126. Which of the following accounts is increased by a credit entry?
127. All of the following accounts have normal debit balances except
128. All of the following accounts have normal credit balances except
129. Which pair of accounts has the same set of rules for debit and credit entries?
130. Which pair of accounts has the same set of procedures for debit and credit entries?
131. Happy Heights Country Club
Selected accounts at July 31 are provided below:
CASH
UNEARNE
D TUITION
REVENUE
7/1 bal.
12,000
|
|
7/3
1,000
7/3
1,000
|
|
7/5
3,600
|
|
7/7
1,800
|
|
ACCOUNTS
RECEIVABLE
MEMBERS
HIP
REVENUE
7/2
3,600
|
7/7
1,800
|
7/2
3,600
|
|
7/5
3,600
|
|
Refer to Happy Heights Country Club. On which date did the country club sell a club membership on account?
132. Happy Heights Country Club
Selected accounts at July 31 are provided below:
CASH
UNEARNE
D TUITION
REVENUE
7/1 bal.
12,000
|
|
7/3
1,000
7/3
1,000
|
|
7/5
3,600
|
|
7/7
1,800
|
|
ACCOUNTS
RECEIVABLE
MEMBERS
HIP
REVENUE
7/2
3,600
|
7/7
1,800
|
7/2
3,600
|
|
7/5
3,600
|
|
Refer to Happy Heights Country Club. On which date did the country club sell a club membership for cash?
133. Happy Heights Country Club
Selected accounts at July 31 are provided below:
CASH
UNEARNE
D TUITION
REVENUE
7/1 bal.
12,000
|
|
7/3
1,000
7/3
1,000
|
|
7/5
3,600
|
|
7/7
1,800
|
|
ACCOUNTS
RECEIVABLE
MEMBERS
HIP
REVENUE
7/2
3,600
|
7/7
1,800
|
7/2
3,600
|
|
7/5
3,600
|
|
Refer to Happy Heights Country Club. On which date did the country club collect golf lessons revenue in advance?
134. Happy Heights Country Club
Selected accounts at July 31 are provided below:
CASH
UNEARNE
D TUITION
REVENUE
7/1 bal.
12,000
|
|
7/3
1,000
7/3
1,000
|
|
7/5
3,600
|
|
7/7
1,800
|
|
ACCOUNTS
RECEIVABLE
MEMBERS
HIP
REVENUE
7/2
3,600
|
7/7
1,800
|
7/2
3,600
|
|
7/5
3,600
|
|
Refer to Happy Heights Country Club. Which of the following describes the transactions which occurred on July 7th?
135. Happy Heights Country Club
Selected accounts at July 31 are provided below:
CASH
UNEARNE
D TUITION
REVENUE
7/1 bal.
12,000
|
|
7/3
1,000
7/3
1,000
|
|
7/5
3,600
|
|
7/7
1,800
|
|
ACCOUNTS
RECEIVABLE
MEMBERS
HIP
REVENUE
7/2
3,600
|
7/7
1,800
|
7/2
3,600
|
|
7/5
3,600
|
|
Refer to Happy Heights Country Club. Assuming that there are no other transactions, how much was owed to the country club by its members at the
end of the month?
136. HVAC Service
The following transactions occurred during November:
Nov. 1
Sent bills to clients for services provided in August in the amount of $12,000.
Nov. 9
Purchased office equipment of $4,000 and office supplies of $150 from Office Depot receiving an invoice for $4,150.
None of the office supplies were used during November.
Nov. 15
Paid for the office furniture and supplies purchased from Office Depot.
Nov. 23
Received a $350 bill from WKRP Radio for advertising. The bill will be paid next month.
Nov. 30
Paid salaries of $2,500 to employees.
Refer to HVAC Service. The journal entry to record the bills sent to clients will include a debit of $12,000 to
137. HVAC Service
The following transactions occurred during November:
Nov. 1
Sent bills to clients for services provided in August in the amount of $12,000.
Nov. 9
Purchased office equipment of $4,000 and office supplies of $150 from Office Depot receiving an invoice for $4,150.
None of the office supplies were used during November.
Nov. 15
Paid for the office furniture and supplies purchased from Office Depot.
Nov. 23
Received a $350 bill from WKRP Radio for advertising. The bill will be paid next month.
Nov. 30
Paid salaries of $2,500 to employees.
Refer to HVAC Service. The journal entry to record the purchase of office equipment and supplies will include a credit to
138. HVAC Service
The following transactions occurred during November:
Nov. 1
Sent bills to clients for services provided in August in the amount of $12,000.
Nov. 9
Purchased office equipment of $4,000 and office supplies of $150 from Office Depot receiving an invoice for $4,150.
