Questions from General Accounting

Q: (a) When entering a transaction in the journal, should

(a) When entering a transaction in the journal, should the debit or credit be written first? (b) Which should be indented, the debit or credit?

Q: Jim Benes is confused about how accounting information flows through the accounting

Jim Benes is confused about how accounting information flows through the accounting system. He believes the flow of information is as follows. (a) Debits and credits posted to the ledger. (b) Business...

Q: Josie Feeney has prepared the following list of statements about the general

Josie Feeney has prepared the following list of statements about the general ledger. 1. The general ledger contains all the asset and liability accounts, but no owner’s equity accounts. 2. The general...

Q: Two students are discussing the use of a trial balance. They

Two students are discussing the use of a trial balance. They wonder whether the following errors, each considered separately, would prevent the trial balance from balancing. (a) The bookkeeper debited...

Q: What are the normal balances for PepsiCo’s Cash, Accounts Payable,

What are the normal balances for PepsiCo’s Cash, Accounts Payable, and Interest Expense accounts?

Q: Describe a compound entry, and provide an example.

Describe a compound entry, and provide an example.

Q: Maria Alvarez, a beginning accounting student, believes debit balances are

Maria Alvarez, a beginning accounting student, believes debit balances are favorable and credit balances are unfavorable. Is Maria correct? Discuss.

Q: State the rules of debit and credit as applied to (a

State the rules of debit and credit as applied to (a) asset accounts, (b) liability accounts, and (c) the owner’s equity accounts (revenue, expenses, owner’s drawing, and owner’s capital).

Q: Indicate whether each of the following accounts is an asset, a

Indicate whether each of the following accounts is an asset, a liability, or an owner’s equity account and whether it has a normal debit or credit balance: (a) Accounts Receivable, (b) Accounts Payabl...

Q: For the following transactions, indicate the account debited and the account

For the following transactions, indicate the account debited and the account credited. (a) Supplies are purchased on account. (b) Cash is received on signing a note payable. (c) Employees are paid sal...