Questions from Financial Accounting

Q: Consider the overall effects of the transactions in questions 5, 6

Consider the overall effects of the transactions in questions 5, 6, and 7 on Wave Rider.What is Wave Rider’s net income or net loss? a. Net loss of $4,000 b. Net income of $46,000 c. Net income of $14...

Q: You learned in this chapter that Cash is increased with a debit

You learned in this chapter that Cash is increased with a debit. When you deposit your paycheck in your account, however, the teller might say that he or she is going to credit your account. Why?

Q: Sanchez Towing Service, Inc., earns service revenue by towing vehicles

Sanchez Towing Service, Inc., earns service revenue by towing vehicles for AAA. Sanchez Towing Service’s main expenses are the salaries paid to its employees. Account for thefollowing transactions in...

Q: Distinguish between journalizing and posting.

Distinguish between journalizing and posting.

Q: The Blue Ox Restaurant recorded a cash collection on account by debiting

The Blue Ox Restaurant recorded a cash collection on account by debiting Cash and crediting Accounts Payable. What will the trial balance show for this error? a. Too much for liabilities b. Too much f...

Q: Complete the following table. For each account listed, identify the

Complete the following table. For each account listed, identify the type of account, how the account is increased (debit or credit), and how the account is decreased (debit or credit). Use the most de...

Q: Describe the type of transaction that gives rise to a deferred revenue

Describe the type of transaction that gives rise to a deferred revenue journal entry during the year. Why might deferred revenues require adjustment?

Q: What do closing entries accomplish? a. Bring the Retained

What do closing entries accomplish? a. Bring the Retained Earnings account to its correct ending balance b. Transfer revenues, expenses, and dividends to retained earnings c. Zero out the revenues, ex...

Q: Journalize the following adjusting entries at August 31: 1.

Journalize the following adjusting entries at August 31: 1. Services provided but not recorded, $2,700 2. Salaries earned by employees but not recorded, $3,200 3. Accrued interest on a note payable, $...

Q: How is the accounting equation affected by each of these transactions?

How is the accounting equation affected by each of these transactions? a. Owners contribute cash to start the business in exchange for common stock. b. The company borrows money from the bank. c. The...