ACC 211 Ch.2 MCQ

The following transactions occurred during July: Received $920 cash for services provided to a customer during July. Collected $2,400 cash for services previously completed in June. 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?

$1,315.

A company opened on January 1 of the current year. During January, the following transactions occurred and were recorded in the company's books: The company received $14,400 cash for services provided. The company paid $3,000 cash for an insurance policy covering the next 24 months. The company received $6,600 cash for services provided. The company purchased $7,100 of office equipment on credit. The company provided $3,650 of services to customers on account. The company paid cash of $2,400 for monthly rent. The company paid $4,000 on the office equipment purchased in transaction #5 above. Paid $365 cash for January utilities. Based on this information, the balance in the cash account at the end of January would be:

$11,235.

During March, the following transactions occurred: The company paid $3,600 cash to rent office space for the month of March. The company received $32,000 cash for repair services provided during March. The company paid $7,800 for salaries for the month of March. The company provided $4,600 of services to customers on account. The company paid cash of $2,100 for utilities for the month of March. The company received $4,700 cash in advance from a customer for repair services to be provided in April. The company purchased $6,600 of land for cash. Based on this information, net income for March would be:

$23,100.

At the end of its first month of operations, a company reported Revenue of $43,900. It also reported Wages Expense, $8,300; Rent Expense, $7,300; and Utilities Expense, $2,150. Calculate net income reported on the income statement at month-end.

$26,150

During the month of February, Rubio Services had cash receipts of $7,800 and cash payments of $9,200. The February 28 cash balance was $2,400. What was the February 1 beginning cash balance?

$3,800.

A $35 credit to Revenue was posted as a $350 credit. By what amount is the Revenue account in error?

$315 overstated.

Marco Nelson opened a frame shop and completed these transactions: Sold custom frames and immediately collected $41,000 cash for the sale. Purchased $170 of office supplies on credit. Paid $2,200 cash for the receptionist's salary. Sold a custom frame service and collected $5,500 cash on the sale. Completed framing services and billed the client $300. What was the balance of the cash account after these transactions were posted?

$44,300.

At the beginning of January of the current year, Sorrel Company's ledger reflected a normal balance of $57,000 for accounts receivable. During January, the company collected $15,800 from customers on account and provided additional services to customers on account totaling $13,000. Additionally, during January one customer paid Mikey $5,500 for services to be provided in the future. At the end of January, the balance in the accounts receivable account should be:

$54,200.

On April 30, Gomez Services had an Accounts Receivable balance of $27,900. During the month of May, total credits to Accounts Receivable were $62,800 from customer payments. The May 31 Accounts Receivable balance was $22,000. What was the amount of credit sales during May?

$56,900.

During the month of March, Harley's Computer Services made purchases on account totaling $44,100. Also, during the month of March, Harley was paid $8,900 by a customer for services to be provided in the future and paid $37,200 of cash on its accounts payable balance. If the balance in the accounts payable account at the beginning of March was $77,600, what is the balance in accounts payable at the end of March?

$84,500.

Sanders Company has total assets of $409 million. Its total liabilities are $112.1 million, and its equity is $296.9 million. Calculate its debt ratio.

27.4%.

At the beginning of the current year, Snell Company's total assets were $250,200 and its total liabilities were $173,100. During the year, the company reported total revenues of $93,000 and total expenses of $81,000. There were no other changes in total equity during the year, and total assets at the end of the year were $262,200. The company's debt ratio at the end of the current year is:

66.0%.

At the end of the current year, James Company reported total liabilities of $318,000 and total equity of $118,000. The company's debt ratio was:

72.9%.

On May 31, the Cash account of Tesla had a normal balance of $5,700. During May, the account was debited for a total of $12,900 and credited for a total of $12,200. What was the balance in the Cash account at the beginning of May?

A $5,000 debit balance.

On January 1 of the current year, Jimmy's Sandwich Company reported total equity of $129,000. During the current year, total revenues were $108,000, while total expenses were $117,500. No other changes in equity occurred during the year. The change in total equity during the year was:

A decrease of $9,500.

GreenLawn Company provides landscaping services to clients. On May 1, a customer paid GreenLawn $72,000 for 6-months services in advance. GreenLawn's general journal entry to record this transaction will include a:

Credit to Unearned Revenue for $72,000.

A law firm billed a client $3,300 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, $3,300; credit Services Revenue, $3,300.

Alicia Tax Services paid $580 to settle an account payable. Which of the following general journal entries will Alicia Tax Services make to record this transaction?

Debit Accounts payable, $580; credit Cash, $580.

A company receives $9,800 cash for performing landscaping services. Which of the following general journal entries will the company make to record this transaction?

Debit Cash $9,800; credit Landscaping Revenue, $9,800.

A law firm collected $2,300 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, $2,300; credit Unearned Revenue, $2,300.

A law firm collected $2,900 on account for work performed and billed in the previous month. Which of the following general journal entries will the firm make to record this collection of cash?

Debit Cash, $2,900; credit Accounts Receivable, $2,900.

Green Cleaning purchased $660 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, $660; credit Accounts payable, $660.

A company purchased $21,900 of supplies on credit. The journal entry to record this transaction consists of a:

Debit Supplies for $21,900; credit Accounts Payable for $21,900.

Edison Consulting received a $340 utilities bill and immediately paid it. Edison's general journal entry to record this transaction will include a:

Debit to Utilities Expense for $340.

A $250 credit to Supplies was credited to Revenue by mistake. By what amounts are the accounts under- or overstated as a result of this error?

Supplies, overstated $250; Revenue, overstated $250.

At year-end, a trial balance showed total credits exceeding total debits by $6,100. This difference could have been caused by:

The balance of $6,880 in the Office Equipment account being mistakenly entered on the trial balance as a debit of $780.

The credit purchase of a new oven for... The credit purchase of a new oven for $6,700 was posted to Kitchen Equipment as a $6,700 debit and to Accounts Payable as a $6,700 debit. What effect would this error have on the trial balance?

The total of the Debit column of the trial balance will exceed the total of the Credit column by $13,400.