Acctg Test 1 Prep Set #2
32. Which one of the following items appears on a balance sheet? a. Retained Earnings b. Sales Revenue c. Utilities Expense d. Dividends
a. Retained Earnings
82. Income statement accounts are also known as which of the following? a. Temporary accounts b. Real accounts c. Permanent accounts d. Asset accounts
a. Temporary accounts
19. Which of the following is not a form of a business entity: a. Sole proprietorship b. Partnership c. Cooperative d. Corporation
c. Cooperative
Several items from the financial statements of Fireside Tires are listed. Use the following choices to identify the type of account for each item listed. (Choices may be used more than once.) a. Assets b. Liabilities c. Revenues d. Expenses e. Stockholders' Equity (SHE) 1. Inventory 2. Net sales 3. Unearned revenue 4. Interest Income 5. Accounts receivable 6. Common stock 7. Long-term notes payable 8. Cash 9. Retained earnings
1.A) Asset 2.C) Revenue 3.B) Liabilities 4.C) Revenue 5.A) Asset 6.E) SHE 7.B) Liabilities 8.A) Asset 9. E) SHE
39. Refer to Jetson Corp. What was the retained earnings balance at December 31, 2009? a. $ 250,000 b. $2,500,000 c. $1,500,000 d. $ 350,000
a. $ 250,000
25. You are a potential creditor and are concerned that a particular company you are ready to give a loan to might have too much debt. Which financial statement would provide you information needed in order to evaluate your concern? a.. Balance Sheet b. Income Statement c. Statement of Retained Earnings d. Statement of Public Accounting
a.. Balance Sheet
Peck Company The Peck Company reported the following items on its financial statements for the year ending December 31, 2010. Sales $1,560,000 Cost of Sales $1,400,000 Selling, general and Other Expense 30,000 administrative expense 40,000 Dividends 10,000 Income Tax Expense 25,000 37. Refer to Peck Company. The Income Statement for Peck will report Net Income for the current year in the amount of a. $ 45,000 b. $ 65,000 c. $ 85,000 d. $465,000
b. $ 65,000
22. "Revenues" are best described as: a. decreases in assets resulting from the sale of goods or services. b. increases in assets resulting from the sale of products or services. c. assets used or consumed in the sale of products or services. d. an increase in the financing activities.
b. increases in assets resulting from the sale of products or services.
Pacific Corporation Inventory $380,000 Accounts Receivable $190,000 Land 290,000 Accounts Payable 180,000 Cash 129,000 Unearned Revenue 110,000 Prepaid Rent 33,000 Common Stock 312,000 Retained Earnings 220,000 Long-term Notes Payable 200,000 43. Refer to Pacific Corporation. Calculate the total amount of current assets for Pacific Corporation. a. $ 842,000 b. $1,022,000 c. $ 732,000 d. $ 842,000
c. $ 732,000
58. All of the following accounts have normal debit balances except a. Accounts Receivable b. Dividends c. Supplies Expense d. Service Revenue
d. Service Revenue
30. Which of the following best describes the term "retained earnings" of a company? a. The amount of total profits earned by a company since it began operations. b. The amount of claim that the owners have on the assets of the company. c. The future economic resources of a company. d. The accumulated net income of a company that has not been distributed to owners in the form of dividends.
d. The accumulated net income of a company that has not been distributed to owners in the form of dividends.
