Solution to Suggested QS & Exercise-Chapter 2-7thEdition

Solution to Suggested QS & Exercise-Chapter...

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Quick Study 2-3 (5 minutes) a. E Expense b. R Revenue c. A Asset d. A Asset e. L Liability f. A Asset g. L Liability h. EQ Equity i. E Expense Quick Study 2-4 (10 minutes) a. Debit d. Debit g. Credit b. Debit e. Debit h. Debit c. Credit f. Debit i. Credit Quick Study 2-6 (10 minutes) a. Debit e. Debit i. Credit b. Credit f. Credit j. Debit c. Debit g. Credit d. Credit h. Credit Quick Study 2-8 (10 minutes) The correct answer is a. Explanation: If a $2,250 debit to Utilities Expense is incorrectly posted as a credit, the effect is to understate the Utilities Expense debit balance by $4,500. This causes the Debit column total on the trial balance to be $4,500 less than the Credit column total.
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Exercise 2-1 (10 minutes) 1 a. Analyze each transaction from source documents. 4 b. Prepare and analyze the trial balance. 2 c. Record relevant transactions in a journal. 3 d. Post journal information to ledger accounts. Exercise 2-2 (10 minutes) a. 3 d. 5 b. 4 e. 2 c. 1 Exercise 2-4 (15 minutes) Type of Normal Increase Account Account Balance (Dr. or Cr.) a. Cash ............................................. asset debit debit b. Legal Expense ............................ expense debit debit c. Prepaid Insurance ...................... asset debit debit d. Land ............................................. asset debit debit e. Accounts Receivable ................. asset debit debit f. Dividends .................................... equity debit debit g.
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