Question 1

A company received a bill of $2,110 for utilities used in the current month.The journal entry to record this event:

Accepted Answer

A) will include a debit to Accounts Receivable for $2,110. 
B) will include a credit to Accounts Payable for $2,110. 
C) will include a credit to Utilities Expense. 
D) is not required;no journal entry should be prepared until the utilities bill is paid. 
A) will include a debit to Accounts Receivable for $2,110. 
B) will include a credit to Accounts Payable for $2,110. 
C) will include a credit to Utilities Expense. 
D) is not required;no journal entry should be prepared until the utilities bill is paid.

Question 2

Arthur Industries entered into the following transactions during the month of June.
A.Purchased supplies for $8,000 cash.
B.Paid $7,168 for salaries and wages for the month of June.
C.Paid $768 in advance for July rent.
D.Provided $19,200 in services on account.
E.Paid $1,280 on accounts payable.
F.Received $336 from customers as deposits for future services.
G.Received a bill for $2,400 from the plumber who repaired a broken pipe in the restrooms,but will not pay the bill until July.
H.Purchased equipment for cash of $1,248.
Required:
Prepare journal entries to record the transactions identified among activities (A)through (H).

Accepted Answer

The answer of Arthur Industries entered into the following transactions...

Question 3

In April,the Surf and Sand Hotel books and accepts a cash payment for $25,600 for vacation services to be provided during in July.The journal entry recorded in April will include a debit to:

Accepted Answer

A) Cash and a credit to Deferred Revenue. 
B) Accounts Payable and a credit to Service Revenue. 
C) Accounts Receivable and a credit to Service Revenue. 
D) Prepaid Expenses and a credit to Service Revenue. 
A) Cash and a credit to Deferred Revenue. 
B) Accounts Payable and a credit to Service Revenue. 
C) Accounts Receivable and a credit to Service Revenue. 
D) Prepaid Expenses and a credit to Service Revenue.

Question 4

West Corporation issued a $100 gift card.What journal entry will West Corporation record?

Accepted Answer

A) Debit Cash and credit Sales Revenue for $100. 
B) Debit Cash and credit Deferred Revenue for $100. 
C) Debit Deferred Revenue and credit Cash for $100. 
D) Debit Accounts Receivable and credit Cash for $100. 
A) Debit Cash and credit Sales Revenue for $100. 
B) Debit Cash and credit Deferred Revenue for $100. 
C) Debit Deferred Revenue and credit Cash for $100. 
D) Debit Accounts Receivable and credit Cash for $100.

Question 5

On the last day of the month,a company receives $24,000 of cash from customers.Of that amount,$3,000 was for services performed and $21,000 represented payments on account.The journal entry to record the $24,000 cash receipt would include a debit to:

Accepted Answer

A) Accounts Receivable for $21,000,a debit to Service Revenue for $3,000,and a credit for $24,000 to Cash. 
B) Cash for $24,000,a credit to Accounts Receivable for $21,000,and a credit to Service Revenue for $3,000. 
C) Accounts Receivable for $21,000,a debit to Deferred Revenue for $3,000,and a credit to Cash for $24,000. 
D) Cash for $24,000,a debit to Service Revenue for $3,000,and a credit to Accounts Receivable for $21,000. 
A) Accounts Receivable for $21,000,a debit to Service Revenue for $3,000,and a credit for $24,000 to Cash. 
B) Cash for $24,000,a credit to Accounts Receivable for $21,000,and a credit to Service Revenue for $3,000. 
C) Accounts Receivable for $21,000,a debit to Deferred Revenue for $3,000,and a credit to Cash for $24,000. 
D) Cash for $24,000,a debit to Service Revenue for $3,000,and a credit to Accounts Receivable for $21,000.

