117.When a service has been performed, but no cash has been received, which of the following statements is true?
a.
No journal entry would be made.
b.
The entry would contain a debit to Accounts Payable.
c.
The entry would contain a debit to Accounts Receivable.
d.
The entry would contain a credit to Unearned Revenue.
118.Which of the following transactions decreases both assets and stockholders' equity?
a.
Receipt of a phone bill, to be paid at a later time
b.
Advance payment made for insurance
c.
Payment of a liability
d.
Declaration and payment of a dividend
119.A $4,000 machine is purchased by paying $1,000 cash and issuing a promissory note for the remainder. The entry should contain a
a.
credit to Notes Payable.
b.
credit to Notes Receivable.
c.
debit to Cash.
d.
credit to Machinery.
120.All of the following are examples of source documents except
a.
receipts.
b.
checks.
c.
journals.
d.
invoices.
121.Which of the following transactions increases both assets and stockholders' equity?
a.
Rendered a service, payment not yet received
b.
Declared and paid a dividend
c.
Received a bank loan
d.
Received payment from a credit customer
122.Which of the following accounts will not affect stockholders' equity?
a.
Sales
b.
Land
c.
Dividends
d.
Advertising Expense
123.A dividend will reduce which of the following accounts?
a.
Common Stock
b.
Accounts Payable
c.
Retained Earnings
d.
Dividends
124.An $80 credit item is accidentally posted as a debit. The trial balance column totals will therefore differ by
a.
$160.
b.
$0.
c.
$80.
d.
$40.
125.Which of the following gives the correct sequence of accounting procedures?
a.
Financial statements, trial balance, ledger, journal
b.
Financial statements, journal, ledger, trial balance
c.
Ledger, trial balance, journal, financial statements
d.
Journal, ledger, trial balance, financial statements
126.Here is the trial balance for McLeary Corporation:
McLeary Corporation
Trial Balance
January 31, 20x7
Cash
$3,000
Accounts Receivable
2,000
Art Supplies
3,000
Office Supplies
5,000
Prepaid Rent
7,000
Prepaid Insurance
5,000
Art Equipment
5,000
Office Equipment
3,000
Accounts Payable
$10,000
Common Stock
5,000
Retained Earnings
5,000
Dividends
?
Advertising Fees Earned
?
Wages Expense
?
Utilities Expense
5,000
Telephone Expense
3,000
$ A
$ B
If the balance of the Dividends account were $36,000 and the balance of the Wages Expense account were $5,000, what would be the amount of B?
a.
$82,000
b.
$48,000
c.
$61,000
d.
$62,000
