This topic contains a solution. Click here to go to the answer

Author Question: If a two-column (all-purpose) general journal, a purchases journal, and a cash payments journal are ... (Read 153 times)

anshika

  • Hero Member
  • *****
  • Posts: 510
If a two-column (all-purpose) general journal, a purchases journal, and a cash payments journal are used, indicatethe journal in which each of the following transactions should be recorded: (a) Payment of rent. (b) Purchase of supplies on account. (c) Purchase of computer on account. (d) Purchase of supplies for cash. (e) Advance payment of a one-year fire insurance policy on the office. (f) Adjustment to record accrued salaries at the end of the period. (g) Adjustment to record depreciation at the end of the month. (h) Payment of an account payable.

Question 2

Elsie owns a small business. At the end of the month, Elsie needed to make adjusting entries to prepare statements on the accrual basis.
 
  Which two of the following six possibilities occurred as a result of each of the following adjustments - an asset increased, an asset decreased, a liability increased, a liability decreased, equity increased, or equity decreased:
   a. An accrual for salaries that were due to an employee, but were not paid
   b. An adjustment for depreciation on Elsie's store fixtures
   c. An adjustment for the expiration of prepaid insurance
   d. An accrual for interest earned on a certificate of deposit that had not matured



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

snackralk

  • Sr. Member
  • ****
  • Posts: 363
Answer to Question 1

(a) cash payments journal
(b) purchases journal
(c) purchases journal
(d) cash payments journal
(e) cash payments journal
(f) general journal
(g) general journal
(h) cash payments journal

Answer to Question 2

a. liabilities +, equity -
b. assets -, equity -
c. assets -, equity -
d. assets +, equity +





 

Did you know?

Drugs are in development that may cure asthma and hay fever once and for all. They target leukotrienes, which are known to cause tightening of the air passages in the lungs and increase mucus productions in nasal passages.

Did you know?

Glaucoma is a leading cause of blindness. As of yet, there is no cure. Everyone is at risk, and there may be no warning signs. It is six to eight times more common in African Americans than in whites. The best and most effective way to detect glaucoma is to receive a dilated eye examination.

Did you know?

In the ancient and medieval periods, dysentery killed about ? of all babies before they reach 12 months of age. The disease was transferred through contaminated drinking water, because there was no way to adequately dispose of sewage, which contaminated the water.

Did you know?

Opium has influenced much of the world's most popular literature. The following authors were all opium users, of varying degrees: Lewis Carroll, Charles, Dickens, Arthur Conan Doyle, and Oscar Wilde.

Did you know?

By definition, when a medication is administered intravenously, its bioavailability is 100%.

For a complete list of videos, visit our video library