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
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more