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TRUE/FALSE
1 : Accounts are records of increases and decreases in individual financial statement items.
A : true
B : false
Correct Answer : A
2 : A chart of accounts is a listing of accounts that make up the journal.

A : true
B : false
Correct Answer : B
3 : The chart of accounts should be the same for each business.

A : true
B : false
Correct Answer : B
4 : Accounts payable are accounts that you expect will be paid to you.
A : true
B : false
Correct Answer : B
5 : Consuming goods and services in the process of generating revenues results in expenses.
A : true
B : false
Correct Answer : A
6 : Prepaid expenses are an example of an expense.

A : true
B : false
Correct Answer : B
7 : The unearned revenue account is an example of a liability.

A : true
B : false
Correct Answer : A
8 : The drawing account is an expense.

A : true
B : false
1 / 35
Correct Answer : B
9 : Accounts in the ledger are usually maintained in alphabetical order.

A : true
2 / 35
B : false
Correct Answer : B
10 : Depending on the account title, the right side of the account is referred to as the credit side.
A : true
B : false
Correct Answer : B
11 : To determine the balance in an account, always subtract credits from debits.

A : true
B : false
Correct Answer : B
12 : An account in its simplest form has three parts to it: a title, an increase side, and a
decrease side.
A : true
B : false
Correct Answer : A
13 : The T account got its name because it resembles the letter T.

A : true
B : false
Correct Answer : A
14 : The right-hand side of a T account is known as a debit and the left-hand side is known as a
credit.
A : true
B : false
Correct Answer : B
15 : Debiting the cash account will increase the account.

A : true
B : false
Correct Answer : A
16 : A credit to the cash account will increase the account.

A : true
B : false
Correct Answer : B
17 : The cash account will always be debited.

A : true
B : false
Correct Answer : B
3 / 35
18 : The recording of cash receipts to the cash account will be done by debiting the account.
A : true
B : false
Correct Answer : A
19 : The recording of cash payments from the cash account is done by entering the amount as
a credit.
A : true
B : false
Correct Answer : A
20 : The balance of an account can be determined by adding all of the debits, adding all of the
credits, and adding the amounts together.
A : true
B : false
Correct Answer : B
21 : Liabilities are debts owed by the business entity.

A : true
B : false
Correct Answer : A
22 : The accounts payable account is listed in the chart of accounts as an asset.

A : true
B : false
Correct Answer : B
23 : A drawing account represents the amount of withdrawals made by the owner.

A : true
B : false
Correct Answer : A
24 : Revenues are equal to the difference between cash receipts and cash payments.
A : true
B : false
Correct Answer : B
25 : Expenses result from using up assets or consuming services in the process of generating
revenues.
A : true
B : false
Correct Answer : A
26 : Owners equity will be reduced by the amount in the drawing account.

4 / 35
A : true
B : false
Correct Answer : A
27 : When an owner invests assets in the business, the capital account increases due to
revenue being earned.
A : true
B : false
Correct Answer : B
28 : When an account receivable is collected in cash, the total assets of the business increase.
A : true
B : false
Correct Answer : B
29 : When an account payable is paid with cash, the owners equity in the business decreases.
A : true
B : false
Correct Answer : B
30 : For a months transactions for a typical medium-sized business, the salary expense account
is likely to have only credit entries.
A : true
B : false
Correct Answer : B
31 : A debit is abbreviated as Db and a credit is abbreviated as Cr.

A : true
B : false
Correct Answer : B
32 : When a business receives a bill from the utility company, no entry should be made until the
invoice is paid.
A : true
B : false
Correct Answer : B
33 : For a months transactions for a typical medium-sized business, the accounts payable
account is likely to have only credit entries.
A : true
B : false
Correct Answer : B
34 : Withdrawals decrease owners equity and are listed on the income statement as a
deduction from revenue.
5 / 35
A : true
B : false
Correct Answer : B
35 : The normal balance of revenue accounts is a credit.

A : true
B : false
Correct Answer : A
36 : The normal balance of an expense account is a credit.

A : true
B : false
Correct Answer : B
37 : The normal balance of the drawing account is a debit.

A : true
B : false
Correct Answer : A
38 : Expense accounts are increased by credits.

A : true
B : false
Correct Answer : B
39 : The normal balance of a capital account is a debit.

A : true
B : false
Correct Answer : B
40 : Revenue accounts are increased by credits.

A : true
B : false
Correct Answer : A
41 : Liability accounts are increased by debits.

A : true
B : false
Correct Answer : B
42 : Journalizing transactions using the double-entry bookkeeping system will eliminate fraud.
A : true
B : false
Correct Answer : B
6 / 35
43 : Transactions are listed in the journal chronologically.
A : true
B : false
Correct Answer : A
44 : Journalizing is the process of entering amounts in the ledger.

A : true
B : false
Correct Answer : B
45 : The process of recording a transaction in the journal is called journalizing.

A : true
B : false
Correct Answer : A
46 : Transactions are initially entered into a record called a journal.

A : true
B : false
Correct Answer : A
47 : The double-entry accounting system records each transaction twice.

A : true
B : false
Correct Answer : B
48 : The increase side of an account is also the side of the normal balance.
A : true
B : false
Correct Answer : A
49 : Journal entries include both debit and credit accounts for each transaction.
A : true
B : false
Correct Answer : A
50 : A transaction that is recorded in the journal is called a journal entry.

A : true
B : false
Correct Answer : A
51 : Assets are increased with debits and decreased with credits.

A : true
B : false
Correct Answer : A
7 / 35
52 : Liabilities are increased with debits and decreased with credits.
A : true
B : false
Correct Answer : B
53 : Debits will increase unearned revenues and revenues.

A : true
B : false
Correct Answer : B
54 : All owners equity accounts record increases to the accounts with credits.
A : true
B : false
Correct Answer : B
55 : Journalizing always eliminates fraudulent activity.

A : true
B : false
Correct Answer : B
56 : Journal entries can have more than two accounts as long as the debits equal the credits.
A : true
B : false
Correct Answer : A
57 : Normal account balances are on the increase side of the accounts.

A : true
B : false
Correct Answer : A
58 : The process of transferring data from the journal to the ledger accounts is called posting.
A : true
B : false
Correct Answer : A
59 : The posting reference notation used in the ledger is the account number.
A : true
B : false
Correct Answer : B
60 : The posting reference notation used in the journal is the page number.
A : true
B : false
8 / 35
Correct Answer : B
61 : A notation in the Post. Ref. column of the general journal indicates that the amount has
been posted to the ledger.
A : true
B : false
Correct Answer : A
62 : The order of the flow of accounting data is (1) record in the ledger, (2) record in the journal,
and (3) prepare the financial statements.
A : true
B : false
Correct Answer : B
63 : The process of transferring the debits and credits from the journal entries to the accounts is
known as posting.
A : true
B : false
Correct Answer : A
64 : Postings made to standard account forms show a new balance after each entry.
A : true
B : false
Correct Answer : A
65 : A group of related accounts that make up a complete unit is called a trial balance.
A : true
B : false
Correct Answer : B
66 : A trial balance determines the accuracy of the numbers.

A : true
B : false
Correct Answer : B
67 : Even when a trial balance is in balance, there may be errors in the individual accounts.
A : true
B : false
Correct Answer : A
68 : The totals at the bottom of the trial balance and the totals at the bottom of the balance
sheet both show equality and balancing and therefore should be equal.
A : true
B : false
Correct Answer : B
9 / 35
69 : A proof of the equality of debits and credits in the ledger at the end of an accounting period
is called a balance sheet.
A : true
B : false
Correct Answer : B
70 : If the trial balance is in balance, it can be assumed that all journal entries were posted
correctly and no errors were made.
A : true
B : false
Correct Answer : B
71 : Posting a part of a transaction to the wrong account will cause the trial balance totals to be
unequal.
A : true
B : false
Correct Answer : B
72 : The erroneous arrangement of digits, such as writing $45 as $54, is called a slide.
A : true
B : false
Correct Answer : B
73 : Journalizing a transaction with both the debit and the credit for $69 instead of $96 will
cause the trial balance to be out of balance.
A : true
B : false
Correct Answer : B
74 : The erroneous moving of an entire number one or more spaces to the right or left, such as
writing $85 as $850, is called a transposition.
A : true
B : false
Correct Answer : B
SHORT RESPONSE
75 : The chart of accounts classifies the accounts to make identification of the accounts easier.
Describe the numbering system businesses use in setting up the chart of accounts.
Correct Answer : A chart of accounts is set up by assigning two-digit numbers to each of the
accounts for use as references. The first digit indicates the major account group of the ledger in
which the account is located. Accounts beginning with 1 represent assets; 2, liabilities; 3,
owner's equity; 4, revenue; 5, expenses. The second digit indicates the location of the account
10 / 35
within its group. Large companies may have additional digits to accommodate a large number of
accounts.?
76 : The chart of accounts classifies the accounts to make identification of the accounts easier.
Describe the numbering system businesses use in setting up the chart of accounts.
Correct Answer : 11 Cash12 Accounts Receivable13 Supplies14 Prepaid Insurance15

Equipment16 Truck21 Accounts Payable22 Notes Payable31 Cassie Harris, Capital32 Cassie
Harris, Drawing41 Fees Earned51 Wages Expense52 Rent Expense53 Utilities Expense54
Truck Expense55 Insurance Expense56 Miscellaneous Expense
77 : On January 31, the cash account balance was $96,750. During January, cash receipts
totaled $305,000 and cash payments totaled $375,880. Determine the cash balance on January
1.
Correct Answer : ??? + $305,000 ? $375,880 = $96,750Cash balance at January 1 is $167,630
78 : Organize the following accounts into the usual sequence of a chart of

accounts.Miscellaneous ExpenseAccounts PayableAccounts ReceivableCashAlecia Morris,
CapitalFees EarnedPrepaid RentSalaries ExpenseUnearned RevenueAlecia Morris, Drawing
Correct Answer : CashAccounts ReceivablePrepaid RentAccounts PayableUnearned

RevenueAlecia Morris, CapitalAlecia Morris, DrawingFees EarnedSalaries
ExpenseMiscellaneous Expense

Correct Answer : (a)$69,250 ($31,750 + $63,000 ? $25,500)(b)$52,250 ($22,500 + $45,000 ?

