Questions from Financial Accounting

Q: The terms debit and credit mean “increase” and “decrease

The terms debit and credit mean “increase” and “decrease,” respectively. Do you agree? Explain.

Q: Use the data in BE3-5 and journalize the transactions.

Use the data in BE3-5 and journalize the transactions. (You may omit explanations.) Data from BE3-5: June 1 Issues common stock to investors in exchange for $5,000 cash. 2 Buys equipment on account fo...

Q: Using the data in BE4-6, journalize and post the

Using the data in BE4-6, journalize and post the entry on July 1 and the adjusting entry on December 31 for Marsh Insurance Co. Marsh uses the accounts Unearned Service Revenue and Service Revenue.

Q: Saira Morrow operates Dressage Riding Academy, Inc. The academy’s primary

Saira Morrow operates Dressage Riding Academy, Inc. The academy’s primary sources of revenue are riding fees and lesson fees, which are provided on a cash basis. Saira also boards ho...

Q: BizCon, a consulting firm, has just completed its first year

BizCon, a consulting firm, has just completed its first year of operations. The company’s sales growth was explosive. To encourage clients to hire its services, BizCon offered 180-day financing—meanin...

Q: Selected transactions for Front Room, an interior decorator corporation, in

Selected transactions for Front Room, an interior decorator corporation, in its first month of business, are as follows. 1. Issued stock to investors for $15,000 in cash. 2. Purchased used car for $10...

Q: Barry Barack, a fellow student, contends that the double-

Barry Barack, a fellow student, contends that the double-entry system means each transaction must be recorded twice. Is Barry correct? Explain.

Q: Distinguish between the two categories of adjusting entries, and identify the

Distinguish between the two categories of adjusting entries, and identify the types of adjustments applicable to each category.

Q: Rae Mohlee, a fellow student, is unclear about the basic

Rae Mohlee, a fellow student, is unclear about the basic steps in the recording process. Identify and briefly explain the steps in the order in which they occur.

Q: Laser Recording Systems, founded in 1981, produces disks for use

Laser Recording Systems, founded in 1981, produces disks for use in the home market. The following is an excerpt from Laser Recording Systems’ financial statements (all dollars in thousands). LASER RE...