Do the Assignment in the attachments

AS 3 x
Corporate Financial Accounting

1. What is the difference between an account and a ledger?
2. Do the terms debit and credit signify increase or decrease or can they signify either?
Explain.
3. Explain why the rules of debit and credit are the same for liability accounts and
stockholders’ equity accounts.
4. What is the effect (increase or decrease) of a debit to an expense account (a) in
terms of stockholders’ equity (retained earnings) and (b) in terms of expense?
5. What is the effect (increase or decrease) of a credit to a revenue account (a) in terms
of stockholders’ equity (retained earnings) and (b) in terms of revenue?
6. Carr Company adheres to a policy of depositing all cash receipts in a bank account
and making all payments by check. The cash account as of March 31 has a credit
balance of $1,250, and there is no undeposited cash on hand. (a) Assuming no er-
rors occurred during journalizing or posting, what caused this unusual balance?
(b) Is the $1,250 credit balance in the cash account an asset, a liability, stockholders’
equity, a revenue, or an expense?
7. Longfellow Company performed services in July for a specific customer, for a fee
of $8,380.Payment was received the following August.(a) Was the revenue earned
in July or August? (b) What accounts should be debited and credited in (1) July
and (2) August?
8. What proof is provided by a trial balance?
9. If the two totals of a trial balance are equal, does it mean that there are no errors
in the accounting records? Explain.
10. Assume that a trial balance is prepared with an account balance of $18,500 listed
as $1,850 and an account balance of $3,680 listed as $3,860. Identify the transpo-
sition and the slide.
11. Assume that when a purchase of supplies of $2,650 for cash was recorded, both
the debit and the credit were journalized and posted as $2,560. (a) Would this er-
ror cause the trial balance to be out of balance? (b) Would the trial balance be out
of balance if the $2,650 entry had been journalized correctly but the credit to Cash
had been posted as $2,560?
12. Assume that JRQ Consulting erroneously recorded the payment of $10,000 of
dividends as a debit to Salary Expense. (a) How would this error affect the equal-
ity of the trial balance? (b) How would this error affect the income statement,
retained earnings statement, and balance sheet?
13. Assume that Beebe Realty Co. borrowed $120,000 from City Bank and Trust. In
recording the transaction,Beebe erroneously recorded the receipt as a debit to Cash,
$120,000, and a credit to Fees Earned, $120,000. (a) How would this error affect the
equality of the trial balance? (b) How would this error affect the income statement,
retained earnings statement, and balance sheet?
14. In journalizing and posting the entry to record the purchase of supplies for cash,
the accounts payable account was credited in error. What is the preferred proce-
dure to correct this error?
15. Checking accounts are the most common form of deposits for banks. Assume that
Yellowstone Storage has a checking account at Livingston Savings Bank.What type
of account (asset, liability, capital stock, retained earnings, revenue, expense, divi-
dends) does the account balance of $12,100 represent from the viewpoint of (a)

Yellowstone Storage and (b) Livingston Savings Bank?

Complete the Exercises x
Complete the Exercises

EX 2-16

Trial balance

obj. 4

✔ Total of Credit

column: $696,350

The accounts in the ledger of Aznar Co. as of October 31, 2010, are listed in alphabetical order as follows. All accounts have normal balances. The balance of the cash account has been intentionally omitted.
Accounts Payable $ 28,000 Notes Payable $ 60,000
Accounts Receivable 56,250 Prepaid Insurance 4,500
Capital Stock 50,000 Rent Expense 90,000
Cash ? Retained Earnings 79,850
Dividends 30,000 Supplies 3,150
Fees Earned 465,000 Supplies Expense 11,850
Insurance Expense 9,000 Unearned Rent 13,500
Land 127,500 Utilities Expense 62,250
Miscellaneous Expense 13,350 Wages Expense 262,500
Prepare an unadjusted trial balance, listing the accounts in their proper order and inserting the missing figure for cash.

EX 2-17

Effect of errors

on trial balance
obj. 4
Indicate which of the following errors, each considered individually, would cause the
trial balance totals to be unequal:
a. A payment of $2,150to a creditor was posted as a debit of $2,150to Accounts Payable
and a debit of $2,150 to Cash.
b. A fee of $4,600earned and due from a client was not debited to Accounts Receivable
or credited to a revenue account, because the cash had not been received.
c. A receipt of $3,100from an account receivable was journalized and posted as a debit
of $3,100 to Cash and a credit of $3,100 to Fees Earned.
d. A payment of $10,000 for equipment purchased was posted as a debit of $1,000 to
Equipment and a credit of $1,000 to Cash.
e. Payment of dividends of $15,000 was journalized and posted as a debit of $5,000 to
Salary Expense and a credit of $15,000 to Cash.