Question : 198. On January 1, 2011, Cary Parsons established Cary’s Catering Service. : 1226933

 

198. On January 1, 2011, Cary Parsons established Cary’s Catering Service.  Listed below are accounts to use for transactions (a) through (f), each identified by a number.  Following this list are the transactions that occurred during the first month of operations.  You are to indicate for each transaction the accounts that should be debited and credited by placing the account number(s) in the appropriate box.  

1.

Cash

2.

Accounts Receivable

3.

Supplies

4.

Prepaid Insurance

5.

Equipment

6.

Truck

7.

Notes Payable

8.

Accounts Payable

9.

Capital Stock

10.

Dividends

11.

Fees Earned

12.

Wages Expense

13.

Rent Expense

14.

Utilities Expense

15.

Truck Expense

16.

Miscellaneous Expense

17.

Insurance Expense

 

 

 

Transactions

Account(s) Debited

Account(s) Credited

a.  Recorded jobs completed on account and sent invoices to customers.

 

 

b.  Received an invoice for truck expenses to be paid in February.

 

 

c.  Paid utilities expense

 

 

d.  Received cash from customers on account.

 

 

e.  Paid employee wages.

 

 

f.  Paid Cary a cash dividend.

 

 

 

 

 

 

199. Listed below are accounts to use for transactions (a) through (d), each identified by a number.  Following this list are the transactions.  You are to indicate for each transaction the accounts that should be debited and credited by placing the account number(s) in the appropriate box.  

1.

Cash

2.

Accounts Receivable

3.

Office Supplies

4.

Land

5.

Interest Receivable

6.

Building

7.

Accumulated Depreciation – Building

8.

Depreciation Expense – Building

9.

Accounts Payable

10.

Interest Payable

11.

Insurance Payable

12.

Utility Expense

13.

Notes Payable

14.

Prepaid Insurance

15.

Service Revenue

16.

Capital Stock

17.

Insurance Expense

18.

Utility Payable

19.

Office Supplies Expense

20.

Unearned Service Revenue

21.

Dividends

22.

Interest Expense

 

 

 

Transactions

Account(s) Debited

Account(s) Credited

a.      Utility bill is received; payment will be made in 10 days.

 

 

b.      Paid the utility bill previously recorded in transaction (a).

 

 

c.      Bought a three-year insurance policy and paid in full.

 

 

d.      Received $7,000 from a contract to perform accounting services over the next two years.

 

 

 

 

 

 

200. The following two situations are independent of each other.1.  On June 1, the cash account balance was $38,750.  During June, cash payments totaled $239,140 and the June 30 balance was $42,175.  Determine the cash receipts during June and show your calculation.2.  On March 1, the supplies account balance was $1,340.  During March, supplies of $4,335 were purchased and $890 of supplies were on hand as of March 31.  Determine the supplies expense for March and show your calculation. 

1.  $42,175 = $38,750 + Cash Receipts – $239,140 Cash Receipts = $242,5652.  $890 = $1,340 + $4,335 – Supplies ExpenseSupplies Expense = $4,785

 

201. On June 1, the cash account balance was $75,880.  During June, cash receipts totaled $305,000 and the June 30 balance was $96,750.  Determine the cash payments made during June. 

96,750 = 75,880 + 305,000 – ?Cash payments = $284,130