$15,250)

Correct Answer : Type of AccountIncrease

Side(1)ADr.(2)ADr.(3)RCr.(4)NDr.(5)LCr.(6)EDr.(7)NCr.(8)ADr.(9)ADr.(10)LCr.

Correct Answer : Account DebitedAccount CreditedTransactionTypeEffectTypeEffect(1)asset+c

apital+(2)asset+liability+(3)asset+asset?(4)asset+revenue+(5)liability?asset?(6)expense+asset?
(7)asset+revenue+(8)drawing+asset?(9)asset+asset?
82 : On June 1, the cash account balance was $96,750. During June, cash receipts totaled
$305,000 and the June 30 balance was $75,880. Determine the cash payments made during
June.
Correct Answer : $75,880 = $96,750 + $305,000 ? ?Cash Payments = $325,870
11 / 35
83 : On September 1, Erika Company purchased land for $47,500 cash. Provide the journal
entry for this transaction.
Correct Answer : Sept. 1Land47,500 Cash 47,500 Purchased land for the company.
84 : On October 10, Nickle Company purchased supplies for $1,800 on account. On October
25, Nickle Company paid the invoice.(a) Provide the journal entry for the purchase on
account.(b) Provide the journal entry for the payment of the invoice.
Correct Answer : (a) Oct. 10Supplies1,800 Accounts Payable1,800 Purchased supplies on

account. (b) Oct. 25Accounts Payable1,800 Cash1,800 Paid for supplies on account.
85 : On October 17, Nickle Company purchased a building and a plot of land for $750,000. The
building was valued at $500,000 while the land carried a value of $250,000. Nickle paid
$300,000 down in cash and signed a note payable for the balance. Provide the journal entry for
this transaction.
Correct Answer : Oct. 17Building500,000 Land250,000 Cash300,000 Notes

Payable450,000 Purchased building and landwith cash down payment.
86 : On November 1, Nickle Company made a cash payment of $200,000 on a note payable

that was generated in the purchase of a building and land. Provide the journal entry for this
transaction.
Correct Answer : Nov. 1Notes Payable200,000 Cash 200,000 Made payment on note
payable. ??
87 : On January 7, Damien Lawson invests $45,000 to initiate the operation of his business,
JumpStart. Provide the journal entry for this transaction.
Correct Answer : Jan. 7Cash45,000 Damien Lawson, Capital 45,000 Invest cash in
JumpStart. ???
88 : On January 8, Damien Lawson transfers ownership of several pieces of office equipment to

his new business, JumpStart. When new, these items were worth $72,500. The fair market
value of the equipment is $60,000. Journalize this transfer.
Correct Answer : Jan. 8Office Equipment60,000 Damien Lawson, Capital 60,000 Invested
equipment in business. ?While Damien may have paid $72,500 for this equipment some time in
the past, it should be transferred into the company at fair market value (FMV), $60,000.
89 : On August 30, JumpStart incurred the following expenses: Payment to the landlord for
August rent, $2,300 Payment to Gas & Electric Company for August bill, $525 Payment of
employee wages for the last half of August, $1,750 Payment of shopping centers parking lot
cleaning fee, $275Journalize these payments as one compound journal entry.
Correct Answer : Aug. 30Rent Expense2,300 Utilities Expense525 Wages

Expense1,750 Maintenance Expense275 Cash 4,850 Paid expenses.
90 : On October 30, Damien Lawson withdraws $3,330 from JumpStart for personal use.
Journalize this event.
Correct Answer : Oct. 30Damien Lawson, Drawing 3,330 Cash 3,330 Withdrew cash for
12 / 35
personal use.
91 : For the following, mark a D if the following account normally has a debit balance and mark
a C if the following account normally has a credit balance. 1. Notes Payable 2.
Mortgage Payable 3. Drawing 4. Accounts Receivable 5. Capital 6. Rent
Revenue 7. Unearned Income 8. Utility Expense 9. Automobiles
Correct Answer : 1.C 2.C 3.D 4.D 5.C 6.C 7.C 8.D 9.D
Correct Answer : ? Assets =Liabilities+Owner’s Equity (a)Cash sales are made.

I NE I (b)Equipment is purchased on credit. I I
NE (c)Payment is made for the equipment purchased on credit in (b). D
D NE_ (d)The company sold excess supplies to another company on
credit. NE NE NE (e)Cash is collected from customers for accounts
receivable balances. NE NE_ NE_ ?
Correct Answer : Mar. 1Accounts Receivable800 Service Revenue 800 9Office

Furniture1,060 Office Supplies 160 Accounts Payable 1,220 15Accounts
Payable1,220 Cash 1,220 23Electricity Expense430 Accounts
Payable 430 31Salaries Expense850 Cash 850
Correct Answer : (a)(b) Recorded As Normal Balance(1)Cr.Cr.(2)Dr.Dr.(3)Cr.Dr.(4)Cr.Cr.(5)Cr.

Cr.(6)Cr.Dr.(7)Cr.Dr.(8)Dr.Dr.(9)Dr.Dr.(10)Cr.Dr.
Correct Answer : (a)Cash18,000 Katie Long,

Capital 18,000 (b)Equipment27,000 Cash 10,000 Notes Payable 17,000 (c)Rent
Expense2,300 Cash 2,300 (d)Supplies1,500 Accounts Payable 1,500 (e)Accounts
Receivable9,800 Fees Earned 9,800 (f)Cash7,500 Fees Earned 7,500 (g)Accounts
Payable1,200 Cash 1,200 (h)Wages
Expense3,425 Cash 3,425 (i)Cash7,900 Accounts Receivable 7,900 (j)Katie Long,
Drawing1,875 Cash 1,875
13 / 35
96 : On January 12, JumpStart purchased $870 in office supplies.(a) Journalize this transaction
14 / 35
as if JumpStart paid cash.(b) Journalize this transaction as if JumpStart placed it on account.(c)
On January 18, JumpStart pays the amount due. Journalize this event.
Correct Answer : (a)Jan. 12Office Supplies870 Cash870?(b)Jan. 12Office

Supplies870 Accounts Payable870?(c)Jan. 18Accounts Payable870 Cash870
97 : On November 10, JumpStart provides $2,900 in services to clients. At the time of service,
the clients paid $600 in cash and put the balance on account.(a) Journalize this event.(b) On
November 20, JumpStarts clients paid an additional $900 on their accounts due. Journalize this
event.(c) Calculate the accounts receivable balance on November 30.
Correct Answer : (a) Nov. 10Cash600 Accounts Receivable2,300 Fees Earned2,900 (b)
Nov. 20Cash900 Accounts Receivable900?(c) Original invoice$2,900 Less cash paid upon
completion 600 Original amount on accounts receivable$2,300 Less November 20 payment
900 Accounts receivable balance$1,400
98 : Prepare a journal entry for the purchase of a truck on April 4 for $85,700, paying $15,000
cash and the remainder on account. Omit explanation.
Correct Answer : Apr. 4Truck 85,700 Cash 15,000 Accounts Payable 70,700
99 : Prepare a journal entry for the purchase of a truck on April 4 for $85,700, paying $15,000
cash and the remainder on account. Omit explanation.
Correct Answer : ?DateDescriptionPost. Ref.DebitCreditJan. 1 Cash 14,000 Owner,

Capital 14,000 2 Cash 9,500 Revenues 9,500 3 Accounts Receivable 4,200
Revenues 4,200 4 Advertising Expense 700 Cash 700 5 Cash 2,500 Accounts
Receivable 2,500 6 Owner, Drawing 1,010 Cash 1,010 7 Telephone
Expense 900 Accounts Payable 900 8 Accounts Payable 900 Cash 900
100 : On December 1, JumpStart provides $2,800 in services to clients.(a) Journalize this event
as if the clients had paid cash at the time the services were rendered.(b) Journalize this event
as if the clients had placed this on account.(c) Assume that the clients paid $1,200 of the
amount on account on December 30. Journalize this transaction.
Correct Answer : (a) Dec. 1 Cash2,800 ? Fees Earned2,800 (b) Dec.

