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1. Trudy's Cafe paid employees $50.000 in September for work done that month. What journal entry record in September, assuming Trudy's did not owe any amounts to employees at me end of Aun A) Debit cash, credit Wages Revenue. B) Debit cash credit Wages Payable. C) Debit Wages Revenue, credit Cash. D) Debit Wages Expense credit Cash 14. During June, the Grass is Greener Company mows 100 lawns a week, the company was paid in advance ng May by those customers. The company uses the accrual basis of accounting. How will these events affect the company's financial statements? A) The income statement shows the effects of the transactions in May. B) The income statement shows the effects of the transactions in June. C) The balance sheet shows no effect from the transactions in May. D) The balance sheet shows no effect from these transactions in May or June. 15. During May, Many Happy Returns, Inc. earned $1,400, of which $1,000 was collected, and had expenses of $800, of which $700 was paid. Its net income equals: A) $800 using accrual accounting versus $300 using cash basis. B) $300 using accrual accounting versus $600 using cash basis. C) $700 using accrual accounting versus $200 using cash basis D) $200 using accrual accounting versus $700 using bash basis. 16. Time Wamer is a publishing and communications company specializing in magazines, cable television operation, television program development, and other telecommunication services. Its financial statements show $37,668 in an account called Uneared Revenue, which represents amounts that customers have paid in advance of receiving magazines, cable television, and internet services. What type of account is this and on what statement is it reported? A) Asset, Balance Sheet. B) Liability, Balance Sheet C) Revenue; Balance Sheet D) Revenue; Income Statement 17. Which of the following will result in an increase in revenue? A B C D. Borrowing $10,000 from a bank. Stockholders investing $10,000 in a company. Selling concert tickets for $10,000 four months before the performance Selling $10,000 of groceries to customers. 18. During May, 2018, Sugar Inc. performs consulting services. The client does not pay Sugar until June, 2018. Using the accrual basis of accounting, the revenue is reported in June 2018 Using the cash basis of accounting, the revenue is reported in May 2018 C. Using the accrual basis of accounting, the revenue is reported in May 2018, D. Using the accrual basis of accounting, the revenue is reported when Sugar's expenses are paid. B