Insurance paid in advance is an asset 32 a ledger is

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31) Insurance paid in advance is an Asset. ___________ 32) A Ledger is called the book of final entry. __________ 33) The trial balance proves the equality of debits and credits. ____________ 34) The order of the flow of accounting data is to (1) record in a journal, (2) prepare a trial balance, (3) post in a ledger. _______________ 35) A compound entry is when one transaction occurs. ____________ 36) When the owner invests personal equipment in the business, capital is increased. ______________ 37) Accounts Payable indicates monies owed to us by our clients or customers. ___________________ 38) Prepaid Insurance appears on the Income Statement. ______________ 39) The process of transferring the data from the journal to the ledger accounts is called posting. 40) Notes Payable appears on the income statement. _______________ Problem Solving 1-4 1) A chart of accounts is below. Following is a series of transactions. Indicate for each transaction the accounts that should be debited and credited by inserting the proper account number in the space provided. ( 10pts ) 111 Cash 312 C. Webster, Withdrawals 112 Accounts Receivable 411 Delivery Fees Earned 121 Delivery Equipment 511 Salaries Expense 211 Accounts Payable 512 Rent Expense 311 C. Webster, Capital 513 Advertising Expense 514 Gas Expense Debit Credit Transaction ________ ________ 1. Invested cash in the business. ________ ________ 2. Received cash for delivery services performed. ________ ________ 3. Billed a customer for services performed. ________ ________ 4. Paid accounts payable. ________ ________ 5. Collected accounts receivable. ________ ________ 6. Withdrew cash for personal use. ________ ________ 7. Paid advertising expense. ________ ________ 8. Paid rent expense for the month. ________ ________ 9. Purchased delivery equipment on account.
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________ ________ 10. Paid salaries for the week. 2) The following transactions occurred during June for Campus Cycle Shop. Record the transactions below in the T accounts. Place the letter of the transaction next to the entry. Foot and calculate the ending balances of the T accounts where appropriate. (15pts) 3) All nine transactions for Ross Realty for June, the first month of operation, are recorded in the following T accounts:
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A) Prepare a trial balance, listing the accounts and their balance in proper order. B) Prepare an Income Statement C) Prepare the Owner’s Equity Statement D) Prepare a Balance Sheet
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