1 Accounts Receivable2,800 ? Fees Earned2,800(c) Dec. 30 Cash1,200 ? Accounts
Receivable1,200
101 : On December 1, JumpStart provides $2,800 in services to clients.(a) Journalize this event
as if the clients had paid cash at the time the services were rendered.(b) Journalize this event
as if the clients had placed this on account.(c) Assume that the clients paid $1,200 of the
amount on account on December 30. Journalize this transaction.
Correct Answer : TransactionEffect on Accounting Equation(a)5(b)4(c)8(d)6(e)7(f)1
102 : Prepare a journal entry on October 12 for the fees earned on account, $14,600. Omit
explanation.
Correct Answer : Oct. 12Accounts Receivable14,600 Fees Earned? 14,600
explanation.
15 / 35
Correct Answer : Aug. 1Equipment850 Accounts Payable 850 8Cash125
Unearned Revenue 125 15Utilities Expense180 Accounts
Payable 180 20Accounts Receivable1,250 Rental
Revenue 1,250 31Cash600 Accounts Receivable 600
explanation.
Correct Answer : (1) The bookkeeper incorrectly posted the July 3, July 11, and 12 journal
entries.(2) For the July 3 journal entry, the $1,000 credit to Service Revenue should have been
posted to the Service Revenue account as a credit, not as a debit. For the July 11 journal entry,
the $500 credit should be posted to Accounts Receivable, not to Service Revenue. For the July
12 journal entry, the $600 credit to Accounts Payable should have been posted as a credit, not
as a debit.
explanation.
Correct Answer : 1. Credit entries only, normal credit balance2. Debit entries only, normal debit
balance3. Both debit and credit entries, normal credit balance4. Both debit and credit entries,
normal debit balance5. Both debit and credit entries, normal debit balance6. Both debit and
credit entries, normal debit balance
explanation.
Correct Answer : TransactionsAccount(s) DebitedAccount(s) Crediteda.19b.131c.61,7d.58
explanation.
Correct Answer : TransactionsAccount(s) DebitedAccount(s) Crediteda.31b.41c.12d.81e.111
explanation.
Correct Answer : TransactionsAccount(s) DebitedAccount(s)

Crediteda.211b.158c.141d.12e.121f.101
explanation.
Correct Answer : TransactionsAccount(s) DebitedAccount(s) Crediteda.129b.91c.141d.120
110 : The following two situations are independent of each other.1. On June 1, the cash account
balance was $45,750. During June, cash payments totaled $243,910, and the June 30 balance
was $53,200. Determine the cash receipts during June and show your calculation.2. On March
1, the supplies account balance was $1,800. During March, supplies of $2,450 were purchased,
and supplies of $630 were on hand as of March 31. Determine the supplies expense for March
and show your calculation.
Correct Answer : 1. $53,200 = $45,750 + Cash Receipts ? $243,910 Cash Receipts =

16 / 35
$251,360?2. $630 = $1,800 + $2,450 ? Supplies Expense Supplies Expense = $3,620
111 : The following two situations are independent of each other.1. On June 1, the cash account
balance was $45,750. During June, cash payments totaled $243,910, and the June 30 balance
was $53,200. Determine the cash receipts during June and show your calculation.2. On March
1, the supplies account balance was $1,800. During March, supplies of $2,450 were purchased,
and supplies of $630 were on hand as of March 31. Determine the supplies expense for March
and show your calculation.
Correct Answer : (a)Accounts Receivable200 Supplies 200 Supplies500 Accounts

Payable 500 (b)Cash5,000 Fees Earned 5,000
112 : On November 30, Damien Lawson is informed by his accountant that $550 of a
transaction recording the purchase of office supplies was really office equipment. Prepare the
journal entry to correct this situation.
Correct Answer : Nov. 30 Office Equipment550 Office Supplies550
Correct Answer : a.Stan Norton, Drawing5,000 Office Expense 5,000?b.Fees

Earned7,800 Accounts Receivable 7,800
Correct Answer : a.The totals are equal.b.The totals are unequal. The credit total is higher by
$1,800.c.The totals are unequal. The credit total is higher by $6,000.
Correct Answer : (1)a. The Debit column is added incorrectly; the sum is actually
$289,780.b. The trial balance should be dated January 31, rather than “For the Month of
January”c. The Accounts Receivable balance should be in the Debit column.d. The Accounts
Payable balance should be in the Credit column.e. The Tim Dawson, Drawing balance should
be in the Debit column.f. The Miscellaneous Expense balance should be in the Debit
column.(2) Dawson Designs Co.Unadjusted Trial BalanceJanuary 31 Debit BalancesCredit
BalancesCash23,000 Accounts Receivable49,700 Prepaid
Insurance11,300 Equipment150,500 Accounts Payable 6,050Salaries Payable 4,250Tim
Dawson, Capital 110,000Tim Dawson, Drawing18,500 Service Revenue 236,600Salary
Expense98,930 Miscellaneous Expense 4,970 356,900356,900
Correct Answer : ?Sophie Designs Co.Trial BalanceApril 30 Debit Balances Credit

Balances Cash6,700 Accounts Receivable3,450 Supplies3,125 Equipment14,500 Accounts
17 / 35
Payable 4,100Sophie Dawson, Capital 17,800Sophie Dawson, Drawing7,500 Fees
Earned 45,425Salary Expense14,000 Rent Expense11,500 Utilities Expense4,000 Supplies
Expense1,700 Miscellaneous Expense 850? 67,32567,325?
Correct Answer : (a)(1)In the heading, the date should be April 30; not for a period of
time. (2)The Cash balance should be a debit. (3)The Accounts Receivable balance is
missing. (4)The Supplies balance should be a debit. (5)The Prepaid Insurance balance should
be a debit and this account should follow Accounts Receivable. (6)The Thad Winslow, Capital
balance should be a credit. (7)The Thad Winslow, Drawing balance should be a debit. (8)Rent
Expense should be a debit. (9)The trial balance does not balance.?(b)The new total for credits
would be $69,100 ($2,500 accounts payable + $49,600 fees earned + $17,000 capital). The
debits would also total $69,100. Accounts receivable would be $3,075 ($69,100 total credits ?
$66,025 corrected debits).
Correct Answer : ErrorTotalsDifference in TotalsLarger of

Totals(1)equal— — (2)equal— — (3)equal— — (4)unequal$ 90 debit (5)unequal
1,530 credit (6)unequal17,000 credit (7)unequal 4,000 debit (8)unequal
300 credit (9)unequal 200 credit
Correct Answer : (a)Cash Clay Potter,

Capital(1)12,500 (3)5,500 (1)12,500(5)4,700 (6)1,400 (7) 3,100 (8)
1,500 Bal. 11,900 ?Accounts Receivable Clay Potter,
Drawing(4)7,440 (7)3,100 (8)1,500 Bal. 4,340 ? Supplies Professional Fees(2)6,250
(4)7,440 (5) 4,700 Bal. 12,140?Accounts Payable Operating Expenses(6)1,400
(2)6,250 (3)5,500 Bal. 4,850 ?(b)Potter Pool ServicesTrial BalanceJune
30 Debit Balances Credit Balances Cash11,900 Accounts
Receivable4,340 Supplies6,250 Accounts Payable 4,850Clay Potter, Capital 12,500Clay Potter,
Drawing1,500 Professional Fees 12,140Operating Expenses 5,500? 29,49029,490?(c)(1)
$5,140 ($12,140 ? $5,500 ? $1,500) (2) $16,140 ($12,500 + $5,140 ? $1,500)
Correct Answer : ?Ralston Sports CompanyTrial BalanceSeptember 30 Debit Balances Credit

Balances Cash9,000 Accounts Receivable200 Supplies12,500 Equipment9,500 Accounts
Payable 1,900James Ralston, Capital 25,000James Ralston, Drawing7,000 Fees
Earned 21,800Operating Expenses10,500? 48,70048,700
18 / 35
Correct Answer : ??Year 2??Year

1Increase/DecreaseAmount?PercentChangeSales$178,400$162,500$15,9009.8%Wages
expense$100,000$ 92,500$ 7,5008.1Rent expenses33,00030,0003,00010.0Utilities expense
30,000 25,000 5,00020.0Total operating expenses$163,000$147,500$15,50010.5Net
income$ 15,400$ 15,000$ 4002.7?While the trend in sales revenue is favorable, it is not
sufficient enough to offset the rising expenses, resulting in a positive but small and slowing
increase in net income.???
Correct Answer : ?Year 2?Year 1Increase/DecreaseAmountPercent

ChangeSales$158,400$162,500$ (4,100)(2.5)%Wages expense$ 80,000$
92,500$(12,500)(13.5)Rent expense28,00030,000(2,000)(6.7)Utilities expense 30,000
25,000 5,00020.0Total operating expenses$138,000$147,500$ (9,500)(6.4)Net income$
20,400$ 15,000$ 5,40036.0?The trend in sales revenue is unfavorable, but that is more than
offset by the declines in operating expenses, with the exception of utilities, which increased over
the period. Despite the 2.5% drop in sales, the net effect was a favorable increase in net
income of 36.0%, which was in large part spurred by the drop in wages expense.
MULTIPLE CHOICE
123 : Accounts
A : do not reflect money amounts
B : are not used by entities that manufacture products
C : are records of increases and decreases in individual financial statement items
D : are only used by large entities with many transactions
Correct Answer : C
124 : Accounts are classified in the ledger

A : chronologically
B : alphabetically
C : in accordance with their appearance in the financial statements
D : with the accounts used most often listed first
Correct Answer : C
125 : Which of the following accounts is an owners equity account?

A : Cash
B : Accounts Payable
C : Prepaid Insurance
D : Ross Morris, Capital
Correct Answer : D
126 : The gross increases in owners equity attributable to business activities are called
A : assets
19 / 35
B : liabilities
C : revenues
D : expenses
Correct Answer : C
127 : A chart of accounts is

A : the same as a balance sheet
B : usually a listing of accounts in alphabetical order
C : usually a listing of accounts in financial statement order
D : used in place of a ledger
Correct Answer : C
128 : The debit side of an account

A : depends on whether the account is an asset, liability, or owners equity
B : can be either side of the account depending on how the accountant set up the system
C : is the right side of the account
D : is the left side of the account
Correct Answer : D
129 : An account is said to have a debit balance if

A : the amount of the debits exceeds the amount of the credits
B : there are more entries on the debit side than on the credit side
C : there are more entries on the credit side than on the debit side
D : the first entry of the accounting period was posted on the debit side
Correct Answer : A
130 : Which side of the account increases the cash account?

A : credit
B : neither a debit nor a credit
C : debit
D : either a debit or a credit
Correct Answer : C
131 : Which statement(s) concerning cash is (are) true?

