Question : 21.Which one of the following changes describes the payment of : 1241825

 

21.Which one of the following changes describes the payment of $900 for utilities for the current month?

a. Assets and shareholders’ equity decrease by $900.

b. Assets and shareholders’ equity don’t change.

c. Assets and liabilities increase by $900.

d. Assets and liabilities decrease by $900.

22.Which of the following changes describes the payment of $30,000 for a new bulldozer?

a. Assets and shareholders’ equity decrease by $30,000.

b. Assets decrease and shareholders’ equity increases by $30,000.

c. No net change in total assets.

d. Assets decrease by $30,000.

23.Which of the following changes describes the collection of $7,000 from customers who had charged on account for services preformed during a previous accounting period?

a. Assets and shareholders’ equity increase by $7,000.

b. Assets and liabilities increase by $7,000.

c. Assets and liabilities decrease by $7,000.

d. No changes in total assets, liabilities, or shareholders’ equity.

24.Employees were paid $10,000 on June 9, 2015 for five days work through Friday, June 3. What adjusting entry was necessary at the company’s year-end, Tuesday, May 31, 2015, as a result of this?

a.Debit Wages Expense and credit Cash for $10,000

b.Debit Wages Expense and credit Shareholders’ equity for $6,000.

c.Debit Wages Payable and credit Wages Expense for $6,000.

d.Debit Wages Expense and credit Wages Payable for $4,000.

25.Which of the following changes describes the distribution of $1,000 of dividends to owners?

a. Assets and net income decrease by $1,000.

b. Assets decreases and net income increases by $1,000.

c. Assets and shareholders’ equity decrease by $1,000.

d. Assets and liabilities decrease by $1,000.

26.An expense account

a. is increased with a credit.

b. ultimately decreases shareholders’ equity.

c. appears on the balance sheet at the end of the accounting period.

d. is not an income statement account.

27.In a trial balance, if total debits do not equal total credits when the accounts are totaled,

a. the bookkeeper must have made an error.

b. the expected inequality is corrected during the normal adjusting process.

c. no change is made because the amount of assets will typically exceed the amount of liabilities.

d. the company will report a loss on its income statement because expenses are greater than revenues.

28.Marks Corp. purchased supplies at a cost of $2,600 during 2015. At January 1, 2015, supplies on hand amounted to $800. At December 31, 2015, supplies on hand are $400. Supplies expense for 2015 are

a.$1,200.

b.$2,200.

c.$1,600.

d.$3,000.

29.On December 13, 2015, Michael Company received $10,000 in cash as a payment in advance from a customer and credited Unearned Service Revenue. The balance in the Unearned Service Revenue account was $2,000 at the beginning of December. At the end of December, all but $600 had been earned. What adjusting entry is necessary at the end of December?

a.

Cash

10,000

 

 

Unearned Service Revenue

1,500

 

 

 

Service Revenue

 

11,500

b.

Unearned Service Revenue

10,600

 

 

 

Service Revenue

 

10,600

c.

Unearned Service Revenue

11,400

 

 

 

Service Revenue

 

11,400

d.

Service Revenue

10,000

 

 

 

Unearned Service Revenue

 

10,000

30.Which of the following describes the receipt of $6,000 from the issuance of common stock?

a. No entry

b. Debit shareholders’ equity and credit assets for $6,000

c. Debit assets and credit shareholders’ equity for $6,000

d. Debit liabilities and credit assets for $6,000