Question : 138.A record in which the effects of transactions first recorded : 1258612

 

 

138.A record in which the effects of transactions are first recorded and from which transaction amounts are posted to the ledger is a(n):   

A. Account.

 

B. Trial balance.

 

C. Journal.

 

D. T-account.

 

E. Balance column account.

 

 

 

 

139.Smiles Entertainment had the following accounts and balances at December 31: 

AccountDebitCredit

Cash$10,000

Accounts Receivable2,000

Prepaid Insurance2,400

Supplies1,000

Accounts Payable $5,000

Common Stock 4,900

Service Revenue 7,000

Salaries Expense500

Utilities Expense   1,000

Totals$16,900$16,900

Using the information in the table, calculate the company’s reported net income for the period.    

A. $1,100.

 

B. $4,000.

 

C. $4,500.

 

D. $10,400.

 

E. $5,500.

Net Income = Total Revenues – Total Expenses.(Service Revenue $7,000 – Salaries Expense $500 – Utilities Expense $1,000 = $5,500)

 

 

 

140.Jackson Consulting, Inc. had the following accounts and balances at December 31: 

AccountDebitCredit

Cash$20,000

Accounts Receivable   6,000

Prepaid Insurance1,500

Supplies5,000

Accounts Payable $500

Common Stock 16,200

Dividends1,000

Service Revenue 20,000

Utilities Expense2,000

Salaries Expense   1,200

Totals$36,700$36,700

Using the information in the table, calculate Jackson Consulting Inc.’s reported net income for the period.    

A. $16,800.

 

B. $15,800.

 

C. $15,300.

 

D. $10,300.

 

E. $32,000.

Net Income = Total Revenues – Total Expenses.Service Revenue $20,000 – Utilities Expense $2,000 – Salaries Expense $1,200 = $16,800

 

 

 

141.Bologna Lodging, Inc. had the following accounts and balances as of December 31: 

AccountDebitCredit

Cash$20,000

Accounts Receivable2,000

Salaries Expense500

Accounts Payable $4,000

Lodging Revenue 7,000

Utilities Expense500

Prepaid Insurance1,400

Supplies1,500

Common Stock             14,900

Totals$25,900$25,900

Using the information in the table, calculate the total assets reported on Bologna’s balance sheet for the period.    

A. $24,900.

 

B. $25,400.

 

C. $22,500.

 

D. $25,900.

 

E. $23,400.

(Cash $20,000 + Accounts Receivable $2,000 + Prepaid Insurance $1,400 + Supplies $1,500 = $24,900)

 

 

 

142.At the end of its first month of operations, Michael’s Consulting Services, Inc. reported net income of $25,000. They also had account balances of: Cash, $18,000; Office Supplies, $2,000 and Accounts Receivable $10,000. The stockholders’ total investment for this first month was $5,000. Calculate the ending balance in Stockholders’ Equity to be reported on the Balance Sheet.    

A. $30,000

 

B. $25,000

 

C. $20,000

 

D. $5,000

 

E. $7,000

Common Stock $5,000 + Net Income $25,000 = $30,000

 

 

 

143.Identify the accounts that would normally have balances in the debit column of a business’s trial balance.    

A. Assets and expenses.

 

B. Assets and revenues.

 

C. Revenues and expenses.

 

D. Liabilities and expenses.

 

E. Liabilities and dividends.

 

 

 

 

144.Identify the accounts that would normally have balances in the credit column of a business’s trial balance.    

A. Liabilities and expenses.

 

B. Assets and revenues.

 

C. Revenues and expenses.

 

D. Revenues and liabilities.

 

E. Dividends and liabilities.

 

 

 

 

145.Which of the following is not a step in the accounting process?    

A. Record relevant transactions and events in a journal.

 

B. Post journal information to the ledger accounts.

 

C. Prepare and analyze the trial balance.

 

D. Analyzing each transaction.

 

E. Verify that revenues and expenses are equal.

 

 

 

 

146.A bookkeeper has debited an account for $3,500 and credited a liability account for $2,000. Which of the following would be an incorrect way to complete the recording of this transaction:   

A. Credit another asset account for $1,500.

 

B. Credit another liability account for $1,500.

 

C. Credit an expense account for $1,500.

 

D. Credit the common stock account for $1,500.

 

E. Debit another asset account for $1,500.

 

 

 

 

147.A report that lists a business’s accounts and their balances, in which the total debit balances should equal the total credit balances, is called a(n):   

A. Account balance.

 

B. Trial balance.

 

C. Ledger.

 

D. Chart of accounts.

 

E. General Journal.