Question :
102. Eagle News has a $6,000 account receivable from one of : 1229666
102. 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.
103. 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.
104. 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.
105. 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.
The bookkeeper for Wood Mfg. made the following journal entry on January 30, 2009:
106. This transaction involves:
A. The sale of land and building for $286,000.
B. Payment of $221,000 on a note payable.
C. The receipt of $65,000 cash.
D. An increase in liabilities of $221,000.
107. Before the journal entry above, Wood had assets, liabilities, and owners’ equity of $450,000, $100,000, and $350,000, respectively. What are total assets immediately after the above transaction occurs?
A. $221,000.
B. $671,000.
C. $735,500.
D. $450,000.
108. This transaction involves:
A. Martin’s collection of $35,000 on an account receivable.
B. Payment of $21,000 cash by Martin.
C. A $21,000 overall increase in Martin’s assets.
D. Sale of equipment by Martin for $51,000.
109. Before the journal entry above, Martin had assets of $900,000; liabilities of $460,000; and owners’ equity of $440,000. Total assets immediately after the above transaction has been recorded amount to:
A. $905,000.
B. $921,000.
C. $956,000.
D. $794,000.
Montauk Oil Co. reports these account balances at December 31, 2010
On January 2, 2011, Montauk Oil collected $50,000 of its accounts receivable and paid $20,000 of its accounts payable.
110. In a trial balance prepared at December 31, 2010 the total of the debit column is:
A. $1,540,000.
B. $780,000.
C. $1,020,000.
D. $700,000.
$80,000 + $100,000 + $200,000 + $160,000 + $240,000 = $780,000
111. In a trial balance prepared at January 3, 2011, the total of the debit column is:
A. $760,000.
B. $1,570,000.
C. $740,000.
D. $370,000.
$110,000 + $50,000 + $200,000 + $160,000 + $240,000 = $760,000 or
$780,000 (from above) – $20,000 payment of liability = $760,000