40. Energy Advisors had the following balance sheet amounts at the beginning of the year: Total assets $650,000 Total stockholder's equity 250,000 During the year, total assets increased by $350,000 and total liabilities increased by $100,000. The company also paid $300,000 in dividends. No other transactions occurred except revenues and expenses. How much is net income for the year? a. $750,000 b. $650,000 c. $500,000 d. $550,000
d. $550,000
57. The chronological record in which transactions are initially recorded in the order in which they occur is called a(n) a. T-account b. Chart of Accounts c. Trial Balance d. Journal
d. Journal
79. Failure to record accrued interest expense would result in which of the following? a. Assets being overstated b. Assets being understated c. Liabilities being overstated d. Liabilities being understated
d. Liabilities being understated
Bravada Enterprises Transactions for Bravada Enterprises are provided below. Sept. 1 Bills are sent to clients for services provided in August in the amount of $800. Sept. 9 Barlue Furnishings delivers $1,060 of office furniture and $160 of office supplies to Bravada, leaving an invoice for $1,220. Sept. 15 Payment is made to Barlue for the office furniture and supplies delivered on September 9. Sept. 23 A $430 bill for advertising for the month of September is received. It will be paid on its due date in October. Sept. 30 Salaries of $850 are paid to employees. 61. Refer to the transactions that occurred at Bravada Enterprises. The journal entry to record the September 15th transaction will include a debit of $1,220 to a. Salary Expense b. Salaries Payable c. Prepaid Expenses d. Accounts Payable
d. Accounts Payable
24. Which of the following best describes the term "expenses"? a. The cost of assets used in the investing activities of a business. b. The amount of interest or claim that the owners have in the business. c. The future economic resources of a business entity. d. The cost of assets used in the operations of a business.
d. The cost of assets used in the operations of a business.
Several accounts from the financial records of Wynn Linders, Inc. are listed. Indicate its normal balance and the debit/credit rules for increasing the account. (Choices may be used more than once.) a. Debit b. Credit 10. Income Tax Expense 11. Accounts Payable 12. Retained Earnings 13. Prepaid Insurance 14. Service Revenues 15. Notes Payable 16. Common Stock 17. Dividends 18. Unearned Revenues
10. Debit 11. Credit 12. Credit 13. Debit 14. Credit 15. Credit 16. Credit 17. Debit 18. Credit
IPOD CORP IPOD Corporations' end-of-year Balance Sheet consisted of the following amounts. Cash $ 150,000 Accounts Receivable $500,000 Property, plant & equipment 700,000 Long-term debt 400,000 Capital stock 1,000,000 Accounts payable 200,000 Retained earnings ? Inventory 350,000 36. Refer to IPOD Corp. What is IPOD 's Retained Earnings balance at the end of the current year? a. $ 100,000 b. $1,100,000 c. $1,600,000 d. $1,700,000
a. $ 100,000
76. On October 1, 2010, Glover Company borrowed $200,000 on a two-year, 12% note, with interest and principal to be paid at maturity. How much interest expense will Glover report on its income statement for the year ending December 31, 2010? a. $ 6,000 b. $18,000 c. $24,000 d. $12,000
a. $ 6,000
29. On January 1, 2009, Blackstone Company reported assets of $1,000,000 and liabilities of $600,000. During 2009 assets decreased by $200,000 and Stockholders' Equity decreased $250,000. What is the amount of Stockholder's Equity at December 31, 2009. a. $650,000 b. $150,000 c. $400,000 d. $800,000
b. $150,000
Wing Company Cash $234,000 Accounts Payable $ 97,000 Inventories 121,000 Notes Payable (due 2018) 211,000 Land 453,000 Accounts Receivable 46,000 41. Refer to Wing Company. Calculate Current Assets. a. $498,000 b. $401,000 c. $854,000 d. $709,000
b. $401,000
54. Lang Industries received payments from customers who had been billed earlier for services provided. What effect does this transaction have on Lang's accounting equation? a. Assets and liabilities increase. b. Assets and stockholders' equity increase. c. Assets and liabilities decrease. d. There is no effect on the accounting equation, as one asset account increases while another asset account decreases.
d. There is no effect on the accounting equation, as one asset account increases while another asset account decreases.
