Question

For expenses, the category of account and its normal balance is ________.

A) equity and a credit balance

B) assets and a debit balance

C) assets and a credit balance

D) equity and a debit balance

  

The Accounts Receivable account of Brownstone, Inc. has the following postings:

Accounts Receivable

23,000	3,000
2,000

  

  

Calculate the ending balance of the account.

A) $28,000 debit

B) $25,000 debit

C) $3,000 credit

D) $22,000 debit

  

The Accounts Payable account of Waterford, Inc. has the following postings:

Accounts Receivable

17,000	27,000
8,000	12,000

Calculate the ending balance of the account.

A) $12,000 credit

B) $14,000 debit

C) $14,000 credit

D) $8,000 debit

  

A business purchases $3,500 of office supplies for cash. Which of the following sets of ledger accounts reflects the posting of this transaction?

A)  

Office Supplies

3,500

Accounts Payable

3,500

B)  

Office Supplies

3,500

Cash

3,500

C)  

Office Supplies

3,500

Accounts Payable

3,500

  

D)  

Office Supplies

3,500

Cash

3,500

  

When is a trial balance usually prepared?

A) after each entry is journalized

B) before the financial statements are prepared

C) after the financial statements are prepared

D) at the beginning of an accounting period

Answer 1

1) For expenses, the category of account and its normal balance is ________.

So answer is d) equity and a debit balance

2) Account receivable balance = 23000+2000-3000 = 22000 Debit

So answer is d) $22000 Debit

3) Account payable balance = 27000+12000-17000-8000 = 14000 Credit

So answer is c) $14000 Credit

4) Journal entry

Date	account and explanation	debit	credit
	Office supplies	3500
	Cash		3500

So answer is d)

5) When is a trial balance usually prepared?

So answer is b) before the financial statements are prepared