9. Which of the following is the appropriate journal entry if a company performs a service and is paid immediately?
A. Debit to Cash, Debit to Revenue
B. Debit to Cash, Credit to Revenue
C. Debit to Accounts Receivable, Credit to Cash
D. Debit to Revenue, Credit to Accounts Receivable
E. Debit to Accounts Receivable, Credit to Revenue
10. Which of the following is the appropriate journal entry if a company purchases equipment costing $100,000 by paying cash of $10,000?
A. Debit to Cash, Debit to Equipment, Credit to Accounts Payable
B. No entry should be made
C. Debit to Equipment, Credit to Notes Payable, Credit to Cash
D. Debit to Cash, Debit to Notes Payable, Credit to Equipment
E. Debit to Equipment, Debit to Notes Payable, Credit to Cash
11. What are the total assets for Shiver Ice House?
|
Common Stock |
$120,000 |
Accounts Payable |
$25,000 |
|
Cash |
$116,640 |
Accounts Receivable |
$22,450 |
|
Supplies |
$ 1,500 |
Office Equipment |
$23,300 |
|
Prepaid Rent |
$ 3,200 |
Unearned Revenue |
$ 4,152 |
|
Revenue |
$ 20,000 |
Utilities Expense |
$ 422 |
|
Retained Earnings |
$ 30,000 |
Shaving Equipment |
$31,640 |
A. $291,340
B. $106,962
C. $198,730
D. $218,730
E. $221,580
12. What is net income for Shiver Ice House?
|
Common Stock |
$120,000 |
Accounts Payable |
$25,000 |
|
Cash |
$116,640 |
Accounts Receivable |
$22,450 |
|
Supplies |
$ 1,500 |
Office Equipment |
$23,300 |
|
Prepaid Rent |
$ 3,200 |
Unearned Revenue |
$ 4,152 |
|
Revenue |
$ 20,000 |
Utilities Expense |
$ 422 |
|
Retained Earnings |
$ 30,000 |
Shaving Equipment |
$31,640 |
A. $19,578
B. $20,528
C. $23,728
D. $49,578
E. $24,578
13. What is total for the debits on the Trial Balance for Shiver Ice House?
|
A. $291,340
B. $106,964
C. $199,152
D. $193,390
E. $203.152
14. Find net income using the following transactions.1. Bill Co. paid $2,000 for one month rent
|
A. $10,200
B. $ 5,000
C. $ 8,700
D. $13,900
E. $ 7,000
15. During the month of February, Hoffer Company had cash receipts of $7,500 and cash disbursements of $8,600. The February 28 cash balance was $1,800. What
was the January 31 beginning cash balance?
A. $700
B. $1,100
C. $2,900
D. $0
E. $4,300
16. Identifying business activities requires selecting transactions and events relevant to an organization. Which of the following events would be recorded in
the accounting records of Acme Car Wash?
A. Acme washes 500 cars
B. J.B. Smith, a customer, buys lunch at the restaurant next door to Acme while waiting for her car to be
washed
C. Clean Company, a supplier, sells 50 pounds of soap to ABC Company
D. Sudsey Company, a supplier, goes out of business
E. Acme hires Andrea as a receptionist
17. Internal users of accounting information always include: (Points : 1)
A. Shareholders
B. Managers
C. Lenders
D. Suppliers
E. Customers
