9th Edition

Financial and
Managerial Accounting
Warren/Reeve

Chapter Test 2A

TEST 2A (Concluded)

PROBLEM 1DEBIT AND CREDIT

INSTRUCTIONS: Indicate the manner in which each of the increases and decreases in the accounts listed below would
be recorded by placing a check mark in the debit column or the credit column at the right.
Answers
Debit

Credit

For
Scoring
0. ____

0.

Notes Payable is decreased .......................................................................

1.

Alex Small, Drawing is increased ...............................................................

1. ____

2.

Accounts Payable is decreased .................................................................

2. ____

3.

Fees earned is decreased .........................................................................

3. ____

4.

Supplies Expense is increased ..................................................................

4. ____

5.

Wages Expense is decreased ...................................................................

5. ____

6.

Supplies is increased .................................................................................

6. ____

7.

Automobile is decreased ............................................................................

7. ____

8.

Accounts Receivable is increased .............................................................

8. ____

9.

Cash is decreased .....................................................................................

9. ____

10.

Insurance Expense is increased ................................................................

10. ____

TEST 2A (Concluded)

PROBLEM 2ANALYSIS OF TRANSACTIONS

INSTRUCTIONS: For Bush Designs, indicate the accounts to be debited and credited in recording the selected
transactions described below by inserting the letter designation for the accounts in the appropriate columns.
A.
B.
C.
D.

Accounts Payable
Accounts Receivable
Building
Cash

E.
F.
G.
H.

Fees Earned
Miscellaneous Expense
Notes Payable
Notes Receivable

I.
J.
K.
L.

Office Equipment
Rent Expense
Supplies
Supplies Expense

M. Wages Expense
N. H. Loehr, Capital
O. H. Loehr, Drawing
For

For

TRANSACTIONS
0. Henry Loehr withdrew cash from the business ........................................

Debit
O

Scoring
0. ____

Credit
D

Scoring
0. ____

1-2. Received cash for services sold ...............................................................

1. ____

2. ____

3-4. Purchased supplies for on account ..........................................................

3. ____

4. ____

5-6. Purchased office equipment, paying one-half in cash

and giving a note for the balance .............................................................

5. ____

6. ____

7-8. Paid creditors on account .........................................................................

7. ____

8. ____

9-10. Fees earned from cash customers and customers on account ...............

9. ____

10. ____

11-12. Discovered an error in collecting cash on an account receivable from

TEST 2A (Concluded)

a customer. Reimbursed the customer in cash for the overpayment .....

11. ____

12. ____

13-14. Received cash from customers on account .............................................

13. ____

14. ____

15-16. Recorded supplies used for month ..........................................................

15. ____

16. ____

17-18. Paid rent ...................................................................................................

17. ____

18. ____

NOTE: Each debit and credit is assigned a weight of 2%.

PROBLEM 3CLASSIFICATION OF ACCOUNTS

INSTRUCTIONS: The customary classifications for accounts listed in the chart of accounts are listed below. Classify
each account by inserting the appropriate letter in the classification column and indicate the normal balance by inserting a
check mark in the debit column or the credit column.

CLASSES
A. Assets

B. Liabilities

C. Owners equity

D. Revenue

E. Expenses
Normal Balance

For
Scoring

TEST 2A (Concluded)

ACCOUNTS

Classification

Debit

Credit

0.

Cash .......................................................................................

0. ____

1.

Notes Receivable ....................................................................

1. ____

2.

Supplies ..................................................................................

2. ____

3.

Fares Earned ..........................................................................

3. ____

4.

Land ........................................................................................

4. ____

5.

Prepaid Insurance ..................................................................

5. ____

6.

April Saran, Capital ................................................................

6. ____

7.

Unearned Rent .......................................................................

7. ____

8.

Rent Expense .........................................................................

8. ____

9.

Office Equipment ....................................................................

9. ____

10.

Accounts Payable ...................................................................

10. ____

PROBLEM 4PRINCIPLES AND TERMINOLOGY

INSTRUCTIONS: Select from the list below the term that best represents each statement, inserting the letter
designation in the Answers column. A term may be used more than once.
TERMS

TEST 2A (Concluded)

A.
B.
C.
D.
E.

Accounts Payable
Accounts Receivable
Balance
Capital
Cash

F.
G.
H.
I.

Credit
Debit
Drawing
Expense

J.
K.
L.
M.

Journal
Chart of Accounts
Liabilities
Posting

STATEMENTS
0.

The difference between the debits and credits in an account ...................

1.

Normal balance of asset accounts ............................................................

N.
O.
P.
Q.

Revenue
Slide
Transposition
Trial Balance

Answers
C

For
Scoring
0. ____
1. ____

2.

Owners investment in a business .............................................................

2. ____

3.

Resources used up or services consumed in generating revenues ..........

3. ____

4.

The process of recording the data in an entry to the appropriate

account .......................................................................................................

4. ____

5.

The error caused by the movement of an entire number one or more

spaces to the right or left ...........................................................................

5. ____

6.

Left side of an account ...............................................................................

6. ____

7.

Normal balance of accounts receivable .....................................................

7. ____

8.

List for the entire group of accounts maintained by a business ................

8. ____

TEST 2A (Concluded)

9.

Account used to record amounts owed to creditors for purchases on

account .......................................................................................................

10.

Account used to record amounts due from customers for sales on account
....................................................................................................................

TEST 2A
Problem 1
Debit and Credit
1.

Debit

Credit

9. ____

10. ____

2.
3.
4.
5.
6.
7.
8.
9.
10.

TEST 2A (Concluded)

Problem 2
Analysis of Transactions
1.
3.
5.
7.
9.
11.
13.

Debit
D
K
I
A
B, D
B
D

2.
4.
6.
8.
10.
12.
14.

Credit
E
A
D, G
D
E
D
B

15.
17.

L
J

16.
18.

K
D

Problem 3
Classification of Accounts

1.
2.
3.

Classification
A
A
D

Normal Balance
Debit
Credit

TEST 2A (Concluded)

4.
5.
6.
7.
8.
9.
10.

A
A
C
B
E
A
B

Problem 4
Principles and Terminology

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

G
D
I
M
O
G
G
K
A
B

TEST 2A (Concluded)