How will MBG record the July 4 transaction? ( 1 mark) a. decrease Cash $1,600 and increase Rent Expense $1,600 b. decrease Cash $400 and increase Rent Expense $400 c. decrease Cash $1,600 and increase Prepaid Rent $1,600 d. decrease Cash $1,600, increase Rent Expense $1,600 e. no entry is required. Enter the letter that corresponds to your choice. (ABCDE) A. How will MBG record the July 7 transaction? (1 mark) a. increase Supplies and decrease Cash, $1,500 b. increase both Supplies Expense and Accounts Payable, $1,500 c. increase Supplies Expense and decrease Accounts Payable, \$1,500 d. increase both Supplies and Accounts Payable, $1,500 e. increase both Equipment and Accounts Payable, $1,500 f. increase Equipment and decrease Cash, \$1,500 Enter the letter that corresponds to your choice. (A B C D E F) A How will MBG record the use of the insurance on July 31 ? (1 mark) a. decrease Prepaid Insurance $216 and increase Insurance Expense $216 b. decrease Prepaid Insurance $200 and increase Insurance Expense $200 c. decrease Prepaid Insurance $2,400 and increase Insurance Expense $2,400 d. decrease Prepaid Insurance $2,592 and increase Insurance Expense $2,592 e. no entry is required. Enter the letter that corresponds to your choice. ( ABCDE ) A How will MBG record the bank transaction on July 31 ? ( 3 marks) a. decrease Cash $28, decrease Bank Loan Payable $12, increase Interest Expense $12 b. decrease Cash $28, increase Bank Fees Expense $16, increase Interest Expense $16 c. decrease Cash $28, increase Interest Expense $12, decrease Bank Fees Expense $16 d. decrease Cash $28, decrease Bank Loan Payable $16, increase Bank Fees Expense $12 e. decrease cash $28, decrease Bank Loan Payable $16, decrease Retained Earnings $12 f. decrease Cash $28, decrease Bank Loan Payable $12, decrease Retained Earnings $16 Enter the letter that corresponds to your choice. (A B C D E F) A) How will MBG record the credit card payment on July 31? (1 mark) a. decrease both Cash and Accounts Payable $1,275 b. decrease both Cash and Accounts Payable $1,320 c. decrease both Cash and Accounts Payable $2,125 d. decrease both Cash and Accounts Payable $425 e. decrease both Cash and Accounts Payable $2,185 Enter the letter that corresponds to your choice. (A B C D E) A What is Total Liabilities on MBG's balance sheet for July 31? ( 2 marks) A What would be reported on MBG's income statement as Total Service Revenue for the month of July? ( 2 marks) A If you were producing the company's December 31 year end financial statements, what would be the balance in MBG's Prepaid Insurance account? (2 marks) July 2 You borrow $2,500 from the bank. July 3 You deposit $3,000 of your own money into the business bank account. July 4 You rent an office for the next four months for $400 per month, paying the full amount now. July 5 You register your business name for $60 with Service Ontario, using the business credit card. July 6 You purchase, using your business credit card, supplies for $500 plus HST. July 7 You purchase, using your business credit card,a computer and colour printer for $1,500 from Better Buy. HST is already included. July 8 You buy a one-year liability insurance policy for $2,400, plus 8% tax, paying cash. July 10 You purchase for $200 cash, plus HST, 150 colour flyers to advertise your business. You haven't used any yet. July 11 You pay a student $75 cash to distribute all your flyers. July 12 You gave a quotation to a prospective engaged couple, to see if they liked it . You would normally have asked for a $100 deposit but you give it for free. Two more couples hire you to plan their weddings. You will charge them July 15 each $5,000 when you provide the service in the future. They EACH pay a deposit of $1,000 cash. Weddings are expensive! July 27 Business is wonderfull You have so far collected $20,000 in cash from happy couples who's weddings have happened already. July 28 You now have only $250 worth of supplies left. July 31 One month's rent on your garage has expired. July 31 You received your cell phone bill for the month. Of the $80, three-quarters was business calls. The business will pay you next month. July 31 One month of your insurance policy has expired. July 31 The bank takes its monthly charge from the business bank account, plus an additional $12 for interest on the loan. July 31 One of your July 15 customers got married today. They will pay their balance next week. The other customer's wedding is next weekend. July 31 You pay three-fifths (i.e. 60% ) of the balance owing on your business credit card. You will pay the rest next month
