Solutions Manual for Century 21 Accounting:
General Journal, 11th Edition by Claudia Bienias
Gilbertson, Mark W. Lehman, Debra Harmon-
Gentene | ISBN 9781337623124
, TABLE OF CONTENTS
Part 1. Accounting for a Service Business Organized as a Proprietorship
Chapter 1. Starting a Proprietorship: Changes That Affect the Accounting Equation
Chapter 2. Analyzing Transactions into Debit and Credit Parts
Chapter 3. Journalizing Transactions
Chapter 4. Posting to a General Ledger
Chapter 5. Cash Control Systems
Chapter 6. Work Sheet and Adjusting Entries for a Service Business
Chapter 7. Financial Statements for a Proprietorship
Chapter 8. Recording Closing Entries and Preparing a Post-Closing Trial Balance for a
Service Business
Part 2. Accounting for a Merchandising Business Organized as a Corporation
Chapter 9. Accounting for Purchases and Cash Payments
Chapter 10. Accounting for Sales and Cash Receipts
Chapter 11. Accounting for Transactions Using a General Journal
Chapter 12. Preparing Payroll Records
Chapter 13. Accounting for Payroll and Payroll Taxes
Chapter 14. Accounting for Uncollectible Accounts Receivable
Chapter 15. Preparing Adjusting Entries and a Trial Balance
Chapter 16. Financial Statements and Closing Entries for a Corporation
Chapter 17. Financial Statement Analysis
Part 3. Accounting for a Merchandising Business Organized as a Corporation—
Adjustments and Valuation
Chapter 18. Acquiring Capital for Growth and Development
Chapter 19. Accounting for Plant Assets, Depreciation, and Intangible Assets
Chapter 20. Accounting for Inventory
Chapter 21. Accounting for Accruals, Deferrals, and Reversing Entries
Chapter 22. End-of-Fiscal-Period Work for a Corporation
Part 4. Additional Accounting Procedures
Chapter 23. Accounting for Partnerships
Chapter 24. Recording International and Internet Sales
, Study
Perfect Your
Name Score Score
Identifying Accounting Terms 27 Pts.
Guide Identifying Account Concepts and Practices
Analyzing How Transactions Change an Accounting Equation
18
10
Pts.
Pts.
1 Analyzing How Transactions Change Owner’s Equity in an Accounting Equation
Total
12
65
Pts.
Pts.
Part One—Identifying Accounting Terms
Directions: Select the one term in Column I that best fits each definition in
Column II. Print the letter identifying your choice in the Answers column.
Column I Column II Answers
A. account 1.
The process of planning, recording, analyzing, and 1. D
interpreting financial information. (p. 6)
B. account balance 2. A
planned process designed to compile financial data and 2. F
summarize the results in accounting records and reports.
(p. 6)
C. account title 3. Financial
reports that summarize the financial condition 3. P
and operations of a business. (p. 6)
D. accounting formal report that shows what an individual owns, what
4. A 4. S
an individual owes, and the difference between the two.
(p. 7)
E. accounting equation 5. Anything of value that is owned. (p. 7) 5. G
F. accounting system 6. An amount owed. (p. 7) 6. R
G. asset 7. The
difference between personal assets and personal 7. U
liabilities. (p. 7)
H. business ethics 8. The difference between assets and liabilities. (p. 7) 8. M
I. business plan principles of right and wrong that guide an individual
9. The 9. N
in making decisions. (p. 8)
J. capital account 10. The use of ethics in making business decisions. (p. 8) 10. H
K. creditor 11. A business that performs an activity for a fee. (p. 10) 11. Y
L. equities 12. A business owned by one person. (p. 10) 12. V
M. equity formal written document that describes the nature of a
13. A 13. I
business and how it will operate. (p. 10)
N. ethics 14. Generally
Accepted Accounting Principles. The standards 14. Q
and rules that accountants follow while recording and
reporting financial activities. (p. 11)
O. expense 15. Financial rights to the assets of a business. (p. 13) 15. L
P. financial statements 16. The
amount remaining after the value of all liabilities is 16. T
subtracted from the value of all assets. (p. 13)
Q. GAAP 17. The
equation showing the relationship among assets, 17. E
liabilities, and owner’s equity. (p. 13)
R. liability 18. Any
business activity that changes assets, liabilities, or 18. Z
owner’s equity. (p. 14)
S. net worth statement record that summarizes all the transactions pertaining
19. A 19. A
to a single item in the accounting equation. (p. 14)
T. owner’s equity 20. The name given to an account. (p. 14) 20. C
U. personal net worth 21. The
difference between the increases and decreases in an 21. B
account. (p. 14)
Chapter 1 Starting a Proprietorship: Changes That Affect the Accounting Equation • 1
, Column I Column II Answers
V. proprietorship 22. An account used to summarize the owner’s equity in a 22. J
business. (p. 14)
W. revenue 23. A person or business to whom a liability is owed. (p. 16) 23. K
X. sale on account 24. An
increase in equity resulting from the sale of goods or 24. W
services. (p. 18)
Y. service business 25. A
sale for which payment will be received at a later date. 25. X
(p. 18)
Z. transaction 26. The
cost of goods or services used to operate a business. 26. O
(p. 19)
AA. withdrawals 27. A
ssets taken from the business for the owner’s personal 27. AA
use (p. 20)
Part Two—Identifying Account Concepts and Practices
Directions: Place a T for True or an F for False in the Answers column to show whether
each of the following statements is true or false.
