Question : 81. Double-entry accounting an accounting system: A. That records each transaction twice. That records : 1225493

81. Double-entry accounting is an accounting system: 

A. That records each transaction twice.

 That records the effects of transactions and other events in at least two accounts with equal debits and credits.

C. In which each transaction affects and is recorded in two or more accounts but that could include two debits and no credits.

D. That may only be used if T-accounts are used.

E. That insures that errors never occur.

82. Rocky Industries received its telephone bill in the amount of $300, and immediately paid it. Rocky’s general journal entry to record this transaction will include a 

 Debit to Telephone Expense for $300.

B. Credit to Accounts Payable for $300.

C. Debit to Cash for $300.

D. Credit to Telephone Expense for $300.

E. Debit to Accounts Payable for $300.

83. Management Services, Inc. provides services to clients. On May 1, a client prepaid Management Services $60,000 for 6-months services in advance. Management Services’ general journal entry to record this transaction will include a 

A. Debit to Unearned Management Fees for $60,000.

B. Credit to Management Fees Earned for $60,000.

C. Credit to Cash for $60,000.

 Credit to Unearned Management Fees for $60,000.

E. Debit to Management Fees Earned for $60,000.

84. Wisconsin Rentals purchased office supplies on credit. The general journal entry made by Wisconsin Rentals will include a: 

A. Debit to Accounts Payable.

B. Debit to Accounts Receivable.

C. Credit to Cash.

 Credit to Accounts Payable.

E. Credit to Wisconsin Rentals, Capital.

85. An asset created by prepayment of an expense is: 

A. Recorded as a debit to an unearned revenue account.

 Recorded as a debit to a prepaid expense account.

C. Recorded as a credit to an unearned revenue account.

D. Recorded as a credit to a prepaid expense account.

E. Not recorded in the accounting records until the earnings process is complete.

86. Robert Haddon contributed $70,000 in cash and land worth $130,000 to open a new business, RH Consulting. Which of the following general journal entries will RH Consulting make to record this transaction? 

A. Debit Assets $200,000; credit Haddon, Capital, $200,000.

B. Debit Cash and Land, $200,000; credit Haddon, Capital, $200,000.

 Debit Cash $70,000; debit Land $130,000; credit Haddon, Capital, $200,000.

D. Debit Haddon, Capital, $200,000; credit Cash $70,000, credit Land, $130,000.

E. Debit Haddon, Capital, $200,000; credit Assets, $200,000.

87. A liability created by the receipt of cash from customers in payment for products or services that have not yet been delivered to the customers is: 

A. Recorded as a debit to an unearned revenue account.

B. Recorded as a debit to a prepaid expense account.

 Recorded as a credit to an unearned revenue account.

D. Recorded as a credit to a prepaid expense account.

E. Not recorded in the accounting records until the earnings process is complete.

88. On September 30, the Cash account of Value Company had a normal balance of $5,000. During September, 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 September? 

A. A $0 balance.

 A $4,300 debit balance.

C. A $4,300 credit balance.

D. A $5,700 debit balance.

E. A $5,700 credit balance.

89. On April 30, Holden Company 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.

 $47,000.

C. $52,000.

D. $57,000.

E. $32,000.

90. During the month of February, Hoffer Company had cash receipts of $7,500 and cash disbursements of $8,600. The February 28 cash balance was $1,800. What was the January 31 beginning cash balance? 

A. $700.

B. $1,100.

 $2,900.

D. $0.

E. $4,300.