77. Wolf Industries plant operates five days per week with a daily payroll of $40,000. Employees are paid every Saturday for the work week just completed (Monday through Friday). The last day of the month is Wednesday, May 31. The correct adjusting entry at May 31 is a. Wages Expense 40,000 Wages Payable 40,000 b. Wages Payable 40,000 Cash 40,000 c. Wages Expense 120,000 Cash 120,000 d. Wages Expense 120,000 Wages Payable 120,000
d. Wages Expense 120,000 Wages Payable 120,000
74. Timberland Company received advance payments from customers during 2010 of $240,000. At December 31, 2010, $20,000 of the advance payments still had not been earned. After the adjustments are recorded and posted at December 31, 2010, the balances in the Unearned Service Revenue and Service Revenue accounts will be: Unearned Service Revenue Service Revenue a. $ 20,000 $220,000 b. $220,000 $ 20,000 c. $ 0 $240,000 d. $240,000 $ 0
a. $ 20,000 $220,000
Wing Company Cash $234,000 Accounts Payable $ 97,000 Inventories 121,000 Notes Payable (due 2018) 211,000 Land 453,000 Accounts Receivable 46,000 42. Refer to Wing Company. Calculate Current Liabilities. a. $ 97,000 b. $211,000 c. $354,000 d. $143,000
a. $ 97,000
73. Sharp Inc. purchased equipment at a cost of $500,000 in January, 2001. As of January 1, 2010, depreciation of $225,000 had been recorded on this asset. Depreciation expense for 2010 is $25,000. After the adjustments are recorded and posted at December 31, 2010, what are the balances for the Equipment and Accumulated Depreciation? Equipment Accumulated Depreciation a. $500,000 $250,000 b. $500,000 $ -0- c. $275,000 $ 25,000 d. $250,000 $250,000
a. $500,000 $250,000
23. Which one of the following events involves a liability for a business? a. An obligation to pay for goods purchased on credit from a supplier b. Inventories purchased for cash c. Amounts invested by the owners d. Stock sold to the general public
a. An obligation to pay for goods purchased on credit from a supplier
51. The payment of employee salaries has what effect on the accounting equation? a. Assets and stockholders' equity decrease b. Liabilities and stockholders' equity decrease c. Assets decrease and liabilities increase d. Assets increase and liabilities decrease
a. Assets and stockholders' equity decrease
75. What happens to the accounting equation when the adjustment for depreciation expense for the accounting period is recorded? a. Assets decrease and stockholders' equity decreases b. Assets increase and stockholders' equity increases c. Assets decrease and liabilities decrease d. Liabilities increase and stockholders' equity decreases
a. Assets decrease and stockholders' equity decreases
27. Which financial statement would you refer to in order to determine how much resources (assets) the company owned? a. Balance Sheet b. Statement of Retained Earnings c. Income Statement d. Statement of Public Accounting
a. Balance Sheet
33. Which one of the following financial statements reports an entity's financial position at a specific date? a. Balance Sheet b. Statement of Retained Earnings c. Income Statement d. Both the Income Statement and the Balance Sheet
a. Balance Sheet
Hesson Properties, Inc. Transactions for Hesson Properties are provided below. Nov. 1 Hesson purchases two new maintenance carts on credit at $375 each. The carts are added to Hesson's property, plant, and equipment records. Payment is due in 30 days. Nov. 8 Hesson accepts $75 of advance payments from customers for services to be provided in December. Nov. 15 Hesson receives the utility bill for $150. Payment is due in 30 days. Nov. 20 Customers are billed $750 by Hesson for property services. Payment is due from the customers in 30 days. Nov. 30 Hesson received $500 from customers who were billed on November 20th. 69. Refer to the transactions that occurred at Hesson Properties. Based on these transactions, what is the journal entry to record the November 30th transaction? a. Cash 500 Accounts Receivable 500 b. Accounts Receivable 500 Service Revenue 500 c. Accounts Payable 500 Cash 500 d. Service Revenue 500 Cash 500
a. Cash 500 Accounts Receivable 500
Hesson Properties, Inc. Transactions for Hesson Properties are provided below. Nov. 1 Hesson purchases two new maintenance carts on credit at $375 each. The carts are added to Hesson's property, plant, and equipment records. Payment is due in 30 days. Nov. 8 Hesson accepts $75 of advance payments from customers for services to be provided in December. Nov. 15 Hesson receives the utility bill for $150. Payment is due in 30 days. Nov. 20 Customers are billed $750 by Hesson for property services. Payment is due from the customers in 30 days. Nov. 30 Hesson received $500 from customers who were billed on November 20th. 65. Refer to the transactions that occurred at Hesson Properties. The journal entry to record the November 1st transaction is a. Equipment 750 Accounts Payable 750 b. Equipment 750 Cash 750 c. Cash 750 Equipment 750 d. Accounts Payable 750 Equipment 750
a. Equipment 750 Accounts Payable 750
21. Businesses engage in which of the following three main activity categories? a. Financing, Investing, Operating b. Cash, Credit, Noncash c. Financing, Credit, Operating d. Financing, Management, Operating
a. Financing, Investing, Operating
31. Which of the following are Noncurrent assets? a. Machinery and equipment b. Accounts receivable c. Inventories d. Unearned revenues
a. Machinery and equipment
80. Failure to record the earned portion of unearned revenue would result in which of the following? a. Net income being understated b. No effect on total liabilities c. Stockholders' equity being overstated d. Total assets being understated
a. Net income being understated
49. The going concern assumption is concerned with a. The company's ability to continue operations long enough to carry out its existing obligations. b. Any information that is capable of influencing the decisions of anyone using the financial statements. c. Measuring ongoing business activities at their exchange price at the time of the initial external transaction. d. offsetting management's natural optimism by providing a prudent approach to uncertainty in financial statement items.
