9. Which of the following is the appropriate journal entry if a company performs a service and is paid immediately?
A. Debit to Cash Debit to Revenue
B. Debit to Cash Credit to Revenue
C. Debit to Accounts Receivable Credit to Cash
D. Debit to Revenue Credit to Accounts Receivable
E. Debit to Accounts Receivable Credit to Revenue
10. Which of the following is the appropriate journal entry if a company purchases equipment costing $100000 by paying cash of $10000?
A. Debit to Cash Debit to Equipment Credit to Accounts Payable
B. No entry should be made
C. Debit to Equipment Credit to Notes Payable Credit to Cash
D. Debit to Cash Debit to Notes Payable Credit to Equipment
E. Debit to Equipment Debit to Notes Payable Credit to Cash
11. What are the total assets for Shiver Ice House?
Common Stock
$120000
Accounts Payable
$25000
Cash
$116640
Accounts Receivable
$22450
Supplies
$ 1500
Office Equipment
$23300
Prepaid Rent
$ 3200
Unearned Revenue
$ 4152
Revenue
$ 20000
Utilities Expense
$ 422
Retained Earnings
$ 30000
Shaving Equipment
$31640
A. $291340
B. $106962
C. $198730
D. $218730
E. $221580
12. What is net income for Shiver Ice House?
Common Stock
$120000
Accounts Payable
$25000
Cash
$116640
Accounts Receivable
$22450
Supplies
$ 1500
Office Equipment
$23300
Prepaid Rent
$ 3200
Unearned Revenue
$ 4152
Revenue
$ 20000
Utilities Expense
$ 422
Retained Earnings
$ 30000
Shaving Equipment
$31640
A. $19578
B. $20528
C. $23728
D. $49578
E. $24578
13. What is total for the debits on the Trial Balance for Shiver Ice House?
Common Stock
$120000
Accounts Payable
$25000
Cash
$116640
Accounts Receivable
$22450
Supplies
$ 1500
Office Equipment
$23300
Prepaid Rent
$ 3200
Unearned Revenue
$ 4152
Revenue
$ 20000
Utilities Expense
$ 422
Retained Earnings
$ 30000
Shaving Equipment
$31640
A. $291340
B. $106964
C. $199152
D. $193390
E. $203.152
14. Find net income using the following transactions.1. Bill Co. paid $2000 for one month rent
1.
Bill Co. paid $2000 for one month rent
2.
Bill Co. paid $1200 for two weeks wages
3.
Bill Co. performed $5200 in consulting services on account
4.
Bill Co billed a customer $1500 for services performed
5.
Bill Co. received $5200 in payment for item 3
6.
Bill Co performed services and immediately collected $2000
7.
Bill Co. paid $500 for advertising in the local paper
A. $10200
B. $ 5000
C. $ 8700
D. $13900
E. $ 7000
15. During the month of February Hoffer Company had cash receipts of $7500 and cash disbursements of $8600. The February 28 cash balance was $1800. What
was the January 31 beginning cash balance?
A. $700
B. $1100
C. $2900
D. $0
E. $4300
16. Identifying business activities requires selecting transactions and events relevant to an organization. Which of the following events would be recorded in
the accounting records of Acme Car Wash?
A. Acme washes 500 cars
B. J.B. Smith a customer buys lunch at the restaurant next door to Acme while waiting for her car to be
washed
C. Clean Company a supplier sells 50 pounds of soap to ABC Company
D. Sudsey Company a supplier goes out of business
E. Acme hires Andrea as a receptionist
17. Internal users of accounting information always include: (Points : 1)
A. Shareholders
B. Managers
C. Lenders
D. Suppliers
E. Customers
