Essentials of Accounting Weeks 2

DeVry Accounting Week 2

Essentials of Accounting Week 2

3-14

1.A credit posting of $400 to Accounts Receivable was omitted.

The answer for this would be A their would be a Trial Balance

2.A debit posting of $750 for Prepaid Insurance was debited to Insurance Expense.

In this unit the Debit will not be Balance because it Is as insurance which is in Assets

3.A collection on account of $100 was journalized and posted as a debit to Cash $100 and a credit to Accounts Payable $100. The $100 Cash can only be in assets which could also be as in Liability

4.A credit posting of $300 to Property Taxes Payable was made twice. This answer would be (c) the trial balance column that will have the larger total and because of this it would be a total of $600

5.A cash purchase of supplies for $250 was journalized and posted as a debit to Supplies $25 and a credit to Cash $25. This answer would have to be (b) the amount of the difference this reason why the Supplies would have to be in the Assets which would be balance as 250 cash taken away and 250 added as supply and if there is a an Account payable then it would be a Liability

6.A debit of $395 to Advertising Expense was posted as $359. The $395 would be correct into paying for Advertising Expense but $359 is not it have to be an $395 and in expense and this would fall under (b) the amount of the difference.

BYP 3-1

The financial statements of Tootsie Roll in Appendix A at the back of this book contain the following selected accounts, all in thousands of dollars.

Common Stock | $ 24,586 |

Accounts Payable | 11,572 |

Accounts Receivable | 32,371 |

Selling, Marketing, and Administrative Expenses | 97,821 |

Prepaid Expenses | 6,551 |

Property, Plant, and Equipment | 201,401 |

Net Sales | 492,742 |

Instructions

* (a)What is the increase and decrease side for each account? What is the normal balance for each account?

* (b)Identify the probable other account in the transaction and the...