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Chapter 2: Measurement Concepts: Recording Business Transactions




Question;125. For;each of the following economic events determine whether the event is a business;transaction on the date it occurs and whether it?s recognized in the accounts;on that date. Support your answer.;a. On July 15, the controller of Kona Corporation orders a custom display case;for the company?s store.;b. On July 31, a new administrative assistant is hired at a monthly salary of;$3,500.;c. On July 31, the controller of Kona Corporation receives a bill for;electricity for the month of July. The bill is due on August 18 and will;be paid on that date.;126. A;trial balance proves that the accounts are in balance. Does a balanced;trial balance also prove that all the transactions are correctly analyzed and;recorded? Why or why not?;127. If;a debit to Supplies were posted as a credit, and a credit of the same amount to;Cash were posted as a debit, what would be the effect, if any, on the two;accounts and on the trial balance column totals?;128. What;type of information does the general journal include for each;transaction?


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