Question 1

In a trial balance prepared at January 3, 2012, the total of the debit column is:

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The answer of In a trial balance prepared at January...

Question 2

Bruno's Pizza Restaurant makes full payment of $8,300 on an account payable to Stella's Cheese Co. Stella's would record this transaction with a:

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The answer of Bruno's Pizza Restaurant makes full payment of...

Question 3

On January 3, 2011, total liabilities are:

Accepted Answer

Based on the balance sheet provided, the total liabilities are the sum of accounts payable ($30,000), wages and salaries payable ($20,000), taxes payable ($50,000), and long-term debt ($250,000), which adds up to $350,000 (option B).

Question 4

In a trial balance prepared on January 5, 2009, the total of the credit column is:

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Question 5

This transaction involves:

Accepted Answer

The entry does not mention any increase in assets, account payable or sale of inventory. It only mentions payment of $6,000 cash, which is option B.

Question 6

This transaction involves:

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The answer of This transaction involves:
...

Question 7

This transaction involves:

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The answer of This transaction involves:
...

Question 8

In a trial balance prepared at December 31, 2010 the total of the debit column is:

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The answer of In a trial balance prepared at December...

Question 9

Eagle News has a $6,000 account receivable from one of its advertisers, Allwood Floors. When Eagle receives $3,600 from Allwood as partial payment:

Accepted Answer

When Eagle receives partial payment from Allwood Floors, they should credit the Accounts Receivable account for the amount received ($3,600). This will reduce the balance in the Accounts Receivable account to $2,400 ($6,000 - $3,600).

Question 10

Ben Dryden, president of Jet Glass, Inc, noticed a $8,000 debit to Accounts Payable in the company's general ledger. This debit could correspond to:

Accepted Answer

A debit to Accounts Payable indicates that the company has paid money to a supplier to settle a balance due, so the best choice is C. Option A would result in a credit to Accounts Receivable, not a debit to Accounts Payable. Option B would result in a credit to Accounts Payable when the equipment is paid for, not a debit. Option D would result in a credit to Cash and a debit to Utilities Expense, not a debit to Accounts Payable.

Question 11

In a trial balance prepared for Ceramic Products on January 1, 2009, the total of the credit column is:

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Question 12

Before the journal entry above, Wood had assets, liabilities, and owners' equity of $450,000, $100,000, and $350,000, respectively. What are total assets immediately after the above transaction occurs?

Accepted Answer

Without knowing the details of the journal entry, we cannot determine the exact impact on assets, liabilities, and equity. However, we know that the total of assets, liabilities, and equity must remain in balance after the transaction. Therefore, the total assets must be $450,000 (before the journal entry) plus the impact of the journal entry. The only answer choice that is greater than $450,000 is B, which is $671,000. Therefore, the best choice is B.

Question 13

On January 5, 2009, total liabilities are:

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The answer of On January 5, 2009, total liabilities are:
...

Question 14

Master Equipment has a $17,400 liability to Arrow Paint Co. When Master Equipment makes a partial payment of $7,600 on this liability, which of following is true about the journal entry made by Master to record this transaction?

Accepted Answer

When Master Equipment makes a partial payment of $7,600 on the liability of $17,400, the Accounts Payable account is credited and the Cash account is debited. This reduces the liability by the amount paid, and Master Equipment's cash balance is reduced by the same amount. Therefore, the correct journal entry for this transaction would be to debit the Accounts Payable account for $7,600 and credit the Cash account for $7,600. Hence, option D is the correct answer.

Question 15

The purchase of office equipment at a cost of $7,600 with an immediate payment of $4,200 and agreement to pay the balance within 60 days is recorded by:

Accepted Answer

The purchase of office equipment results in a debit to Office Equipment for the total cost of $7,600. The immediate payment of $4,200 is recorded as a credit to Cash, and the remaining balance of $3,400 is recorded as a credit to Accounts Payable, since the company owes this amount to the vendor. Therefore, the correct journal entry would be a debit of $7,600 to Office Equipment, a credit of $4,200 to Cash, and a credit of $3,400 to Accounts Payable. Option D correctly reflects this journal entry.

