151. Suppose a company has the following balance sheet accounts:
Calculate the missing amounts assuming the company has total assets of $40,000.
152. Explain what it means that external transactions have a dual effect.
Listed below are ten terms followed by a list of phrases that describe or characterize five of
the terms. Match each phrase with the best term by placing the letter designating the term in
the space provided.
a. Assets
b. Debit
c. Journal entry
d. Liabilities
e. Revenues
f. Expenses
g. Credit
h. General ledger
i. Trial balance
j. Dividends
153. ____ Refers to the right side of an account.
154. ____ Convention used to record transactions of a company.
155. ____ Resources earned by providing goods and services to customers.
156. ____ Resources owned by a company.
157. ____ List of all accounts and their balances after external transactions are recorded.
Listed below are ten terms followed by a list of phrases that describe or characterize five of
the terms. Match each phrase with the best term by placing the letter designating the term in
the space.
a. Assets
b. Debit
c. Journal entry
d. Liabilities
e. Revenues
f. Expenses
g. Credit
h. General ledger
i. Trial balance
j. Dividends
158. ____ Asset and expense accounts normally have this type of balance.
159. ____ Contains all the accounts of a company.
160. ____ Costs to generate revenues.
161. ____ Resources owed by a company.
162. ____ Payments to stockholders.
163. For each of the following accounts, indicate whether a debit or credit is used to increase
(+) or decrease (-) the balance of the account.
164. For each of the following accounts, indicate whether we use a debit or a credit to
increase the balance of the account.
(a) Accounts Receivable
(b) Accounts Payable
(c) Salaries Expense
(d) Service Revenue
(e) Supplies
(f) Common Stock
(g) Advertising Expense
(h) Dividends
165. For each of the following accounts, indicate whether we use a debit or a credit to
decrease the balance of the account.
(a) Accounts Receivable
(b) Accounts Payable
(c) Salaries Expense
(d) Service Revenue
(e) Supplies
(f) Common Stock
(g) Advertising Expense
(h) Dividends
166. A company sells common stock for $20,000 cash. Record the transaction.
167. A company purchases a building for $100,000, paying $20,000 cash and signing a note
payable for the remainder. Record the transaction.
168. A company purchases machinery for $15,000 cash. Record the transaction.
169. A company purchases office supplies on account for $7,500. Record the transaction.
170. A company provides services to customers on account, $3,500. Record the transaction.
171. A company provides services to customers for $2,400 cash. Record the transaction.
172. A company incurs employee salaries of $4,200 but does not pay them. Record the
transaction.
173. A company pays $2,000 dividends to its stockholders. Record the transaction.
174. A company collects $4,000 cash from customers for services previously provided on
account. Record the transaction.
175. A company receives $6,500 cash in advance from customers for services to be provided
next year. Record the transaction.
176. A company pays $5,400 for maintenance in the current period. Record the transaction.
177. A company pays $12,000 to purchase a one-year insurance policy. Record the
transaction.
178. Record the following transactions for Acme Builders:
(a) Purchase office supplies on account, $1,200.
(b) Provide services to customers for cash, $2,500.
(c) Pay $1,100 in salaries for the current month.
179. Record the following transactions for the Stroud Music Store:
(a) Provide music lessons to students for $12,000 on account.
(b) Purchase music supplies on account, $1,500.
(c) Pay rent for the current month, $2,000.
(d) Receive $10,000 cash from students in (a) above.
180. Rite Shoes was involved in the transactions described below. Record each transaction. If
an entry is not required, state “No Entry.”
(a) Purchased $8,200 of supplies on account.
(b) Paid weekly salaries, $920.
(c) Provide services to customers: Cash: $7,100; On account: $5,300.
(d) Paid for supplies purchased in (a) above.
(e) Placed an order for $6,200 of supplies.
181. Record the following transactions. If an entry is not required, state “No Entry.”
(a) Started business by issuing 10,000 shares of common stock for $20,000.
(b) Hired Rebecca as an administrative assistant, promising to pay her $2,000 every two
week.
(c) Rented a building for three years at $500 per month and paid six months’ rent in advance.
(d) Purchased equipment for $5,400 cash.
(e) Purchased $1,800 of supplies on account.
(f) Provided services to customers for $7,800 cash.
(g) Paid employee salaries, $5,200.
(h) Paid for supplies purchased in item (e).
(i) Paid $800 for current advertising in a local newspaper.
(j) Paid utility bill of $1,300 for the current month.
182. Consider the following T-account for Accounts Payable.
1. Compute the balance of the Accounts Payable account.
2. Give an example of a transaction that would have resulted in the $8,800 posting to the
account.
3. Give an example of a transaction that would have resulted in the $4,500 posting to the
account.
183. Consider the following transactions for Mittel Corporation:
a. Sell common stock for $10,000.
b. Purchase equipment for $11,500 cash.
c. Pay employee salaries of $3,700.
d. Provides services to customers for $6,200 cash.
1. Post these transactions to the Cash T-account. Assume the balance of Cash before these
transactions is $4,200.
2. Calculate the ending balance of the Cash account.
184. Use the following information to prepare a trial balance.
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