Question:A1. (Debit and credit recognition) Which of the following
accounts increase with debits? a. Cash b....
Question
A1. (Debit and credit recognition) Which of the following
accounts increase with debits? a. Cash b....
A1. (Debit and credit recognition) Which of the following
accounts increase with debits? a. Cash b. Interest expense c.
Interest revenue d. Land e. Accounts payable f. Retained earnings
g. Sales h. Cost of goods sold i. Dividends j. Bank loans payable
A2 (Debit and credit recognition) Which of the followings accounts
increase with credits? a. Common stock (an equity account) b.
Contributed capital in excess of par value c. Accounts receivable
d. Prepaid expenses e. Revenue for services rendered f. Unearned
revenues g. Accrued income taxes payable h. Insurance expense i.
Prepaid insurance j. Intangible assets A3 (Journal entries) For
each of the following transactions, propose a journal entry, and
also state how the transaction affected the fundamental accounting
equation. Assume each one occurred June 1, 2015. a. The company
issued stock of $2 million for cash. b. The company spent $200,000
to buy equipment c. The company bought a 12-month insurance policy
for $50,000. d. The company provided services to a customer and
earned $10,000. The customer paid cash. e. The company paid a
previously outstanding account payable, of $4,000, using cash. A4
(Journal entries) For each of the following transactions, propose a
journal entry, and also state how the transaction affected the
fundamental accounting equation. Assume each one occurred May 1,
2015. a. The company made a sale of $30,000 for cash. b. In
connection with the sale in part a, the company delivered inventory
with a cost of $25,000 to the customer. (You need to record the
reduction of inventory, and the cost of goods sold.) c. The company
bought a car for $25,000 in cash. d. The company bought inventory
from a supplier, for $30,000, on account. The company has 30 days
to pay. e. A customer who had bought inventory in the previous
month pays his bill of $2,400. A6 (Adjusting entries) Make the
appropriate adjusting entries in the situations below. a. The
company has a machine with a cost of $60,000 which it bought in
prior years. Depreciation expense should be $2,000 per month. No
depreciation has been recorded yet this month. b. Four months ago,
the company bought prepaid insurance for 24 months for a total
price of $48,000. The company has been recognizing some insurance
expense each month. An entry is needed this month to record the
insurance expense. c. The company loaned another company $100,000
at an interest rate of 6% per year. No interest is due to be paid
this month, but an entry is needed to record the interest earned
during this month. d. The company has bonds payable of $12,000,000,
with an effective interest rate of 4% per year. An entry is needed
to accrue the interest expense and interest payable for this month.
A8 (Understanding entries) This question tests your ability to
understand accounting entries. Each of the following is a typical
journal entry, made either to record a transaction, or to adjust
the books at the end of the month. Your task is to explain what the
function of the entry is, and what event it is recording. For
example, is it recording a sale for cash? a. Dr. dividends 10,000
Cr. Cash 10,000 b. Dr. Inventory 47,200 Cr. Accounts payable 47,200
c. Dr. Accounts receivable 9,000 Dr. Cost of goods sold 6,000 Cr.
Sales 9,000 Cr. Inventory 6,000 d. Dr. Prepaid rent 6,000 Cr. Cash
6,000 e. Dr. Income tax expense 132,000 Cr. Income taxes payable
132,000 f. Dr. Interest receivable 4,200 Cr. Interest revenue 4,200
A9 -- Problem on sales of depreciable equipment. Note – any time
some depreciable asset is sold, the entry to record the sale will
have the following pieces: Debit the cash or other assets received
in the sale Debit the accumulated depreciation account related to
the asset, to zero it out Credit the equipment (or building, or
other fixed assets) account for the full original cost of the
asset, to zero it out If there is a gain on sale, credit it. If
there is a loss on sale, debit it. Make entries for the following
two transactions: a. Sell a machine with an original cost of
$10,000, and accumulated depreciation of $8,000, for cash of
$3,000. b. Sell a building with an original cost of $10 million,
and accumulated depreciation of $2 million, for $5,500,000 in
cash.
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...
