Question

10. The accounts in the ledger of Monroe Entertainment Co. are listed below. All accounts have normal balances.

Accounts Payable	$1,500	Fees Earned	$3,600
Accounts Receivable	1,800	Insurance Expense	1,300
Prepaid Insurance	2,000	Land	3,000
Cash	3,200	Wages Expense	1,400
Drawing	1,200	Capital	8,800
The total of all the assets is a. $10,000
b. $8,000
c. $9,700
d. $9,800

11. The classification and normal balance of the accounts payable account is

1. an asset with a credit balance
2. a liability with a credit balance
3. owner's equity with a credit balance
4. revenue with a credit balance

        12. A credit balance in which of the following accounts would indicate a likely error?

            a. Fees Earned

            b. Salary Expense

            c. Janet James, Capital

            d. Accounts Payable

13. The process of initially recording a business transaction is called

        a. closing

        b. posting

               c. journalizing

               d. balancing

14. Gently Laser Clinic purchased laser equipment for $8,500, paid $2,250 down, with the remainder to be paid later. The correct entry would be

a. Equipment Cash	2,250	2,250
b. Cash	2,250
Accounts Payable Equipment	6,250	8,500
c. Equipment Expense	8,500
Accounts Payable Cash		2,250 6,250
d. Equipment Accounts Payable	8,500	6,250
Cash		2,250

16. All of the following accounts are increased with a debit except

1. Unearned Revenues
2. Land
3. Accounts Receivable
4. Cash

17. The accounting equation may be expressed as

a. Assets = Equities − Liabilities

b. Assets + Liabilities = Owner's Equity

c. Assets = Revenues − Liabilities

d. Assets − Liabilities = Owner's Equity

Answer 1

Solution to QUESTION-10

The total of the assets = Accounts receivables + Prepaid Insurance + Cash + Land

= $1,800 + $2,000 + $3,200 + $3,000

= $10,000

“Hence, the total of all the assets will be (a). $10,000”