Chapter 3-2 Student Number Name 1. Enter the following transactions in the two column journal provided for Charlie's Cabinetry. You may omit explanations. Mar. 2 Purchased auto cleaning supplies from Robert Suppliers for $750 on account. 4 Collected an account receivable of $525 from a customer Elegant Kitchens 5 Paid $275 in partial payment of an account payable to Lucy Co for equipment purchased in February. 7 Issued capital stock in exchange for $5,600 cash. 9 Purchased office equipment from Diamond's Warehouse for $3,700; paid $1,700 cash and issued a note payable due in 90 days for the balance Date General Journal nn 2. The following transactions occurred during June, the first month of operations for Accurate Manufacturing: Issued 60,000 shares of capital stock to the owners of the corporation in exchange for $600,000 cash. Purchased a piece of land for $250,000, making an $80,000 cash down payment and signing a note payable for the balance. Made a $100,000 cash payment on the note payable from the purchase of land Purchased equipment on credit from National Supply for $40,000. 1 Refer to the above data. The balance in the Cash account at the end of June $52,000. $420,000 b $350,000 d $380,000. a 2 Refer to the above data. What are total assets of Precision Manufacturing at the end of June? $710,000 $630,000. b $890,000 d $460,000 a 3 Refer to the above data. What is the total of Precision's liabilities at the end of June? a $70,000. $200,000 b $110,000 d $240,000 4 Refer to the above data. What is the total owners' equity at the end of June? $60,000. $240,000. b $110,000 d $600,000 a 3. Indicate the best answer for each question in the space provided The account balances for Creative Band, Inc. as of May 31, 2009, are listed below in alphabetical order: Accounts Payable......... $12,000 Equipment........ $18,000 Accounts Receivable....... $14,000 Land............ $52,000 Building..... $42,000 Notes Payable............. $30,000 Cash.......... $8,000 Capital Stock........... $92,000 On June 3, Creative Band, Inc collected $4,000 of its accounts receivable and paid $7,000 of its accounts payable. In addition, 2,000 of additional shares of capital stock are issued for $5,600. 1 Refer to the above data. In a trial balance prepared on May 31, 2009, the sum of the debit column is: $120,000 $134,000 b $156,000 d Some other amount. a - 2 Refer to the above data. On June 4, the balance in the Cash account is: $17,600 $10,600. b $5,000. d Some other amount. a 3 Refer to the above data. On June 4, the balance in the Capital Stock account is: $86,400. $94,000. b $97,600. d Some other amount a 4 Refer to the above data. In a trial balance prepared on June 4, the sum of the credit column is: $130,000 $127,000 b $132,600. d Some other amount. a 5 Refer to the above data. On June 6, the bookkeeper for Creative Band, Inc makes this entry: Equipment..... 7,400 4,200 3,200 Cash........ Accounts Payable........ This transaction: Decreases total assets. b Involves the sale of equipment for $7,400. Increases total assets $7,400. d Increases liabilities. a