ACG 2071 UNF Chapter 3 Adaptive Assignment

On December 30, Mega Industries pays employee salaries of $50,000 in cash. When posting the journal entries related to this transaction, Mega's accounting staff credits Cash for $50,000 and credits Accounts Payable for $50,000. Which of the following statements best describes the results of this posting? a) In Mega's general ledger, the ending balance for the Cash account will be too high, while the ending balance for the Accounts Payable account will be too low. b) In Mega's general ledger, the ending balance for the Cash account will be too low, while the ending balance for the Accounts Payable account will be too high. c) In Mega's general ledger, the ending balance for the Cash account will be correct. However, the ending balance for the Accounts Payable account will be too low and the ending balance for the Salaries Expense account will be too high. d) In Mega's general ledger, the ending balance for the Cash account will be correct. However, the ending balance for the Accounts Payable account will be too high and the ending balance for the Salaries Expense account will be too low.

) In Mega's general ledger, the ending balance for the Cash account will be correct. However, the ending balance for the Accounts Payable account will be too high and the ending balance for the Salaries Expense account will be too low.

Ledger

The ledger provides the balance in each of the accounts as well as keeps track of changes in these balances.

Paulson Oil account balances at January 31st include: Cash $70,000, Accounts Receivable $100,000, Common Stock $120,000 and Accounts Payable $50,000. During the month of February, the company collected $25,000 of its account receivable and paid $10,000 of its accounts payable. What is Paulson's cash balance on their February 28th trial balance? a) $85,000.00 b) $65,000 c) $60,000.00 d) $95,000.00

a) $85,000.00

Which of the following accounting entries would you MOST expect to accompany a $2,500 increase in cash, and why? a) A $2,500 increase in unearned service revenue, because unearned service revenue is considered a liability until the service is actually performed. b) A $2,500 increase in notes payable, because this increase in stockholders' equity would need to be offset by a corresponding increase in assets. c) A $2,500 decrease in notes payable, because this reduction in liabilities would need to be offset by a corresponding increase in assets. d A $2,500 decrease in unearned service revenue, because unearned service revenue is considered an asset no matter when it is received.

a) A $2,500 increase in unearned service revenue, because unearned service revenue is considered a liability until the service is actually performed.

Which of the following would cause the Potter company's May 31st trial balance to not balance? a) Only the credit portion of a journal was posted. b) The cash account was debited instead of the utilities expense account. c) A transaction was not journalized. d) A journal entry was not posted.

a) Only the credit portion of a journal was posted.

Although possible, few businesses a) enter transactions directly into the accounts. b) examine source documents. c) use the double-entry bookkeeping method. d) prepare financial statements.

a) enter transactions directly into the accounts

For September 30th, Cathy's Catering's trial balance has a debit column totaling $110. The credit column totals $128, which of the following would explain this difference? a) Accounts payable balance of $18 listed in the trial balance as $81. b) Accounts receivable balance of $75 listed in the trial balance as $57. c) Notes payable balance of $25 listed in the trial balance $52. d) Cash balance of $51 listed in the trial balance $15.

b) Accounts receivable balance of $75 listed in the trial balance as $57.

Geyer Company has the following account balances: Accounts Receivable: $40, Accounts Payable: $45, Cash: $70 and Notes Payable: $65. If the Notes Payable balance is listed as $56 in the trial balance, what impact will this have on the accounts? a) There will be no impact on the accounts. b) The total debit balance will be $9 less than the total credit balance. c) The total credit balance will be $9 less than the total debit balance. d) The total credit balance will be $9 more than the total debit balance.

c) The total credit balance will be $9 less than the total debit balance

A firm would record which of the following accounting entries after purchasing $1,750 of supplies on account? a) a $1,750 decrease to Cash, along with a $1,750 decrease to Retained Earnings b) a $1,750 decrease to Supplies, along with a $1,750 increase to Notes Payable c) a $1,750 increase to Supplies, along with a $1,750 increase to Accounts Payable d) a $1,750 increase to Supplies, along with a $1,750 decrease to Cash

c) a $1,750 increase to Supplies, along with a $1,750 increase to Accounts Payable

During October, Blue Sky Inc. correctly enters a $10,000 credit to its Revenues account. What conclusions can be made based on this accounting entry? a) This entry indicates that Blue Sky recognized $10,000 in revenue in October, which likely means that the firm's net income and ending retained earnings increased while its stockholders' equity decreased. b) This entry indicates that Blue Sky lost $10,000 in revenue in October, which likely means that the firm's net income and ending retained earnings decreased while its stockholders' equity increased. c) This entry indicates that Blue Sky lost $10,000 in revenue in October, which likely means that the firm's net income, ending retained earnings, and stockholders' equity all decreased. d) This entry indicates that Blue Sky recognized $10,000 in revenue in October, which likely means that the firm's net income, ending retained earnings, and stockholders' equity all increased.

d) This entry indicates that Blue Sky recognized $10,000 in revenue in October, which likely means that the firm's net income, ending retained earnings, and stockholders' equity all increased.

Cash and Accounts Receivable are two asset accounts. In a service company, under what circumstances will Cash be debited and Accounts Receivable be credited? a) When a customer uses credit to purchase services in order to pay for them later. b) When cash is received from customers at the time of service. c) When the company pays for previously purchased supplies. d) When cash is received from customers for services provided last month.

d) When cash is received from customers for services provided last month.

Receipts of cash in advance from customers are a) treated as revenue at the time of receipt because the company has access to the cash. b) not treated as revenue at the time of receipt because the amount of revenue cannot be adequately determined until the company completes the work. c) treated as revenue at the time of receipt because the intent of the company is to perform the work and the customer is confident that the services will be completed. d) not treated as revenue at the time of receipt because revenue cannot be recognized until the work is performed.

d) not treated as revenue at the time of receipt because revenue cannot be recognized until the work is performed.

Within the past two weeks, Fanny's Flowers has completed each of the activities listed below. Of these activities, which should be recorded in the company's accounting records? a)fired one full-time employee b)hired two part-time employees c) entered into contract negotiations with a new floral wholesaler d) purchased a new walk-in cooler

d) purchased a new walk-in cooler