Question 6

Pandey Inc.had the following activities during the month:
A.Borrowed $7,000,000 cash,signing a promissory note.
B.Bought a building for $800,000,paying $200,000 in cash and signing a promissory note for $600,000.
C.Rented equipment at a cost of $10,000 per month and issued a check covering six months' rent.
D.Provided $104,000 of services and billed customers.
E.Purchased $30,000 of supplies on account.
F.Received a utility bill for the current period in the amount of $1,200.
G.Raised sales prices on 200 units from $400 per unit to $440 per unit.
H.Received a 50% deposit from a customer on a $20,000 order to be filled next month.
Required:
Analyze each of the activities (A)through (H)above with the goal of indicating their effects on the basic accounting equation by completing the table below.Indicate the accounts and amounts involved.Include a plus (+)or minus (−)sign before each number to show its effect on the accounting equation.If the activity should not to be recorded as a transaction,enter the word "None" in the first column for that activity.
 $$\begin{array} { | l | l | l | l | l | l | l | } 
\hline & { \text { Assets } } &&  { \text { Liabilities } } &&{ \text { Stockholders' Equity } } \
\hline & \text { Account(s) } & \text { Amount } & \text { Account(s) } & \text { Amount } & \text { Account(s) } & \text { Amount } \
\hline \text { A } & & & & & & \
\hline \text { B } & & & & & & \
\hline \text { C } & & & & & & \
\hline \text { D } & & & & & & \
\hline \text { E } & & & & & & \
\hline \text { F } & & & & & & \
\hline \text { G } & & & & & & \
\hline \text { H } & & & & & & \
\hline
\end{array}$$

Accepted Answer

The answer of Pandey Inc.had the following activities during the...

Question 7

Under the five-step revenue recognition model,a contract can be written,verbal,or implied.

Accepted Answer

A) True 
 B)False

Question 8

Geo Inc.had the following account balances on January 1,Year 2:
 $\begin{array}{lr}
\text { Accounts Payable } & \$ 689 \
\text { Accounts Receivable } & 1,000 \
\text { Cash } & 15,000 \
\text { Common Stock } & 10,000 \
\text { Equipment } & 500 \
\text { Notes Payable } & 3,000 \
\text { Retained Earnings } & 2,911 \
\text { Salaries and Wages Expense } & 0 \
\text { Supplies } & 100
\end{array}$ During January,Year 2,Geo entered into the following transactions:
A.Paid $689 on account for utilities that were used during December Year 1.
B.Purchased $423 of supplies for cash.
C.Signed a rental agreement for office space and paid $3,500 in advance for six months of rent beginning February 1,Year 2.
D.Purchased $15,000 of new equipment,signing a promissory note.
E.Provided $26,000 of services.$17,000 was received in cash and $9,000 was provided on credit.
F.Paid workers $8,300 for work done in January.
Required:
Prepare journal entries for each of the following January activities,and post results to the relevant T-accounts.Compute the ending balance of each T-account.Beginning balances have been entered.(If no entry is required for a transaction/event,select "No Journal Entry Required" in the first account field. )

Accepted Answer

Part a.
 @#IMG-DLM&

Question 9

On January 31,your company prepays rent of $13,250 for February and March.Which of the following describes the effects of this transaction on your company's accounting equation?

Accepted Answer

A) Assets decrease $13,250 and liabilities decrease $13,250. 
B) Assets increase $13,250 and stockholders' equity increases $13,250. 
C) There is no change to total assets,liabilities or stockholders' equity. 
D) Liabilities decrease $13,250 and stockholders' equity increases $13,250. 
A) Assets decrease $13,250 and liabilities decrease $13,250. 
B) Assets increase $13,250 and stockholders' equity increases $13,250. 
C) There is no change to total assets,liabilities or stockholders' equity. 
D) Liabilities decrease $13,250 and stockholders' equity increases $13,250.

Question 10

When revenues exceed expenses in a period,stockholders' equity will increase.

Accepted Answer

A) True 
 B)False

Question 11

An increase in revenue always:

Accepted Answer

A) increases stockholders' equity. 
B) increases assets. 
C) decreases stockholders' equity. 
D) decreases assets. 
A) increases stockholders' equity. 
B) increases assets. 
C) decreases stockholders' equity. 
D) decreases assets.

