Question 1

During the most recent month,Campbell Company began operations with a cash balance of $0 and made cash sales of $162,000.During this same time period,the company paid $64,000 in cash expenses.Additionally,the company purchased supplies on account,$68,000,made sales on account,$180,000,and paid cash on account $12,000.
a.If cash at the end of the month totals $148,000,how much cash was received on account?
b.What is the total amount still to be paid?
c.What is the total amount still to be received?

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Question 2

A trial balance proves that the accounts are in balance.Does a balanced trial balance also prove that all the transactions are correctly analyzed and recorded? Why or why not?

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Question 3

From the following alphabetical list of account balances,all of which are normal,for Cannon Company on September 30,20x5,prepare a trial balance in proper form (the amount of dividends paid by Cannon Company must be computed).

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Question 4

Using the alphabetical list of account balances presented below,all of which are normal,prepare a trial balance for Cookies and Cream Company at June 30,20x5,in proper order.Compute the balance of the Cash account.

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Question 5

Using the following transactions,calculate (A)the ending balance of Cash, (B)the ending balance of Accounts Receivable, (C)total liabilities,and (D)Stockholders' Equity at the end of the period.For parts a,b,and d,indicate whether each balance is debit or credit.
a.Began doing business by selling shares of common stock to investors for $50,000 in cash.
b.Billed customers for services rendered,$10,000.
c.Paid for six months' subscription in advance,$2,500.
d.Received advertising bill,to be paid next week,$500.
e.Dividends of $4,000 were paid to common stock holders.
f.Received $7,500 from customers billed in b.
g.Paid half of advertising bill.
h.Received $1,000 in advance of performing a service.

Accepted Answer

The answer of Using the following transactions,calculate (A)the ending balance...

Question 6

Use this journal entry to answer the following question.
 Explain how the above journal entry relates to the measurement issues of (a)recognition, (b)valuation,and (c)classification.

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Question 7

Provide explanations for the following related journal entries:

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Question 8

Using the following transactions,calculate the ending balance of (A)total assets, (B)total liabilities, (C)Cash,and (D)Stockholders' Equity.Indicate whether each balance is debit or credit.
a.Began doing business by selling shares of common stock to investors for $72,000 in cash.
b.Paid one year's insurance in advance,$4,800.
c.Billed customers for services rendered,$12,000.
d.Received utility bill,to be paid next month,$800.
e.Received $1,600 in advance of performing a service.
f.Received $8,800 from customers billed in c.
g.Paid $600 on the utility bill of d.
h.Dividends of $4,000 were paid to common stock holders.

Accepted Answer

The answer of Using the following transactions,calculate the ending balance...

Question 9

For each of the following economic events determine whether the event is a business transaction on the date it occurs and whether it's recognized in the accounts on that date.Support your answer.
a.On July 15,the controller of Kona Corporation orders a custom display case for the company's store.
b.On July 31,a new administrative assistant is hired at a monthly salary of $3,500.
c.On July 31,the controller of Kona Corporation receives a bill for electricity for the month of July.The bill is due on August 18 and will be paid on that date.

Accepted Answer

The answer of For each of the following economic events...

Question 10

Ironwood Company has just started operations.The company sold 5,000 shares of common stock to investors for $10,000 to get the business started.The company has made several sales on account,but has not yet collected any cash from these sales.At this point,Ironwood's cash flows for expenses are exceeding its cash flows from revenues.How might Ironwood make up the difference so it can maintain its liquidity?

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Question 11

If a debit to Supplies were posted as a credit,and a credit of the same amount to Cash were posted as a debit,what would be the effect,if any,on the two accounts and on the trial balance column totals?

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The answer of If a debit to Supplies were posted...

Question 12

Copper Company began operations in April and then engaged in the following transactions during April If the balance in cash after these transactions is $165,000,how much cash was paid on account?
A)$43,000
B)$57,000
C)$1,000
D)$21,000

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Question 13

Discuss the difference between business events that are transactions and those that are not.Why is the distinction important?

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Question 14

What are the steps in the posting process for the debit side of an entry?

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Question 15

Why is the Dividends account increased by a debit? Explain in terms of its relationship to stockholders' equity.

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Question 16

From the following alphabetical list of account balances,all of which are normal,for Ivy Maxx Company on July 31,20x5,prepare a trial balance in proper form (the amount of dividends paid by Ivy Maxx must be computed).

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Question 17

What type of information does the general journal include for each transaction?

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Question 18

During the most recent month,Ostriker Company began operations with a cash balance of $0 and made cash sales of $81,000.During this same time period,the company paid $32,000 in cash expenses.Additionally,the company purchased supplies on account,$34,000,made sales on account,$90,000,and received cash on the credit sales $52,000.
a.If cash at the end of the month totals $74,000,how much cash was paid on account?
b.What is the total amount still to be paid?
c.What is the total amount still to be received?

Accepted Answer

The answer of During the most recent month,Ostriker Company began...

Question 19

Provide explanations for the following related journal entries:

Accepted Answer

The answer of Provide explanations for the following related journal...

Quiz 2: Measurement Concepts: Recording Business Transactions

A trial balance proves that the accounts are in balance.Does a balanced trial balance also prove that all the transactions are correctly analyzed and recorded? Why or why not?

From the following alphabetical list of account balances,all of which are normal,for Cannon Company on September 30,20x5,prepare a trial balance in proper form (the amount of dividends paid by Cannon Company must be computed).

Using the alphabetical list of account balances presented below,all of which are normal,prepare a trial balance for Cookies and Cream Company at June 30,20x5,in proper order.Compute the balance of the Cash account.

Use this journal entry to answer the following question. Explain how the above journal entry relates to the measurement issues of (a)recognition, (b)valuation,and (c)classification.

Provide explanations for the following related journal entries:

If a debit to Supplies were posted as a credit,and a credit of the same amount to Cash were posted as a debit,what would be the effect,if any,on the two accounts and on the trial balance column totals?

Copper Company began operations in April and then engaged in the following transactions during April If the balance in cash after these transactions is $165,000,how much cash was paid on account?

Discuss the difference between business events that are transactions and those that are not.Why is the distinction important?

What are the steps in the posting process for the debit side of an entry?

Why is the Dividends account increased by a debit? Explain in terms of its relationship to stockholders' equity.

From the following alphabetical list of account balances,all of which are normal,for Ivy Maxx Company on July 31,20x5,prepare a trial balance in proper form (the amount of dividends paid by Ivy Maxx must be computed).

What type of information does the general journal include for each transaction?

Provide explanations for the following related journal entries: