Exam #1 Bus Bookkeeping
On a statement of owner's equity, beginning capital is $50,000, Net Income for the year is $21,000 and Drawing for the year is $8,000, the ending capital amount would be:
$63,000
Required information At the end of the first month of operations for SloMo Delivery Service, the business had the following accounts: Accounts Receivable, $1,150; Prepaid Insurance, $450; Equipment, $35,700 and Cash, $40,400. On the same date, SloMo owed the following creditors: Simpson Supply Company, $11,500; Allen Office Equipment, $9,250. The total assets for the SloMo Delivery Service are:
$77,700
If during the year total assets increase by $72,000 and total liabilities decrease by $14,500, by how much did owner's equity increase/decrease?
$86,500 increase
Which of the following accounts have normal credit balances?
Fees Income and John Smith, Capital
During October, a firm had the following transactions involving revenue and expenses. Paid $1,050 for rent for October Provided services for $2,450 in cash Paid $190 for the October telephone service Provided services for $1,600 on credit Paid salaries of $1,525 to employees Paid $290 for the monthly office cleaning service Calculate the net income or net loss for the period?
Net Income: $995
If a business issues a check for $100 to purchase office supplies, What is the effect on the accounting equation?
Total Assets will remain the same
The rent paid for future months is a(n):
asset.
When the owner withdraws cash for personal use,
assets decrease and owner's equity decreases.
The owner's investment or equity in a business is called:
capital.
The form of a business organization that is not affected by the withdrawal or death of an owner and can continue indefinitely is the
corporation
cccccccOwners are not personally responsible for the debts of the business if the form of business organization is a
corporation
A firm paid cash to apply against a debt. To record this transaction, the accountant would:
debit Accounts Payable and credit Cash
Which of the following transactions increase owner's equity?
earning revenue
Required information [The following information applies to the questions displayed below.] The accounts and balances for Paw Prints Pet Sitters on November 1 are provided below. Cash20,050 Fees Income-0-Accounts Receivable930 Rent Expense-0-Office Equipment3,300 Utilities Expense-0-Supplies330 Salaries Expense-0-Accounts Payable2,300 Kelly Connor, Capital22,310 Kelly Connor, Drawing-0- The following transactions occurred during the month of November. Collected $430 from credit customers. Issued a check for $760 for November's rent. Paid $1,300 for salaries. The owner withdrew $640 in cash for personal expenses. Issued a check for $245 to pay the monthly utility bill. Received $2,340 in cash for services performed. Purchased office equipment for $1,430 on credit.
https://docs.google.com/document/d/1HMFY6ftcmbPbZajrtu5MK1RcaFupvWIg_RZl2wqhOSo/edit?usp=sharing
The Copy Center had the transactions listed below during the month of June. TRANSACTIONS John Amos started the business with a cash investment of $49,000. Purchased equipment for $16,500 on credit. Performed services for $3,200 in cash. Purchased additional equipment for $3,500 in cash. Performed services for $4,500 on credit. Paid salaries of $3,900 to employees. Received $2,100 cash from charge account customers. Paid $8,600 to a creditor on account. Show how each transaction would be recorded in the accounting equation.
https://docs.google.com/document/d/1HMFY6ftcmbPbZajrtu5MK1RcaFupvWIg_RZl2wqhOSo/edit?usp=sharing
The normal balance of an account is the:
increase side of the account.
Debits are used to record:
increases in assets.
The Income Statement shows:
the amount of net income or net loss.