Answers
1. Accounting is the language of business. (p. 6) 1. T
2. A creditor would favor a positive net worth. (p. 7) 2. T
3. The principles of right and wrong that guide an individual in making personal decisions 3. F
is called business ethics. (p. 8)
4. Keeping
personal and business records separate is an application of the business entity 4. T
concept. (p. 11)
5. Generally Accepted Accounting Principles, GAAP, allows for flexibility in reporting. (p. 11) 5. F
6. Recording
business costs in terms of hours required to complete projects is an application 6. F
of the unit of measurement concept. (p. 11 )
7. Assets
such as cash and supplies have value because they can be used to acquire other 7. T
assets or be used to operate a business. (p. 13)
relationship among assets, liabilities, and owner’s equity can be written as an equation.
8. The 8. T
(p. 13)
9. The accounting equation does not have to be in balance to be correct. (p. 13) 9. F
10. When a company pays insurance premiums in advance to an insurer, it records the payment 10. F
as a liability because the insurer owes future coverage. (p. 15)
11. When items are bought and paid for later, this is referred to as buying on account. (p. 16) 11. T
12. When cash is paid on account, a liability is increased. (p. 16) 12. F
13. When cash is received from a sale, the total amount of both assets and owner’s equity is 13. T
increased. (p. 18)
14. The accounting concept Realization of Revenue is applied when revenue is recorded at the 14. T
time goods or services are sold. (p. 18)
15. When cash is paid for expenses, the business has more equity. (p. 19) 15. F
16. If
two amounts are recorded on the same side of the accounting equation, the equation will 16. F
no longer be in balance. (p. 20)
17. When a company receives cash from a customer for a prior sale, the transaction increases 17. F
the cash account balance and increases the accounts receivable balance. (p. 20)
18. A withdrawal decreases owner’s equity. (p. 20) 18. T
2 • Working PapersTE
General Journal, 11th Edition by Claudia Bienias
Gilbertson, Mark W. Lehman, Debra Harmon-
Gentene | ISBN 9781337623124
, TABLE OF CONTENTS
Part 1. Accounting for a Service Business Organized as a Proprietorship
Chapter 1. Starting a Proprietorship: Changes That Affect the Accounting Equation
Chapter 2. Analyzing Transactions into Debit and Credit Parts
Chapter 3. Journalizing Transactions
Chapter 4. Posting to a General Ledger
Chapter 5. Cash Control Systems
Chapter 6. Work Sheet and Adjusting Entries for a Service Business
Chapter 7. Financial Statements for a Proprietorship
Chapter 8. Recording Closing Entries and Preparing a Post-Closing Trial Balance for a
Service Business
Part 2. Accounting for a Merchandising Business Organized as a Corporation
Chapter 9. Accounting for Purchases and Cash Payments
Chapter 10. Accounting for Sales and Cash Receipts
Chapter 11. Accounting for Transactions Using a General Journal
Chapter 12. Preparing Payroll Records
Chapter 13. Accounting for Payroll and Payroll Taxes
Chapter 14. Accounting for Uncollectible Accounts Receivable
Chapter 15. Preparing Adjusting Entries and a Trial Balance
Chapter 16. Financial Statements and Closing Entries for a Corporation
Chapter 17. Financial Statement Analysis
Part 3. Accounting for a Merchandising Business Organized as a Corporation—
Adjustments and Valuation
Chapter 18. Acquiring Capital for Growth and Development
Chapter 19. Accounting for Plant Assets, Depreciation, and Intangible Assets
Chapter 20. Accounting for Inventory
Chapter 21. Accounting for Accruals, Deferrals, and Reversing Entries
Chapter 22. End-of-Fiscal-Period Work for a Corporation
Part 4. Additional Accounting Procedures
Chapter 23. Accounting for Partnerships
Chapter 24. Recording International and Internet Sales
, Study
Perfect Your
Name Score Score
Identifying Accounting Terms 27 Pts.
Guide Identifying Account Concepts and Practices
Analyzing How Transactions Change an Accounting Equation
18
10
Pts.
Pts.
1 Analyzing How Transactions Change Owner’s Equity in an Accounting Equation
Total
12
65
Pts.
Pts.
Part One—Identifying Accounting Terms
Directions: Select the one term in Column I that best fits each definition in
Column II. Print the letter identifying your choice in the Answers column.
