The following entry is taken from the journal of a merchandising company: Account Title Cost of Goods Sold Merchandise Inventory Debit Credit 6,000 6,000 What is the effect of this entry on the company's financial statements? Multiple Choice Assets decrease and stockholders' equity increases. Assets and stockholders' equity decrease. Assets and stockholders' equity increase. Assets and liabilities increase. 13 Vargas Company purchased a computer for $7,000 on January 1, Year 1. The computer is estimated to have a 5-year useful life and a $2,500 salvage value. What adjusting entry would Vargas record on December 31, Year 1 to recognize expense related to use of the computer? Multiple Choice 00:51:44 M Graw Depreciation Expense 1,400 Accumulated Depreciation 1,400 Accumulated Depreciation Depreciation Expense 900 900 Depreciation Expense Computer 900 900 Depreciation Expense Accumulated Depreciation 900 900 The following account balances were taken from the adjusted trial balance of Kendall Company Revenues Operating Expenses Dividends $23,300 15,300 Retained Earnings 4,800 17,300 What is the Retained Earnings account balance that will be included on the post-closing trial balance? Multiple Choice $25,300. $20,500. $3,200. $8,000. < Previ 14 of 30 Next > Warren Company began the accounting period with a $30,000 debit balance in its accounts receivable account. During the accounting period, the company recorded revenue on account amounting to $72,000. The accounts receivable account at the end of the accounting period contained a $15,000 debit balance. Based on this information, what is the amount of cash collected from customers during the period? Multiple Choice $87,000 $63.000 $27,000 $75,000 10 A transaction has been recorded in the T-accounts of Gibbs Company as follows: Cash Debit Credit 1,500 Unearned Revenue Debit Credit 1,500 Which of the following could be an explanation for this transaction? Multiple Choice Gibbs has received cash for services to be provided in the future. Gibbs has completed services for which they had earlier received cash in advance. Cash has been paid out to a company that will provide future services to Gibbs Company Gibbs has provided services to a customer on account.