Question : 21) During the month of October, Ford advertised the Internet. : 1171275

 

21) During the month of October, Ford advertised on the Internet. Ford received the bill for $600 in October, but waited until November to pay the advertising expense. The journal entry to record the payment in November is:

A) Accounts Payable, debit; Cash, credit

B) Advertising Expense, debit; Accounts Payable, credit

C) Advertising Expense, debit; Cash, credit

D) The journal entry is not made in November.

22) On July 1, Hill’s Construction paid six months’ insurance in advance. The journal entry to record this transaction is:

A) Debit Prepaid Insurance; Credit Cash

B) Debit Insurance Expense; Credit Cash

C) Debit Cash; Credit Prepaid Insurance

D) Debit Cash; Credit Insurance Expense

23) Riley’s Book Review billed customers $550. The journal entry to record this transaction is:

A) Accounts Receivable, debit $550; Editing Fees, credit $550

B) Editing Fees, debit $550; Riley, Capital, credit $550

C) Accounts Payable, debit $550; Editing Fees, credit $550

D) Cash, debit $550; Riley, Accounts Receivable, credit $550

24) Antonio’s catered a reception. The total price was $500. The customer paid half of the fee in cash and placed the remainder on account. The journal entry to record this transaction is:

A)

Cash

250

Accounts Receivable

250

Catering Service Fees

500

 

B)

Cash

500

Accounts Receivable

500

 

C)

Cash

500

Catering Service Fees

500

 

D)

Cash

500

Accounts Receivable

250

Catering Service Fees

250

25) Renzi’s Volleyball Gym purchased equipment for $1,200. It made a down payment of $500 with the remainder on account. The journal entry to record this transaction is:

A)

Cash

700

Accounts Receivable

700

 

B)

Accounts Payable

500

Cash

700

Equipment

1,200

 

C)

Supplies

1,200

                    Cash

700

                    Accounts Payable

500

 

D)

Equipment

1,200

                    Accounts Payable

700

                    Cash

500

26) The entry to record completing a financial lecture and immediately collecting payment from customers would be:

A)

Cash

500

                    Lecture Fees

500

 

B)

Cash

500

                    Accounts Payable

500

 

C)

Lecture Fees

500

                    Cash

500

 

D)

Lecture Fees

500

                    Accounts Payable

500

27) BNL completed a performance and collected revenue of $10,000 not previously billed or recorded. The journal entry to record the collection would be:

A)

Accounts Receivable

10,000

Performance Fees

10,000

 

B)

Cash

10,000

Performance Fees

10,000

 

 

C)

Accounts Receivable

10,000

                 Cash

10,000

 

D)

Performance Fees

10,000

                 Cash

10,000

28) The general journal does NOT have a column titled:

A) Date.

B) Account Titles & Descriptions.

C) Dr. and Cr.

D) Balance.

29) A calendar year is:

A) any 12-month period that a business chooses for its accounting year.

B) the 12-month period beginning with January.

C) the period for when a interim financial statement would be completed.

D) All of these answers are correct.

30) Interim statements are prepared to:

A) notify management of the company’s current financial position.

B) notify investors of the company’s current financial position.

C) allow management to make changes to the business before processing year-end financial statements.

D) All of the above are correct.