Reference no: EM132840623
Questions -
Q1 - After initially investing $90,000 into his consulting company, the business had the following transactions in the month of March: Fee income of $75,000 ($57,000 earned in cash and the rest charged to clients), cash purchase of office equipment for $1,500, advertising expense of $3,500, telephone expense of $475, prepaid rent of $10,000. Based on the following information the balance in the Cash ledger is:
a. 147,000
b. 159,525
c. 131,525
d. 149,525
Q2- An owner invested $65,000 in his own company. The journal entry should be
A. debit cash 65,000, credit owner's capital 65,000
B. debit cash 65,000, credit accounts receivable 65,000
C. debit cash 65,000, credit accounts payable 65,000
D. debit owner's capital 65,000, credit cash 65,000
Q3- What is the appropriate journal entry if your company bought a piece of equipment for $15,000 and was given 60 days to pay?
A. debit equipment 15,000, credit accounts payable 15,000
B. debit equipment 15,000, credit accounts receivable 15,000
C. debit equipment 15,000, credit cash 15,000
D. debit accounts payable 15,000, credit cash 15,000
Q4- On April 1, our consulting company charged a client $15,000 payable in 30 days.
A. debit cash 15,000, credit fee income 15,000
B. debit fee income 15,000, credit accounts receivable 15,000
C. debit cash 15,000, credit accounts receivable 15,000
D. debit accounts receivable 15,000, credit fee income 15,000
Q5- Following up on the previous question, on April 23, some of the clients paid our firm $5,000. What is the correct journal entry?
A. debit cash 5,000, credit accounts payable 5,000
B. debit fee income 5,000, credit accounts receivable 5,000
C. debit cash 5000, credit fee income 5,000
D. debit cash 5,000, credit accounts receivable 5,000
Q6- Based on the information from the previous question, what is the new balance for accounts receivable?
A. 10,000
B. 20,000
C. 5,000
D. 15,000
Q7- On April 23, our firm decided to pay its telephone bill of $375. What is the correct journal entry?
A. debit telephone expense 375, credit cash 375
B. debit telephone expense 375, credit accounts payable 375
C. debit telephone expense 375, credit accounts receivable 375
D. debit cash 375, credit telephone expense 375
Q8- On May 1, the telephone realized it made an error in the bill and issued our company a $75 refund. What is the correct journal entry for this transaction?
A. debit cash 75, credit accounts payable 75
B. debit cash 75, credit telephone expense 75
C. debit cash 75, credit accounts receivable 75
D. debit telephone expense 75, credit cash 75
Q9- Our firm decided to pay 3 months rent in advance totaling $9,000. What is the correct journal entry for this transaction?
A. debit Prepaid rent 9,000, credit cash 9,000
B. debit Prepaid rent 9,000, credit accounts payable 9,000
C. debit Prepaid rent 9,000, credit cash 9,000
D. debit Prepaid rent 9,000, credit owner's capital 9,000
Q10- On April 23, the owner of our company, Harry Reid, decided to withdraw money from the company in the amount of $4,000. What is the appropriate journal entry for this transaction?
A. debit owner's capital 4,000, credit owner's draw 4,000
B. debit owner's capital 4,000, credit accounts payable 4,000
C. debit owner's draw for 4,000, credit cash 4,000
D. debit owner's capital 4,000, credit cash 4,000
Q11- Following up on the previous question, if Harry Reid put in a starting capital of $75,000, and the company earned a net income of $37,500, what is the new balance for Statement of Owner's Equity?
A. need more information
b. 112,500
c. 75,000
d. 108,500