Question 1

From the following list of transactions,prepare a trial balance dated March 31,2017,for Niko Inc.,which began operations on March 1,2017.
a.Sold 600 common shares for $12,000.
b.Located a building suitable for a dry cleaning business,paying the first month's rent of $2,000.
c.Purchased cleaning supplies for $500 cash.
d.Purchased cleaning equipment on account costing $6,000.
e.Services of $5,000 were rendered for cash during the month.
f.Paid $1,500 salaries to employees for the month.
g.Paid utilities bill of $500 for the month.

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Question 2

Fox Ltd.had the following trial balance on October 31,2017.
  The following errors caused the trial balance not to balance:
a.Recorded a $2,000 debit to Note Payable as a debit to Note Receivable.
b.Posted a $3,000 credit to Accounts Payable as $300.
c.Recorded a cash revenue transaction by debiting Cash for $6,000 and crediting Accounts Receivable for $6,000.
d.The Common Shares account is understated by $11,100.
Prepare a corrected trial balance as of October 31,2017.All accounts have a normal balance.

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Question 3

A junior bookkeeper,Bob Delisle,prepared the following trial balance on April 30,2017,for Big Party Inc.Prepare a corrected trial balance based on the incorrect trial balance and the additional data.
   Additional data:
1.Cash is overstated by $1,140.
2.Note Payable is understated by $1,440.
3.Service Revenue is understated by $6,400.

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Question 4

Identify the normal balance for asset and liability accounts.What is the reasoning behind the "normal balances" for these accounts?

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Question 5

Use T-accounts to analyze the following transactions for the Red Panda Corporation:
a.Owner invested $550,000 cash and equipment with a value of $5,500 into the business received common shares in return.
b.Purchased office supplies on account,$300.
c.Performed services for a customer on account,$3,500.
d.Purchased a building by paying $100,000 down and signing a note for the remainder of $800,000.
e.Performed services for a customer and immediately collected $4,500 cash.
f.Paid employees salaries of $2,200.
Determine the ending cash balance.Note this is their first month of operations.

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Question 6

Prepare a trial balance for Salty Inc.dated June 30,2017,based on the following transactions that occurred during the month of June.
a.Owner invested $25,000 cash into the business and received common shares in return.
b.Rented an office and paid one month's rent,$900.
c.Purchased $400 of supplies on account.
d.Performed services on account,$5,500.
e.Paid $2,000 cash for office furniture.
f.Owner received a dividend of $700.
g.Collected $1,200 on account.

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Question 7

Identify the normal balance for the Retained Earnings account and expense accounts.What is the reasoning behind the "normal balances" for these accounts?

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Question 8

Prepare a trial balance for Zeng Inc.dated April 30,2017,based on the following transactions that occurred during the month of June.
a.Owner invested $55,000 cash into the business and received common shares in return.
b.Rented an office and paid one month's rent,$700.
c.Purchased $600 of supplies on account.
d.Performed services on account,$7,500.
e.Paid $4,200 cash for office furniture.
f.Owner received a dividend of $500.
g.Collected $3,000 on account.

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Question 9

Describe what is listed on a trial balance.

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Question 10

Use T-accounts to show the resulting balance in each account.

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Quiz 2: Recording Business Transactions

Identify the normal balance for asset and liability accounts.What is the reasoning behind the "normal balances" for these accounts?

Identify the normal balance for the Retained Earnings account and expense accounts.What is the reasoning behind the "normal balances" for these accounts?

Describe what is listed on a trial balance.

Use T-accounts to show the resulting balance in each account.