Exam 3: Processing Accounting Information

Parachute Country Club Use the selected accounts for Parachute Country Club presented below to answer the following questions. -Read the information on Parachute Country Club. On which date did the company make cash sales for daily golf and swimming fees?

Use the following five transactions for Morton & Associates, Inc. to answer the questions. May 1 Bills are sent to clients for services provided in April in the amount of $800. 9 Techno, Inc. delivers office furniture $1,060 and office supplies $160 to Morton leaving an invoice for $1,220. 15 Payment is made to Techno, Inc. for the furniture and office supplies delivered on May 9. 23 A bill for $430 for electricity for the month of April is received and will be paid on its due date in June. 31 Salaries of $850 are paid to employees. -See the transactions to Morton & Associates. The journal entry to record the May 9 transaction will include an increase of $1,220 to

Given that Carlson Corp.'s current ratio is 3 to 2, what is the effect of obtaining a patent from the inventor in exchange for shares of stock in Carlson Corp.?

Which pair of accounts has the same set of rules for debit and credit entries?

The normal balance of revenue is an .

Identify which of the following would be recorded as external events, recorded as internal events, or not recorded. -A vendor for a company's supplies is paid an amount owed on account.

Which of the following statements is true?

Liabilities and stockholders' equity are by debits.

If a company purchases equipment by issuing a note payable, its total assets will not change.

An external event involves interaction between an entity and its environment.

With few exceptions, the balance of all accounts should be on the side of the T account that causes the increase.

Use the following five transactions for Morton & Associates, Inc. to answer the questions. May 1 Bills are sent to clients for services provided in April in the amount of $800. 9 Techno, Inc. delivers office furniture $1,060 and office supplies $160 to Morton leaving an invoice for $1,220. 15 Payment is made to Techno, Inc. for the furniture and office supplies delivered on May 9. 23 A bill for $430 for electricity for the month of April is received and will be paid on its due date in June. 31 Salaries of $850 are paid to employees. -See the transactions to Morton & Associates. The journal entry to record the May 31 transaction will include a decrease in

Which one of the following statements is true?

provide the evidence needed in an accounting system to record a transaction.

The record in which transactions are initially recorded in chronological order as they occur is aan:

If an accounting firm provides services on account, both and stockholders' equity increase.

Which of the following best describes a trial balance?

The accounting equation must balance after each transaction.

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account. -Furniture and Fixtures

Krenshaw Rentals Use the five transactions for Krenshaw Rentals described below to answer the questions that follows. Oct 1 Krenshaw purchases two new saws on credit at $375 each. The saws are added to Krenshaw's rental inventory. Payment is due in 30 days. 8 Krenshaw accepts advance deposits for tool rentals of $75. 15 Krenshaw receives a bill from Farmer's Electric Company for $150. Payment is due in 30 days. 20 Customers are charged $750 by Krenshaw for tool rentals. Payment is due from the customers in 30 days. 31 Krenshaw receives $500 in payments from the customers that were billed for rentals on October 20. -Refer to the transactions for Krenshaw Rentals. Based on the October 15 transaction, Krenshaw will record which of the following in its accounting records?