None of the office supplies were used during November.
Nov. 15
Paid for the office furniture and supplies purchased from Office Depot.
Nov. 23
Received a $350 bill from WKRP Radio for advertising. The bill will be paid next month.
Nov. 30
Paid salaries of $2,500 to employees.
Refer to HVAC Service. The journal entry to record payment for the office equipment and supplies will include a debit to
139. HVAC Service
The following transactions occurred during November:
Nov. 1
Sent bills to clients for services provided in August in the amount of $12,000.
Nov. 9
Purchased office equipment of $4,000 and office supplies of $150 from Office Depot receiving an invoice for $4,150.
None of the office supplies were used during November.
Nov. 15
Paid for the office furniture and supplies purchased from Office Depot.
Nov. 23
Received a $350 bill from WKRP Radio for advertising. The bill will be paid next month.
Nov. 30
Paid salaries of $2,500 to employees.
Refer to HVAC Service. The journal entry to record the bill received from WKRP Radio will include a debit to
140. HVAC Service
The following transactions occurred during November:
Nov. 1
Sent bills to clients for services provided in August in the amount of $12,000.
Nov. 9
Purchased office equipment of $4,000 and office supplies of $150 from Office Depot receiving an invoice for $4,150.
None of the office supplies were used during November.
Nov. 15
Paid for the office furniture and supplies purchased from Office Depot.
Nov. 23
Received a $350 bill from WKRP Radio for advertising. The bill will be paid next month.
Nov. 30
Paid salaries of $2,500 to employees.
Refer to HVAC Service. The journal entry to record payment of the salaries will include a credit to
141. HVAC Service
The following transactions occurred during November:
Nov. 1
Sent bills to clients for services provided in August in the amount of $12,000.
Nov. 9
Purchased office equipment of $4,000 and office supplies of $150 from Office Depot receiving an invoice for $4,150.
None of the office supplies were used during November.
Nov. 15
Paid for the office furniture and supplies purchased from Office Depot.
Nov. 23
Received a $350 bill from WKRP Radio for advertising. The bill will be paid next month.
Nov. 30
Paid salaries of $2,500 to employees.
Refer to HVAC Service. Based on these transactions, what is the total amount of expense that should be reported on the company’s income
statement for the month?
142. Hesson Properties, Inc.
The following transactions occurred during June:
June 1
Purchased two new maintenance carts on account at $750 each. Payment is due in 30 days
June 8
Accepted $500 of advance payments from customers for services to be provided next month
June 15
Received the utility bill for $300. Payment is due in 30 days
June 20
Billed customers $1,500 services provided. Payment is due in 30 days.
June 30
Received $500 from customers who were billed earlier
Refer to Hesson Properties. What journal entry is required to record the purchase of the carts?
143. Hesson Properties, Inc.
The following transactions occurred during June:
June 1
Purchased two new maintenance carts on account at $750 each. Payment is due in 30 days
June 8
Accepted $500 of advance payments from customers for services to be provided next month
June 15
Received the utility bill for $300. Payment is due in 30 days
June 20
Billed customers $1,500 services provided. Payment is due in 30 days.
June 30
Received $500 from customers who were billed earlier
Refer to Hesson Properties. What journal entry is required to record the cash collected in advance?
144. Hesson Properties, Inc.
The following transactions occurred during June:
June 1
Purchased two new maintenance carts on account at $750 each. Payment is due in 30 days
June 8
Accepted $500 of advance payments from customers for services to be provided next month
June 15
Received the utility bill for $300. Payment is due in 30 days
June 20
Billed customers $1,500 services provided. Payment is due in 30 days.
June 30
Received $500 from customers who were billed earlier
Refer to Hesson Properties. What journal entry is required to record the utility bill?
145. Hesson Properties, Inc.
The following transactions occurred during June:
June 1
Purchased two new maintenance carts on account at $750 each. Payment is due in 30 days
June 8
Accepted $500 of advance payments from customers for services to be provided next month
June 15
Received the utility bill for $300. Payment is due in 30 days
June 20
Billed customers $1,500 services provided. Payment is due in 30 days.
June 30
Received $500 from customers who were billed earlier
Refer to Hesson Properties. What journal entry is required to record the services provided to customers?
146. Hesson Properties, Inc.
The following transactions occurred during June:
June 1
Purchased two new maintenance carts on account at $750 each. Payment is due in 30 days
June 8
Accepted $500 of advance payments from customers for services to be provided next month
June 15
Received the utility bill for $300. Payment is due in 30 days
June 20
Billed customers $1,500 services provided. Payment is due in 30 days.
June 30
Received $500 from customers who were billed earlier
Refer to Hesson Properties. What journal entry is required to record the collections on account from customers?
