review or Rey Topics a2-1 02-2 Explain the difference between external events and internal events. Give an example of each type of evem. ecoeomic event or transaction will have a dual effect on financial position. Esplain what is mcan by ths dual effect What is the parpose of a journal? What is the purpose of a general ledger? include both types of accounts? 92-4 Explain the difference between permanent accounts and temporary accounts. Whry does an accounting system 02-5 Describe how debits and credits affect assets, liabilities, and permanent owners' equity accounts 92-6 Describe how debits and credits affect temporary owners' equity accoums. 02-7 What is the first step in the accounting processing cycle? What role do source documents fulfill in this step? 02-8 Describe what is meant by transaction analysis 02-9 Describe what is meant by posting, the fourth step in the processing cycle. 92-10 Describe the events that correspond to the following two journal entries: 20000 20.000 30,000 0.ooo 18000 30.000 1. Inventory Accounts payable Cost of goods Inventory 02-11 02-12 02-13 02-14 What is an unadjusted trial balance? An adjusted trial balance? Define adjusting entries and discuss their purpose. Define closing entries and their purpose. Define prepaid expenses and provide at least two examples Deferred revenues represent liabilities recorded when cash is received from customers in advance of providing a good or service. What adjusting journal entry is required at the end of a period to recognize the amount of deferred revenues that were recognized during the period? Define accrued liabilities, What adjusting journal entry is required to recond accrued liabilities? O 2-15 02-16 2-17 Describe the purpose of each of the five primary financial statements. Q2-18 [Based on Appendix A] What is the parpose of a worksheet? In a columnar worksheet similar to Illustration 2A-1, what would be the result of incorrectly transferring the balance in a liability account to column K, the 02-19 O 2-20 credit column under income statement? IBased on Appendix B] Define reversing entries and discuss their purpose. [Based on Appendix C] What is the purpose of special journals? In what ways do they simplify the recceding 02-21 [Based on Appendix C] Explain the difference between the general ledger and a subsidiary ledger a conedt Brief Exercises The Marchetti Soup Company entered into the following transactions during the month of June: (1) parchased inventory on account for $165,000 (assume Marchetti uses a perpetual inventory system): (2) paid S40,000 in salaries to employees for work performed during the month; (3) sold merchandise that cost $120,000 t0 credit customers for $200,000. (4) collected $180,000 in cash from credit customers; and (5) paid suppliers of inventory S145,000. Analyze each transaction and show the effect of each on the accounting equation for a corporation Transaction analysis LO2-1 Prepare journal entries for each of the transactions listed in BE 2-1 Journal entries Post the journal entries prepared in BE 2-2 to T-accounts. Assume that the opening balances in each of the $65,000, $43,000, and $22,000, respectively is zero except for cash, accounts receivable, and accounts payable that had opening balances of T-accounts LO2-3