Question :
64.Master Equipment has a $17,400 liability to Arrow Paint Co. : 1259756
64.Master Equipment has a $17,400 liability to Arrow Paint Co. When Master Equipment makes a partial payment of $7,600 on this liability, which of following occurs?
A. Retained earnings are debited $9,800.
B. The Accounts Payable account is credited $9,800.
C. The Cash account is debited $7,600.
D. The Accounts Payable account is debited $7,600.
65.Eagle News has a $6,000 account receivable from one of its advertisers, Allwood Floors. When Eagle receives $3,600 from Allwood as partial payment:
A. Eagle should debit Accounts Receivable for $3,600.
B. Eagle should credit Cash for $3,600.
C. Eagle should credit Accounts Receivable for $3,600.
D. Eagle makes no journal entry until the total of $6,000 is received from Allwood.
66.Bruno’s Pizza Restaurant makes full payment of $8,300 on an account payable to Stella’s Cheese Co. Stella’s would record this transaction with a:
A. Debit to Accounts Payable for $8,300.
B. Credit to Cash for $8,300.
C. Credit to Accounts Receivable for $8,300.
D. Credit to Accounts Payable for $8,300.
67.The purchase of office equipment at a cost of $7,600 with an immediate payment of $4,200 and agreement to pay the balance within 60 days is recorded by:
A. A debit of $7,600 to Office Equipment, a debit of $4,200 to Accounts Receivable, and a credit of $3,400 to Accounts Payable.
B. A debit of $7,600 to Office Equipment, a credit of $4,200 to Cash, and a credit of $3,400 to Accounts Receivable.
C. A debit of $3,400 to Accounts Receivable, a debit of $4,200 to Cash, and a credit of $7,600 to Office Equipment.
D. A debit of $7,600 to Office Equipment, a credit of $4,200 to Cash, and a credit of $3,400 to Accounts Payable.
68.Land is purchased by making a cash down payment of $40,000 and signing a note payable for the balance of $130,000. The journal entry to record this transaction in the accounting records of the purchaser includes:
A. A credit to Land for $40,000.
B. A debit to Cash for $40,000.
C. A debit to Land for $170,000.
D. A debit to Note Payable for $130,000.
69.Montauk Oil Co. reports these account balances at December 31, 2014 On January 2, 2015, Montauk Oil collected $50,000 of its accounts receivable and paid $20,000 of its accounts payable. On January 3, 2015, total liabilities are:
A. $370,000.
B. $350,000.
C. $300,000.
D. $70,000.
70.Ceramic Products, Inc. reports these account balances at January 1, 2015 (shown in alphabetical order): On January 5, Ceramic Products collected $12,000 of its accounts receivable and paid $11,000 on its note payable. On January 6, 2015, total liabilities are:
A. $0.
B. $30,000.
C. $56,000.
D. $41,000.
71.Ben Dryden, president of Jet Glass, Inc, noticed a $8,000 debit to Accounts Payable in the company’s general ledger. This debit could correspond to:
A. A $8,000 sale to a customer.
B. A purchase of equipment costing $8,000 on credit.
C. A payment of $8,000 to a supplier to settle a balance due.
D. The failure to pay this month’s $8,000 utility bill on time.
72.Indirect Oil Co. reports these account balances at December 31, 2014 On January 2, 2015, Indirect Oil collected $25,000 of its accounts receivable and paid $20,000 of its accounts payable. On January 3, 2015, total liabilities are:
A. $185,000.
B. $165,000.
C. $150,000.
D. $70,000.
73.Refer to the information above. On January 6, 2015, total liabilities are:
A. $901,000.
B. $579,000.
C. $1,399,000.
D. $1,721,000.
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