill in the Blank Word Bank
account
credit(s) (used multiple times, once as plural)
debit(s) (used multiple times, once as plural)
exceptional
pencil footings
pin totals
purchase on account

A. A(n) _______  is a page designed to record changes in individual assets and liabilities and in Capital.

B. The basic feature of the double-entry system of accounting is that, for each transaction, the total of the   _______  must equal the total of the _______.

C. The left side of an account is the _______ side.

D. Liabilities decrease on the _______ side of the account.

E. The balance in the Capital account is on the _______ side.

F. Capital decreases on the _______ side.

G. Asset accounts normally have _______ balances.

H. Assets increase on the _______ side of the account.

I. Tiny pencil figures written beneath the last item on each side of the account are called 
 _______ or _______.

J. The balance in an accounts receivable account is usually a(n) _______ balance.

K. When services are performed by the owner of a business, the amount received in payment is placed on the _______ side of the Capital account.

L. A debit balance in a liability account is called a(n) _______ balance.

M. An item purchased on credit (not paid for at the time of purchase) is also known as a(n) 
 _______.

For each of the following transactions, indicate whether the account or item in parentheses is an asset, a liability, or capital and whether the account is debited or credited.

____________________  A. Increase in (Accounts Payable).

____________________  B. A broken (coffee maker) that cannot be repaired is thrown out.

____________________  C. (Owner) invests $2000 more cash in the business.

____________________  D. Obtain a (loan) of $5000 from the bank.

____________________  E. (Owner) withdraws $450 from the business for personal use.

Study the error situations listed below and indicate whether they would or would not cause the trial balance to be out of balance. If you decide that the trial balance would be out of balance, state by how much.

A. A payment for equipment was recorded as a debit of $395 to Equipment and a credit of $359 to Bank.

Will the Trial Balance balance? 
__________, if no, the Trial Balance will be out of balance by how much? 
__________ (if yes, select --)


B. Cash received from a customer was recorded as a debit of $180 to Bank and a credit of $180 to Accounts Payable.

Will the Trial Balance balance?
__________, if no, the Trial Balance will be out of balance by how much? 
__________ (if yes, select --)


C. A credit of $300 to the Capital account was recorded twice.

Will the Trial Balance balance? 
__________, if no, the Trial Balance will be out of balance by how much? 
__________ (if yes, select --)


D. An account balance of $140 was transferred to the wrong side of the trial balance.

Will the Trial Balance balance?
__________, if no, the Trial Balance will be out of balance by how much? 
__________ (if yes, select --)


E. A payment of $495 to a creditor was recorded as a debit to Accounts Payable of $495 and a credit to Bank of $49.

Will the Trial Balance balance?
__________, if no, the Trial Balance will be out of balance by how much? 
__________ (if yes, select --)


F. An amount of $50 was debited to Supplies, but it should have been debited to Equipment.

Will the Trial Balance balance?
__________, if no, the Trial Balance will be out of balance by how much? 
__________ (if yes, select --)

Questions 5 & 6 are to be completed in your Google Sheets Workbook. Exit the Formative.

*Question 4 was removed from this test.