Chapter 2 quiz

The following transactions occurred during July: Received $920 cash for services provided to a customer during July. Issued common stock for $2,400 cash. Received $770 from a customer in partial payment of his account receivable which arose from sales in June. Provided services to a customer on credit, $395. Borrowed $6,200 from the bank by signing a promissory note. Received $1,270 cash from a customer for services to be performed next year. What was the amount of revenue for July?

$1315

Marco Nelson opened a frame shop and completed these transactions: Marco started the shop by investing $41,300 cash and equipment valued at $19,300 in exchange for common stock. Purchased $200 of office supplies on credit. Paid $2,500 cash for the receptionist's salary. Sold a custom frame service and collected $5,800 cash on the sale. Completed framing services and billed the client $330. What was the balance of the cash account after these transactions were posted?

$44,600

Centurion Co. had the following accounts and balances at December 31: AccountDebit CreditCash$12,100 Accounts Receivable 2,420 Prepaid Insurance 3,240 Supplies 1,420 Accounts Payable $6,050 Common Stock 6,160 Service Revenue 9,100 Salaries Expense 710 Utilities Expense 1,420 Totals$21,310 $21,310 Using the information in the table, calculate the company's reported net income for the period

$6,970.

Jennings Co. has total assets of $455.0 million. Its total liabilities are $125.5 million. Its equity is $330 million. Calculate the debt ratio. (Round your answer to 1 decimal place.)

27.6%

On April 30, Gomez Services had an Accounts Receivable balance of $23,500. During the month of May, total credits to Accounts Receivable were $58,000 from customer payments. The May 31 Accounts Receivable balance was $18,000. What was the amount of credit sales during May?

52,500

A debit is used to record an increase in all of the following accounts except:

Accounts Payable

A company's list of accounts and the identification numbers assigned to each account is called a:

Chart of accounts

A law firm billed a client $2,600 for work performed in the current month. Which of the following general journal entries will the firm make to record this transaction?

Debit Accounts Receivable, $2,600; credit Legal Fees Revenue, $2,600.

Alicia Tax Services paid $590 to settle an account payable. Which of the following general journal entries will Alicia Tax Services make to record this transaction?

Debit Accounts payable, $590; credit Cash, $590.

Victor Cruz contributed $73,000 in cash and land worth $136,000 to open a new business, VC Consulting, in exchange for common stock. Which of the following general journal entries will VC Consulting make to record this transaction?

Debit Cash $73,000; Debit Land $136,000; Common Stock, $209,000.

A law firm collected $3,000 in advance for work to be performed in three months. Which of the following general journal entries will the firm make to record this transaction?

Debit Cash, $3,000; credit Unearned Legal Fees Revenue, $3,000.

Green Cleaning purchased $670 of office supplies on credit. The company's policy is to initially record prepaid and unearned items in balance sheet accounts. Which of the following general journal entries will Green Cleaning make to record this transaction?

Debit Office supplies, $670; credit Accounts payable, $670

A law firm collected $3,400 on account for work performed in the previous month. Which of the following general journal entries will the firm make to record this collection of cash?

Debit cash, $3,400; credit accounts receivable, $3,400.

Edison Consulting received a $450 utilities bill and immediately paid it. Edison's general journal entry to record this transaction will include a

Debit to utilities expense for $450

A debit

Is the left-hand side of a T-account

The record of all accounts and their balances used by a business is called a

Ledger (or General Ledger).

Unearned revenues are generally

Liabilities created when a customer pays in advance for products or services before the revenue is earned

A company's written promise to pay (in the form of a promissory note) a future amount is a(n)

Note payable

Identify the statement below that is incorrect.

The normal balance of an expense account is a credit.

Identify the account below that is classified as a liability in a company's chart of accounts:

Unearned Revenue

Identify the account below that impacts the equity of a business:

Utilities Expense

GreenLawn Co. provides landscaping services to clients. On May 1, a customer paid GreenLawn $80,000 for 6-months services in advance. GreenLawn's general journal entry to record this transaction will include a

credit to unearned revenue for $80,000

Matthew Martin, the sole stockholder of Innovation Consulting, started the business by investing $57,000 cash in exchange for common stock. Identify the general journal entry below that Innovation Consulting will make to record the transaction.

debit cash, credit common stock

Specter Consulting purchased $7,600 of supplies and paid cash immediately. Which of the following general journal entries will Specter Consulting make to record this transaction? Assume the company's policy is to initially record prepaid and unearned items in balance sheet accounts

debit supplies, credit cash

Jose Consulting paid $540 cash for utilities for the current month. Determine the general journal entry that Jose Consulting will make to record this transaction.

debit utilities, credit cash