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12. What Should Be Journaled

in Chapter 2 (Problem 12 of 13)

A company experienced the following financial events on Sept. 29, Year 1. How many of these economic events would require a journal entry on that day?

  1. The company signed a new contract with an employees’ union that requires a $2.00 per hour increase in wages and a longer lunch break, effective 10/1/Y1.
  2. The company president is retiring and will be replaced by the vice president of finance who will be paid $50,000 more per year.
  3. The company purchased a fire insurance policy for $5,000 that will pay $1,000,000 if the facility is destroyed. The policy insures the company from 11/1/Y1 - 10/31/Y2
  1. One
  2. Two
  3. Three
  4. None
Watch Solution (2:24) Hide Solution Reveal Solution

The Rest Of The Practice Problems

Click Here to View All Chapter 2 Problems at Once View
1 Account Classification Easy
2 Current Assets Easy
3 Journal Entry - Inventory Easy
4 Journal Entry - Sales Easy
5 Land Purchased With Cash Easy
6 Retained Earnings Easy
7 T/F: Liabilities and Equity Easy
8 T/F: T-Account Logic Easy
9 Normal Balances Moderate
10 Solving for Missing Amounts Moderate
11 The Effect of Journal Entries Moderate
12 What Should Be Journaled
You are here. 		Moderate
13 Account Classifications Hard
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Chapter 2 Videos

1 Current Assets 9:57
2 Non-Current Assets 10:25
3 Current Liabilities 6:24
4 Non-Current Liabilites 2:00
5 Contributed Capital 5:10
6 The Classified Balance Sheet 4:48
7 Retained Earnings vs Shareholder's Equity 6:41
8 T-Accounts 3:15
9 Debits and Credits 6:49
10 Determining Normal Balances For Assets & Liabilities 10:04
11 Determining Normal Balance for Shareholder's Equity 11:53
12 Normal Balance Shortcut: Double Entry 11:51
13 Normal Balance Shortcut: DEAD Mnemonic 2:36
14 The Journal, Ledger, Trial Balance 14:00
Chapter 3 →