116) Adriana Graphic Design receives $1,500 from a client billed in a previous month for
services provided. Which of the following general journal entries will Adriana Graphic Design
make to record this transaction?
A)
Cash
1,500
Accounts Receivable
1,500
B)
Cash
1,500
Unearned Design Revenue
1,500
C)
Accounts Receivable
1,500
Unearned Design Revenue
1,500
D)
Accounts Payable
1,500
Design Revenue
1,500
E)
Accounts Receivable
1,500
Cash
1,500
117) Jay’s Limo Services paid cash dividends of $100. Which of the following general journal
entries will Jay’s Limo Services make to record this transaction?
A)
Dividends
100
Cash
100
B)
Cash
100
Common Stock
100
C)
Common Stock
100
Dividends
100
D)
Dividends
100
Retained Earnings
100
E)
Cash
100
Dividends
100
118) Jay’s Limo Services paid $300 cash to employees for work performed in the current period.
Which of the following general journal entries will Jay’s Limo Services make to record this
transaction?
A)
Salaries Expense
300
Accounts Payable
300
B)
Cash
300
Salaries Expense
300
C)
Salaries Expense
300
Dividends
300
D)
Salaries Payable
300
Salaries Expense
300
E)
Salaries Expense
300
Cash
300
119) Russell Co. received a $400 utility bill for the current month’s electricity. It is not due until
the end of the next month which is when they intend to pay it. Which of the following general
journal entries will Russell Co. make to record the receipt of the bill?
A)
Utilities Expense
400
Accounts Receivable
400
B)
Cash
400
Utilities Expense
400
C)
Utilities Expense
400
Accounts Payable
400
D)
Accounts Payable
400
Utilities Expense
400
E) No journal entry is required.
120) Sharp Services provided $800 of consulting work and $100 of design work to the same
client. It billed the client for the total amount and is expecting to collect from the customer next
month. Which of the following general journal entries did Sharp Services make to record the
billing of the customer?
A)
Design Revenue
100
Consulting Revenue
800
Accounts Receivable
900
B)
Accounts Payable
800
Design Revenue
100
Consulting Revenue
800
C)
Design Revenue
100
Consulting Revenue
800
Accounts Payable
900
D)
Unearned Revenue
900
Consulting Revenue
800
Design Revenue
100
E)
Accounts Receivable
900
Consulting Revenue
800
Design Revenue
100
121) Silvia’s Studio provided $150 of dance instruction and rented out its dance studio to the
same client for another $100. The client paid cash immediately. Identify the general journal entry
below that Silvia’s Studio will make to record the transaction.
A)
Rental Revenue
100
Instruction Revenue
150
Cash
250
B)
Accounts Payable
250
Rental Revenue
100
Instruction Revenue
150
C)
Cash
250
Rental Revenue
100
Instruction Revenue
150
D)
Rental Revenue
100
Instruction Revenue
150
Accounts Receivable
250
E)
Unearned Revenue
250
Rental Revenue
100
Instruction Revenue
150
122) Geoff Parker, the sole stockholder of Parker Tax Services, started the business by investing
$10,000 cash and a building worth $20,000. Identify the general journal entry below that Parker
Tax Services will make to record the transaction.
A)
Cash
10,000
Common Stock
30,000
B)
Common Stock
30,000
Cash
10,000
Building
20,000
C)
Cash
10,000
Building
20,000
Common Stock
30,000
D)
Notes Payable
30,000
Common Stock
30,000
E)
Dividends
30,000
Common Stock
30,000
123) A company provided $12,000 of consulting services on account. The customer promises
payment in 30 days. Identify the journal entry below that properly records this transaction.
A)
Accounts Payable
Cash
12,000
B)
Cash
Consulting Services Revenue
12,000
C)
Consulting Services Revenue
Cash
12,000
D)
Accounts Payable
Consulting Services Revenue
12,000
E)
Accounts Receivable
Consulting Services Revenue
12,000
124) A company provided $12,000 of consulting services and was immediately paid in cash by
the customer. Identify the journal entry below that properly records this transaction.
A)
Accounts Receivable
Cash
12,000
B)
Cash
Consulting Services Revenue
12,000
C)
Consulting Services Revenue
Cash
12,000
D)
Accounts Payable
Consulting Services Revenue
12,000
E)
Accounts Receivable
Consulting Services Revenue
12,000
125) Smart Consulting, paid cash dividends of $2,000 to its common stockholders. Identify the
general journal entry below that Smart Consulting will make to record the transaction.
A)
Dividends
Cash
2,000
B)
Common Stock
Cash
2,000
C)
Dividends
Common Stock
2,000
D)
Cash
Common Stock
2,000
E)
Cash
Dividends
2,000
126) Matthew Martin, the sole stockholder of Innovation Consulting, started the business by
investing $40,000 cash in exchange for common stock. Identify the general journal entry below
that Innovation Consulting will make to record the transaction.
