Exam 15: Analyzing for Business Transactions

The following transactions occurred during July: • Received $900 cash for services provided to a customer during July. • Received $2,200 cash investment from Bob Johnson, the owner of the business. • Received $750 from a customer in partial payment of his account receivable which Arose from sales in June. • Provided services to a customer on credit, $375. • Borrowed $6,000 from the bank by signing a promissory note. • Received $1,250 cash from a customer for services to be rendered next year. What was the amount of revenue for July?

Mary Martin, the sole stockholder of Martin Consulting, received a $2,000 dividend from the company. Identify the general journal entry below that Martin Consulting will make to record the transaction.

A column in journals and ledger accounts that is used to cross reference journal and ledger entries is the:

At the beginning of the current year, Trenton Company's total assets were $248,000 and its total liabilities were $175,000. During the year, the company reported total revenues of $93,000, total expenses of $76,000 and dividends of $5,000. There were no other changes in equity during the year and total assets at the end of the year were $260,000. Trenton Company's debt ratio at the end of the current year is:

On February 5, Teddy's Catering purchased an oven that cost $35,000. The firm made a down payment of $5,000 cash and signed a long-term note payable for the balance. Show the general journal entry to record this transaction.

Identify the statement that is incorrect.

Select the account below that normally has a credit balance.

Jerry's Butcher Shop had the following assets and liabilities at the beginning and end of the current year: Assets Liabilities Beginning of the year $114,000 $68,000 End of the year 135,000 73,000 If stockholders invested an additional $12,000 in the business during the year in exchange for common stock, but no dividends were paid during the year, what was the amount of net income earned by Jerry's Butcher Shop?

A general journal gives a complete record of each transaction in one place, and shows the debits and credits for each transaction.

Compare the list of accounts below and choose the list that contains only accounts that would be classified as asset accounts on the Chart of Accounts.

The ordering of accounts in a trial balance typically follows their identification number from the chart of accounts, that is, assets first, then liabilities, then common stock and dividends, followed by revenues and expenses.

Booth Industries has liabilities of $105 million and total assets of $350 million. Its debt ratio is 40.0%.

A ________ is a list of all the accounts used by a company and their identification codes but does not contain the balances.

The dividends account normally has a debit balance.

A debit is used to record which of the following:

Based on the following trial balance for Sally's Salon, prepare an income statement, statement of retained earnings, and a balance sheet. Sally Crawford, the sole stockholder, made no additional investments in the company during the year. Sally's Salon Trial Balance December 31 Cash \ 6,500 Accounts receivable 475 Beauty supplies 2,500 Beauty shop equipment 17,000 Accounts payable \ 745 Common Stock 21,155 Dividends 36,000 Revenue earned 72,000 Beauty supplies expense 3,425 Rent expense 6,000 Wages expense 22,000 Totals

A business uses a credit to record:

J. Brown Consulting paid $2,500 cash for a 5-month insurance policy which begins on December 1. Given the choices below, determine the general journal entry that J. Brown Consulting will make to record the cash payment. Assume the company's policy is to initially record prepaid and unearned items in balance sheet accounts.

J. Brown Consulting immediately paid $500 cash for utilities for the current month. Given the choices below, determine the general journal entry that J. Brown Consulting will make to record this transaction.

If insurance coverage for the next two years is paid for in advance, the amount of the payment is debited to an asset account called Prepaid Insurance.