Question :
108.Mary Martin, the owner of Martin Consulting, Inc., started the : 1258609
108.Mary Martin, the owner of Martin Consulting, Inc., started the business by investing $40,000 cash. Identify the general journal entry below that Martin Consulting, Inc. will make to record the transaction.
A. Cash40,000
Common Stock 40,000
B. Common Stock40,000
Cash 40,000
C. Investments40,000
Cash 40,000
D. Investments40,000
Common Stock 40,000
E. Cash40,000
Increased Equity 40,000
109.If cash is received from customers in payment for products or services that have not yet been delivered to the customers, the business would record the cash receipt as:
A. A debit to an unearned revenue account.
B. A debit to a prepaid expense account.
C. A credit to an unearned revenue account.
D. A credit to a prepaid expense account.
E. No entry is required at the time of collection.
110.On May 31, the Cash account of Bottle’s R Us had a normal balance of $5,000. During May, the account was debited for a total of $12,200 and credited for a total of $11,500. What was the balance in the Cash account at the beginning of May?
A. A $0 balance.
B. A $4,300 debit balance.
C. A $4,300 credit balance.
D. A $5,700 debit balance.
E. A $5,700 credit balance.
Beginning Cash Balance + Debits – Credits = Ending Cash BalanceBeginning Cash Balance + $12,200 – $11,500 = $5,000Beginning Cash Balance + $700 = $5,000; Beginning Balance = $4,300 debit balance
111.On April 30, Victor Services had an Accounts Receivable balance of $18,000. During the month of May, total credits to Accounts Receivable were $52,000 from customer payments. The May 31 Accounts Receivable balance was $13,000. What was the amount of credit sales during May?
A. $5,000.
B. $47,000.
C. $52,000.
D. $57,000.
E. $32,000.
Beginning Accounts Receivable Balance + Credit Sales (Debits) – Customer Payments (Credits) = Ending Accounts Receivable Balance $18,000 + Credit Sales (Debits) – $52,000 = $13,000 Credit Sales (Debits) – $34,000 = $13,000 Credit Sales (Debits) = $47,000
112.During the month of February, Victor Services had cash receipts of $7,500 and cash disbursements of $8,600. The February 28 cash balance was $1,800. What was the February 1 beginning cash balance?
A. $700.
B. $1,100.
C. $2,900.
D. $0.
E. $4,300.
Beginning Cash Balance + Cash Receipts – Cash Disbursements = Ending Cash BalanceBeginning Cash Balance + $7,500 – $8,600 = $1,800Beginning Cash Balance – $1,100 = $1,800Beginning Cash Balance = $2,900
113.The following transactions occurred during July:1. Received $900 cash for services provided to a customer during July.2. Received $2,200 cash investment from Bob Johnson, the stockholder 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.
B. $1,275.
C. $2,525.
D. $3,275.
E. $11,100.
Revenues = $900 (from #1) + $375 (from #4) = $1,275
114.If Taylor Willow, the owner of Willow Hardware Inc., uses cash of the business to purchase a family automobile, the business should record this use of cash with an entry to:
A. Debit Automobiles and credit Cash.
B. Debit Cash and credit Salary Expense.
C. Debit Cash and credit Dividends.
D. Debit Dividends and credit Cash.
E. Debit Cash and credit Automobiles.
115.Larry Bar opened a frame shop and completed these transactions: 1. Larry started the shop 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 custom frame service and collected a $1,500 cash on the sale. 5. Completed framing services and billed the client $200. What was the balance of the cash account after these transactions were posted?
A. $300.
B. $41,500.
C. $40,300.
D. $38,500.
E. $38,700.
Ending Cash Balance = $40,000 (#1) – $1,200 (#3) + $1,500 (#4) = $40,300
116.At the beginning of January of the current year, Little Mikey’s Catering 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 Mikey $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.
B. $49,700.
C. $2,300.
D. $54,300.
E. $49,300.
Beginning Accounts Receivable Balance + Services on Account – Collections from Customers = Ending Accounts Receivable Balance$52,000 + $12,500 – $14,800 = Ending Accounts Receivable BalanceEnding Accounts Receivable = $49,700
117.During the month of March, Harley’s Computer Services made purchases on account totaling $43,500. Also during the month of March, Harley 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?
A. $83,900.
B. $91,900.
C. $6,600.
D. $75,900.
E. $4,900.
Beginning Accounts Payable Balance + Purchases on Account – Payments on Accounts = Ending Accounts Payable Balance$77,300 + $43,500 – $36,900 = Ending Accounts Payable BalanceEnding Accounts Payable = $83,900