Your company uses the Perpetual Inventory system. What is the 4-row journal entry to record a cash-based sale? (1) dr. (to record the sale) > Choose... (2) cr. (to record the sale) Choose... (3) dr. (to remove inventory) cr. Sales Revenue dr. Cash (4) cr. (to remove inventory) dr. Cost of Goods Sold cr. Merchandise Inventory Your company uses the Periodic Inve dr. Merchandise Inventory What is the journal entry when a cuscr. Cash purchas dr. Accounts Receivable dr....
Which of the following is an example of a current liability Accounts Payable b. Cash Equipment d Note payable due in 5 years 15 business pays weekly salaries of $5.000 on Friday for a five-day week ending on the wyThe adjusting entry necessary at the end of the fiscal period ending on a Tuesday Debit Salaries and Wages Payable, $2.000; Credit Cash, $2.000 Debit Salaries and Wages Expense $5,000 Credit Cash, $5.000 Debit Salaries and Wages Expense S2000 Cred Salaries...
The following information is from the December 31 un-adjusted trial balance of Excelsior Shop. Credit Debit $ 100,000.00 $ 204,000.00 $ 145,000.00 $ 72,000.00 $ 12,000.00 Cash Accounts Receivable Equipment Accumulated Depreciation - Equipment Supplies Notes Payable Service Revenue Insurance Expense Salaries Expense Interest Expense Advertising Expense $ 100,000.00 $ 450,000.00 $ 24,000.00 $ 125,000.00 $ 2,500.00 $ 9,500.00 a. From the trial balance and the following information, prepare the annual adjusting necessary on December 31. 1.00 The equiment has...
Can you make a balance sheet using the following
information:
General Ledger Accounts Title Debit Credit Cash 468,236,170 Accounts Receivable 47,294,000 Allowance for Bad Debts 1,181,880 Inventory 13,556,530 Notes Receivable 400,000 Accumulated Depreciation 74,937,000 Equipment 114,940,000 Buildings 1,000,000 Land 2,914,300 Patents 180,000 Accumulated Amortization 53,000 Interest Receivable 4,666 Prepaid Insurance Expense Accounts Payable 10,000 95,550,000 Unearned Rent Revenue Common Stock 120,006,500 APIC-Common Stock 266,266,500 Retained Earnings 73,230,000 65,421,000 10,000 Sales Revenue Rent Revenue 4,666 Interest Revenue Loss on Sale of...
1-7. Which of the following statements about the trail balance is NOT true? Debit balances must equal credit balances It includes only assets, liability and equity accounts c) It is useful for detecting errors it is an important step in the accounting cycle. 1-B. An example of a contra asset account is a) Accumulated depreciation b) Depreciation expense e) Discount on Bonds Payable. d) Prepaid expenses 1-9. Which of the following would cause the trial balance to be out of...
Your company uses the Perpetual Inventory system. What is the 4-row journal entry to record a cash-based sale? (1) dr. (to record the sale) > Choose... (2) cr. (to record the sale) Choose... (3) dr. (to remove inventory) cr. Sales Revenue dr. Cash (4) cr. (to remove inventory) dr. Cost of Goods Sold cr. Merchandise Inventory Your company uses the Periodic Inve dr. Merchandise Inventory What is the journal entry when a cuscr. Cash purchas dr. Accounts Receivable dr....
Account Trial Balance Debit Credit 8,300 6,800 Adjusted Trial Balance Debit Credit $ 8,300 6,850 800 4,300 1,000 4,300 1.900 Cash Accounts receivable Interest receivable Note receivable Supplies Prepaid insurance Building Accumulated depreciation building Accounts payable Wages payable Unearned rental revenue 2,200 66,700 600 66,700 $ 9,700 6,300 11,600 6,300 850 600 19,000 Common stock Retained earnings Dividends 1,400 19,000 43,800 43,800 4,000 4,000 Rental revenue 15,600 800 16,450 1,600 Interest revenue Depreciation expense-building Supplies expense Utilities expense Wage expense...