a. The company's ability to continue operations long enough to carry out its existing obligations.
72. Andre's Tennis Club sells season memberships for $1,200 each. During January of 2010, 50 season memberships were sold. As of March 31, 2010, only $30,000 of season membership fees had been collected from customers. The tennis season runs for 6 months starting April 01, 2010. Which one of the following is an amount reported on the Balance Sheet dated March 31, 2010? a. Unearned tennis membership revenue of $30,000 b. Unearned tennis membership revenue of $60,000 c. Accounts Receivable $60,000 d. Tennis membership revenue of $30,000
a. Unearned tennis membership revenue of $30,000
78. The asset account, Supplies, has a balance of $10,000 on January 1. During January, $22,000 of supplies were purchased on account and the liability was appropriately recorded. A count of supplies at the end of January indicates a balance of $2,000. What adjusting entry is necessary at January 31? a. Supplies Expense 22,000 Supplies 20,000 Accounts Payable 2,000 b. Supplies Expense 24,000 Supplies 24,000 c. Supplies Expense 30,000 Supplies 30,000 d. Supplies 22,000 Accounts Payable 22,000
c. Supplies Expense 30,000 Supplies 30,000
Hesson Properties, Inc. Transactions for Hesson Properties are provided below. Nov. 1 Hesson purchases two new maintenance carts on credit at $375 each. The carts are added to Hesson's property, plant, and equipment records. Payment is due in 30 days. Nov. 8 Hesson accepts $75 of advance payments from customers for services to be provided in December. Nov. 15 Hesson receives the utility bill for $150. Payment is due in 30 days. Nov. 20 Customers are billed $750 by Hesson for property services. Payment is due from the customers in 30 days. Nov. 30 Hesson received $500 from customers who were billed on November 20th. 70. Refer to the transactions that occurred at Hesson Properties. Based on these transactions, how much is still owed to Hesson from its customers at the end of November? a. -0- b. $250 c. $500 d. $700
b. $250
Northern Corporation As of December 31, 2010: Accounts Receivable $250,000 Unearned Revenue $ 10,000 Cash 300,000 Notes Payable (due in 6 months) 230,000 Land 400,000 Accounts Payable 140,000 Building 800,000 Equipment 330,000 Inventories 210,000 Notes Payable (due 07/01/2020) 1,200,000 46. Refer to Northern Corporation's list of accounts at December 31, 2010. What is Northern Corp.'s current ratio? a. .48 to 1 b. 2.00 to 1 c. 2.55 to 1 d. 2.86 to 1
b. 2.00 to 1
Hesson Properties, Inc. Transactions for Hesson Properties are provided below. Nov. 1 Hesson purchases two new maintenance carts on credit at $375 each. The carts are added to Hesson's property, plant, and equipment records. Payment is due in 30 days. Nov. 8 Hesson accepts $75 of advance payments from customers for services to be provided in December. Nov. 15 Hesson receives the utility bill for $150. Payment is due in 30 days. Nov. 20 Customers are billed $750 by Hesson for property services. Payment is due from the customers in 30 days. Nov. 30 Hesson received $500 from customers who were billed on November 20th. 68. Refer to the transactions that occurred at Hesson Properties. Based on these transactions, what is the journal entry to record the November 20th transaction? a. Cash 750 Accounts Receivable 750 b. Accounts Receivable 750 Service Revenue 750 c. Service Revenue 750 Cash 750 d. Service Revenue 750 Accounts Payable 750
b. Accounts Receivable 750 Service Revenue 750
53. Clay and Lora each invest $15,000 in a Deyer, Inc. and are given shares of stock as evidence of their ownership interest. What effect does this transaction have on the accounting equation of Deyer? a. Assets and liabilities increase. b. Assets and contributed capital increase. c. Liabilities increase and retained earnings decrease. d. Assets and liabilities decrease.