A)
Cash
40,000
Common Stock
40,000
B)
Common Stock
40,000
Cash
40,000
C)
Accounts Receivable
40,000
Cash
40,000
D)
Investments
40,000
Common Stock
40,000
E)
Cash
40,000
Note Payable
40,000
127) If cash is received from customers in payment for services that have not yet been
performed, the business would record the cash receipt as:
A) A debit to an unearned revenue account.
B) A debit to a prepaid expense account.
C) A credit to an unearned revenue account.
D) A credit to a prepaid expense account.
E) A credit to accounts payable.
128) On May 31, the Cash account of Tesla had a normal balance of $5,000. During May, the
account was debited for a total of $12,200 and credited for a total of $11,500. What was the
balance in the Cash account at the beginning of May?
A) A $0 balance.
B) A $4,300 debit balance.
C) A $4,300 credit balance.
D) A $5,700 debit balance.
E) A $5,700 credit balance.
129) On April 30, Gomez Services had an Accounts Receivable balance of $18,000. During the
month of May, total credits to Accounts Receivable were $52,000 from customer payments. The
May 31 Accounts Receivable balance was $13,000. What was the amount of credit sales during
May?
A) $5,000.
B) $47,000.
C) $52,000.
D) $57,000.
E) $32,000.
130) During the month of February, Rubio Services had cash receipts of $7,500 and cash
disbursements of $8,600. The February 28 cash balance was $1,800. What was the February 1
beginning cash balance?
A) $700.
B) $1,100.
C) $2,900.
D) $0.
E) $4,300.
131) The following transactions occurred during July:
1. Received $900 cash for services provided to a customer during July.
2. Issued common stock for $2,200 cash.
3. Received $750 from a customer in partial payment of his account receivable which arose from
sales in June.
4. Provided services to a customer on credit, $375.
5. Borrowed $6,000 from the bank by signing a promissory note.
6. Received $1,250 cash from a customer for services to be performed next year.
What was the amount of revenue for July?
A) $900.
B) $1,275.
C) $2,525.
D) $3,275.
E) $11,100.
132) If Tyrol Willow, the sole stockholder of Willow Hardware, withdraws cash of the business
to purchase a family car, the business should record this use of cash with an entry to:
A) Debit Accounts Payable and credit Cash.
B) Debit Cash and credit Salary Expense.
C) Debit Cash and credit Dividends.
D) Debit Dividends and credit Cash.
E) Debit Cash and credit Cash.
133) Marco Nelson opened a frame shop and completed these transactions:
1. Marco started the shop by investing $40,000 cash and equipment valued at $18,000 in
exchange for common stock.
2. Purchased $70 of office supplies on credit.
3. Paid $1,200 cash for the receptionist’s salary.
4. Sold a custom frame service and collected $1,500 cash on the sale.
5. Completed framing services and billed the client $200.
What was the balance of the cash account after these transactions were posted?
A) $300.
B) $41,500.
C) $40,300.
D) $38,500.
E) $38,700.
134) At the beginning of January of the current year, Sorrel Co.’s ledger reflected a normal
balance of $52,000 for accounts receivable. During January, the company collected $14,800
from customers on account and provided additional services to customers on account totaling
$12,500. Additionally, during January one customer paid Mikey $5,000 for services to be
provided in the future. At the end of January, the balance in the accounts receivable account
should be:
A) $54,700.
B) $49,700.
C) $2,300.
D) $54,300.
E) $49,300.
135) During the month of March, Harley’s Computer Services made purchases on account
totaling $43,500. Also during the month of March, Harley was paid $8,000 by a customer for
services to be provided in the future and paid $36,900 of cash on its accounts payable balance. If
the balance in the accounts payable account at the beginning of March was $77,300, what is the
balance in accounts payable at the end of March?
A) $83,900.
B) $91,900.
C) $6,600.
D) $75,900.
E) $4,900.
136) On January 1 of the current year, Jimmy’s Sandwich Company reported total stockholders’
equity of $122,500. During the current year, total revenues were $96,000 while total expenses
were $85,500. Also, during the current year the company paid $20,000 in dividends. No other
changes in equity occurred during the year. The change in total equity during the year was:
A) A decrease of $9,500.
B) An increase of $9,500.
C) An increase of $30,500.
D) A decrease of $30,500.
E) An increase of $73,500.
137) Andrea Apple opened Apple Photography on January 1 of the current year. During January,
the following transactions occurred and were recorded in the company’s books:
1. Andrea invested $13,500 cash in the business in exchange for common stock.
2. Andrea contributed $20,000 of photography equipment to the business.
3. The company paid $2,100 cash for an insurance policy covering the next 24 months.
4. The company received $5,700 cash for services provided during January.
5. The company purchased $6,200 of office equipment on credit.
6. The company provided $2,750 of services to customers on account.
7. The company paid cash of $1,500 for monthly rent.
8. The company paid $3,100 on the office equipment purchased in transaction #5 above.
9. Paid $275 cash for January utilities.
Based on this information, the balance in the cash account at the end of January would be:
A) $41,450.
B) $12,225.
C) $18,700.
D) $15,250.
E) $13,500.