Question 12

If more than one performance obligation exists,the total contract price:

Accepted Answer

A) is split by referring to the stand-alone price of each part sold separately. 
B) is recognized as revenue once one of the performance obligations is satisfied. 
C) is recognized as Deferred Revenue and later recognized as Revenue when the performance obligations are satisfied. 
D) is allocated by contract,first to written contracts,then to verbal contracts,and finally to implied contracts. 
A) is split by referring to the stand-alone price of each part sold separately. 
B) is recognized as revenue once one of the performance obligations is satisfied. 
C) is recognized as Deferred Revenue and later recognized as Revenue when the performance obligations are satisfied. 
D) is allocated by contract,first to written contracts,then to verbal contracts,and finally to implied contracts.

Question 13

When cash is received in advance of a performance obligation being satisfied,a(n)________ called ________ is recorded.

Accepted Answer

A) liability;Deferred Revenue 
B) asset;Deferred Revenue 
C) liability;Accounts Receivable 
D) asset;Accounts Receivable 
A) liability;Deferred Revenue 
B) asset;Deferred Revenue 
C) liability;Accounts Receivable 
D) asset;Accounts Receivable

A company received a bill of $2,110 for utilities used in the current month.The journal entry to record this event:

In April,the Surf and Sand Hotel books and accepts a cash payment for $25,600 for vacation services to be provided during in July.The journal entry recorded in April will include a debit to:

West Corporation issued a $100 gift card.What journal entry will West Corporation record?

On the last day of the month,a company receives $24,000 of cash from customers.Of that amount,$3,000 was for services performed and $21,000 represented payments on account.The journal entry to record the $24,000 cash receipt would include a debit to:

Under the five-step revenue recognition model,a contract can be written,verbal,or implied.

On January 31,your company prepays rent of $13,250 for February and March.Which of the following describes the effects of this transaction on your company's accounting equation?

When revenues exceed expenses in a period,stockholders' equity will increase.

An increase in revenue always:

If more than one performance obligation exists,the total contract price:

When cash is received in advance of a performance obligation being satisfied,a(n) called is recorded.

Business Decisions and Financial Accounting

The Balance Sheet

Adjustments,Financial Statements,and Financial Results

Fraud,Internal Control,and Cash

Merchandising Operations and the Multistep Income Statement

Inventory and Cost of Goods Sold

Receivables,Bad Debt Expense,and Interest Revenue

Long-Lived Tangible and Intangible Assets

Liabilities

Stockholders Equity

Statement of Cash Flows

Measuring and Evaluating Financial Performance

Filters

Exam 3: The Income Statement

A company received a bill of $2,110 for utilities used in the current month.The journal entry to record this event:

In April,the Surf and Sand Hotel books and accepts a cash payment for $25,600 for vacation services to be provided during in July.The journal entry recorded in April will include a debit to:

West Corporation issued a $100 gift card.What journal entry will West Corporation record?

On the last day of the month,a company receives $24,000 of cash from customers.Of that amount,$3,000 was for services performed and $21,000 represented payments on account.The journal entry to record the $24,000 cash receipt would include a debit to:

Under the five-step revenue recognition model,a contract can be written,verbal,or implied.

On January 31,your company prepays rent of $13,250 for February and March.Which of the following describes the effects of this transaction on your company's accounting equation?

When revenues exceed expenses in a period,stockholders' equity will increase.

An increase in revenue always:

If more than one performance obligation exists,the total contract price:

When cash is received in advance of a performance obligation being satisfied,a(n)________ called ________ is recorded.

Business Decisions and Financial Accounting

The Balance Sheet

Adjustments,Financial Statements,and Financial Results

Fraud,Internal Control,and Cash

Merchandising Operations and the Multistep Income Statement

Inventory and Cost of Goods Sold

Receivables,Bad Debt Expense,and Interest Revenue

Long-Lived Tangible and Intangible Assets

Liabilities

Stockholders Equity

Statement of Cash Flows

Measuring and Evaluating Financial Performance

Filters

When cash is received in advance of a performance obligation being satisfied,a(n) called is recorded.