b. Assets and contributed capital increase.
56. Dividends are declared and paid to the company's stockholders. What effect does this transaction have on the company's accounting equation? a. Assets and liabilities decrease. b. Assets and retained earnings decrease. c. Liabilities decrease and retained earnings increases. d. Liabilities increase and contributed capital decreases.
b. Assets and retained earnings decrease.
28. Which one of the following financial statements show the end of the year cash balance for a business entity? a. Income Statement and Statement of Retained Earnings b. Balance Sheet and Statement of Cash Flows c. Statement of Retained Earnings and Statement of Cash Flows d. Balance Sheet and Statement of Retained Earnings
b. Balance Sheet and Statement of Cash Flows
20. In which of the following organization forms are the owners' legal responsibility for the debt of the business limited to the amount they invested in the business? a. Sole Proprietorship b. Corporation c. Partnership d. Cooperative
b. Coporation
48. Which of the following organizations is primarily responsible for establishing GAAP in the United States? a. Securities Exchange Commission (SEC) b. Financial Accounting Standards Board (FASB) c. International Accounting Standards Board (IASB) d. Internal Revenue Service (IRS)
b. Financial Accounting Standards Board (FASB)
47. Which of the following items will be found in a corporate annual report? a. Industry standards b. Notes to the financial statements c. Selected financial data from non-competitor companies d. Managements statement that the auditors are responsible for the financial statements.
b. Notes to the financial statements
Ponzi Corporation Ponzi Corporation reported the following information for the year ended December 31, 2010. Net income $100,000 Dividends 6,000 Retained earnings at December 31, 2010 $120,000 38. Refer to Ponzi Corporation. What was the economic effect of the payment of Ponzi's dividends? a. The dividend reduced net income for 2010. b. The dividend should be added to net income if the company's accounting equation is in balance. c. The dividend reduced total retained earnings. d. The dividends must be paid whenever Ponzi Corp. reports net income.
c. The dividend reduced total retained earnings.
Bravada Enterprises Transactions for Bravada Enterprises are provided below. Sept. 1 Bills are sent to clients for services provided in August in the amount of $800. Sept. 9 Barlue Furnishings delivers $1,060 of office furniture and $160 of office supplies to Bravada, leaving an invoice for $1,220. Sept. 15 Payment is made to Barlue for the office furniture and supplies delivered on September 9. Sept. 23 A $430 bill for advertising for the month of September is received. It will be paid on its due date in October. Sept. 30 Salaries of $850 are paid to employees. 64. Refer to the transactions that occurred at Bravada Enterprises. Based on these transactions, what is the total amount of expenses that should appear on Bravada's income statement for September? a. $ 430 b. $ 850 c. $1,280 d. $1,440
c. $1,280
45. The Bear Mountain Company has current assets of $2,1000,000 and current liabilities of $500,000. What is the amount of working capital for Bear Mountain Company? a. $2,100,000 b. $2,600,000 c. $1,600,000 d. $ 500,000
c. $1,600,000
IPOD CORP IPOD Corporations' end-of-year Balance Sheet consisted of the following amounts. Cash $ 150,000 Accounts Receivable $500,000 Property, plant & equipment 700,000 Long-term debt 400,000 Capital stock 1,000,000 Accounts payable 200,000 Retained earnings ? Inventory 350,000 35. Refer to IPOD Corp. What amount should IPOD report on its Balance Sheet for Total Assets? a. $1,100,000 b. $1,550,000 c. $1,700,000 d. $1,900,000
c. $1,700,000
Pacific Corporation Inventory $380,000 Accounts Receivable $190,000 Land 290,000 Accounts Payable 180,000 Cash 129,000 Unearned Revenue 110,000 Prepaid Rent 33,000 Common Stock 312,000 Retained Earnings 220,000 Long-term Notes Payable 200,000 44. Refer to Pacific Corporation. Calculate the current ratio for Pacific Corporation. a. 3.00 to 1 b. 2.75 to 1 c. 2.52 to 1 d. 2.10 to 1
c. 2.52 to 1
