1. A company had credit sales $30,000 and cash sales of $23,000 during the month of May. Also during May, the company paid wages of $24,000 and utilities of $9,000. It also received payments from customers on account totaling $4,400. What was thecompany's net income for the month?

A. 53,000

B. 20,000

C. 86,000

D. 23,000

2. Which accounts are increased by debits?

A.

Accounts Receivable and Utilities Expense.

B.

Accounts Payable and Service Revenue.

C.

Salaries Expense and Common Stock.

D.

Cash and Accounts Payable.

3. Posting is:

A.

copying the information from the journal to the ledger.

B.

copying the information from the ledger to the financial statements.

C.

entering the data into the journal.

D.

copying the information from the journal to the trial balance

4. A business paid $3,000 on account. The journal entry would:

A.

debit Accounts Receivable for $3,000

and credit Revenue for $3,000.

B.

debit Accounts Payable for $3,000

and credit Cash for $3,000.

C.

debit Cash for $3,000 and credit Accounts Payable for $3,000.

D.

debit Cash for $3,000 and credit Retained Earnings for $3,000

5. On May 1, a business provided legal services to a client and billed the client $2,200.The client promised to pay the business in one month. Which journal entry should the business record on May 1?

1. Debit Cash for $2,200 and credit Retained Earnings for $2,200.

2. Debit Cash for $2,200 and credit Service Revenue for $2,200.

3. Debit Accounts Receivable for $2,200 and credit Service Revenue for $2,200.

4. Debit Accounts Payable for $2,200 and credit Service Revenue for $2,200.

6. The Accounts Receivable account for Johnny's Mechanic Shop had a beginning balance of $34,000. During the month, Johnny made sales on account of $47,000 The ending balance in the Accounts Receivable account is $35,000. What are cash collections for the month?

1. $47,000

2. $46,000

3. $81,000

4. $ 34,000