Question 16

Before the journal entry above, Galloway had assets of $450,000; liabilities of $230,000; and owners' equity of $220,000. Total assets immediately after the above transaction has been recorded amount to:

Accepted Answer

The journal entry above represents a decrease in assets and a decrease in liabilities, which would result in a decrease in owners' equity. Therefore, we can calculate the new owners' equity as follows:

Owners' Equity = Previous Owners' Equity - Decrease in Liabilities - Decrease in Assets
Owners' Equity = $220,000 - $20,000 - $10,000
Owners' Equity = $190,000

To find the new total assets, we can use the accounting equation:

Total Assets = Liabilities + Owners' Equity
Total Assets = $220,000 + $250,000
Total Assets = $470,000

Therefore, the correct answer is C) $470,000.

Question 17

Land is purchased by making a cash down payment of $40,000 and signing a note payable for the balance of $130,000. The journal entry to record this transaction in the accounting records of the purchaser includes:

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The answer of Land is purchased by making a cash...

Question 18

In a trial balance prepared at January 3, 2011, the total of the debit column is:

Accepted Answer

The total of the debit column in a trial balance must equal the total of the credit column. In this case, the total of the credit column is $1,570,000, so the total of the debit column must also be $1,570,000.

Question 19

Before the journal entry above, Martin had assets of $900,000; liabilities of $460,000; and owners' equity of $440,000. Total assets immediately after the above transaction has been recorded amount to:

Accepted Answer

The accounting equation is Assets = Liabilities + Owners' Equity. Before the transaction, Martin's assets were $900,000. The transaction increased the assets by $5,000, resulting in total assets of $905,000.

Question 20

In a trial balance prepared at December 31, 2011 the total of the debit column is:

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Quiz 3: The Accounting Cycle: Capturing Economic Events

In a trial balance prepared at January 3, 2012, the total of the debit column is:

Bruno's Pizza Restaurant makes full payment of $8,300 on an account payable to Stella's Cheese Co. Stella's would record this transaction with a:

On January 3, 2011, total liabilities are:

In a trial balance prepared on January 5, 2009, the total of the credit column is:

This transaction involves:

This transaction involves:

This transaction involves:

In a trial balance prepared at December 31, 2010 the total of the debit column is:

Eagle News has a $6,000 account receivable from one of its advertisers, Allwood Floors. When Eagle receives $3,600 from Allwood as partial payment:

Ben Dryden, president of Jet Glass, Inc, noticed a $8,000 debit to Accounts Payable in the company's general ledger. This debit could correspond to:

In a trial balance prepared for Ceramic Products on January 1, 2009, the total of the credit column is:

Before the journal entry above, Wood had assets, liabilities, and owners' equity of $450,000, $100,000, and $350,000, respectively. What are total assets immediately after the above transaction occurs?

On January 5, 2009, total liabilities are:

Master Equipment has a $17,400 liability to Arrow Paint Co. When Master Equipment makes a partial payment of $7,600 on this liability, which of following is true about the journal entry made by Master to record this transaction?

The purchase of office equipment at a cost of $7,600 with an immediate payment of $4,200 and agreement to pay the balance within 60 days is recorded by:

Before the journal entry above, Galloway had assets of $450,000; liabilities of $230,000; and owners' equity of $220,000. Total assets immediately after the above transaction has been recorded amount to:

Land is purchased by making a cash down payment of $40,000 and signing a note payable for the balance of $130,000. The journal entry to record this transaction in the accounting records of the purchaser includes:

In a trial balance prepared at January 3, 2011, the total of the debit column is:

Before the journal entry above, Martin had assets of $900,000; liabilities of $460,000; and owners' equity of $440,000. Total assets immediately after the above transaction has been recorded amount to:

In a trial balance prepared at December 31, 2011 the total of the debit column is: