Question :
121. In which of the following situations would the trial balance : 1225497
121. In which of the following situations would the trial balance not balance?
A. A $1,000 collection of an account receivable was erroneously posted as a debit to Accounts Receivable and a credit to Cash.
B. The purchase of office supplies on account for $3,250 was erroneously recorded in the journal as $2,350 debit to Office Supplies and credit to Accounts Payable.
C. A $50 cash receipt for the performance of a service was not recorded at all.
D. The purchase of office equipment for $1,200 was posted as a debit to Office Supplies and a credit to Cash for $1,200.
The cash payment of a $750 account payable was posted as a debit to Accounts Payable and a debit to Cash for $750.
122. The credit purchase of a delivery truck for $4,700 was posted to Delivery Trucks as a $4,700 debit and to Accounts Payable as a $4,700 debit. What effect would this error have on the trial balance?
A. The total of the Debit column of the trial balance will exceed the total of the Credit column by $4,700.
B. The total of the Credit column of the trial balance will exceed the total of the Debit column by $4,700.
The total of the Debit column of the trial balance will exceed the total of the Credit column by $9,400.
D. The total of the Credit column of the trial balance will exceed the total of the Debit column by $9,400.
E. The total of the Debit column of the trial balance will equal the total of the Credit column.
123. If the Debit and Credit column totals of a trial balance are equal, then:
A. All transactions have been recorded correctly.
B. All entries from the journal have been posted to the ledger correctly.
C. All ledger account balances are correct.
The total debit entries and total credit entries are equal.
E. The balance sheet would be correct.
124. Of the following errors, which one by itself will cause the trial balance to be out of balance?
A. A $200 cash salary payment posted as a $200 debit to Cash and a $200 credit to Salaries Expense.
A $100 cash receipt from a customer in payment of his account posted as a $100 debit to Cash and a $10 credit to Accounts Receivable.
C. A $75 cash receipt from a customer in payment of his account posted as a $75 debit to Cash and a $75 credit to Cash.
D. A $50 cash purchase of office supplies posted as a $50 debit to Office Equipment and a $50 credit to Cash.
E. An $800 prepayment from a customer for services to be rendered in the future was posted as an $800 debit to Unearned Revenue and an $800 credit to Cash.
125. A $130 credit to Office Equipment was credited to Fees Earned by mistake. By what amounts are the accounts under- or overstated as a result of this error?
A. Office Equipment, understated $130; Fees Earned, overstated $130.
B. Office Equipment, understated $260; Fees Earned, overstated $130.
Office Equipment, overstated $130; Fees Earned, overstated $130.
D. Office Equipment, overstated $130; Fees Earned, understated $130.
E. Office Equipment, overstated $260; Fees Earned, understated $130.
126. All of the following are asset accounts except:
A. Accounts Receivable.
B. Buildings.
Supplies expense.
D. Cash.
E. Prepaid insurance.
127. All of the following are liability accounts except:
A. Accounts Payable.
B. Unearned Ticket Revenue.
C. Taxes Payable.
Commissions Earned.
E. Notes Payable.
128. Which financial statement reports an organization’s financial position at a point in time?
A. Income statement.
Balance sheet.
C. Statement of owner’s equity.
D. Cash flow statement.
E. Trail balance.
129. Hal Smith opened Smith’s Repairs on March 1 of the current year. During March, the following transactions occurred and were recorded in the company’s books:
Smith invested $25,000 cash in the business.
2. Smith contributed $100,000 of equipment to the business.
3. The company paid $2,000 cash to rent office space for the month.
4. The company received $16,000 cash for repair services provided during March.
5. The company paid $6,200 for salaries for the month.
6. The company provided $3,000 of services to customers on account.
7. The company paid cash of $500 for monthly utilities.
8. The company received $3,100 cash in advance of providing repair services to a customer.
9. Smith withdrew $5,000 for his personal use from the company.
Based on this information, net income for March would be:
$10,300.
B. $13,400.
C. $5,300.
D. $8,400.
E. $13,500.
130. Hal Smith opened Smith’s Repairs on March 1 of the current year. During March, the following transactions occurred and were recorded in the company’s books:
Smith invested $25,000 cash in the business.
2. Smith contributed $100,000 of equipment to the business.
3. The company paid $2,000 cash to rent office space for the month.
4. The company received $16,000 cash for repair services provided during March.
5. The company paid $6,200 for salaries for the month.
6. The company provided $3,000 of services to customers on account.
7. The company paid cash of $500 for monthly utilities.
8. The company received $3,100 cash in advance of providing repair services to a customer.
9. Smith withdrew $5,000 for his personal use from the company.
Based on this information, the balance in Hal Smith, Capital reported on the Statement of Owner’s Equity at the end of March would be:
A. $133,400.
$130,300.
C. $125,300.
D. $8,400.
E. $13,500.
131. Inge Industries received $3,000 from a customer for services rendered and not previously recorded. Inge’s general journal entry to record this transaction will be:
A. Debit Services Revenue, credit Accounts Receivable.
B. Debit Cash, credit Accounts Payable.
C. Debit Cash, credit Accounts Receivable.
Debit Cash, credit Services Revenue.
E. Debit Accounts Payable, credit Services Revenue.
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