A : Cash will always have more debits than credits.
B : Cash will never have a credit balance.
C : Cash is increased by debiting.
D : All of these choices.
Correct Answer : C
132 : Which of the following is true about T accounts? A

: The left side of a T account is called the debit side. B :
The left side of a T account is called the credit side.
C : The right side of a T account is called the debit side.
D : Transactions are first recorded in T accounts and then posted to the journal.
Correct Answer : A
20 / 35
133 : A cash payment is recorded in the cash account as
A : neither a debit nor a credit
B : a credit
C : a debit
D : either a debit or a credit
Correct Answer : B
134 : A list of the accounts used by a business is called the

A : journal
B : chart of accounts
C : T chart
D : debit listing
Correct Answer : B
135 : In the chart of accounts, the balance sheet accounts are normally listed in which order?
A : liabilities, assets, owners equity
B : assets, liabilities, owners equity
C : owners equity, assets, liabilities
D : assets, owners equity, liabilities
Correct Answer : B
136 : In which order are the accounts listed in the chart of accounts?
A : assets, expenses, liabilities, owners equity, revenues
B : owners equity, assets, liabilities, revenues, expenses
C : assets, liabilities, owners equity, revenues, expenses
D : assets, liabilities, revenues, expenses, owners equity
Correct Answer : C
137 : Which are the parts of the T account?

A : title, date, total
B : date, debit side, credit side
C : title, debit side, credit side
D : title, debit side, total
Correct Answer : C
138 : The chart of accounts is designed to

A : alphabetize the accounts to make reading easier for financial statement users
B : organize accounts in order of dollar amount to simplify the accounting information for users
C : summarize the transactions and determine ending account balances
D : meet the information needs of a companys managers and other users of its financial
statements
Correct Answer : D
139 : Which group of accounts is comprised of only assets?

A : Cash, Accounts Payable, Buildings
B : Accounts Receivable, Revenue, Cash
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C : Prepaid Expenses, Buildings, Patents
D : Unearned Revenue, Prepaid Expenses, Cash
Correct Answer : C
140 : Which of the following is true about assets?

A : Assets include both physical and intangible items.
B : Assets include only physical items.
C : Assets are the personal property of the owner of the company.
D : Assets are the result of selling products or services to customers.
Correct Answer : A
141 : Which of the following is not considered to be a liability?

A : Wages Payable
B : Accounts Receivable
C : Unearned Revenue
D : Accounts Payable
Correct Answer : B
142 : Which of the following statements is not true about liabilities?

A : Liabilities are debts owed to outsiders.
B : Account titles of liabilities often include the term payable.
C : Cash received before a service is performed creates a liability.
D : Liabilities do not include wages owed to employees of the company.
Correct Answer : D
143 : Owners equity will be reduced by all of the following except

A : revenues
B : expenses
C : withdrawals
D : All of these choices
Correct Answer : A
144 : Expenses can result from

A : increasing owners equity
B : consuming services
C : using up liabilities
D : purchasing assets
Correct Answer : B
145 : Assume that you are creating a chart of accounts for a company. Each account number
will have two digits. The first digit indicates the major account group to which the account
belongs. Which of the following correctly identifies the major account groups typically
represented by the numbers 1 through 5?
A : 1-Assets, 2-Liabilities, 3-Owners Equity, 4-Expenses, 5-Revenues
B : 1-Assets, 2-Liabilities, 3-Owners Equity, 4-Revenues, 5-Expenses
C : 1-Assets, 2-Owners Equity, 3-Revenues, 4-Expenses, 5-Drawing
D : 1-Owners Equity, 2-Drawing, 3-Revenues, 4-Expenses
22 / 35
Correct Answer : B
146 : Assume that you are creating a chart of accounts for a company. Each account number
will have two digits. The first digit indicates the major account group to which the account
belongs. Which of the following correctly identifies the major account groups typically
represented by the numbers 1 through 5?
A : $10,000
B : $8,000
C : $9,700
D : $9,800
Correct Answer : A
147 : The balance of an account is determined by

A : adding all of the debits to all of the credits
B : always subtracting the debits from the credits
C : always subtracting the credits from the debits
D : adding all of the debits, adding all of the credits, and then subtracting the smaller sum from
the larger sum
Correct Answer : D
148 : Which of the following types of accounts have a normal credit balance?
A : assets and liabilities
B : liabilities and expenses
C : revenues and capital
D : capital and drawing
Correct Answer : C
149 : Which of the following groups of accounts have a normal debit balance?
A : revenues, liabilities, and capital
B : capital and assets
C : liabilities and capital
D : assets and expenses
Correct Answer : D
150 : Which of the following statements is not a purpose for the journal?
A : to show increases and decreases in accounts
B : to show a chronological order by date
C : to show a complete transaction in one place
D : to help locate errors
Correct Answer : D
151 : A credit may signify a

A : decrease in assets
B : decrease in liabilities
C : decrease in capital
D : decrease in revenue
23 / 35
Correct Answer : A
152 : A debit signifies a decrease in

A : assets
B : expenses
C : drawing
D : revenues
Correct Answer : D
153 : Which of the following applications of the rules of debit and credit is true?
A : decrease Prepaid Insurance with a credit and the normal balance is a credit
B : increase Accounts Payable with a credit and the normal balance is a debit
C : increase Equipment with a debit and the normal balance is a debit
D : decrease Cash with a debit and the normal balance is a credit
Correct Answer : C
154 : Which of the following describes the classification and normal balance of the fees earned
account?
A : asset, credit
B : liability, credit
C : owners equity, debit
D : revenue, credit
Correct Answer : D
155 : The classification and normal balance of the accounts payable account are
A : asset, credit balance
B : liability, credit balance
C : owners equity, credit balance
D : revenue, credit balance
Correct Answer : B
156 : The classification and normal balance of the drawing account are
A : expense, credit balance
B : expense, debit balance
C : liability, credit balance
D : owners equity, debit balance
Correct Answer : D
157 : Which of the following accounts are debited to record increases?

A : assets and liabilities
B : drawing and liabilities
C : expenses and liabilities
D : assets and expenses
Correct Answer : D
158 : In which of the following types of accounts are increases recorded by credits?
A : revenues and liabilities
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B : drawing and assets
C : liabilities and drawing
D : expenses and liabilities
Correct Answer : A
159 : In which of the following types of accounts are decreases recorded by debits?
A : assets
B : liabilities
C : expenses
D : drawing
Correct Answer : B
160 : In which of the following types of accounts are decreases recorded by credits?
A : liabilities
B : owners equity
C : assets
D : revenues
Correct Answer : C
161 : A credit balance in which of the following accounts would likely indicate an error?
A : Fees Earned
B : Salary Expense
C : Janet James, Capital
D : Accounts Payable
Correct Answer : B
162 : A debit balance in which of the following accounts would likely indicate an error?
A : Salaries Expense
B : Notes Payable
C : Edgar Martin, Drawing
D : Supplies
Correct Answer : B
163 : Which of the following entries records the payment of an account payable?
A : debit Cash; credit Accounts Payable
B : debit Accounts Receivable; credit Cash
C : debit Cash; credit Supplies Expense
D : debit Accounts Payable; credit Cash
Correct Answer : D
164 : Which of the following entries records the investment of cash by Taylor Thomas, owner of
a proprietorship?
A : debit Taylor Thomas, Capital; credit Accounts Receivable
B : debit Cash; credit Taylor Thomas, Capital
C : debit Taylor Thomas, Drawing; credit Cash
D : debit Cash; credit Taylor Thomas, Drawing
25 / 35
Correct Answer : B
165 : Which of the following entries records the payment of a bill for your insurance premium?
A : debit Prepaid Insurance; credit Cash
B : debit Insurance Payable; credit Accounts Receivable
C : debit Accounts Payable; credit Cash
D : debit Cash; credit Prepaid Insurance
Correct Answer : A
166 : Which of the following entries records the withdrawal of cash by Sally Anderson, owner of
a proprietorship, for personal use?
A : debit Sally Anderson, Capital; credit Cash
B : debit Sally Anderson, Drawing; credit Cash
C : debit Salaries Expense; credit Cash
D : debit Salaries Expense; credit Salaries Payable
Correct Answer : B
167 : Office supplies were sold by Janers Cleaning Service at cost to another repair shop, with
cash received. Which of the following entries for Janers Cleaning Service records this
transaction?
A : Office Supplies, debit; Cash, credit
B : Office Supplies, debit; Accounts Payable, credit
C : Cash, debit; Office Supplies, credit
D : Accounts Payable, debit; Office Supplies, credit
Correct Answer : C
168 : Office supplies purchased by Janers Cleaning Service on account were returned. Which of
the following entries for Janers Cleaning Service records this transaction?
A : Cash, debit; Office Supplies, credit
B : Office Supplies, debit; Accounts Receivable, credit
C : Accounts Payable, debit; Office Supplies, credit
D : Office Supplies, debit; Accounts Payable, credit
Correct Answer : C
169 : Cash was paid by Janers Cleaning Service to creditors on account. Which of the following
entries for Janers Cleaning Service records this transaction?
A : Cash, debit; Debbi Janer, Capital, credit
B : Accounts Payable, debit; Cash, credit
C : Accounts Receivable, debit; Cash, credit
D : Accounts Payable, debit; Accounts Receivable, credit
Correct Answer : B
170 : The process of initially recording a business transaction is called