Column I Column II Answers
A. account 1.
The process of planning, recording, analyzing, and 1. D
interpreting financial information. (p. 6)
B. account balance 2. A
planned process designed to compile financial data and 2. F
summarize the results in accounting records and reports.
(p. 6)
C. account title 3. Financial
reports that summarize the financial condition 3. P
and operations of a business. (p. 6)
D. accounting formal report that shows what an individual owns, what
4. A 4. S
an individual owes, and the difference between the two.
(p. 7)
E. accounting equation 5. Anything of value that is owned. (p. 7) 5. G
F. accounting system 6. An amount owed. (p. 7) 6. R
G. asset 7. The
difference between personal assets and personal 7. U
liabilities. (p. 7)
H. business ethics 8. The difference between assets and liabilities. (p. 7) 8. M
I. business plan principles of right and wrong that guide an individual
9. The 9. N
in making decisions. (p. 8)
J. capital account 10. The use of ethics in making business decisions. (p. 8) 10. H
K. creditor 11. A business that performs an activity for a fee. (p. 10) 11. Y
L. equities 12. A business owned by one person. (p. 10) 12. V
M. equity formal written document that describes the nature of a
13. A 13. I
business and how it will operate. (p. 10)
N. ethics 14. Generally
Accepted Accounting Principles. The standards 14. Q
and rules that accountants follow while recording and
reporting financial activities. (p. 11)
O. expense 15. Financial rights to the assets of a business. (p. 13) 15. L
P. financial statements 16. The
amount remaining after the value of all liabilities is 16. T
subtracted from the value of all assets. (p. 13)
Q. GAAP 17. The
equation showing the relationship among assets, 17. E
liabilities, and owner’s equity. (p. 13)
R. liability 18. Any
business activity that changes assets, liabilities, or 18. Z
owner’s equity. (p. 14)
S. net worth statement record that summarizes all the transactions pertaining
19. A 19. A
to a single item in the accounting equation. (p. 14)
T. owner’s equity 20. The name given to an account. (p. 14) 20. C
U. personal net worth 21. The
difference between the increases and decreases in an 21. B
account. (p. 14)
Chapter 1 Starting a Proprietorship: Changes That Affect the Accounting Equation • 1
, Column I Column II Answers
V. proprietorship 22. An account used to summarize the owner’s equity in a 22. J
business. (p. 14)
W. revenue 23. A person or business to whom a liability is owed. (p. 16) 23. K
X. sale on account 24. An
increase in equity resulting from the sale of goods or 24. W
services. (p. 18)
Y. service business 25. A
sale for which payment will be received at a later date. 25. X
(p. 18)
Z. transaction 26. The
cost of goods or services used to operate a business. 26. O
(p. 19)
AA. withdrawals 27. A
ssets taken from the business for the owner’s personal 27. AA
use (p. 20)
Part Two—Identifying Account Concepts and Practices
Directions: Place a T for True or an F for False in the Answers column to show whether
each of the following statements is true or false.
Answers
1. Accounting is the language of business. (p. 6) 1. T
2. A creditor would favor a positive net worth. (p. 7) 2. T
3. The principles of right and wrong that guide an individual in making personal decisions 3. F
is called business ethics. (p. 8)
4. Keeping
personal and business records separate is an application of the business entity 4. T
concept. (p. 11)
5. Generally Accepted Accounting Principles, GAAP, allows for flexibility in reporting. (p. 11) 5. F
6. Recording
business costs in terms of hours required to complete projects is an application 6. F
of the unit of measurement concept. (p. 11 )
7. Assets
such as cash and supplies have value because they can be used to acquire other 7. T
assets or be used to operate a business. (p. 13)
relationship among assets, liabilities, and owner’s equity can be written as an equation.
8. The 8. T
(p. 13)
9. The accounting equation does not have to be in balance to be correct. (p. 13) 9. F
10. When a company pays insurance premiums in advance to an insurer, it records the payment 10. F
as a liability because the insurer owes future coverage. (p. 15)
11. When items are bought and paid for later, this is referred to as buying on account. (p. 16) 11. T
12. When cash is paid on account, a liability is increased. (p. 16) 12. F
13. When cash is received from a sale, the total amount of both assets and owner’s equity is 13. T
increased. (p. 18)
14. The accounting concept Realization of Revenue is applied when revenue is recorded at the 14. T
time goods or services are sold. (p. 18)
15. When cash is paid for expenses, the business has more equity. (p. 19) 15. F
16. If
two amounts are recorded on the same side of the accounting equation, the equation will 16. F
no longer be in balance. (p. 20)
17. When a company receives cash from a customer for a prior sale, the transaction increases 17. F
the cash account balance and increases the accounts receivable balance. (p. 20)
18. A withdrawal decreases owner’s equity. (p. 20) 18. T
2 • Working PapersTE
