Question
Q1 Use the adjusted trial balance for Stockton Company to answer the question that follow. Stockton Company Adjusted Trial Balance December 31 Account No. Debit
Q1
Use the adjusted trial balance for Stockton Company to answer the question that follow.
Stockton Company Adjusted Trial Balance December 31 | |||
Account No. | Debit Balances | Credit Balances | |
Cash | 11 | 5,411 | |
Accounts Receivable | 12 | 2,548 | |
Prepaid Expenses | 13 | 659 | |
Equipment | 18 | 13,452 | |
Accumulated Depreciation | 19 | 1,399 | |
Accounts Payable | 21 | 1,427 | |
Notes Payable | 22 | 5,444 | |
Bob Steely, Capital | 31 | 9,740 | |
Bob Steely, Drawing | 32 | 688 | |
Fees Earned | 41 | 8,853 | |
Wages Expense | 51 | 2,519 | |
Rent Expense | 52 | 874 | |
Utilities Expense | 53 | 368 | |
Depreciation Expense | 54 | 271 | |
Miscellaneous Expense | 59 | 73 | |
Totals | 26,863 | 26,863 |
Use the adjusted trial balance for Stockton Company. Determine the net income (loss) for the period.
a.Net income is $26,863.
b.Net loss is $4,748.
c.Net loss is $7,635.
d.Net income is $4,748.
Q2
Journalize the following inventory merchandise transactions, assuming that the company uses the perpetual inventory system. Refer to the Chart of Accounts for exact wording of account titles.
Dec. | 1 | Travis Company purchased merchandise on account from a supplier for $11,100, terms 2/10, net 30. |
6 | Travis Company paid for the merchandise within the discount period.
Q3 Gently Laser Clinic purchased laser equipment for $6,981 and paid $856 down, with the remainder to be paid later. The correct entry would be a. Equipment$6,981 Accounts Payable$6,125 Cash$856 b. Equipment Expense$6,981 Accounts Payable$856 Cash$6,125 c. Cash$856 Accounts Payable$6,125 Equipment$6,981 d. Equipment$856 Cash$856 |
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