Week 5 Preparation Questions Solutions

Week 5 Preparation Questions Solutions - ACCT 1501 2011S1...

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ACCT 1501 2011S1 Week 5 Preparation Questions Solutions Preparation Question: Discussion Question 4.2, 4.6, 4.7; Problems 4.4, 4.5, 4.13 2. Journal entries are the first records of an accounting transaction in the accounting records. 6 A trial balance is a standard bookkeeping procedure to check whether certain errors have been made in posting the journal entries to the ledger. It is a test to see whether total debits equal total credits. 7 Closing entries formally transfer the balances of the revenue and expense accounts to a profit and loss summary and then to retained profits. Closing entries also reset the revenue and expense account balances to zero to begin recording these items for the next accounting period Problem 4.4 1 No transaction since no exchange yet. 2 Yes, an exchange of money for advice. 3 No transaction for Bartlett as the exchanges that changed share price were between investors, not involving Bartlett. 4 Yes, an exchange of advertising received for a promise to pay, so a credit transaction. 5 Yes, for same reason as 4 – work received in exchange for a promise to pay for it. 6 Yes, an exchange of a sort. The teenager got the repair and the company perhaps earned some goodwill, or avoided a later lawsuit or other problem. 7
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This note was uploaded on 03/19/2012 for the course ACCT 1501 taught by Professor Helen during the Three '09 term at University of New South Wales.

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Week 5 Preparation Questions Solutions - ACCT 1501 2011S1...

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