Accounting Chapter 2 Grills Catering Provided 1000 Catering Services

100.

Grills R Us Catering provided $1,000 of catering services and billed its client for the amount

owed. Given the choices below, determine the general journal entry that Grills R Us Catering

will make to record this transaction.

101.

Trimble Graphic Design receives $1,500 from a client billed in a previous month for services

provided. Which of the following general journal entries will Trimble Graphic Design make to

record this transaction?

102.

The company paid $100 cash in dividends to J. Smith, the owner. Which of the following

general journal entries will Jay’s Limo Services, Inc. make to record this transaction?

103.

Jay’s Limo Services, Inc. paid $300 cash to employees for work performed in the current

period. Which of the following general journal entries will Jay’s Limo Services, Inc. make to

record this transaction?

104.

Able Graphics 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 Able Graphics make to record this transaction?

105.

HH Consulting & Design 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 will HH Consulting &

Design make to record this transaction?

106.

Gi Gi’s Dance Studio provided $150 of dance instruction and rented out its dance studio to the

same client for another $100. The client paid immediately. Identify the general journal entry

below that Gi Gi’s will make to record the transaction.

107.

Geraldine Parker, the owner of Gi Gi’s Dance Studio, Inc., started the business by investing

$10,000 cash and donating a building worth $20,000. Identify the general journal entry below

that Gi Gi’s will make to record the transaction.

108.

Mary Martin, the owner of Martin Consulting, Inc., started the business by investing $40,000

cash. Identify the general journal entry below that Martin Consulting, Inc. will make to record

the transaction.

109.

If cash is received from customers in payment for products or services that have not yet been

delivered to the customers, the business would record the cash receipt as:

110.

On May 31, the Cash account of Bottle’s R US 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?

111.

On April 30, Victor 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?

112.

During the month of February, Victor 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?

113.

The following transactions occurred during July:

1. Received $900 cash for services provided to a customer during July.

2. Received $2,200 cash investment from Bob Johnson, the stockholder of the business.

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 provided next year.

What was the amount of revenue for July?

114.

If Taylor Willow, the owner of Willow Hardware Inc., uses cash of the business to purchase a

family automobile, the business should record this use of cash with an entry to:

115.

Larry Bar opened a frame shop and completed these transactions:

1. Larry started the shop by investing $40,000 cash and equipment valued at $18,000.

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?

116.

At the beginning of January of the current year, Little Mikey’s Catering 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:

117.

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?

118.

On January 1 of the current year, Jimmy’s Sandwich Company, Inc. reported stockholders’

equity totaling $122,500. During the current year, total revenues were $96,000 while total

expenses were $85,500. Also, during the current year the business paid $20,000 to the

stockholders. No other changes in equity occurred during the year. If, on December 31 of the

current year, total assets are $196,000, the

change

in stockholders’ equity during the year

was:

119.

Andrea Apple opened Apple Photography, Inc. on January 1 of the current year. During

January, the following transactions occurred and were recorded in the company’s books:

1. Andrea, the stockholder, invested $13,500 cash in the business.

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:

120.