Principles of Accounting Unit II assessment

The following transactions for the month of March have been journalized and posted to the proper accounts of a sole proprietorship. March 1 The business received $10,000 cash from the owner of the business, Morris Tharps. The business gave capital to Morris Tharps. March 2 Paid the first month's rent of $1,000.March 3 Purchased equipment by paying $2,000 cash and executing a note payable for $5,000.March 4 Purchased office supplies for $710 cash.March 5 Billed a client for $9,000 of design services completed.March 6 Received $7,600 on account for the services previously recorded. What is the balance in Cash on March 6?

$13,890

The accounts payable account of Waterford Company has the following postings: Calculate the ending balance of the account.

$18,000 credit

A sole proprietorship reported the following transactions for the month of March. The transactions have been journalized and posted to the proper accounts. March 1 The business received $8,000 cash from the owner in exchange for capital.March 2 Paid the first month's rent of $600.March 3 Purchased equipment by paying $1,000 cash and executing a note payable for $3,000.March 4 Purchased office supplies for $600 cash.March 5 Billed a client for $11,000 of design services completed.March 6 Received $9,000 on account for the services previously recorded. What is the balance in Accounts Receivable?

$2,000

?Donaldson's Delivery Company began operations on January 1, 2019. The following Trial Balance was prepared on December 31, 2019. Donaldson's Delivery Service Company Trial Balance December 31, 2019 Account Title Debit Credit Cash $15,500 Accounts Receivable 8,000 Prepaid Rent 2,400 Office Supplies 1,400 Land 25,000 Building 32,000 Equipment 23,000 Accounts Payable $10,400 Unearned Revenue 2,500 Notes Payable 20,000 Donaldson, Capital 57,000 Donaldson, Withdrawals 6,400 Service Revenue 83,900 Salaries Expense 28,000 Rent Expense 18,000 Truck Expense 12,400 Office Expense 1,700 ________ Total $173,800 $173,800 What is the net income for the year ending December 31, 2019?

$23,800

A sole proprietorship has the following transactions: The business received $20,000 cash from the owner in exchange for capital.The business purchased $600 of office supplies on account.The business purchased $3,000 of furniture on account.The business performed services to various clients totaling $11,000 on account.The business paid $3,000 for salaries expense and $4,500 for rent expense.The business paid $600 to a supplier for the office supplies purchased earlier.The business collected $2,000 from one of its clients for services rendered earlier in the month. At the end of the month, all journal entries are posted to the ledger. Accounts Payable will appear as which of the following?

Accounts Payable ______________________________ 600 | 600 | 3,000 _______________|________________ | 3,000 Bal. |___________________

Which of the following sequences states the order in which accounts are listed on a trial balance?

Assets → Liabilities → Equity

Regarding the double-entry system, which of the following statements is FALSE?

Because of technology, the use of the double-entry system of accounting is optional.

A business performs services for $26,000 and collects cash from the customer. Which of the following accounts will be debited?

Cash

A business purchases equipment by paying $7,517 in cash and issuing a note payable of $19,410. Which of the following occurs?

Cash is credited for $7,517, Equipment is debited for $26,927, and Notes Payable is credited for $19,410.

Which of the following is the record holding all the accounts, the changes in those accounts, and their balances?

Ledger

Which one of the following account groups will decrease with a debit?

Liabilities and revenues

A business purchases $3,500 of office supplies for cash. Which of the following sets of ledger accounts reflects the posting of this transaction?

Office Supplies Cash --------|--------- ----------|-------- 3,500 | | 3,500

Which of the following accounts is an asset?

Prepaid expense

A shortened form of the ledger is called a __________.

T-account

Which of the following represents the correct flow of accounting data?

Transactions occur; source documents are prepared; transactions are analyzed; transactions are journalized and posted

A customer's promise to pay in the future for services or goods sold is called a(n) __________.

accounts receivable

A listing of all accounts in numerical order is called a(n) __________.

chart of accounts

The ability of a company to pay its debts can be evaluated by using the __________.

debt ratio

For owner, capital, the category of account and its normal balance is __________.

equity and a credit balance

Accounts payable is a(n) __________ account and has a normal __________ balance.

liability; credit