Question : 61.Refer to the information above. What total assets of Hunter : 1237581

 

 

61.Refer to the information above. What are total assets of Hunter Products at the end of May?   

A.$913,000.

 

B.$790,000.

 

C.$853,000.

 

D.$916,000.

$390,000 + $400,000 + $63,000 = $853,000

 

 

 

62.Refer to the information above. What is the total of Hunter Products’ liabilities at the end of May?   

A.$253,000.

 

B.$190,000.

 

C.$63,000.

 

D.$313,000.

$250,000 – $60,000 + $63,000 = $253,000

 

 

 

63.Refer to the information above. What is the total owners’ equity at the end of May?   

A.$810,000.

 

B.$600,000.

 

C.$790,000.

 

D.$660,000.

Total owners’ equity = $600,000 (capital stock issued)

 

 

 

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.

$90,000 + $260,000 = $350,000

 

 

 

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.

$28,000 + $13,000 = $41,000