A : closing
B : posting
C : journalizing
D : balancing
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Correct Answer : C
171 : Which of the following entries records the acquisition of office supplies on account?
A : Office Supplies, debit; Cash, credit
B : Cash, debit; Office Supplies, credit
C : Office Supplies, debit; Accounts Payable, credit
D : Accounts Receivable, debit; Office Supplies, credit
Correct Answer : C
172 : Which of the following entries records the payment of insurance for the current month?
A : Cash, debit; Insurance Expense, credit
B : Insurance Expense, debit; Cash, credit
C : Insurance Expense, debit; Accounts Receivable, credit
D : Prepaid Insurance, debit; Cash, credit
Correct Answer : B
173 : Which of the following entries records the receipt of cash from clients on account?
A : Accounts Payable, debit; Fees Earned, credit
B : Accounts Receivable, debit; Fees Earned, credit
C : Accounts Receivable, debit; Cash, credit
D : Cash, debit; Accounts Receivable, credit
Correct Answer : D
174 : Which of the following entries records the collection of cash from cash customers?
A : Fees Earned, debit; Cash, credit
B : Fees Earned, debit; Accounts Receivable, credit
C : Cash, debit; Fees Earned, credit
D : Accounts Receivable, debit; Fees Earned, credit
Correct Answer : C
175 : Which of the following entries records the receipt of cash for two months rent? The cash
was received in advance of providing the service.
A : Prepaid Rent, debit; Rent Revenue, credit
B : Cash, debit; Unearned Rent, credit
C : Cash, debit; Prepaid Rent, credit
D : Cash, debit; Rent Expense credit
Correct Answer : B
176 : A client has a massage and asks the company bookkeeper to mail her the bill. The
bookkeeper should make which entry to record the invoice?
A : no entry until the cash is received
B : Fees Earned, debit; Accounts Receivable, credit
C : Cash, debit; Fees Earned, credit
D : Accounts Receivable, debit; Fees Earned, credit
Correct Answer : D
177 : Which of the following abbreviations is correct?

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A : Debit, Dr; Credit, Cd
B : Debit, Db; Credit, Cr
C : Debit, Db; Credit, Cd
D : Debit, Dr; Credit, Cr
Correct Answer : D
178 : Which of the following is not a correct rule of debits and credits?
A : Assets, expenses, and withdrawals are increased by debits.
B : Assets are decreased by credits and have a normal debit balance.
C : Liabilities, revenues, and owners equity are increased by credits.
D : The normal balance for revenues and expenses is a credit.
Correct Answer : D
179 : Gently Laser Clinic purchased laser equipment for $8,500 and paid $2,250 down, with the
remainder to be paid later. The correct entry would be
A : Equipment 2,250 Cash 2,250
B : Cash 2,250Accounts Payable 6,250 Equipment 8,500
C : Equipment Expense 8,500 Accounts Payable 2,250 Cash 6,250
D : Equipment 8,500 Accounts Payable 6,250 Cash 2,250
Correct Answer : D
180 : The is where a transaction can first be found in the accounting records.
A : chart of accounts
B : income statement
C : balance sheet
D : journal
Correct Answer : D
181 : The process of recording a transaction in the journal is called

A : ledgerizing
B : journalizing
C : posting
D : summarizing
Correct Answer : B
182 : Joshua Scott invests $40,000 into his new business. How would this transaction be
entered in the journal in good form?
A : Cash 40,000 Joshua Scott, Capital 40,000 Invested cash in business.
B : Cash 40,000 Joshua Scott, Loan 40,000 Invested cash in business.
C : Joshua Scott, Capital 40,000 Cash 40,000 Invested cash in business.
D : Joshua Scott, Loan 40,000 Cash 40,000 Invested cash in business.
Correct Answer : A
A : increase Capital and decrease Cash
B : increase Cash and decrease Capital
28 / 35
C : increase Cash and increase Capital
D : decrease Cash and decrease Capital
Correct Answer : C
A : increase Cash and increase Land B
: increase Land and decrease Cash C :
decrease Cash and decrease Land D :
increase Cash and decrease Land
Correct Answer : B
A : decrease Accounts Payable, increase Cash
B : increase Cash, decrease Accounts Payable
C : increase Accounts Payable, increase Cash
D : decrease Accounts Payable, decrease Cash
Correct Answer : D
186 : Which of the following accounts would be increased with a credit?

A : Land; Accounts Payable; Drawing
B : Accounts Payable; Unearned Revenue; Collins, Capital
C : Collins, Capital; Accounts Receivable; Unearned Revenue
D : Cash; Accounts Receivable; Collins, Capital
Correct Answer : B
187 : In accordance with the debit and credit rules, which of the following is true?
A : Debits increase assets.
B : Credits increase assets.
C : Debits increase both assets and capital.
D : Credits increase both assets and liabilities.
Correct Answer : A
188 : All of the following accounts are increased with a debit except
A : Unearned Revenue
B : Land
C : Accounts Receivable
D : Cash
Correct Answer : A
189 : Which of the following owners equity accounts follows the same debit and credit rules as
liabilities?
A : expense accounts only
B : drawing accounts only
C : revenue accounts only
D : expense and drawing accounts
29 / 35
Correct Answer : C
190 : The payment for the monthly rent will require which of the following entries?
A : debit Cash and debit Rent Expense
B : credit Cash and credit Rent Expense
C : debit Rent Expense and credit Cash
D : credit Rent Expense and debit Cash
Correct Answer : C
191 : Expenses follow the same debit and credit rules as

A : revenues
B : the drawing account
C : the capital account
D : liabilities
Correct Answer : B
192 : Net income will result when

A : revenues (credits) > expenses (debits)
B : revenues (debits) > expenses (credits)
C : expenses (credits) = revenues (debits)
D : revenues (credits) = expenses (debits)
Correct Answer : A
193 : Which of the following will increase owners equity?

A : expenses > revenues
B : the owner draws money for personal use
C : revenues > expenses
D : cash is received from customers on account
Correct Answer : C
194 : Which of the following situations increases owners equity?

A : Supplies are purchased on account.
B : Services are provided on account.
C : Cash is received from customers on account.
D : Utility bill will be paid next month.
Correct Answer : B
195 : Which of the following groups of accounts is increased with a debit?

A : assets, liabilities, owners equity
B : assets, drawing, expenses
C : assets, revenues, expenses
D : assets, liabilities, revenues
Correct Answer : B
196 : Which of the following groups of accounts increases with a credit?

A : capital, revenues, expenses
30 / 35
Another random document with
no related content on Scribd:
time it receives numerous presentations from foreigners. The ancient original
Icelandic MSS. have all been removed to Denmark, so that here there is now
nothing very old to be seen, except what has been reprinted. With great
interest we turned over the leaves of a copy of Snorre Sturleson’s
“Heimskringla,” and the “Landnáma Bok,” shewn us by the librarian and
learned scholar Mr. Jón Arnason.
The hotel at Reykjavik is merely a kind of tavern, with a billiard room for the
French sailors to play, lounge, and smoke in; a large adjoining room, seated
round, for the Reykjavik fashionable assemblies; a smaller room up stairs, and
some two or three bedrooms. On reaching it we were received by the landlord
and shewn up stairs, where we found Mr. Bushby, who gave us a most
courteous English welcome, notwithstanding our unintentional intrusion. He
had, that morning, when the steamer came in sight, set out and ridden along
the coast from the sulphur mines at Krisuvik—perhaps one of the wildest
continuous rides in the world—to meet Captain Forbes.
Knowing the scant accommodation at the landlord’s disposal, he at once
placed the suite of rooms he had engaged at our service, to dress and dine in,
thus proving himself a friend in need. A good substantial dinner was soon
under weigh, and rendered quite a success by the many good things with
which Mr. Bushby kindly supplemented it, contributing them from his own
private stores.
Mr. Gísli Brynjúlfsson, the young Icelandic poet—employed in antiquarian
researches by the Danish Government chiefly at Copenhagen, but at present
here because he is a member of the Althing or Parliament now sitting—joined
us at table, having been invited by Dr. Mackinlay. He speaks English fluently,
and gave us much interesting information. He kindly presented me with a
volume “Nordurfari,” edited by himself and a friend, and containing amongst
other articles in prose and verse, “Bruce’s Address at Bannockburn,” translated
into Icelandic, in the metre of the original. This northern version of Burns’
poem may interest the reader.[5]
BANNOCK-BURN
ÁVARP ROBERT BRUCE TIL HERLITHS SINS.
EPTIR BURNS.
Skotar, er Wallace vördust med

Vig med Bruce opt hafid sjed;
Velkomnir ad blódgum bed,
Bjartri eda sigurfraegd!
Stund og dagur dýr nú er;
Daudinn ógnar hvar sem sjer;
Jatvards ad oss aedir her—
Ok og hlekkja naegd!
Hverr vill bera nidings nafn?

Ná hver bleydu sedja hrafn?
Falla thrael ófrjálsum jafn?
Flýti hann burtu sjer!
Hverr vill hlinur Hildar báls

Hjör nu draga hins góda máls,
Standa bædi og falla frjáls?
Fari hann eptir mjer!
Ánaudar vid eymd og grönd!

Ydar sona thrældóms bönd!
Vjer viljum láta lif og önd,
En leysa úr hlekkjum thá!
Fellid grimma fjendur thví!