Bravada Enterprises Transactions for Bravada Enterprises are provided below. Sept. 1 Bills are sent to clients for services provided in August in the amount of $800. Sept. 9 Barlue Furnishings delivers $1,060 of office furniture and $160 of office supplies to Bravada, leaving an invoice for $1,220. Sept. 15 Payment is made to Barlue for the office furniture and supplies delivered on September 9. Sept. 23 A $430 bill for advertising for the month of September is received. It will be paid on its due date in October. Sept. 30 Salaries of $850 are paid to employees. 60. Refer to the transactions that occurred at Bravada Enterprises. The journal entry to record the September 9th transaction will include a credit of $1,220 to a. Furniture & Supplies b. Cash c. Accounts Payable d. Delivery Expense
c. Accounts Payable
Bravada Enterprises Transactions for Bravada Enterprises are provided below. Sept. 1 Bills are sent to clients for services provided in August in the amount of $800. Sept. 9 Barlue Furnishings delivers $1,060 of office furniture and $160 of office supplies to Bravada, leaving an invoice for $1,220. Sept. 15 Payment is made to Barlue for the office furniture and supplies delivered on September 9. Sept. 23 A $430 bill for advertising for the month of September is received. It will be paid on its due date in October. Sept. 30 Salaries of $850 are paid to employees. 59. Refer to the transactions that occurred at Bravada Enterprises. The journal entry to record the September 1st transaction will include a debit of $800 to a. Service Revenue b. Cash c. Accounts Receivable d. Retained Earnings
c. Accounts Receivable
81. Failure to record the supplies used during the year would result in which of the following? a. Net income being understated b. An overstatement of liabilities c. Assets and Stockholders' equity being overstated d. Total assets being understated
c. Assets and Stockholders' equity being overstated
50. The purchase of office equipment on credit has what effect on the accounting equation? a. Assets and stockholders' equity decrease b. Liabilities increase and stockholders' equity decreases c. Assets and liabilities increase d. Assets and liabilities decrease
c. Assets and liabilities increase
Hesson Properties, Inc. Transactions for Hesson Properties are provided below. Nov. 1 Hesson purchases two new maintenance carts on credit at $375 each. The carts are added to Hesson's property, plant, and equipment records. Payment is due in 30 days. Nov. 8 Hesson accepts $75 of advance payments from customers for services to be provided in December. Nov. 15 Hesson receives the utility bill for $150. Payment is due in 30 days. Nov. 20 Customers are billed $750 by Hesson for property services. Payment is due from the customers in 30 days. Nov. 30 Hesson received $500 from customers who were billed on November 20th. 66. Refer to the transactions that occurred at Hesson Properties. Based on these transactions, what is the journal entry to record the November 8th transaction? a. Cash 75 Service Revenue 75 b. Accounts Receivable 75 Service Revenue 75 c. Cash 75 Unearned Revenue 75 d. Unearned Revenue 75 Accounts Receivable 75
c. Cash 75 Unearned Revenue 75
26. Which financial statement would you analyze to determine its operating performance for the past year? a. Balance Sheet b. Statement of Retained Earnings c. Income Statement d. Statement of Public Accounting
c. Income Statement
34. Which of the following is the correct date format for the financial statement heading? a. Balance Sheet for the Year Ended June 30, 2010 b. Income Statement at December 31, 2010 c. Income Statement for the Year Ended December 31, 2010 d. Statement of Retained Earnings at December 31, 2010
c. Income Statement for the Year Ended December 31, 2010
83. Which of the following does not occur during the closing process? a. Journal entries are made to return the balance in all nominal accounts to zero. b. Journal entries are made to transfer the net income or loss to retained earnings. c. Journal entries are made to return the balance in all real accounts to zero. d. Journal entries are made to transfer the dividends to retained earnings.
c. Journal entries are made to return the balance in all real accounts to zero.
