Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

14) Mitchell Company receives a bill from one of its suppliers for advertising services received and will pay the supplier next month. How does the

image text in transcribed
image text in transcribed
14) Mitchell Company receives a bill from one of its suppliers for advertising services received and will pay the supplier next month. How does the receipt of the bill from the supplier affect the accounting equation of Mitchell? A) assets and equity decrease B) liabilities increase and equity decreases C) assets and liabilities increase D) liabilities and equity increase -3- 15. Country Homes Company just recorded a transaction in its books. If this transaction increased the total liabilities by $12.000, then A) assets must increase, or equity must decrease by $12.000 B) either assets or equity must decrease by $12.000 C) both assets and equity must each decrease by $6,000 D) assets must decrease by $12.000 16 Springer Company, a sole proprietorship, and the following transactions in August Earned 55.000 of revenues on account, collected $500 from a customer for services provided last month incurred $500 of repair expense and paid cash paid 5600 for rent that it owed from the previous month What is the net income in August? A) 5500 C) 9.500 15. Country Homes Company just recorded a transaction in its books. If this transaction increased the total liabilities by $12,000, then A) assets must increase, or equity must decrease by $12.000 B) either assets or equity must decrease by $12,000 C) both assets and equity must each decrease by $6,000 D) assets must decrease by $12.000 16 Springer Company, a sole proprietorship, had the following transactions in August: Earned $5.000 of revenues on account; collected $5,000 from a customer for services provided last month; incurred $500 of repair expense and paid cash; paid $600 for rent that it owed from the previous month. What is the net income in August? A) S500 B) $5,000 C) $9.500 D) $4500 17 Regent Plumbing Company provides plumbing services. The company is a sole proprietorship. Selected transactions of Regent Plumbing Company are described as follows: a) Sharon Regent, the owner, contributed 89,000 cash in exchange for capital. b) Paid $5,000 cash for equipment to be used for plumbing repairs. c) Borrowed $10.000 from a local bank and deposited the money in the checking account d) Paid 500 rent for the year e) Paid S400 cash for plumbing supplies to be used next year. Completed a plumbing repair project for a local lawyer and received $4.000 cash. Calculate the net income. Assume plumbing supplies of $400 are left at the end of the accounting period A) 5500 B) 53.600 C) 54000 D) 53.100 18.5) Which of the following statements regarding the accounting equation is incorrect

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Standards On Auditing For Ca Students

Authors: Anshul Mittal

1st Edition

8182964962, 978-8182964969

More Books

Students also viewed these Accounting questions