147. Hesson Properties, Inc.
The following transactions occurred during June:
June 1
Purchased two new maintenance carts on account at $750 each. Payment is due in 30 days
June 8
Accepted $500 of advance payments from customers for services to be provided next month
June 15
Received the utility bill for $300. Payment is due in 30 days
June 20
Billed customers $1,500 services provided. Payment is due in 30 days.
June 30
Received $500 from customers who were billed earlier
Refer to Hesson Properties. How much is still owed to the company by its customers at the end of the month?
148. What type of account is increased with a debit but represents a decrease in retained earnings?
149. Which of the following statements is true?
150. Which of the following statements is true?
151. A trial balance is a(n)
152. If the sum of the debits is not equal to the sum of the credits in a trial balance, then
153. Which of the following will not cause a trial balance to be out of balance?
154. Listed below are selected accounts. In the blank spaces provided for each account, indicate what type of
account it is, its normal balance, and the debit/credit rules for increasing and decreasing it. Use the following
abbreviations for your answer:
Normal
Rules to Increase or
Type of Account
Account Balance
Decrease the Account
A = Asset
Dr = Debit
Dr = Debit
L = Liability
Cr = Credit
Cr = Credit
SE = Stockholders’ Equity
R = Revenue
E = Expense
D = Dividend
Type of
Normal
Rule to
Rule to
Account
Balance
Increase
Decrease
Example
: Cash
A
Dr
Dr
Cr
a.
Accounts Payable
b.
Retained Earnings
c.
Prepaid Insurance
d.
Service Revenues
e.
Notes Payable
f.
Intangibles
g.
Common Stock
h.
Salary Expense
i.
Accounts Receivable
j.
Unearned Revenues
Type of
Normal
Rule to
Rule to
Account
Balance
Increase
Decrease
a.
Accounts Payable
L
b.
Retained Earnings
c.
Prepaid Insurance
A
d.
Service Revenues
R
e.
Notes Payable
L
f.
Intangibles
A
g.
Common Stock
h.
Salary Expense
E
i.
Accounts Receivable
A
j.
Unearned Revenues
L
155. Presented below are accounts from the general ledger:
Account
1.
Cash
2.
Accounts Receivable
3.
Prepaid Insurance
4.
Accounts Payable
5.
Common Stock
6.
Service Revenues
7.
Advertising Expense
8.
Salary Expense
9.
Interest Expense
10.
Income Tax Expense
Each of the accounts has been assigned an identification number which you will use as answers for the transactions described below. Enter the
account numbers in the blank spaces under the headings Debit and Credit to indicate the accounts debited and credited when each transaction is
recorded in a general journal.
Debit
Credit
A)
Issues common stock for cash.
B)
Receives a bill for advertisements run on a local radio station; payment is due in 30
days
C)
Pays interest due on a notes payable.
D)
Provides services to a customer and agrees to accept payment in 30 days.
Debit
Credit
C)
Pays interest due on a notes payable.
9
1
D)
Provides services to a customer and agrees to accept payment in 30 days.
2
6
156. Heart & Hands Clinic began business as a corporation in 2012. Several transactions which occurred early
in 2012 are described below. Record each transaction in proper journal form, excluding written explanations.
A)
Jan. 23, 2012
Stockholders invested $70,000 in the business and received shares of common stock as evidence of
ownership.
B)
Feb. 1, 2012
Rent of $1,600 was paid for the month of February.
C)
Feb. 7, 2012
Equipment with a cost of $3,000 was purchased on credit; payment is due in 30 days.
D)
Feb. 14, 2012
Fees totaling $5,400 were billed to patients; $2,900 was collected immediately and the balance of
$2,500 is due within 30 days.
E)
Feb. 18, 2012
Full payment was made for the equipment purchased on Feb. 7th.
F)
Feb. 22, 2012
$1,900 was collected from patients with balances due from Feb. 14th.
G)
Feb. 28, 2012
Employee salaries of $3,300 were paid.
Jan. 23, 2012
Cash
70,000
Common Stock
70,000
Cash
1,600
Feb. 7, 2012
ment
3,000
Accounts Payable
3,000
Feb. 14, 2012
Cash
2,900
Service Revenue
5,400
Cash
3,000
F)
Feb. 22, 2012
Cash
1,900
Accounts Receivable
1,900
Cash
3,300
157. Described below are several transactions which might be recorded by a music supply company. Several
accounts from the company’s chart of accounts are also listed below. Using these account titles, record each
transaction in proper journal entry format. A written explanation for each journal entry is not required.