Frelsi er hverju höggi í!
Sjái oss hrósa sigri ný
Sól, eda ordna ad ná!
After finally arranging with Zöga to start for the Geysers at 8 o’clock next
morning, Dr. Mackinlay, Mr. Haycock, Professor Chadbourne and I took a
walk through the town, called for Dr. Hjaltalin, who unfortunately was not at
home, and strolled along to the churchyard. It is surrounded by a low stone
and turf wall. We gathered forget-me-nots, catch-flies, saxifrage and butter-
cups among the grass; observed artificial flowers, rudely made of muslin and
worsted, stuck upon a grave, but do not know if this is an Icelandic custom or
the work of the stranger over the last resting place of a comrade.
Looking down upon Reykjavik from the elevation on which we stand all is
bright in the mellow glare of evening; the windows of the houses gleam in the
sun like the great jewel of Ghiamsheed; the near Essian mountains have a
ruddy glow, and the bay, intensely blue, is gay with vessels and flags.
Gazing inland all is one wild dreary black lava waste—miles upon miles of
bog, stones and blocks of rock. Botanized for an hour with the Professor.
On returning saw several heaps of large cod-fish heads, piled up near the sod-
roofed houses of the fishermen in the outskirts of the town. On enquiry we
were told that the heads of fish dried for exportation are thus retained; the
people here eat them, and one head is said to be a good breakfast for a man.
Most of the houses in and around Reykjavik have little plots of garden-ground
surrounded with low turf walls. In these we generally observed common
vegetables such as parsley, turnips, potatoes, cresses, a few plants for salads,
&c.; here and there a currant bush, and sometimes a few annuals or other
flowers. These, however, seldom come to any great degree of perfection, and
are often altogether destroyed; for the climate is severe and very changeable,
especially in the southern portion of the island.
REYKJAVIK.
The Governor called at the hotel for Mr. Haycock and me, insisted on us
taking the loan of his tent, and kindly invited us to come along and spend the
evening with him. As we had to start in the morning for the Geysers for the
present we declined the proferred hospitality, but promised to call on our
return.
ICELANDIC LADY IN FULL DRESS.
As there was not accommodation for us at the hotel, we were rowed off to the
“Arcturus” by the indefatigable Zöga at half-past 10 o’clock at night, and slept
on board.
ROUTE TO THINGVALLA.
RIDE TO THE GEYSERS.
Friday morning, July 29. Landed from the steamer between 7 and 8 o’clock, and
found the baggage and riding horses with the relays, twenty-four in all,
assembled at the hotel court; Zöga the guide, with his brother and a boy who
were also to accompany us, busy adjusting saddles, stirrup straps, &c. For four
days we shall be thrown entirely upon our own resources, so that provisions,
tent, plaids and everything we are likely to need during a wilderness journey,
must be taken with us. Our traps had been sent on shore late on the previous
evening. The mode of loading the sumpter ponies is peculiar; a square piece of
dried sod is placed on the horses back, then a wooden saddle with several
projecting pins is girded on with rough woollen ropes; to either side of the
saddle, is hooked on, a strong oblong wooden box generally painted red; while
on the pins are hung bags, bundles, and all sorts of gipsy looking gear. These
need frequent re-adjustment from time to time as the ponies trot along, one
side will weigh up the other, or the animals get jammed together and knock
their loads out of equilibrium, the saddles then perhaps turn round and articles
fall rattling to the ground. The strong little boxes are constructed and other
arrangements made with a view to such contingencies, and however primitive,
rude, or outlandish they may at first seem to the stranger, he will soon come to
see the why and the wherefore, and confess their singular adaptation to the
strange and unique exigences of Icelandic travel.
The baggage train at length moved off, accompanied by the relief ponies,
which were tied together in a row, the head of the one to the tail of the other
before it.
Dr. Mackinlay, Mr. Bushby, Mr. Sievertsen, and other acquaintances came to
see us start. Equipped with waterproofs and wearing caps or wide-awakes, no
two of us alike, at half-past eight o’clock, a long straggling line of non-descript
banditti-looking cavaliers, all in excellent spirits and laughing at each other’s
odd appearance, we rode at a good pace out of Reykjavik.
“Rarely it occurs that any of us makes this journey on which I go,”[6] words
spoken to Dante by his guide, in the ninth Canto of the Inferno, forcibly
suggested themselves to me as I “entered on the arduous and savage way,” and
gazed around on the “desert strand.”
The road terminated when we reached the outskirts of the town, and the track
lay over a wild black stony waste with little or no vegetation; everything
seemed scorched. The relay ponies were now loosed from each other, and,
perfectly free, driven before us like
“A wild and wanton herd,
Or race of youthful and unhandled colts,
Fetching mad bounds, bellowing and neighing loud,
Which is the hot condition of their blood.”
They were apt to scatter in quest of herbage, but Zöga, when his call was not
enough or the dogs negligent, quickly out-flanked the stragglers, upon which,
they, possessed by a salutary fear of his whip, speedily rejoined their fellows.
We soon lost sight of the sea, and in a short time came to the Lax-elv—or
salmon river—which we forded.
Enormous quantities of fish are taken at the wears a little higher up where
there are two channels and an arrangement for running the water off, first
from the one and then from the other, leaving the throng of fishes nearly dry
in a little pool from which they are readily taken by the hand. The fishermen
wear rough woollen mittens to prevent the smooth lithe fish from slipping
through their fingers when seizing them by head and tail, to throw them on
shore. From five hundred to a thousand fishes are sometimes taken in a day.
The fishery is managed by an intelligent Scotchman sent here by a merchant in
Peterhead who leases the stream and has an establishment of some fifteen tin-
smiths constantly at work making cans for “preserved salmon.” The fish are
cut into pieces, slightly boiled—then soldered and hermetically sealed up in
these tin cases containing say 2 or 4 ℔s. each, and sent south packed in large
hogsheads to be distributed thence over the whole world.
The few grass-farms we saw were like hovels; many separate erections, stone
next the ground, the gable wood, and the roof covered with green sod. The
rafters are generally made of drift wood or whale’s ribs. Turf is used as fuel;
but in common Icelandic houses there is only one fire—that in the kitchen—
all the year round. The beds are often mere boxes ranged around the room, or,
where there is such accommodation, underneath the roof round the upper
apartment, which is approached by a trap-stair. They are filled with sea-weed
or feathers and a cloth spread over them. In the farm houses we entered there
was a sad want of light and fresh air; in fact, these sleeping rooms were so
close and stifling that we were glad to descend and rush out to the open air for
breath.
The little bit of pet pasture land, round each farm, enclosed by a low turf wall,
is called “tun,” a word still used in rural districts of Scotland—spelt toon, or
town—with the same sound and similar signification.
Rode many miles through wild black desolate dreary volcanic wastes—no near
sounds but the metallic bicker of our ponies’ hoofs over the dry rocks and
stones, or fearless splashing through mud puddles—and no distant sounds
save the eerie cries, tremulous whistlings and plaintive wails of the curlew,
plover, and snipe. Observed the abrasions of the ice-drift very distinctly traced
on the rocks, these all running nearly south-west. The slightly elevated rock-
surface was frequently polished quite smooth, scratches here and there
showing the direction of the friction by which this appearance had been
produced. In some instances the rock was left bare, in others detached stone
blocks of a different formation rested on the surface.
Wild geranium, saxifrage, sedum, and tufts of sea-pink are very common,
when we come to anything green. The wild geranium, from the almost
nightless summer of the north, is six times larger than in Britain, and about the
size of a half-penny.
RAVINE.
Came to a deep ravine, wild, horrid, and frightful; rode along the edge of it,
and then through dreadfully rough places, with nothing to mark the track;
amidst great and little blocks of stone—trap, basalt, and lava—mud-puddles—
up-hill, down-hill, fording rivers, and through seemingly impassible places; yet
the Icelandic horse goes unflinchingly at it. Mr. Haycock says it would be sheer
madness to attempt such break-neck places in England; there, no horse would
look at it; steeple-chasing nothing to it. His horse was repeatedly up to the
girths in clayey mud, and recovered itself notwithstanding its load as if it were
nothing to pause about. Truly these are wonderful animals, they know their
work and do it well.
Came to a grassy plot, in a hollow by a river’s side, where we halted, changed
the saddles and bridles to the relief ponies, and, clad in mackintosh, thankfully
sat down on the wet grass to rest, while we ate a biscuit and drank of the
stream. In the course of the day, we had come to several green spots, like oasis
in the black desert, where the horses rested for a short time to have a feed of
grass.
After starting, ascended for about an hour through a ravine, where we saw
some lovely little glades full of blae-berries—sloe,—low brushwood, chiefly of
willows and birch, and a profusion of flowers, such as wild geranium, thyme,
dog-daisy, saxifrage, sea-pink, catch-fly, butter-cup, a little white starry flower,
and diapensia; the latter is found, here and there, in round detached patches of
fresh green like a pincushion, gaily patterned with little pink flowers. I am
indebted to Professor Chadbourne for the name of it. Obtained a root of this
plant for home, and gathered flowers of the others to preserve.
We now came to an elevated plateau which stretched away—a dreary stony
moor—bounded in one direction by the horizon-line and in another by hills of
a dark brown colour. Here there was not a patch of verdure to be seen; all one
black desert lava-waste strewn with large boulders and angular slabs, lying
about in all conceivable positions. In riding, one required to keep the feet in
constant motion, to avoid contact with projecting stones, as the ponies picked
their way among them. Our feet consequently were as often out of the stirrups
as in them. Shakspere says “Wisely and slow, they stumble that run fast;” not
so, however, with the sure footed Icelandic ponies; for, even over such ground,
they trotted at a good pace and no accident befell us.
I generally rode first with Zöga the guide, or last with Professor Chadbourne.
The driving of the relief horses before us, like a stampedo, and the keeping of
them together afforded some of us much amusement as we rode along. Here
no sheep or cattle could live. It was literally “a waste and howling wilderness.”
We saw several snow-birds and terns flying about, and often heard the eerie
plaintive whistle of the golden plover. These birds were very tame and
examined us with evident curiosity. They would perch on a large lava block
before us, quite close to our track, and sit till we came up and passed—then fly
on before, to another block, and sit there gazing in wonder; and so on for
miles. They had evidently never been fired at. Mr. Murray humanely remarked
that it would be murder to shoot them! In this black stony plateau there was
often not the least vestige of a track discernible; but we were kept in the right
direction by cairns of black stones placed here and there on slight elevations.
These guiding marks—“varder” as they are called—are yet more needed when
all the surface is covered with snow; then, “vexed with tempest loud,” Iceland
must resemble Milton’s description of Chaos.
“Far off,
Dark, waste and wild under the frown of night,
Starless exposed and ever threatening storms
Of Chaos blustering round.”
We saw one rude house of refuge, without any roof, built of lava blocks, in the
midst of this black desert where everything seemed blasted. Came now on
spots where a few tufts of sea-pinks, and many bright coloured wild-flowers
were springing up among the stones. Saw flat rock-surfaces shrivelled up and
wrinkled like pitch, an effect which had evidently been produced when the lava
was cooling; others were ground down and polished smooth in grooves by the
ice-drift. As near as I can calculate, some fourteen or fifteen miles of our
journey lay over this one long long dreary stony waste, henceforth, ever to be
associated in memory with the plover’s wild lone plaintive tremulous whistle.
At 3 P.M. we came in sight of the blue lake of Thingvalla,[7] lying peacefully in
the valley before us; while the range of the hills beyond it, bare, bold and
striking in their outline, was mostly of a deep violet colour.
During the day, arrowy showers of drenching rain “cold and heavy,” like that
described by Dante in the third circle of the Inferno, or wet drizzling mists had
alternated with gleams of bright clear sunshine. Towards the afternoon the
weather had become more settled and the effect of the prospect now before
us, although truly lovely in itself, was heightened by our previous monotonous
though rough ride over the dreary stony plateau. The lake far below us, with its
two little volcanic islands Sandey and Nesey, lay gleaming in the sun like a
silver mirror; while the wild scenery around forcibly reminded us of
Switzerland or Italy.
Thingvalla was to be our resting place for the night, and seeing our destination
so near at hand in the valley below us, some one purposed a rapid scamper,
that we might the sooner rest, eat, and afterwards have more leisure to explore
the wondrous features of the place. Forthwith we set off at a good pace, but
the Professor was too tired to keep up with us, so I at once fell behind to bear
him company. The others were speedily out of sight. Knowing that dinner
preparations would occupy Zöga for some time after his arrival, we rode
leisurely along, admiring the green level plain far below us. When wondering
how we were to get down to it, we suddenly and unexpectedly came to a
yawning chasm or rent running down through the edge of the plateau. It
seemed about 100 feet deep, 100 feet wide, and was partially filled with
enormous blocks of basalt which had toppled down from either side; where
more, cracked and dissevered, still impended, as if they might fall with a crash
at the slightest noise or touch. This was the celebrated Almanna Gjá or
Chasm, of which we had read so much but of which we had been able to form
no adequate idea from descriptions.
Of a scene so extraordinary, indeed unique, I can only attempt faithfully to
convey my own impressions, without hoping to succeed better than others
who have gone before me.
Let the reader imagine himself, standing on the stony plateau; below him
stretches a beautiful verdant valley, say about five miles broad, and about 100
feet below the level on which he is standing; to the right before him also lies
the lake which we have been skirting for some miles in riding along. It is in
size about ten miles each way, and is bounded by picturesque ranges of bare
volcanic hills. This whole valley has evidently sunk down in one mass to its
present level, leaving exposed a section of the rent rocks on either side of the
vale. These exposed edges of the stony plateau running in irregular basaltic
strata, and with fantastic shapes on the top like chimneys and ruined towers,
stretch away like black ramparts for miles, nearly parallel to each other, with
the whole valley between them, and are precipitous as walls, especially that on
the left.
The top of the mural precipice, overlooking the gorge at our feet, is the
original uniform level of the ground before the sinking of the valley. It forms
the edge of the plateau which stretches away behind and also before us to the
left of the precipice; for we look down the chasm lengthways, along the front
of the rock-wall, and not at right angles from it. A mere slice of the rock has
been severed and is piled up on our right, like a Cyclopian wall. It runs parallel
with the face of the rent rock to which it formerly belonged, for, say, about the
eighth of a mile N.E. from where we stand, and then terminates abruptly there
in irregular crumbling blocks like a heap of ruins; while the trench or gjá itself
also runs back in a straight line S.W. for about two miles, and terminates at the
brink of the lake.
The N.E. side of the valley is the highest, and the S.W. the lowest—shelving
beneath the blue water, and forming the bottom of the lake. The river Oxerá,
which thunders over the rock-wall on the right, forms a magnificent waterfall,
and then flows peacefully across the south-west corner of the valley to the
lake.
Between these two rock-walls—the left forming the real boundary of the
valley on that side, but the right wall being only a slice severed from the left,
and not the other boundary of the valley, which is situated about five miles
distant—a long narrow passage descends, leading to the plain below. The flat
bottom of this passage 100 feet deep is strewn with debris, but otherwise
covered with tender green sward. The bottom is reached from the elevated
waste where we stand by a very rough irregular winding incline plane—for
although the descent is full of great blocks of stones, dreadfully steep, and liker
a deranged staircase than anything else, we still call it a steep incline plane from
the level of the plateau to the passage beneath which leads into the valley—
high rock-walls rising on either side as we descend. Entering the defile and
moving along on level ground, the wall on the right, evidently rent from the
other side as if sliced down with some giant’s sword from the edge of the
plateau, soon terminates in the valley; but that on the left runs on for many
miles like a fire-scathed rampart. The stony plateau stretches back from the
edge or level of the summit of this rock-wall, and the lovely green valley of
Thingvalla extends from its base to the Hrafna Gjá or Raven’s Chasm—the
corresponding wall and fissure, like rampart and fosse—which bounds the
other side of the valley.
I am thus particular, because certain descriptions led me to suppose that here
we would encounter a precipice at right angles to our path, and have to
descend the face of it, instead of descending an incline parallel to its face, from
where the stair begins on the old level. As it is, however, it seemed quite steep
enough, with the rock-walled incline reaching from the valley to our feet. This
wild chasm is called the Almanna Gjá—all men’s or main chasm; while the one
on the other side of the vale of Thingvalla is called the Hrafna Gjá or Raven’s
Chasm. The whole character of the scene, whether viewed by the mere tourist,
or dwelt upon by the man of science, is intensely interesting, and in several
respects quite unique; hence I have tried to describe it so minutely.
When Professor Chadbourne and I came up to it, we gazed down in awe and
wonder. We knew that our companions must have descended somehow, for
there was no other way: but how, we could not tell. Were we to dismount and
let the horses go first, they might escape and leave us; if we attempted to lead
them down they might fall on the top of us; to descend on foot would be
extremely difficult at any time, and dismounting and mounting again at this
stage of our proceedings, was rather a formidable undertaking. “How shall we
set about it?” I asked my friend. “You may do as you please,” said he, “but I
must keep my seat if I can.” “So shall I, for the horse is surer footed than I can
hope to be to-day.” “Lead on then” said the Professor, “and I’ll follow!”
So leaving my pony to choose its steps, it slowly picked its way down the steep
gorge; zig-zagging from point to point and crag to crag, or stepping from one
great block of stone to another. I was repeatedly compelled to lean back,
touching the pony’s tail with the back of my head, in order to maintain the
perpendicular, and avoid being shot forward, feet first, over its head, among
the rocks. Sometimes at steep places it drew up its hind legs and slid down on
its hams, many loose stones rattling down along with us as the pony kicked out
right and left to keep its balance, and made the sparks fly from its heels.
Descending in silence, at last we reached the bottom in safety, thinking it
rather a wild adventure in the way of riding, and one not to be attempted
elsewhere.
DESCENT INTO THE ALMANNA GJÁ.
Looking back with awe and increasing wonder at the gorge we had descended,
for it certainly was terrifically steep, we both remarked the cool indifference
and utter absence of fear with which we had ridden down such a break-neck
place. The fresh air and excitement prevent one from thinking anything about
such adventures till they are over.
ALMANNA GJÁ.
The high rock-walls, now hemming us in on either side, bore a considerable

