[jonesclifton]

On October 1, 2012, Metz Industries had an Accounts Payable balance of $60,000. During the month, the company made purchases on account of $50,000 and made payments on account of $80,000. At October 31, 2012, the Accounts Payable balance is
$60,000 debit
$20,000 credit
$30,000 credit
$80,000 credit

[jonesclifton]

On September 1, 2012, Baxter Inc. Reported Retained Earnings of $272,000. During the month, Baxter generated revenues of $40,000, incurred expenses of $24,000, purchased equipment for $10,000 and paid dividends of $4,000. What is the balance in Retained Earnings at September 30, 2012?
$272,000 debit
$16,000 credit
$274,000 credit
$284,000 credit

[jonesclifton]

Which of the following accounts is increased with a debit?
Dividends
Service Revenue
Interest payable
Common Stock

[jonesclifton]

Which of the following accounts follows the rules of debit and credit in relation to increases and decreases in the opposite manner?
Prepaid Insurance and Dividends
Dividends and Interest Revenue
Interest Payable and Common Stock
Advertising Expense and Land

[jonesclifton]

La More Company had the following transactions during 2011:
• Sales of $4,500 on account
• Collected $2,000 for services to be performed in 2012
• Paid $1,125 cash in salaries
• Purchased airline tickets for $250 in December for a trip to take place in 2012

What is La More's 2011 net income using cash basis accounting?
$5,375
$875
$5,125
$625

[Fr_Chuck]

Thank you for taking the time to cut and paste your homework onto our site. Of course you must realize we do not just give you answers. If you wish to tell us what answer you think is correct and why, we can discuss the questions and help you discover the answers.

[jonesclifton]

For the basic accounting equation to stay in balance, each transaction recorded must
affect two or less accounts.
affect two or more accounts.
always affect exactly two accounts.
affect the same number of asset and liability accounts.

[pready]

Affect two or more accounts

[jonesclifton]

The basic form of a journal entry has the
Debit account entered first and indented.
Credit account entered first and indented.
Debit account entered first at the extreme left margin.
Credit account entered first at the extreme left margin.

[pready]

In Cash basis accounting you only include transactions that involve cash received and cash expended. So you will include all of your transactions with the exception of the first transaction. Now just simply add your cash receipts and subtract your cash expenditures to arrive at your answer.

[jonesclifton]

I thought it was this answer: (Affect two or more accounts)

Thank you

[pready]

Journal entrtries are always posted with Debits first, then Credits. Debits will be posted on the left with Credits indented or shifted to the right. For examples of what a journal entry looks like you can look in an accounting textbook.

[pready]

Here is a way to remember which accounts have a normal debit or credit balance:

D - normal Debit balance
E - Expenses
A - Assets
D - Dividends

C - normal Credit balance
U - Unearned Revenues
R - Revenues
L - Liabilities
S - Shareholders Equity (Owners Equity)

For accounts that have a normal debit balance a debit will increase the balance, while a credit will decrease the balance.

For accounts that have a normal credit balance a credit will increase the balance, while a debit will decrease the balance.

[jonesclifton]

This is what I believe to be the answer: Prepaid Insurance and Dividends
Because it follows the rules of debit and credit in relation to increases and decreases.

[jonesclifton]

This is what I believe to be the answer for Accounts payable balance $30,000 credit because you add 60,000 + 50,000 = 110,000 then you take 110,000 - 80,000 = $30,000.

[jonesclifton]

Basic form of a journal entry is (debit account entered first at the extreme left margin) or (debit account entered first and indented) my book would give me a vage answer and so I could not understand which answer to use.

[pready]

This is what I believe to be the answer for Accounts payable balance $30,000 credit because you add 60,000 + 50,000 = 110,000 then you take 110,000 - 80,000 = $30,000.

You are correct.

Beginning Balance + Purchases on accounts - Payments on account = Ending Balance

[pready]

Which of the following accounts is increased with a debit?
Dividends
Service Revenue
Interest payable
Common Stock

Dividends is increased with a debit

[pready]

Which of the following accounts follows the rules of debit and credit in relation to increases and decreases in the opposite manner?
Prepaid Insurance and Dividends
Dividends and Interest Revenue
Interest Payable and Common Stock
Advertising Expense and Land

Prepaid Insurance,Dividends, Advertising Expense, and Land have a normal debit balance and a debit will increase the balance, while a credit will decrease the balance.

Interest Revenue, Interest Payable, and Comman Stock have a normal credit so a credit will intrease the balance, while a debit will decrease the balance.

[pready]

The basic form of a journal entry has the
debit account entered first and indented.
credit account entered first and indented.
debit account entered first at the extreme left margin.
credit account entered first at the extreme left margin.

The correct answer is that a debit will be entered first at the extreme margin. The credit account will be listed after the debits and indented.

An example:
Cash------------------------10,000
------Capital, Pready-------------------10,000
------(To record owner investment into the business)


Note: Normally you will not see the ----------, but because of the formatting on this site I had to use something to get the indentation or tab to appear so I used ------ as a space filler.