Accounting

1. Describe the parts of a T-account. 2. "The terms debit and credit mean increase and decrease, respectively." Do you agree? Explain. 3. Jason Hilbert, a fellow student, contends that the double-entry system means each transaction must be recorded twice. Is Jason correct? Explain. 4. Sandra Browne, a beginning accounting student, believes debit balances are favorable and credit balances are unfavorable. Is Sandra correct? Discuss. 5. State the rules of debit and credit as applied to (a) asset accounts, (b) liability accounts, and (c) equity accounts (revenue, expenses, dividends, share capital- ordinary, and retained earnings). 6. What is the normal balance for each of the following accounts? (a) Accounts Receivable. (b) Cash. (c) Dividends. (d) Accounts Payable. (e) Service Revenue. (f) Salaries and Wages Expense. (g) Share Capital-Ordinary. 7. Indicate whether each of the following accounts is an asset, a liability, or an equity account and whether it has a normal debit or credit balance: (a) Accounts Receivable, (b) Accounts Payable, (c) Equipment, (d) Dividends, (e) Supplies. 8. 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 salaries in cash. 9. Indicate whether the following accounts generally will have (a) debit entries only, (b) credit entries only, or (c) both debit and credit entries. (1) Cash. (2) Accounts Receivable. (3) Dividends. (4) Accounts Payable. (5) Salaries and Wages Expense (6) Service Revenue. 10. What are the basic steps in the recording process? 11. What are the advantages of using a journal in the recording process? 12. (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? 13. Describe a compound entry, and provide an example. 14. (a) Should business transaction debits and credits be recorded directly in the ledger accounts? (b) What are the advantages of first recording transactions in the journal and then posting to the ledger? 15. The account number is entered as the last step in posting the amounts from the journal to the ledger. What is the advantage of this step? 16. Journalize the following business transactions. (a) Alberto Rivera invests $9,000 cash in the business in exchange for ordinary shares. (b) Insurance of $800 is paid for the year. (c) Supplies of $2,000 are purchased on account. (d) Cash of $7,500 is received for services rendered. 17. (a) What is a ledger? (b) What is a chart of accounts and why is it important? 18. What is a trial balance and what are its purposes