resemblance to the pictures of Petra—Wady Mousa—in Arabia, and here we
could fancy mounted Bedouins riding up with their long matchlocks. All was
silent as the grave. The ground was green with tender herbage; great blocks of
stone lay about, and others seemed ready to topple over and fall down upon
us. Riding along, the rocks on the right soon terminated like a gigantic heap of
burned ruins, and allowed us to gaze across the vale of Thingvalla, with the
river Oxerá in the foreground. Here we overtook our friends who told us that
they had all dismounted and led their horses down the chasm, and would
scarcely believe that we had ridden down. All of us were lost in wonder and
struck with awe at the scenes we had witnessed. We forded the river in a row,
following Zöga’s guidance; and at 5 o’clock in the afternoon rode up to the
priest’s house on the other side. It was simply a farm, like others we had seen,
consisting of a group of separate erections with wooden gables, green sod on
the roof and the whole surrounded with a low stone wall coped with turf.
Beside it was the silent churchyard with its simple grassy graves of all sizes.
Immediately behind the house were piles of sawn timber, and several
carpenters at work rebuilding the little church, which having become old and
frail had been taken down. Its site was only about 25 feet by 10.
FORDING THE OXERÁ.
Zöga went in to tell the pastor of our arrival, leaving us to dismount in a deep
miry lane between two rough stone walls leading to the house. He had been
busy with his hay, but speedily appeared and hospitably offered us what shelter
he could afford.
Zöga arranged for the grazing of the ponies; we were to dine in the largest
room of the house, and he was to have the use of the kitchen fire to cook our
dinner—the preserved meats, soups, &c.—which of course we had brought
with us. The pastor provided a splendid trout from the river, to the great
delectation of half a dozen travellers all as hungry as hawks.
PRIEST’S HOUSE AT THINGVALLA.
Now commenced the unstrapping and unpacking, presided over by the

