Complete the formative and don't forget to go over to the Google Sheet for the second part of this assignment!
There are three parts to this formative:
Part 1: Multiple Choice
Part 2: Debit or Credit?
Part 3: Transaction Analysis
"Part 4" is the Google Sheet Spreadsheet.
Question 1
1.
Question 2
2.
Question 3
3.
Question 4
4.
Question 5
5.
Question 6
6.
Question 7
7.
Question 8
8.
Question 9
9.
Question 10
10.
Indicate which accounts you would debit and credit for the following transactions for Splinters Building Supplies. Write complete account titles. Use Fees Earned for revenue transactions.
Question 11
11.
What kind of balance does a revenue account usually have? __________
Question 12
12.
What kind of balance does an expense account usually have? __________
Question 13
13.
What kind of balance does a Captial account usually have? __________
Question 14
14.
What kind of balance does a Drawings account usually have? __________
Question 15
15.
September 1, Issued Cheque No. 1 to M. Goulet for the September rent.
Debit Account __________
Credit Account __________
Question 16
16.
September 3, Received a bill from Comeau Hardware for the purchase of supplies on account.
Debit Account __________
Credit Account __________
Question 17
17.
September 6, Issued a bill to R. Mancini for services performed during the previous week.
Debit Account __________
Credit Account __________
Question 18
18.
September 9, Received cash from a customer for services performed.
Debit Account __________
Credit Account __________
Question 19
19.
September 11, Issued Cheque No. 2 to J. Varcoe, the owner, for personal use.
Debit Account __________
Credit Account __________
Question 20
20.
September 12, Issued Cheque No. 3 to Comeau Hardware on account.
Debit Account __________
Credit Account __________
Question 21
21.
September 15, Received a bill from Imperial Garage for gasoline and oil used in the truck.
Debit Account __________
Credit Account __________
Question 22
22.
September 16, Issued Cheque No. 4 to Woo Bros. for supplies purchased.
Debit Account __________
Credit Account __________
Question 23
23.
September 18, Received a cheque from R. Mancini in full payment of his account balance.
Debit Account __________
Credit Account __________
H. Hyland, the owner of Sparkling Dry Cleaners, submitted an invoice received from Speedy Auto Service for repairs to his wife’s car. He has instructed you to issue a cheque in full payment of the account. The correct entry is
debit H. Hyland, Drawings; credit Bank.
debit Car Expense; credit H. Hyland, Drawings.
debit Car Expense; credit Bank.
debit Automobile; credit Bank.
debit Car Expense: credit Accounts Payable.
Which of the following would not be correct in the heading of an income statement?
December 31, 20–
Al’s Tireland Ltd.
Income Statement
Year Ended June 30, 20–
All of the above are correct.
The fiscal period is usually...
measured in weeks.
six months long.
a length of time that is less than one year.
one year long.
Two of the above are true.
The income statement will
indicate to the owner the cash position of the business.
be used to determine the amount of income tax the business must pay.
tell bankers if the business is in a good position to pay its bills.
reveal the amount of money withdrawn by the owner.
Two of the above are true.
The Fees Earned figure could include
sale of the owner’s personal assets.
sale of company’s office furniture.
sale of company’s automobile.
All of the above.
None of the above.
The fiscal year-end for a business is December 31, 20–1. On December 28, 20–1, the business pays the rent for January 20–2, and the accounting clerk debits Rent Expense and credits Bank. Which accounting standard has been violated?
the revaluation model
the time period concept
the matching principle
the business entity concept
No accounting standard has been violated.
What is the correct journal entry for when cash services are performed?
Accounts Receivable is debited, Fees Earned is credited.
Cash is debited, Fees Earned is credited.
Cash is debited, Accounts Receivable is credited.
Fees Earned is debited, Cash is credited.
None of the above.
During the lifetime of a business, accountants produce financial statements at specific points in time in accordance with which basic accounting concept?
the time period concept
the cost principle
the matching principle
the business entity concept
None of the above.
The expanded ledger is useful because
it makes it easier to calculate the trial balance.
it matches more closely with the income statement.
it follows the matching principle.
it makes it easier to evaluate the effectiveness of a business.
All of the above are true.
The number of the Interest Revenue account is in the...