Which of the following is not a possible journal entry? Debit Expenses: Credit Assets...
Which of the following is not a possible journal entry?
Debit Expenses; Credit Assets
Debit Expenses; Credit Liabilities
Debit Assets; Credit Revenues
Credit Assets; Credit Revenues
Heimer, Inc. provides services to customers totaling $14,000, for which it
billed the customers. How would the transaction be recorded?
DR: Accounts Receivable 14,000 CR: Service Revenue 14,000
DR: Cash 14,000 CR: Service Revenue 14,000
DR: Accounts Payable 14,000 CR: Service Revenue 14,000
DR: Accounts Receivable 14,000 CR: Cash 14,000
When a company receives a prepayment from a customer and provides services to the customer 4 months later, what is the effect on the
company's accounting equation when the company provides the services?
Assets decrease and stockholders' equity decreases
Assets decrease and liabilities decrease
Assets increase and stockholders' equity increases
Liabilities decrease and stockholders' equity increases
Donaldson Corp wanted to expand the size of its manufacturing plant in order to generate more profits. The company decided to purchase the building adjacent to its existing plant for $140,000 by entering into a contract with the seller to make 10 annual payments to them plus interest starting one year after purchase. The purchase would be recorded by Donaldson as:
DR: Buildings Expense 140,000 CR: Cash 140,000
DR: Buildings 140,000 CR: Cash 140,000
DR: Buildings 140,000 CR: Notes Payable 140,000
DR: Notes Payable 140,000 CR: Buildings 140,000
Which of the accounts are increased on the debit side and decreased on the credit side?
Assets, liabilities, and revenues
Liabilities, stockholders' equity, and revenues
Expenses, assets, and dividends
Expenses, liabilities, and assets
Assume that $24,000 cash is paid for rent on January 1 to cover the next year. The appropriate joumal entry on January 1 is:
DR: Prepaid Rent 24,000 CR: Cash 24,000
DR: Prepaid Rent 24,000 CR: Accounts Payable 24,000
DR: Cash 24,000 CR: Rent Expense 24,000
DR: Rent Expense 24,000 CR: Cash 24,000
A company receives a $95,000 cash deposit from a customer on October 15 but will not provide services until November 20. Which of the following statements is true?
The company records service revenue on October 15.
The company records a liability on October 15.
The company records nothing on November 20.
The company records the cash collection on November 20.
Carrier Rent-to-Own, a furniture rental and sales company, records annual depreciation expense on December 31 each year. Which account will Carrier credit when they record their depreciation on December 31st?
Equipment
Depreciation Expense
Accumulated Depreciation
Repairs and Maintenance Expense
The following events pertain to Bass Masters Corp
May 1 Bass Masters purchased materials of $3,000 on account.
May 5 The materials were shipped to Bass Masters.
May 8 Bass Masters used these materials for a one-time event.
May 9 Bass Masters paid $3,000 cash for the materials purchased on May 1.
Using accrual accounting, on which date should Bass Masters Corp. record an expense?
May 8.
May 1.
May 5.
May 9.
On July 1, 2019, Perry Corp. paid $12,000 to Trust Corp for insurance covering 24 months from July 1, 2019 through June 30, 2021. What adjusting entry should Perry Co. record on December 31, 2019?
DR: Prepaid Insurance 12,000 CR: Cash 12,000
DR: Insurance Expense 3,000 CR: Cash 3,000
DR: Insurance Expense 6,000 CR: Prepaid Insurance 6,000
DR: Insurance Expense 3,000 CR: Prepaid Insurance 3,000
Homework Answers
1.
Answer is d. credit assets; credit revenues
2.
Answer is a. DR Accounts Receivable $14000, CR Service Revenue
$14000
3.
Answer is d. Liabilities decrease, stockholder's equity
increases
4.
Answer is c. DR Buildings 140000, CR Notes Payable 140000
5.
Answer is c. Expenses, assets and dividends, as normal balances of
these accounts is debit
6.
Answer is a. DR Prepaid Rent 24000, CR Cash 24000
7.
Answer is b. The company records liability on October 15
8.
Answer is c. Accumulated Depreciation
9
Answer is a. May 8
10.
Answer is d. DR Insurance expense 3000, CR Prepaid Insurance
3000
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Which of the following is not a possible journal entry? Debit Expenses: Credit Assets...
13) When a company receives a prepayment from a customer and provides services to the customer...
13) When a company receives a prepayment from a customer and provides services to the customer 4 months later, what is the effect on the company’s accounting equation when the company provides the services? Group of answer choices Assets decrease and stockholders’ equity decreases Assets decrease and liabilities decrease Assets increase and stockholders' equity increases Liabilities decrease and stockholders' equity increases 14) Donaldson Corp wanted to expand the size of its manufacturing plant in order to generate more profits. The...
17)A company receives a $95,000 cash deposit from a customer on October 15 but will not...
17)A company receives a $95,000 cash deposit from a customer on October 15 but will not provide services until November 20. Which of the following statements is true? Group of answer choices The company records service revenue on October 15. 18) Question 183 pts Carrier Rent-to-Own, a furniture rental and sales company, records annual depreciation expense on December 31 each year. Which account will Carrier credit when they record their depreciation on December 31st? Group of answer choices Equipment Depreciation...
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The adjusted trial balance for Monty at December 31, 2019, contains the following accounts. Debit Credit Buildings $127,400 Common Stock $93,050 Accounts Receivable 14.700 26,150 Retained Earnings Accumulated Depreciation-Buildings Prepaid Insurance 4,400 43,300 Cash 18,900 Accounts Payable 11,900 Equipment 62,500 Notes Payable 96,300 18,300 Land Insurance Expense 68,500 Accumulated Depreciation-Equipment 900 Interest Payable 7,400 Service Revenue 2,400 $307,100 2,400 15,700 Depreciation Expense Interest Expense $280,950 Prepare a classified balance sheet: assume that $23,000 of the note payable will be paid...
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