55. The telephone bill for the current period is received and recorded, but payment will be made later. What effect does this transaction have on the accounting equation? a. Assets and liabilities increase. b. Assets and contributed capital increase. c. Liabilities increase and retained earnings decrease. d. Assets and liabilities decrease.
c. Liabilities increase and retained earnings decrease.
52. During March, Connor Corp. purchased supplies for cash. The supplies will be used in April. What effect does this transaction have on the accounting equation at the time the supplies are purchased? a. Assets increase and stockholders' equity decreases b. Assets and liabilities increase c. There is no effect on the accounting equation, as one asset account increases while another asset account decreases. d. There is no effect on the accounting equation, as the transaction should not be recognized until April.
c. There is no effect on the accounting equation, as one asset account increases while another asset account decreases.
Hesson Properties, Inc. Transactions for Hesson Properties are provided below. Nov. 1 Hesson purchases two new maintenance carts on credit at $375 each. The carts are added to Hesson's property, plant, and equipment records. Payment is due in 30 days. Nov. 8 Hesson accepts $75 of advance payments from customers for services to be provided in December. Nov. 15 Hesson receives the utility bill for $150. Payment is due in 30 days. Nov. 20 Customers are billed $750 by Hesson for property services. Payment is due from the customers in 30 days. Nov. 30 Hesson received $500 from customers who were billed on November 20th. 67. Refer to the transactions that occurred at Hesson Properties. Based on these transactions, what is the journal entry to record the November 15th transaction? a. Utilities Expense 150 Cash 150 b. Accounts Receivable 150 Utilities Expense 150 c. Utilities Expense 150 Accounts Payable 150 d. Cash 150 Utilities Expense 150
c. Utilities Expense 150 Accounts Payable 150
71. Under accrual accounting when is revenue recognized? a. When cash is received, and expenses when cash is paid b. When cash is received, and expenses when the costs are incurred c. When earned, and expenses when the costs are incurred d. When earned, and expenses when cash is paid
c. When earned, and expenses when the costs are incurred
Bravada Enterprises Transactions for Bravada Enterprises are provided below. Sept. 1 Bills are sent to clients for services provided in August in the amount of $800. Sept. 9 Barlue Furnishings delivers $1,060 of office furniture and $160 of office supplies to Bravada, leaving an invoice for $1,220. Sept. 15 Payment is made to Barlue for the office furniture and supplies delivered on September 9. Sept. 23 A $430 bill for advertising for the month of September is received. It will be paid on its due date in October. Sept. 30 Salaries of $850 are paid to employees. 62. Refer to the transactions that occurred at Bravada Enterprises. The journal entry to record the September 23rd transaction will include a credit of $430 to a. Accounts Receivable b. Cash c. Advertising Expense d. Accounts Payable
d. Accounts Payable
Bravada Enterprises Transactions for Bravada Enterprises are provided below. Sept. 1 Bills are sent to clients for services provided in August in the amount of $800. Sept. 9 Barlue Furnishings delivers $1,060 of office furniture and $160 of office supplies to Bravada, leaving an invoice for $1,220. Sept. 15 Payment is made to Barlue for the office furniture and supplies delivered on September 9. Sept. 23 A $430 bill for advertising for the month of September is received. It will be paid on its due date in October. Sept. 30 Salaries of $850 are paid to employees. 63. Refer to the transactions that occurred at Bravada Enterprises. The journal entry to record the September 30th transaction will include a credit to a. Salary Expense b. Salary Payable c. Prepaid Salaries d. Cash
d. Cash
