1) Choose the appropriate definition for terms below

A) A business owned by a single owner

B) A statement summarizing the revenues and expenses for a given period

C) Resources which provide future economic benets to a business

D) Claims by outsiders on the resources of a business

E) Revenues less expenses

F) A business owned by slockholders

G) Shows the net change in the cash account for a given period

H) A formal listing of the accounting equation on a specified date

___1. Corporation

___2. Statement of cash ows

___3. Income statement

___4. Net income

___5. Proprietorship

___6. Balance sheet

___7. Liabilities

___8. Assets

2) Match the following definitions and terms by placing best definition in the blank space next to the term

__1.Source documents

__2 Compound journal entry

__3.. Debit

__4.Posting

__5.Double-entry accounting

__6.Ledger

__7.Journal

__8.Account

__9.Credit

__10.T-account

__11.Unearned revenues

__12.Note receivable

A) An entry that decreases asset and expense accounts, and increases liability,

capital equity, and revenue accounts; recorded on the right side of a T-account

B) A record containing all accounts of a business and their balances

C) An accounting system where each transaction affects and is recorded in at

least two accounts; the sum of the debits for each entry must equal its

credits

D) A record where transactions are recorded before they are posted to ledger

accounts

E) An entry that increases asset and expense accounts, and decreases liability,

capital equity, and revenue accounts; recorded on the left side of a t

account

F) A place or location within an accounting system in which the increases and

decreases in a specific asset, liability, equity, revenue, or

expense are recorded and stored

G) A simple account form used as a helpful tool in showing the

transactions and events on specific accounts

H) A journal entry that affects at least three accounts

I) The process of transferring journal entry information to the ledger

J) Another name for business papers

K) A written promise from a customer to pay a definite sum of money on demand

or on a specific future date

L) Liabilities created when customers pay in advance for products or services;

satisfied by delivering the products or services in the future

3) Prepare Journal entries in good form for the following transactions and post the journal entries to the appropriate T accounts, and show the resulting balance in each account.

A) Received $34, 000 from investors in return for common stock

B) Bought supplies on account for $800

C) Purchased a building for $80,000, paying $10,000 in cash and giving a note

payable for the remainder

D) Recorded $5,000 of Service Revenue on account

E) Paid wages of $1, 500

To: Cash, Accounts Receivable, Supplies, Building, Accounts Payable, Note Payable, Common Stock, Service Revenue, Salary Expense.