Acct Ch3 quiz
An accountant has debited an asset account for $920 and credited a liability account for $460. What can be done to complete the recording of the transaction?
Debit a stockholders' equity account for $460. ***Credit a different asset account for $460. Debit another asset account for $460. Nothing further must be done.
Which one of the following represents the expanded basic accounting equation?
Assets = Liabilities + Common Stock + Dividends - Revenue - Expenses ***Assets + Dividends + Expenses = Liabilities + Common Stock + Revenues Assets - Liabilities - Dividends = Common Stock + Revenues - Expenses Assets = Revenues + Expenses - Liabilities
Sheffield Corp. began the year with $133600 in its Common Stock account and a debit balance in Retained Earnings of $57200. During the year, the company earned net income of $28600 and declared and paid $9500 of dividends. In addition, the company sold additional common stock amounting to $35000. Based on this information, what should the transaction analysis show for the ending total of all stockholders' equity accounts?
$174900 $263900 **$130500 $244900
At September 1, 2017, Bonita Industries reported a cash balance of $123200. During the month, Bonita collected cash of $52800 and made disbursements of $88000. At September 30, 2017, the cash balance is
$176000 debit. ***$88000 debit. $88000 credit. $35200 credit.
Nash's Trading Post, LLC showed the following balances at the end of its first year: Cash $8140 Prepaid insurance 370 Accounts receivable 1850 Accounts payable 1480 Notes payable 2220 Common stock 3700 Dividends 370 Revenues 16280 Expenses 9250 What amount did Nash's Trading Post, LLC show as total credits?
$23680 $23310 **$24050 $24420
Vaughn Manufacturing showed the following balances at the end of its first year: Cash $14280 Prepaid insurance 710 Accounts receivable 3570 Accounts payable 2860 Notes payable 4280 Common stock 5510 Dividends 710 Revenues 29580 Expenses 17850 What amount did Vaughn Manufacturing show as total credits?
$41510 ***$42230 $42940 $43660
When a service has been performed, but no cash has been received, which of the following statements is true?
**The entry includes a debit to accounts receivable. No journal entry is made. The entry includes a debit to accounts payable. The entry includes a credit to unearned revenue.
Which of the following accounts is increased with a credit?
Dividends Supplies expense ***Sales Revenue Supplies
Which of the following journal entries is recorded correctly and in the basic format?
Salaries and Wages Expense 640 Advertising Expense 1100 Cash 1740
Equipment costing $24800 is purchased by paying $6200 cash and signing a note payable for the remainder. The journal entry should include a
credit to Notes Receivable. credit to Equipment. ***credit to Notes Payable. debit to Cash.
When a company receives a utility bill but will not pay it right away, it should
debit Utilities Expense and credit Accounts Receivable. make no entry until the bill is paid. ***debit Utilities Expense and credit Accounts Payable. debit Accounts Payable and credit Utilities Expense.
When a company has performed a service but has not yet received payment, it
debits revenue from services and credits accounts payable. **debits accounts receivable and credits service revenue. debits revenue from services and credits accounts receivable. makes no entry until the cash is received.
A company that receives money in advance of performing a service
debits unearned fees and credits accounts payable. ***debits cash and credits unearned service revenue. debits cash and credits accounts receivable. debits cash and credits prepaid services.
After transaction information has been recorded in the journal, it is transferred to the
income statement. trial balance. general journal. **ledger.
The Dividends account
is not a proper subdivision of stockholders' equity. appears on the income statement along with the expenses of the business. must show transactions every accounting period. ***is increased with debits and decreased with credits.