Aptos Architects, Inc. Trial Balance April 30, 2018 Account Debit Credit Cash $ 30,100 Accounts receivable 18,500 3,200 Prepaid insurance Supplies 1,100 85,000 $ 43,800 Equipment Accumulated depreciation, equipment Accounts payable Salaries payable 3,600 Unearned service revenue 3,100 Common stock 75,000 Retained earnings 10,600 Dividends 2,800 Service revenue 8,400 Salaries expense 3,800 Insurance expense Depreciation expense, equipment Utilities expense Supplies expense $ 144,500 $ 144,500 Total a. Insurance coverage still remaining at April 30, $600 b. Supplies used during the...
Trial Balance April 30, 2016 Account Debit Credit $27,500 40,400 3,000 1,400 68,800 Cash Accounts receivable Prepaid insurance Supplies Equipment Accumulated depreciation, equipment Accounts paya Salaries payable Unearned service revenue Common stock Retained earnings Dividends Service revenue Salaries expense Insurance expense Depreciation expense, equipment Utilities expense Supplies expense Total $34,100 ble 3,100 2,700 50,000 50,600 9,500 13,900 3,800 $ 154,400 $ 154,400 More Info a. Insurance coverage stlremaining at April 30, $300 b. Supplies used during the month, $250 c....
Which of the following is an example of a current liability Accounts Payable b. Cash Equipment d Note payable due in 5 years 15 business pays weekly salaries of $5.000 on Friday for a five-day week ending on the wyThe adjusting entry necessary at the end of the fiscal period ending on a Tuesday Debit Salaries and Wages Payable, $2.000; Credit Cash, $2.000 Debit Salaries and Wages Expense $5,000 Credit Cash, $5.000 Debit Salaries and Wages Expense S2000 Cred Salaries...
The following information is from the December 31 un-adjusted trial balance of Excelsior Shop. Credit Debit $ 100,000.00 $ 204,000.00 $ 145,000.00 $ 72,000.00 $ 12,000.00 Cash Accounts Receivable Equipment Accumulated Depreciation - Equipment Supplies Notes Payable Service Revenue Insurance Expense Salaries Expense Interest Expense Advertising Expense $ 100,000.00 $ 450,000.00 $ 24,000.00 $ 125,000.00 $ 2,500.00 $ 9,500.00 a. From the trial balance and the following information, prepare the annual adjusting necessary on December 31. 1.00 The equiment has...
Can you make a balance sheet using the following
information:
General Ledger Accounts Title Debit Credit Cash 468,236,170 Accounts Receivable 47,294,000 Allowance for Bad Debts 1,181,880 Inventory 13,556,530 Notes Receivable 400,000 Accumulated Depreciation 74,937,000 Equipment 114,940,000 Buildings 1,000,000 Land 2,914,300 Patents 180,000 Accumulated Amortization 53,000 Interest Receivable 4,666 Prepaid Insurance Expense Accounts Payable 10,000 95,550,000 Unearned Rent Revenue Common Stock 120,006,500 APIC-Common Stock 266,266,500 Retained Earnings 73,230,000 65,421,000 10,000 Sales Revenue Rent Revenue 4,666 Interest Revenue Loss on Sale of...
Below you will find an adjusted trial balance. Trial Balance Accounts Debit Credit Cash 34,000 Accounts Receivable 15,000 23,000 100,000 40,000 6,000 Inventory Equipment Accumulated Depr. Accounts Payable Notes Payable Common Stoo's Retained Earnings Dividends 70,000 10,000 32,000 4,000 Service Revenue 110,000 Sales Revenue 215,000 Interest Revenue 2,000 Cost of Goods Sold 155,000 Salaries Expense 80,000 Tax Expense 30.000 80,000 30,000 Salaries Expense Tax Expense Interest Expense Utilities Expense Supplies Expense 8,000 25,000 11,000 Totals 485,000 485,000 Prepare the closing...
1-7. Which of the following statements about the trail balance is NOT true? Debit balances must equal credit balances It includes only assets, liability and equity accounts c) It is useful for detecting errors it is an important step in the accounting cycle. 1-B. An example of a contra asset account is a) Accumulated depreciation b) Depreciation expense e) Discount on Bonds Payable. d) Prepaid expenses 1-9. Which of the following would cause the trial balance to be out of...