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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text:38. Which one of the following statements describes the rules about posting transactions into T-accounts in the
ledger?
For assets, debits are entered on the left; for liabilities, credits are entered on the left
For assets, credits are entered on the left; for liabilities, debits are entered on the left
Debits on the left; credits on the right
Credits on the left; debits on the right
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- Briefly explain the methods used for valuing accounts receivables.arrow_forwardExplain what is meant by the term real accounts(also known as permanent accounts).arrow_forwardThe process of posting is the transfer of debits and credits from the O a. T accounts to the journal. Ob. T accounts to the ledger. O c. journal to the ledger. O d. ledger to the journal.arrow_forward
- The Sum of all the accounts in the accounts receivable subsidiary ledger should?arrow_forwardQuilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 8,000 pounds of oysters in August. The company’s flexible budget for August appears below: Quilcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds (q) 8,000 Revenue ($4.20q) $ 33,600 Expenses: Packing supplies ($0.30q) 2,400 Oyster bed maintenance ($3,000) 3,000 Wages and salaries ($2,400 + $0.30q) 4,800 Shipping ($0.80q) 6,400 Utilities ($1,220) 1,220 Other ($480 + $0.01q) 560 Total expense 18,380 Net operating income $ 15,220 The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 8,000 Revenue $ 27,000 Expenses: Packing supplies 2,570 Oyster bed maintenance 2,860 Wages and salaries 5,210 Shipping 6,130 Utilities 1,030 Other 1,180 Total expense 18,980 Net operating income $…arrow_forwardThe following comments each relate to the recording of journal entries. Which statement is true? Question 1 Select one: a. Journalization is the process of converting transactions and events into debit/credit format. b. For any given journal entry, debits must exceed credits c. The chart of accounts reveals the amount to debit and credit to the affected accounts d. It is customary to record credits on the left and debits on the rightarrow_forward
- Which of the following is true about T accounts? a.Transactions are first recorded in T accounts and then posted to the journal. b.The right side of a T account is called the debit side. c.The left side of a T account is called the credit side. d.The left side of a T account is called the debit side.arrow_forwardListed below are the transactions of Joseph Moore, D.D.S., for the month of September. Sept. 1 2 4 4 5 8 10 14 18 19 20 25 30 30 Moore begins practice as a dentist, invests $20,030 cash and issues 2,003 shares of $10 par stock. Purchases dental equipment on account from Green Jacket Co. for $17,820. Pays rent for office space, $690 for the month. Employs a receptionist, Michael Bradley. Purchases dental supplies for cash, $900. Receives cash of $1,770 from patients for services performed. Pays miscellaneous office expenses, $420. Bills patients $5,950 for services performed. Pays Green Jacket Co. on account, $3,760. Pays a dividend of $3,090 cash. Receives $1,060 from patients on account. Bills patients $1,980 for services performed. Pays the following expenses in cash: Salaries and wages $1,700; miscellaneous office expenses $83. Dental supplies used during September, $320. Record depreciation using a 5-year life on the equipment, the straight-line method, and no salvage value.arrow_forwardExplain how accounts receivable are presented in the financial statements.arrow_forward
- I need help.arrow_forwardMatch each of the numbered descriptions with the term, title, or phrase that it best reflects. Indicate your answer by entering the letter A through J in the blank provided. A. General journal B. Special journal C. Subsidiary ledger D. Accounts receivable ledger E. Accounts payable ledger F. Controlling account G. Sales journal H. Cash receipts journal I. Purchases journal J. Cash payments journal 1. Used to record all cash payments. 2. Used to record all credit purchases. 3. Used to record all receipts of cash. 4. Used to record sales of inventory on credit. 5. Stores transaction data of individual customers. 6. Stores transaction data of individual suppliers. 7. Account that is said to control a specific subsidiary ledger. 8. Contains detailed information on a specific account from the general ledger. 9. Used to record and post transactions of similar type. 10. All-purpose journal in which any transaction can be recorded.arrow_forwardProvide an example of an account that would be listed under Current Liabilities on a balance sheet and briefly explain why it would be categorized this way. How would we categorize the balance in a Notes Payable account: under Current Liabilities or Noncurrent Liabilities? Why?arrow_forward
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