Ch2. Video 8 - JE and T-Account:Trial Balance Example Part 1

This video tutorial covers Chapter 2's example, focusing on journal entries and T tables. It begins with setting up T tables for various accounts, followed by detailed explanations of multiple transactions, including issuing common stock, recording consultation revenue, employee payments, prepaid rent, accounts receivable collections, unearned revenue, supplies purchase, miscellaneous expenses, land purchase, accounts payable payments, and dividends. The video concludes with a discussion on contract signing, emphasizing when journal entries are not applicable.

What is the initial cash balance of Bravo Company at the start of the year?

• $10,000

• $20,000

• $30,000

• $40,000

Which side of the T table does the beginning balance of common stock go on?

• Debit side

• Credit side

• Neither side

• Both sides

When Bravo Company issues common stock for cash, what happens to the cash account?

• It is debited

• It is credited

• It remains unchanged

• It is closed

If a client is invoiced but hasn't paid yet, which account is affected?

• Accounts Payable

• Cash

• Accounts Receivable

• Unearned Revenue

What type of account is affected when Bravo Company pays its employees?

• Liability

• Expense

• Equity

• Asset

How is prepaid rent recorded in the T table?

• As a credit

• As a debit

• As a liability

• As an expense

What happens to the cash account when Bravo Company collects cash from customers?

• It is transferred

• It is debited

• It is credited

• It is closed

When Bravo Company purchases supplies with cash, what happens to the cash account?

• It is increased

• It is debited

• It remains unchanged

• It is credited

What principle requires Bravo Company to record land at its purchase cost?

• Revenue Recognition Principle

• Cost Principle

• Matching Principle

• Full Disclosure Principle

Why is there no journal entry for a contract signed for future services?

• Because it is not yet earned

• Because cash is not involved

• Because it is a liability

• Because it is a handshake agreement