Accounts:
Cash
Common Stock
Accounts Receivable
Retained Earnings
Inventory
Sales Revenue
Accounts Payable
Selling Expenses
Unearned Revenue
Administrative Expenses
A)
Bills are mailed for musical instruments sold to customers, $225,000
B)
Customers pay for musical instruments in advance, $130,000
C)
Administrative employees are paid their monthly salaries, $14,000
D)
An invoice is received for $15,200 of new musical instruments purchased for sale to customers; payment is due in 30 days
E)
Payments are received from customers for amounts billed in a previous transaction, $135,000
F)
Full payment is made for the musical instruments invoice received in a previous transaction
Account
Debit
Credit
Accounts Receivable
225,000
Sales Revenue
225,000
B)
Cash
130,000
Unearned Revenue
130,000
C)
Administrative Expenses
14,000
Cash
14,000
Inventory
15,200
Accounts Payable
15,200
E)
Cash
135,000
Accounts Receivable
135,000
F)
Accounts Payable
15,200
Cash
15,200
158. Several transactions are listed below, with the accounting equation stated to the right side of each. Use the
following identification codes to indicate the effects of each transaction on the accounting equation: I =
Increase; D = Decrease; NE = No Effect. Write your answers in the space provided under the accounting
equation, being sure to include an identification code for each element of the accounting equation. An example
is provided before the first transaction.
Stockholders’
Assets
=
Liabilities
+
Equity
Example:
Common
stock is
issued to
investors in
the
company
I
NE
I
A)
Services are sold for cash.
B)
Equipment is purchased on credit.
C)
Payment is made for equipment purchased on credit.
D)
Services are sold for credit.
E)
Cash is collected from customers for accounts receivable
balances.
F)
Dividends are paid to stockholders.
G)
Land and building are acquired in exchange for shares of
common stock.
H)
Utility bill is received and recorded; will pay later.
Stockholders’
Assets
=
Liabilities
+
Equity
Example:
stock is
I
NE
I
A)
Services are sold for cash.
I
NE
I
B)
Equipment is purchased on credit.
I
I
NE
C)
Payment is made for equipment purchased on credit.
D
D
NE
D)
Services are sold for credit.
I
NE
I
balances.
F)
Dividends are paid to stockholders.
D
NE
D
G)
Land and building are acquired in exchange for shares of
common stock.
I
I
H)
Utility bill is received and recorded; will pay later.
NE
I
D
159. Several transactions are listed below, with an expanded accounting equation stated to the right side of each.
Use the following identification codes to indicate the effects of each transaction on the accounting equation: I =
Increase; D = Decrease; NE = No Effect. Write your answers in the space provided under the accounting
equation, being sure to include an identification code for each element of the accounting equation.
Contributed
Retained
Assets
=
Liabilities
+
Capital
+
Earnings
A)
Issue common stock
B)
Borrow money from the bank
C)
Purchase land for cash
D)
Purchase a 1-year insurance policy
E)
Purchase supplies on credit
F)
Services are provided for cash.
G)
Receive cash in advance for
services to be provided next week.
H)
Pay utilities
I)
Pay employee salaries
Contributed
Retained
Assets
=
Liabilities
+
Capital
+
Earnings
A)
Issue common stock
I
NE
I
NE
Borrow money from the bank
I
I
NE
NE
C)
Purchase land for cash
NE
NE
NE
NE
D)
Purchase a 1-year insurance policy
NE
NE
NE
NE
E)
Purchase supplies on credit
I
I
NE
NE
Services are provided for cash.
I
NE
NE
I
G)
Receive cash in advance for
services to be provided next week.
I
I
H)
Pay utilities
D
NE
NE
D
I)
Pay employee salaries
D
NE
NE
D
160. Several accounts from the financial statements of Hotlanta Promotions, Inc. are listed below. In the two
columns provided for answers, indicate the type of account and the normal account balance. Use the following
identification codes for your answers:
Type of Account
Normal Balance
A = Asset
Dr = Debit
L = Liability
Cr = Credit
SE = Stockholders’ Equity
R = Revenue
E = Expense
Type of
Normal
Account
Balance
A)
Prepaid Rent
B)
Television Equipment
C)
Unearned Revenue
D)
Service Revenue
E)
Common Stock
F)
Accounts Payable
G)
Income Tax Expense
H)
Interest Income
I)
Salary Expense
J)
Notes Payable
Type of
Normal
Account
Balance
A)
Prepaid Rent
A
Dr
Television Equipment
A
C)
Unearned Revenue
L
Cr
D)
Service Revenue
R
Cr
Common Stock
SE
Cr
Accounts Payable
L
G)
Income Tax Expense
E
Dr
H)
Interest Income
R
Cr
I)
Salary Expense
E
Dr
Notes Payable
L