1) On September 30, the Cash account of Value Company had a normal balance of $6,700. During September, the account was debited for a total of $13,900 and credited for a total of $13,200. What was the balance in the Cash account at the beginning of September? a. A $0 balance. b. A $7,400 credit balance. c. A $7,400 debit balance. d. A $6,000 debit balance. e. A $6,000 credit balance. 2) On April 30, Holden Company had an Accounts Receivable balance of $19,000. During the month of May, total credits to Accounts Receivable were $53,000 from customer payments. The May 31 Accounts Receivable balance was $14,000. What was the amount of credit sales during May? a. $5,000. b. $33,000. c. $48,000. d. $53,000. e. $58,000. 3) The following transactions occurred during July: 1.Received $900 cash for services provided to a customer during July. 2. Received $2,200 cash investment from Barbara Hanson, the owner of the business. 3.Received $750 from a customer in partial payment of his account receivable which arose from sales in June. 4.Provided services to a customer on credit, $375. 5.Borrowed $6,000 from the bank by signing a promissory note. 6.Received $1,250 cash from a customer for services to be rendered next year. What was the amount of revenue for July? a. $11,100. b. $2,525. c. $900. d. $1,275. e. $3,275. 4) Zed Bennett opened an art gallery and as a dealer completed these transactions: 1. Started the gallery, Artery, by investing $47,000 cash and equipment valued at $25,000. 2.Purchased $210 of office supplies on credit. 3.Paid $1,900 cash for the receptionist's salary. 4.Sold a painting for an artist and collected a $5,900 cash commission on the sale. 5.Completed an art appraisal and billed the client $900. What was the balance of the cash account after these transactions were posted? a. $76,690. b. $17,890. c. $51,690. d. $51,000. e. $16,990. 5) At the beginning of January of the current year, Thomas Law Center's ledger reflected a normal balance of $52,000 for accounts receivable. During January, the company collected $14,800 from customers on account and provided additional services to customers on account totaling $12,500. Additionally, during January one customer paid Thomas $5,000 for services to be provided in the future. At the end of January, the balance in the accounts receivable account should be: a. $49,700. b. $54,700. c. $2,300. d. $54,300. e. $49,300. 6) During the month of March, Cooley Computer Services made purchases on account totaling $44,300. Also during the month of March, Cooley was paid $8,800 by a customer for services to be provided in the future and paid $37,300 of cash on its accounts payable balance. If the balance in the accounts payable account at the beginning of March was $78,100, what is the balance in accounts payable at the end of March? a. $93,900. b. $7,000. c. $85,100. e. $76,300. f. $5,300. 7) On January 1 of the current year, Bob's Lawn Care Service reported owner's capital totaling $123,700. During the current year, total revenues were $97,200 while total expenses were $84,300. Also, during the current year Bob withdrew $21,200 from the company. No other changes in equity occurred during the year. If, on December 31 of the current year, total assets are $196,000, the change in owner's capital during the year was: a. A decrease of $8,300. b. A increase of $34,100. c. An decrease of $34,100. d. Impossible to determine from the information provided. e. An increase of $8,300. 8) Andrea Conaway opened Wonderland Photography on January 1 of the current year. During January, the following transactions occurred and were recorded in the company's books: 1.Conaway invested $20,500 cash in the business. 2.Conaway contributed $27,000 of photography equipment to the business. 3.The company paid $3,500 cash for an insurance policy covering the next 24 months. 4.The company received $8,500 cash for services provided during January. 5.The company purchased $7,600 of office equipment on credit. 6.The company provided $3,450 of services to customers on account. 7.The company paid cash of $2,200 for monthly rent. 8.The company paid $3,800 on the office equipment purchased in transaction #5 above. 9.Paid $345 cash for January utilities. Based on this information, the balance in the cash account at the end of January would be: a. $57,550. b. $19,155. c. $27,100. d. $22,950. e. $20,500. 9) Andrea Conaway opened Wonderland Photography on January 1 of the current year. During January, the following transactions occurred and were recorded in the company's books: 1.Conaway invested $19,500 cash in the business. 2.Conaway contributed $26,000 of photography equipment to the business. 3.The company paid $3,300 cash for an insurance policy covering the next 24 months. 4.The company received $8,100 cash for services provided during January. 5.The company purchased $7,400 of office equipment on credit. 6.The company provided $3,350 of services to customers on account. 7.The company paid cash of $2,100 for monthly rent. 8.The company paid $3,700 on the office equipment purchased in transaction #5 above. 9.Paid $335 cash for January utilities. Based on this information, the balance in the Andrea Conaway, Capital account reported on the Statement of Owner's Equity at the end of the month would be: a. $42,200. b. $53,600. c. $43,750. d. $54,515. e. $43,415. 10) Stride Along has total assets of $595 million. Its total liabilities are $195 million. Its equity is $400 million. Calculate the debt ratio. a. 30.5%. b. 14.9%. c. 48.8%. d. 32.8%. e. 13.3%. 11) A company had the following accounts and balances year-end: Cash.......................$40,000 Accounts receivable.....$42,000 Accounts payable........$22,000 Fees earned..............$89,000 Rent expense............$17,000 Insurance expense.......$6,800 Supplies...................$7,000 Sam, Capital..............$21,800 Sam, Withdrawals 20,000 If all of the accounts have normal balances, what are the totals for the trial balance? a. $65,200. b. $89,000. c. $132,800. d. $265,600. e. $238,600. 12) A trial balance taken at year-end showed total credits exceed total debits by $6,030. This discrepancy could have been caused by: a.The balance of $6,700 in the Office Equipment account being entered on the trial balance as a debit of $670. b. An error in the general journal where a $6,030 increase in Accounts Receivable was recorded as an increase in Cash. c. A net income of $6,030. d. The balance of $60,300 in Accounts Payable being entered in the trial balance as $670. e. An error in the general journal where a $6,030 increase in Accounts Payable was recorded as a decrease in Accounts Payable. 13) Hal Smith opened Smith's Repairs on March 1 of the current year. During March, the following transactions occurred and were recorded in the company's books: 1.Smith invested $26,000 cash in the business. 2.Smith contributed $102,000 of equipment to the business. 3.The company paid $2,200 cash to rent office space for the month. 4.The company received $17,000 cash for repair services provided during March. 5.The company paid $6,400 for salaries for the month. 6.The company provided $3,200 of services to customers on account. 7.The company paid cash of $520 for monthly utilities. 8.The company received $3,300 cash in advance of providing repair services to a customer. 9.Smith withdrew $5,200 for his personal use from the company. Based on this information, net income for March would be: a.$11,080. b. $14,380. c. $5,880. d. $9,180. e. $14,480. 14) Hal Smith opened Smith's Repairs on March 1 of the current year. During March, the following transactions occurred and were recorded in the company's books: 1.Smith invested $30,000 cash in the business. 2.Smith contributed $110,000 of equipment to the business. 3.The company paid $3,000 cash to rent office space for the month. 4.The company received $21,000 cash for repair services provided during March. 5.The company paid $7,200 for salaries for the month. 6.The company provided $4,000 of services to customers on account. 7.The company paid cash of $600 for monthly utilities. 8.The company received $4,100 cash in advance of providing repair services to a customer. 9.Smith withdrew $6,000 for his personal use from the company. Based on this information, the balance in Hal Smith, Capital reported on the Statement of Owner's Equity at the end of March would be: a. $152,300. b. $148,200. c. $142,200. d. $12,300. e. $18,400