indefatigable Zöga; boxes, bags, and packages, bespattered with mud, lay about
singly and in piles. Everybody seemed to want something or other which was
stowed away somewhere, and forthwith the patient obliging Zöga, in a most
miraculous manner, never failed to produce the desiderated articles. Taking a
rough towel and soap, I performed my ablutions in the river close by, while
dinner was getting ready and felt quite refreshed. “Time and the hour runs
through the roughest day,” and this was certainly one to be marked in our
calender. Shortly after 6 o’clock we dined and attempted some conversation in
Latin with the priest, Mr. S. D. Beck. He is a pastor literally and metaphorically,
farming and fishing as well as preaching. Hay, however, is the only crop which
is raised here; and the Icelanders are consequently very dependent upon the
hay-harvest. With their short summer they might not inappropriately quote
Shakspere’s lines,
“The sun shines hot; and if we use delay
Cold biting winter mars our hoped for hay.”
The scythe used by the Icelanders is quite straight and not half the length of
ours. The numerous little hummocks, with which pasture land is covered,
necessitate the use of a short implement, so that it may mow between and
around them; the hillocks are from one to two feet high, and from one to four
feet across. In some places the ground presents quite the appearance of a
churchyard or an old battle-field. These elevations are occasioned by the
winter’s frost acting on the wet subsoil. If levelled they would rise again to the
same height in about 7 or 8 years; but the farmers let them alone, because they
fancy they get a larger crop from the greater superficial area of the field, and
this old let-alone custom certainly saves them much labour. The primitive state
of their agriculture, as well as the peculiar nature of the Icelandic soil, may be
inferred from the fact, that there are only two ploughs in the whole island and
no carts. A spade, a scythe two feet long, a small rake with teeth about an inch
and a half deep, and ropes made of grass or hair to bind the hay, which is
carried on men’s backs or conveyed by horses to be stacked, are all that the
farmer requires for his simple operations. The hay, especially that which grows
in the túns, is of fine quality, tender and nutritive; and, with even any ordinary
attention to drainage, many a fertile vale could be made to yield much more
than is now obtained from it. Latin was our only mode of communicating
directly with the priest; but having had little colloquial practice of that kind, we
blundered on, feeling that, in appropriating the stately language of Cicero and
Virgil to creature comforts and the vulgar ongoings of daily life, we were
almost committing a species of desecration: yet the ludicrous combinations
and circumlocutions, grasped at in desperation to express modern things in a
dead language, afforded us no little amusement. Professor Chadbourne, Mr.
Murray, and myself got most of the work to do, and were often greeted with
the pastor’s goodnatured “Ita,” or “Intelligo,” when our propositions could
not have been particularly remarkable for perspicacity. Amongst foreigners,
charity covers a multitude of sins of this kind. We cannot however apply the
same remark to our own countrymen, who are often more inclined to laugh at
a foreigner’s mistakes than to help him.
The fragrant tedded hay and the green vale of Thingvalla stretching before us
were peculiarly refreshing to the eye, after the dreary rugged lava-wastes
through which we had passed—where tracks of flat rocks were corrugated and
shrivelled up like pitch, having been left so when the lava set; and where other
rock-surfaces appeared ground and polished in grooves by the ice-drift; or
where all was covered with a pack of lava blocks and slabs, of all sizes and
lying in every conceivable direction.
After tea I walked out alone a little way north-west of the church to examine
the Althing, on the upper part of which stands the Lögberg or sacred law hill,
where, when the Parliament or Althing was assembled, the judges sat; and
where justice was administered to the Icelanders for nearly 900 years; thus
rendering Thingvalla, with its numerous associations and stirring memories, to
speak historically, by far the most interesting spot in the island.
ALTHING AND LÖGBERG FROM BEHIND THE CHURCH.
The Althing is a long sloping ridge of lava, about 200 feet long and from 30 to
50 broad, covered on the top with the most tender herbage and flowers. At the
end next the church it is low and approachable, by climbing over a few stones
among and below which one can see water, but it is entirely separated from the
surrounding plain by two deep perpendicular rocky fissures or chasms running
parallel on either side and joining at the further end. Only at one place is the
chasm so narrow—16 feet—that, once on a time, Flosi, leader of the burners
of Njal’s house, made his escape from justice by taking a desperate leap. These
chasms contain clear water, so that the Althing is in fact a narrow peninsula,
which with the entrance guarded was as secure as a fortress. One looks sheer
down, say 20 or 30 feet, to the surface of the water in the chasms; while the
water itself is from 80 to 90 feet deep, and in some places said to be
unfathomable. These fissures run S.W. to the lake which is about a mile distant.
Through the water, one sees huge blocks of lava of a whitish blue colour and
dark masses of basalt gleaming from the green depths. Beautiful tender fairy-
like ferns grow on the edges and in the sheltered crevices of the rocks; and I
gathered specimens of grasses, mosses, violets, butter-cups and forget-me-
nots, from the soft verdant carpet which covered the surface. Here, the
Icelandic Parliament, such as it was, continued to meet, down to the year 1800,
when the seat of government was finally removed to Reykjavik.
In the old palmy days, prior to A.D. 1261 when the island became subject to
Norway, the Althing was the scene of many a spirited debate; affairs of the
greatest import were here freely discussed, and finally disposed of, in open
assembly. Thus, in the year A.D. 1000, after a stormy debate, it was determined
that Christianity should be introduced as the religion of the island. Here,
measures of general interest were proposed, taxes levied, law-suits conducted,
the judgments of inferior courts revised, subordinate magistrates impeached
for dereliction of duty and dismissed from their office; while criminals were
tried, and if found guilty of capital offences were summarily executed.
Criminals were beheaded on the little Island of Thorlevsholm in the Oxerá; in
a pool of the same river, female offenders, sewed in a sack, were drowned; and
those condemned for witchcraft were precipitated from the top of a high rock
on the east side of the Almannagjá.
The Althing commonly met in the middle of May and sat for 14 days. Every
freeholder had a right to attend and express his opinion on measures under
consideration: thus, at Thingvalla, friends and acquaintances from distant parts
of the island—members and friends of both sexes—annually availed
themselves of this opportunity of meeting each other. The people pitched their
tents on the banks of the Oxerá and in the plain around the Althing; so that a
wild lone scene usually silent as the grave, for the time became quite a busy
one, enlivened by the presence of nearly all the elite of the island.
LAKE OF THINGVALLA FROM THE LÖGBERG.

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Test Bank for Accounting, 26th Edition

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Accounting Warren 23rd Edition Test Bank

Test Bank for Managerial Accounting, 1st Edition:

2 : A chart of accounts is a listing of accounts that make up the journal.

3 : The chart of accounts should be the same for each business.

6 : Prepaid expenses are an example of an expense.

7 : The unearned revenue account is an example of a liability.

8 : The drawing account is an expense.

9 : Accounts in the ledger are usually maintained in alphabetical order.

11 : To determine the balance in an account, always subtract credits from debits.

13 : The T account got its name because it resembles the letter T.

15 : Debiting the cash account will increase the account.

16 : A credit to the cash account will increase the account.

17 : The cash account will always be debited.

21 : Liabilities are debts owed by the business entity.

22 : The accounts payable account is listed in the chart of accounts as an asset.

23 : A drawing account represents the amount of withdrawals made by the owner.

26 : Owners equity will be reduced by the amount in the drawing account.

31 : A debit is abbreviated as Db and a credit is abbreviated as Cr.

35 : The normal balance of revenue accounts is a credit.

36 : The normal balance of an expense account is a credit.

37 : The normal balance of the drawing account is a debit.

38 : Expense accounts are increased by credits.

39 : The normal balance of a capital account is a debit.

40 : Revenue accounts are increased by credits.

41 : Liability accounts are increased by debits.

44 : Journalizing is the process of entering amounts in the ledger.

45 : The process of recording a transaction in the journal is called journalizing.

46 : Transactions are initially entered into a record called a journal.

47 : The double-entry accounting system records each transaction twice.

50 : A transaction that is recorded in the journal is called a journal entry.

51 : Assets are increased with debits and decreased with credits.

53 : Debits will increase unearned revenues and revenues.

55 : Journalizing always eliminates fraudulent activity.

57 : Normal account balances are on the increase side of the accounts.

66 : A trial balance determines the accuracy of the numbers.

Correct Answer : 11 Cash12 Accounts Receivable13 Supplies14 Prepaid Insurance15

Correct Answer : ??? + $305,000 ? $375,880 = $96,750Cash balance at January 1 is $167,630

78 : Organize the following accounts into the usual sequence of a chart of

Correct Answer : CashAccounts ReceivablePrepaid RentAccounts PayableUnearned

79 : Organize the following accounts into the usual sequence of a chart of

Correct Answer : (a)$69,250 ($31,750 + $63,000 ? $25,500)(b)$52,250 ($22,500 + $45,000 ?

80 : Organize the following accounts into the usual sequence of a chart of

Correct Answer : Type of AccountIncrease

81 : Organize the following accounts into the usual sequence of a chart of

Correct Answer : Account DebitedAccount CreditedTransactionTypeEffectTypeEffect(1)asset+c

Correct Answer : $75,880 = $96,750 + $305,000 ? ?Cash Payments = $325,870

Correct Answer : (a) Oct. 10Supplies1,800 Accounts Payable1,800 Purchased supplies on

Correct Answer : Oct. 17Building500,000 Land250,000 Cash300,000 Notes

86 : On November 1, Nickle Company made a cash payment of $200,000 on a note payable

88 : On January 8, Damien Lawson transfers ownership of several pieces of office equipment to

Correct Answer : Aug. 30Rent Expense2,300 Utilities Expense525 Wages