Question 15

Not yet answered

Marked out of 1.00

Flag question

Question text

Recording a stock issuance in exchange for cash involves:

Select one:

A. Debiting Cash and crediting Dividends

B. Debiting Cash and crediting Notes Payable

C. Debiting Common Stock and crediting Cash

D. Debiting Cash and crediting Common Stock

• eBook
• Print

Question 16

Not yet answered

Marked out of 1.00

Flag question

Question text

Recording the borrowing of money for which a note is signed involves:

Select one:

A. Debiting Cash and crediting Accounts Payable

B. Debiting Cash and crediting Notes Receivable

C. Debiting Cash and crediting Notes Payable

D. Debiting Cash and crediting Service Fees Earned

• eBook
• Print

Question 17

Not yet answered

Marked out of 1.00

Flag question

Question text

At the beginning of the month, a company purchased a new truck for $135,000, paying $63,000 cash and agreeing to pay the balance over 12 months through a no-interest financing offer provided by the car dealer. The entry to record the purchase of the truck is recorded at month-end. What would the effect of this transaction on the companys current month-end accounting equation? (Hint: First financing payment was made before current month-end.)

Select one:

A. No effect on Assets; $135,000 decrease in Liabilities; $135,000 increase in Stockholders Equity

B. $66,000 increase in Assets; $66,000 increase in Liabilities; No effect on Stockholders Equity

C. $135,000 increase in Assets; No effect on Liabilities; $135,000 increase in Stockholders Equity

D. No effect on Assets; $72,000 increase in Liabilities; $72,000 decrease in Stockholders Equity

• eBook
• Print

Question 18

Not yet answered

Marked out of 1.00

Flag question

Question text

A company performed $8,635 of services and received $3,000 in cash with the remaining amount to be paid in 60 days with no interest. What would the effect of this transaction on the companys current month-end accounting equation?

Select one:

A. $3,000 increase in Assets; $5,635 decrease in Liabilities; $8,635 increase in Stockholders Equity

B. $8,635 increase in Assets; No effect on Liabilities; $8,635 increase in Stockholders Equity

C. $5,635 increase in Assets; No effect on Liabilities; $5,635 increase in Stockholders Equity

D. $8,635 increase in Assets; $8,635 increase in Liabilities; No effect on Stockholders Equity

• eBook
• Print

Question 19

Not yet answered

Marked out of 1.00

Flag question

Question text

A company performed $25,905 of services and received $9,000 in cash with the remaining amount to be paid in 60 days with no interest. What would the effect of this transaction on the companys current month-end accounting equation?

Select one:

A. $25,905 increase in Assets; No effect on Liabilities; $25,905 increase in Stockholders Equity

B. $16,905 increase in Assets; No effect on Liabilities; $16,905 increase in Stockholders Equity

C. $25,905 increase in Assets; $25,905 increase in Liabilities; No effect on Stockholders Equity

D. $9,000 increase in Assets; $16,905 decrease in Liabilities; $25,905 increase in Stockholders Equity

• eBook
• Print

Question 20

Not yet answered

Marked out of 1.00

Flag question

Question text

A company paid employee wages of $72,000 for the month. What would the effect of this transaction on the current months accounting equation?

Select one:

A. No effect on Assets; $72,000 decrease in Liabilities; $72,000 increase in Stockholders Equity

B. $72,000 decrease in Assets; No effect on Liabilities; $72,000 decrease in Stockholders Equity

C. $72,000 increase in Assets; $72,000 increase in Liabilities; No effect on Stockholders Equity

D. $72,000 decrease in Assets; $72,000 decrease in Liabilities; No effect on Stockholders Equity

Question 21

Not yet answered

Marked out of 1.00

Flag question

Question text

A company received payment of $10,000 from a customer that had previously received services performed on account. What would the effect of this transaction on the companys current month accounting equation?

Select one:

A. No effect on Assets; No effect on Liabilities; No effect on Stockholders Equity

B. $10,000 increase in Assets; $10,000 increase in Liabilities; No effect on Stockholders Equity

C. No effect on Assets; $10,000 increase in Liabilities; $10,000 decrease in Stockholders Equity

D. $10,000 increase in Assets; No effect on Liabilities; $10,000 increase in Stockholders Equity

• eBook
• Print

Question 22

Not yet answered

Marked out of 1.00

Flag question

Question text

A company received payment of $30,000 from a customer that had previously received services performed on account. What would the effect of this transaction on the companys current month accounting equation?

Select one:

A. $30,000 increase in Assets; No effect on Liabilities; $30,000 increase in Stockholders Equity

B. No effect on Assets; No effect on Liabilities; No effect on Stockholders Equity

C. $30,000 increase in Assets; $30,000 increase in Liabilities; No effect on Stockholders Equity

D. No effect on Assets; $30,000 increase in Liabilities; $30,000 decrease in Stockholders Equity

• eBook
• Print

Question 23

Not yet answered

Marked out of 1.00

Flag question

Question text

Anisha Company had a transaction that caused a $30,000 increase in both assets and liabilities. This transaction could have been a(n):

Select one:

A. Purchase of office equipment for $44,000, paying $14,000 cash and issuing a note payable for the balance

B. Investment of $30,000 cash in the business by the stockholders

C. Repayment of a $30,000 bank loan

D. Purchase of office equipment for $30,000 cash

• eBook
• Print

Question 24

Not yet answered

Marked out of 1.00

Flag question

Question text

A customer received and then paid an $18,000 utility bill from West Haven Natural Gas Company. The journal entry by West Haven Natural Gas Company to record receipt of the payment would include:

Select one:

A. A credit to Utilities Revenue

B. A credit to Accounts Receivable

C. A debit to Accounts Receivable

D. A credit to Accounts Payable

• eBook
• Print

Question 25

Not yet answered

Marked out of 1.00

Flag question

Question text

Stone Circle Company purchased a new car for $135,000 by paying $54,000 cash, and trading in an old car with a recorded net cost and market value of $45,000. They also signed a Note for $36,000. The required journal entry will not:

Select one:

A. Debit New Car for $135,000

B. Debit Notes Payable for $36,000

C. Credit Notes Payable for $36,000

D. Credit Notes Payable for $45,000

• eBook
• Print

Question 26

Answer saved

Marked out of 1.00

Flag question

Question text

Koala Company provided consulting service to a client on January 1, and billed them for $30,000. On February 1, the client made cash payment of $16,000 and signed a note for $14,000 to settle the account. What is Koala Companys journal entry on February 1?

Select one:

A.

Cash		16,000
Accounts Receivable		14,000
	Notes Receivable		30,000

B.

Cash		16,000
Notes Receivable		14,000
	Consulting Revenue		30,000

C.

Accounts Payable		30,000
	Notes Payable		14,000
	Cash		16,000

D.

Cash		16,000
Notes Receivable		14,000
	Accounts Receivable		30,000

• eBook
• Print

Question 27

Not yet answered

Marked out of 1.00

Flag question

Question text

On November 30, Sydney Company had Accounts Receivable of $130,280. During the month of December, the company received total payments of $160,000 from credit customers. The Accounts Receivable on December 31 was $86,320. What was the amount of credit sales during December?

Select one:

A. $ 63,840

B. $373,360

C. $116,040

D. $196,720