Paper details On May 20, White Repair Service extended an offer of $108,000 for land that had been priced for sale at $140,000. On May 30, White Repair Service accepted the seller’s counteroffer of $122,000. On June 20, the land was assessed at a value of $95,000 for property tax purposes. On July 4, White Repair Service was offered $150,000 for the land by a national retail chain. At what value should the land be recorded in White Repair Service’s records?
Your Answer: Question 1 options: Answer Question 2 (4 points) Saved Which of the following is not a business transaction? Question 2 options: make a sales offer sell goods for cash receive cash for services to be rendered later pay for supplies Question 3 (4 points) Saved A business paid $7,000 to a creditor in payment of an amount owed. The effect of the transaction on the accounting equation was to Question 3 options: increase an asset, decrease another asset decrease an asset, decrease a liability increase an asset, increase a liability increase an asset, increase stockholders’ equity Question 4 (4 points) Saved Revenues are reported when Question 4 options: a contract is signed cash is received from the customer work is begun on the job work is completed on the job Question 5 (4 points) Expenses are recorded when Question 5 options: cash is paid for services rendered a bill is received in advance of services rendered assets are used in the process of earning revenue assets are purchased Question 6 (4 points) Saved Goods purchased on account for future use in the business, such as supplies, are called Question 6 options: prepaid liabilities revenues prepaid expenses liabilities Question 7 (4 points) Saved How does receiving a bill to be paid next month for services received affect the accounting equation?
Question 7 options: assets decrease; stockholders’ equity decreases assets increase; liabilities increase liabilities increase; stockholders’ equity increases liabilities increase; stockholders’ equity decreases Question 8 (4 points) Saved Land, originally purchased for $30,000, is sold for $62,000 in cash. What is the effect of the sale on the accounting equation? Question 8 options: assets increase by $62,000; stockholders’ equity increases by $62,000 assets increase by $32,000; stockholders’ equity increases by $32,000 assets increase by $62,000; liabilities decrease by $30,000; stockholders’ equity increases by $32,000 assets increase by $30,000; no change in liabilities; stockholders’ equity increases by $62,000 Question 9 (4 points) Computer Corporation is starting its computer programming business and has sold stock of $15,000. Identify how the accounting equation will be affected. Question 9 options: increase in assets (Cash) and increase in liabilities (Accounts Payable) increase in assets (Cash) and increase in Stockholders’ Equity increase in assets (Accounts Receivable) and decrease in liabilities (Accounts Payable) increase in assets (Cash) and increase in assets (Accounts Receivable) Question 10 (4 points) The debit side of an account
Question 10 options: depends on whether the account is an asset, liability, or stockholders’ equity can be either side of the account depending on how the accountant set up the system is the right side of the account is the left side of the account Question 11 (4 points) Which of the following is true about T accounts? Question 11 options: The left side of a T account is called the debit side. The left side of a T account is called the credit side. The right side of a T account is called the debit side. Transactions are first recorded in T accounts and then posted to the journal. Question 12 (4 points) The balance of an account is determined by Question 12 options: adding all of the debits to all of the credits always subtracting the debits from the credits always subtracting the credits from the debits adding all of the debits, adding all of the credits, and then subtracting the smaller sum from the larger sum Question 13 (4 points) The accounts in the ledger of Monroe Entertainment Co. are listed below. All accounts have normal balances. Accounts payable $1,500 Fees earned $3,600 Accounts receivable 1,800 Insurance expense 1,300 Prepaid insurance 2,000 Land 3,000 Cash 3,200 Wages expense 1,400 Dividends 1,200 Common stock 8,800 Total assets are Question 13 options: $10,000 $8,000 $9,700 $9,800 Question 14 (4 points) Which of the following entries records the purchase of common stock by stockholders? Question 14 options: debit Common Stock; credit Accounts Receivable debit Cash; credit Common Stock debit Dividends; credit Cash debit Cash; credit Common Stock Question 15 (4 points) Which of the following groups of accounts have a normal debit balance?
Question 15 options: revenues, liabilities, and stockholders’ equity stockholders’ equity and assets liabilities and stockholders’ equity assets and expenses Question 16 (4 points) Which of the following applications of the rules of debit and credit is true? Question 16 options: decrease Prepaid Insurance with a credit and the normal balance is a credit increase Accounts Payable with a credit and the normal balance is a debit increase Equipment with a debit and the normal balance is a debit decrease Cash with a debit and the normal balance is a credit Question 17 (4 points) The classification and normal balance of the dividends account is Question 17 options: an expense with a credit balance an expense with a debit balance a liability with a credit balance stockholders’ equity with a debit balance Question 18 (4 points) Which of the following entries records the payment of a bill for your insurance premium? Question 18 options: debit Prepaid Insurance; credit Cash debit Insurance Payable; credit Accounts Receivable debit Accounts Payable; credit Cash debit Cash; credit Prepaid Insurance Question 19 (4 points) Which of the following entries records the payment of dividends? Question 19 options: debit Common Stock; credit Cash debit Dividends; credit Cash debit Salaries Expense; credit Cash debit Salaries Expense; credit Salaries Payable Question 20 (4 points) Office supplies were sold by Janer’s Cleaning Service at cost to another repair shop, with cash received. Which of the following entries for Janer’s Cleaning Service records this transaction?
Question 20 options: Office Supplies, debit; Cash, credit Office Supplies, debit; Accounts Payable, credit Cash, debit; Office Supplies, credit Accounts Payable, debit; Office Supplies, credit Question 21 (4 points) Office supplies purchased by Janer’s Cleaning Service on account were returned. Which of the following entries for Janer’s Cleaning Service records this transaction? Question 21 options: Cash, debit; Office Supplies, credit Office Supplies, debit; Accounts Receivable, credit Accounts Payable, debit; Office Supplies, credit Office Supplies, debit; Accounts Payable, credit Question 22 (4 points) Gently Laser Clinic purchased laser equipment for $8,500 and paid $2,250 down, with the remainder to be paid later. The correct entry would be Question 22 options: Equipment 2,250 Cash2,250 Cash 2,250 Accounts Payable 6,250 Equipment8,500 Equipment Expense 8,500 Accounts Payable 2,250 Cash6,250 Equipment 8,500 Accounts Payable6,250 Cash2,250 Question 23 (4 points) Bravo Company had a beginning Accounts Receivable account balance of $500. During the period Bravo’ sold goods on account for $2,280. Ending Accounts Receivable had a $840 balance. How much was collected on account during the period? Your Answer: Question 23 options: Answer Question 24 (4 points) Bravo’s complete assets and liabilities are Accounts Receivable $840, Equipment $11,050, Accounts Payable $5,100, Prepaid Rent $2,300, Supplies $780, Bank Loan $2,980, and Tools $450. Bravo’s total assets are: (All account balances are normal.) Your Answer: Question 24 options: Answer Question 25 (4 points) Beginning stockholders’ equity was $143,540. Ending stockholders’ equity was $204,550. Additional issuances of capital stock during the year amounted to $19,660. Dividends during the year amounted to $15,850. How much was net income for the year?
