The company has a beginning cash balance of $7,000. Using the following information, calculate the ending balance of cash:

-Note receivable collected by the bank = $5,000 -Checks outstanding = $8,000 -Bank service fees = $1,000 -Non-sufficient funds (NSF) checks = $2,000 -Deposits Outstanding = $11,000

I know the anwer is 9000. Explain it!!!!!

Suppose supplies at the beginning of the year equal $1,200. During the year, an additional $5,400 of supplies is purchased. At the end of the year, $1,400 of supplies remains. The adjusting entry for supplies would include:

	A.	Credit Supplies Payable for $5,200
	B.	Debit Supplies for $5,400
	C.	Debit Supplies Expense for $5,200
	D.	Debit Supplies Expense for $5,600
	E.	Credit Supplies Expense for $5,600

Why this question is not A?

Which of the following transactions would cause an increase in both the assets and stockholders equity of a company?

A.

The purchase of supplies on account from a vendor

B.

Prepaying for next years rent

C.

Purchase of land with cash obtained from a bank loan

D.

Collection of an account receivable which was the result of services provided on account in a previous period

E.

Services provided to a customer on account

Explain D.

On May 1, 2012, Reds Basket Company purchased a one-year insurance policy for $12,000 ($1,000 per month). What is the amount of insurance expense in 2012 using accrual-basis versus cash-basis accounting?

	A.	Accrual-basis = $6,000; Cash-basis = $6,000
	B.	Accrual-basis = $8,000; Cash-basis = $12,000
	C.	Accrual-basis = $0; Cash-basis = $12,000
	D.	Accrual-basis = $4,000; Cash-basis = $0
	E.	Accrual-basis = $12,000; Cash-basis = $8,000 Explain why the Accrual is 8000