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49.
The journal entry to record a particular business transaction includes a credit to a liability
account. This transaction is most likely also to include:
50.
The journal entry to record a particular business transaction includes a credit to the Cash
account. This transaction is most likely also to include:
51.
The collection of an account receivable is recorded by a debit to Cash and a credit to
Accounts Payable. If this error is not corrected:
52.
If a company purchases equipment for cash:
53.
Collection of an accounts receivable:
54.
Which of the following accounts normally does
not
have a debit balance?
3-24
55.
On June 18, Baltic Arena paid $6,600 to Marvin Maintenance, Inc. for cleaning the arena
following a monster truck show. Which of the following most likely occurred as a result of
this transaction?
The following transactions occurred during March, the first month of operations for Quality
Galleries, Inc.:
* Capital stock was issued in exchange for $360,000 cash.
* Purchased $180,000 of equipment by making a $60,000 cash down payment and signing
a note payable for the balance.
* Made a $35,000 cash payment on the note payable from the purchase of equipment.
* Sold a piece of equipment for cash of $18,000. The equipment was sold at cost, so there
is no gain or loss on the sale.
56.
Refer to the information above. What is the balance in the Cash account at the end of
March?
57.
Refer to the information above. What are total assets of Quality Galleries at the end of
March?
58.
Refer to the information above. What is the balance in the Note Payable account at the
end of March?
3-27
59.
Refer to the information above. What is the total owners' equity at the end of March?
The following transactions occurred during May, the first month of operations for Hunter
Products, Inc.:
* Issued 50,000 shares of capital stock to the owners of the corporation in exchange for
$600,000 cash.
* Purchased a piece of land for $400,000, making a $150,000 cash down payment and
signing a note payable for the balance.
* Made a $60,000 cash payment on the note payable from the purchase of land.
* Purchased equipment on credit from BBW, Inc. for $63,000.
60.
Refer to the information above. What is the balance in the Cash account at the end of
May?
61.
Refer to the information above. What are total assets of Hunter Products at the end of
May?
62.
Refer to the information above. What is the total of Hunter Products' liabilities at the end
of May?
63.
Refer to the information above. What is the total owners' equity at the end of May?
64.
Master Equipment has a $17,400 liability to Arrow Paint Co. When Master Equipment
makes a partial payment of $7,600 on this liability, which of following occurs?
65.
Eagle News has a $6,000 account receivable from one of its advertisers, Allwood Floors.
When Eagle receives $3,600 from Allwood as partial payment:
66.
Bruno's Pizza Restaurant makes full payment of $8,300 on an account payable to Stella's
Cheese Co. Stella's would record this transaction with a:
67.
The purchase of office equipment at a cost of $7,600 with an immediate payment of
$4,200 and agreement to pay the balance within 60 days is recorded by:
68.
Land is purchased by making a cash down payment of $40,000 and signing a note payable
for the balance of $130,000. The journal entry to record this transaction in the accounting
records of the purchaser includes:
69.
Montauk Oil Co. reports these account balances at December 31, 2014
On January 2, 2015, Montauk Oil collected $50,000 of its accounts receivable and paid
$20,000 of its accounts payable. On
January 3, 2015
, total liabilities are:
70.
Ceramic Products, Inc. reports these account balances at January 1, 2015 (shown in
alphabetical order):
On January 5, Ceramic Products collected $12,000 of its accounts receivable and paid
$11,000 on its note payable. On January 6, 2015, total liabilities are:
71.
Ben Dryden, president of Jet Glass, Inc, noticed a $8,000 debit to Accounts Payable in the
company's general ledger. This debit could correspond to:
72.
Indirect Oil Co. reports these account balances at December 31, 2014
On January 2, 2015, Indirect Oil collected $25,000 of its accounts receivable and paid
$20,000 of its accounts payable. On
January 3, 2015
, total liabilities are:
Wilson Trucking, Inc. reports these account balances at January 1, 2015 (shown in
alphabetical order):
On January 5, Wilson Trucking collected $175,000 of its accounts receivable, paid $150,000
on its accounts payable, and paid $11,000 on its note payable.
73.
Refer to the information above. On January 6, 2015, total liabilities are:
74.
Refer to the information above. On January 6, 2015, total assets are:
75.
Which of the following accounts normally has a debit balance?
76.
The rules of debit and credit may be summarized as follows:
77.
The essential point of a double-entry system of accounting is that every transaction:
78.
Double-entry accounting is characterized by which of the following?
79.
All of the following statements are true of double-entry accounting
except
:
