Question : 91. The following transactions occurred during July: Received $900 cash for : 1225494

 

91. The following transactions occurred during July:

Received $900 cash for services provided to a customer during July.

2. Received $2,200 cash investment from Barbara Hanson, the owner of the business.

3. Received $750 from a customer in partial payment of his account receivable which arose from sales in June.

4. Provided services to a customer on credit, $375.

5. Borrowed $6,000 from the bank by signing a promissory note.

6. Received $1,250 cash from a customer for services to be rendered next year.

What was the amount of revenue for July? 

A. $900.

 $1,275.

C. $2,525.

D. $3,275.

E. $11,100.

92. If Tim Jones, the owner of Jones Hardware proprietorship, uses cash of the business to purchase a family automobile, the business should record this use of cash with an entry to: 

A. Debit Salary Expense and credit Cash.

B. Debit Tim Jones, Salary and credit Cash.

C. Debit Cash and credit Tim Jones, Withdrawals.

 Debit Tim Jones, Withdrawals and credit Cash.

E. Debit Automobiles and credit Cash.

93. Zed Bennett opened an art gallery and as a dealer completed these transactions:

Started the gallery, Artery, by investing $40,000 cash and equipment valued at $18,000.

2. Purchased $70 of office supplies on credit.

3. Paid $1,200 cash for the receptionist’s salary.

4. Sold a painting for an artist and collected a $4,500 cash commission on the sale.

5. Completed an art appraisal and billed the client $200.

What was the balance of the cash account after these transactions were posted? 

A. $12,230.

B. $12,430.

 $43,300.

D. $43,430.

E. $61,430.

94. At the beginning of January of the current year, Thomas Law Center’s ledger reflected a normal balance of $52,000 for accounts receivable. During January, the company collected $14,800 from customers on account and provided additional services to customers on account totaling $12,500. Additionally, during January one customer paid Thomas $5,000 for services to be provided in the future. At the end of January, the balance in the accounts receivable account should be: 

A. $54,700.

 $49,700.

C. $2,300.

D. $54,300.

E. $49,300.

95. During the month of March, Cooley Computer Services made purchases on account totaling $43,500. Also during the month of March, Cooley was paid $8,000 by a customer for services to be provided in the future and paid $36,900 of cash on its accounts payable balance. If the balance in the accounts payable account at the beginning of March was $77,300, what is the balance in accounts payable at the end of March? 

 $83,900.

B. $91,900.

C. $6,600.

D. $75,900.

E. $4,900.

96. On January 1 of the current year, Bob’s Lawn Care Service reported owner’s capital totaling $122,500. During the current year, total revenues were $96,000 while total expenses were $85,500. Also, during the current year Bob withdrew $20,000 from the company. No other changes in equity occurred during the year. If, on December 31 of the current year, total assets are $196,000, the change in owner’s capital during the year was: 

 A decrease of $9,500.

B. An increase of $9,500.

C. An increase of $30,500.

D. A decrease of $30,500.

E. Impossible to determine from the information provided.

97. Andrea Conaway opened Wonderland Photography on January 1 of the current year. During January, the following transactions occurred and were recorded in the company’s books:

Conaway invested $13,500 cash in the business.

2. Conaway contributed $20,000 of photography equipment to the business.

3. The company paid $2,100 cash for an insurance policy covering the next 24 months.

4. The company received $5,700 cash for services provided during January.

5. The company purchased $6,200 of office equipment on credit.

6. The company provided $2,750 of services to customers on account.

7. The company paid cash of $1,500 for monthly rent.

8. The company paid $3,100 on the office equipment purchased in transaction #5 above.

9. Paid $275 cash for January utilities.

Based on this information, the balance in the cash account at the end of January would be: 

A. $41,450.

 $12,225.

C. $18,700.

D. $15,250.

E. $13,500.

98. Andrea Conaway opened Wonderland Photography on January 1 of the current year. During January, the following transactions occurred and were recorded in the company’s books:

Conaway invested $13,500 cash in the business.

2. Conaway contributed $20,000 of photography equipment to the business.

3. The company paid $2,100 cash for an insurance policy covering the next 24 months.

4. The company received $5,700 cash for services provided during January.

5. The company purchased $6,200 of office equipment on credit.

6. The company provided $2,750 of services to customers on account.

7. The company paid cash of $1,500 for monthly rent.

8. The company paid $3,100 on the office equipment purchased in transaction #5 above.

9. Paid $275 cash for January utilities.

Based on this information, the balance in the Andrea Conaway, Capital account reported on the Statement of Owner’s Equity at the end of the month would be: 

A. $31,400.

B. $39,200.

C. $31,150.

 $40,175.

E. $30,875.

99. The debt ratio is used: 

A. To measure the ratio of equity to expenses.

 To assess the risk associated with a company’s use of liabilities.

C. Only by banks when a business applies for a loan.

D. To determine how much debt a firm should pay off.

E. To determine how much debt a company should borrow.

100. Which of the following is the formula used to calculate the debt ratio? 

A. Total Equity/Total Liabilities.

B. Total Liabilities/Total Equity.

 Total Liabilities/Total Assets.

D. Total Assets/Total Liabilities.

E. Total Equity/Total Assets.

 

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