At the end of 2014, CNC Corporation's accounting information system produced the following trial balance: CNC completed the following transactions in January 2015: a.Purchased inventory on account, $300.
B.Collected cash from customers for prior year sales, $500.
C.Paid current month's wages, $900.
D.Had land appraised.Cost of doing the appraisal (paid in cash), $700.Appraised value of land, $3,000.
E.Sold inventory with a cost basis of $200 on account, $800.
F.Declared dividends, $50.
G.Hired additional sales staff.Expected monthly salaries, $80.
H.Purchased supplies for cash, $150.
i.Paid creditors for previous purchases, $150.
j.Signed a contract for annual employee retreat, $450.The sixth step in the accounting cycle involves six broad types of entries.Which of the indicated transactions is likely to lead to the specified type?
A)Transaction D, change in market value
B)Transaction H, prepaid expense
C)Transaction D, depreciation
D)Transaction I, uncollectible accounts

Question

At the end of 2014, CNC Corporation's accounting information system produced the following trial balance:  CNC completed the following transactions in January 2015: a.Purchased inventory on account, $300.
B.Collected cash from customers for prior year sales, $500.
C.Paid current month's wages, $900.
D.Had land appraised.Cost of doing the appraisal (paid in cash), $700.Appraised value of land, $3,000.
E.Sold inventory with a cost basis of $200 on account, $800.
F.Declared dividends, $50.
G.Hired additional sales staff.Expected monthly salaries, $80.
H.Purchased supplies for cash, $150.
i.Paid creditors for previous purchases, $150.
j.Signed a contract for annual employee retreat, $450.The sixth step in the accounting cycle involves six broad types of entries.Which of the indicated transactions is likely to lead to the specified type?
A)Transaction D, change in market value 
B)Transaction H, prepaid expense 
C)Transaction D, depreciation 
D)Transaction I, uncollectible accounts

Quizplus · Accepted Answer

The Answer of At the end of 2014, CNC Corporation's accounting information system produced the following trial balance:  CNC completed the following transactions in January 2015: a.Purchased inventory on account, $300.
B.Collected cash from customers for prior year sales, $500.
C.Paid current month's wages, $900.
D.Had land appraised.Cost of doing the appraisal (paid in cash), $700.Appraised value of land, $3,000.
E.Sold inventory with a cost basis of $200 on account, $800.
F.Declared dividends, $50.
G.Hired additional sales staff.Expected monthly salaries, $80.
H.Purchased supplies for cash, $150.
i.Paid creditors for previous purchases, $150.
j.Signed a contract for annual employee retreat, $450.The sixth step in the accounting cycle involves six broad types of entries.Which of the indicated transactions is likely to lead to the specified type?
A)Transaction D, change in market value 
B)Transaction H, prepaid expense 
C)Transaction D, depreciation 
D)Transaction I, uncollectible accounts

At the End of 2014, CNC Corporation's Accounting Information System