Exam 4: The Bookkeeping Process and Transaction Analysis

At the beginning of the current fiscal year, Surrey Corp.'s balance sheet showed assets of $675,000 and liabilities of $525,000. During the year, liabilities decreased by $35,000. Net Income for the year was $175,000, and net assets at the end of the year were $193,000. There were no changes in paid-in capital during the year. Calculate the dividends, if any, declared during the year. Calculate the total assets at the end of the year. = + SE Beginning \ 675,000 = \ 525,000 + (1) Changes -35,000 + +175,000 Net income -(2) Dividends Ending (4) (3) \ 193,000

A journal entry recording an accrual:

A credit entry will:

An engineering consultant provided $300 of services to a client; the client paid $50 when the bill was submitted and will pay the balance within a week. The consultant will record this transaction by: A. Dr. Cash 50 Dr. Fees receivable 250 Cr. Fees revenue 300 B. Dr. Fees revenue 300 Cr. Fees receivable 250 Cr. Cash 50 C. Dr. Cash 50 Cr. Fees revenue 50 D. Dr. Cash 50 Dr. Fees revenue 250 Cr. Fees receivable 300

In the buyer's records, the purchase of merchandise on account would:

When a firm purchases supplies for its business:

Martin & Associates borrowed $5,000 on April 1, 2013 at 8% interest with both principal and interest due on March 31, 2014. Which of the following journal entries should the firm use to record the payment of interest on March 31, 2014? A. Dr. Interest payable Cr. Cash B. Dr. Interest receivable Cr. Interest payable C. Dr. Interest expense Cr. Interest payable D. Dr. Interest payable Cr. Interest expense

To accrue $3,200 of employee salaries for the last week of February, the employer's journal entry is: A. Dr. Salaries expense 3,200 Cr. Cash 3,200 B. Dr. Salaries expense 3,200 Cr. Salaries payable 3,200 C. Dr. Salaries payable 3,200 Cr. Cash 3,200 D. Dr. Salaries expense 3,200 Cr. Fee revenue 3,200

A debit entry will:

A newspaper ad submitted and published this week, with the agreement to get paid for it next week would, in the newspaper's records: