Question : 125. Tyler Incorporated receives $150,000 from investors in exchange for : 1255802

 

 

125. Tyler Incorporated receives $150,000 from investors in exchange for shares of its common stock. Tyler Incorporated records this transaction with a:

a. Debit to Investments.

b. Credit to Retained Earnings.

c. Credit to Common Stock.

d. Credit to Service Revenue.

 

 

126. The owner of an office building should report rent collected in advance as a debit to Cash and a credit to:

a. A liability.

b. An asset other than Cash.

c. Revenue.

d. Stockholders’ equity.

 

 

127. Clement Company paid an account payable related to a previous utility bill of $1,000. This transaction should be recorded as follows on the payment date:

a. Debit Accounts Payable $1,000, credit Cash $1,000.

b. Debit Cash $1,000, credit Accounts Payable $1,000.

c. Debit Utilities Expense $1,000, credit Cash $1,000.

d. Debit Cash $1,000, credit Utilities Expense $1,000.

 

 

128. On July 7, Saints Inc. received $10,000 in cash from a customer for services to be provided on October 10. Which of the following describes how the transaction should be recorded on July 7?

a. Debit Cash $10,000, credit Service Revenue $10,000.

b. Debit Accounts Receivable $10,000, credit Service Revenue $10,000.

c. Debit Cash $10,000, credit Unearned Revenue $10,000.

d. Debit Unearned Revenue $10,000, credit Cash $10,000.

 

 

129. On December 1, Bears Inc. signed a contract with a retailer to supply maintenance for the next calendar year. How should this transaction be recorded on December 1?

a. Debit Cash, credit Service Revenue.

b. Debit Cash, credit Accounts Receivable.

c. Debit Accounts Receivable, credit Service Revenue.

d. No transaction should be recorded on December 1.

 

 

130. Following are transactions of Gotebo Tanners, Inc., a new company, during the month of January:

1. Issued 10,000 shares of common stock for $15,000 cash.

2. Purchased land for $12,000, signing a note payable for the full amount.

3. Purchased office equipment for $1,200 cash.

4. Received cash of $14,000 for services provided to customers during the month.

5. Purchased $300 of office supplies on account.

6. Paid employees $10,000 for their first month’s salaries.

What was the balance of Gotebo’s Cash account following these six transactions?

a. $29,800.

b. $19,300.

c. $17,800.

d. $22,400.

 

131. Sooner purchased office supplies on account. The transaction would be recorded as:

a. Debit Supplies, Credit Cash

b. Debit Cash, Credit Accounts Payable

c. Debit Accounts Payable, Credit Supplies

d. Debit Supplies, Credit Accounts Payable

 

 

132. Tomlin & Company provides music for special occasions.  On January 14, the Smith family hired Tomlin for an upcoming family wedding for an agreed upon fee of $10,000.  The wedding was scheduled for May 23.  As part of the agreement, the Smiths paid Tomlin half of the fee at the end of April with the remaining amount due by the end of June.  How would Tomlin record the receipt of the final payment in June?

a. Credit to Accounts Receivable.

b. Credit to Service Revenue.

c. Credit to Cash.

d. Debit to Unearned Revenue.

 

 

133. Bostel wanted to expand the size of its warehouse in order to generate more profits.  The company decided to purchase the building adjacent to its existing warehouse.  The company pays for the building by borrowing from the bank.  The purchase would be recorded as:

a. Debit Cash; credit Notes Payable.

b. Debit Buildings; credit Cash.

c. Debit Buildings; credit Notes Payable.

d. Debit Cash and Buildings; credit Notes Payable.

 

 

134. On July 5, Harris Company purchased supplies from the hardware store for $600 on account.  On July 10, Harris receives a bill from the hardware store as a reminder about the account balance.  On July 17, Harris pays the account in full.  How does Harris record the transaction on July 17?

a. Supplies                         600

Accounts Payable                 600

b. Accounts Payable          600

Supplies                                600  

c. Cash                               600

Accounts Payable                 600

d. Accounts Payable           600

Cash                                      600