J. Smith withdrew $100 from Jay's Limo Services for personal use. Which of the following general journal entries will Jay's Limo Services make to record this transaction? A) $\begin{array}{|l|r|r|} \hline \text { J. Smith, Capital } & 100 & \\ \hline \text { J. Smith, Withdrawals } & & 100 \\ \hline \end{array}$ B) $\begin{array}{|l|r|r|} \hline \text { J. Smith, Withdrawals } & 100 & \\ \hline \text { J. Smith, Capital } & & 100 \\ \hline \end{array}$ C) $\begin{array}{|l|r|r|} \hline \text { Cash } & 100 & \\ \hline \text { J. Smith, Withdrawals } & & 100 \\ \hline \end{array}$ D) $\begin{array}{|l|r|r|} \hline \text { Cash } & 100 & \\ \hline \text { J. Smith, Capital } & & 100 \\ \hline \end{array}$ \[\begin{array}{l} \text { E) }\\ \begin{array} { | l | r | r | } \hline \text { J. Smith, Withdrawals } & 100 & \\ \hline \text { Cash } & & 100 \\ \hline \end{array} \end{array}\]

The answer of J. Smith withdrew $100 from Jay's Limo...

Geraldine Parker, the owner of Gi Gi's Dance Studio, started the business by investing $10,000 cash and donating a building worth $20,000. Identify the general journal entry below that Gi Gi's will make to record the transaction. \[\begin{array}{l} \text { A) }\\ \begin{array} { | l | r | r | } \hline \text { Cash } & 10,000 & \\ \hline \text { G. Parker, Capital } & & 30,000 \\ \hline \end{array} \end{array}\] B) $\begin{array}{|l|r|r|} \hline \text { Cash \& Building } & 30,000 & \\ \hline \text { G. Parker, Capital } & & 30,000 \\ \hline \end{array}$ C) $\begin{array}{|l|r|r|} \hline \text { Owner's Investments } & 30,000 & \\ \hline \text { G. Parker, Capital } & & 30,000 \\ \hline \end{array}$ D) $\begin{array}{|l|r|r|} \hline \text { Cash } & 10,000 & \\ \hline \text { Building } & 20,000 & \\ \hline \text { G. Parker, Capital } & & 30,000 \\ \hline \end{array}$ E) $\begin{array}{|l|r|r|} \hline \text { G. Parker, Capital } & 30,000 & \\ \hline \text { Cash } & & 10,000 \\ \hline \text { Building } & & 20,000 \\ \hline \end{array}$

The answer of Geraldine Parker, the owner of Gi Gi's...

Able Graphics received a $400 utility bill for the current month's electricity. It is not due until the end of the next month which is when they intend to pay it. Which of the following general journal entries will Able Graphics make to record this transaction? A) $\begin{array}{|l|l|l|} \hline \text { No journal entry is required } & & \\ \hline & & \\ \hline \end{array}$ B) $\begin{array}{|l|r|r|} \hline \text { Utilities Expense } & 400 & \\ \hline \text { Cash } & & 400 \\ \hline \end{array}$ C) $\begin{array}{|l|r|r|} \hline \text { Utilities Expense } & 400 & \\ \hline \text { Accounts Payable } & & 400 \\ \hline \end{array}$ D) $\begin{array}{|l|r|r|} \hline \text { Accounts Payable } & 400 & \\ \hline \text { Utilities Expense } & & 400 \\ \hline \end{array}$ \[\begin{array}{l} \text { E) }\\ \begin{array} { | l | r | r | } \hline \text { Cash } & 400 & \\ \hline \text { Utilities Expense } & & 400 \\ \hline \end{array} \end{array}\]

The answer of Able Graphics received a $400 utility bill...

Exam 2: Analyzing and Recording Transactions

A law firm billed a client $1,800 for work performed in the current month. Which of the following general journal entries will the firm make to record this transaction?

(Multiple Choice)

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Question 161

Owner investments always decrease equity.

(True/False)

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Question 162

The debt ratio of Company A is .31 and the debt ratio of Company B is .21. Based on this information, an investor can conclude:

(Multiple Choice)

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Question 163

List the steps in processing transactions.

(Essay)

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Question 164

J. Smith withdrew $100 from Jay's Limo Services for personal use. Which of the following general journal entries will Jay's Limo Services make to record this transaction? A) J. Smith, Capital 100 J. Smith, Withdrawals 100 B) J. Smith, Withdrawals 100 J. Smith, Capital 100 C) Cash 100 J. Smith, Withdrawals 100 D) Cash 100 J. Smith, Capital 100 E) J. Smith, Withdrawals 100 Cash 100

(Short Answer)

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Question 165

Andrea Apple opened Apple Photography on January 1 of the current year. During January, the following transactions occurred and were recorded in the company's books: Andrea invested $13,500 cash in the business. Andrea contributed $20,000 of photography equipment to the business. The company paid $2,100 cash for an insurance policy covering the next 24 months. The company received $5,700 cash for services provided during January. The company purchased $6,200 of office equipment on credit. The company provided $2,750 of services to customers on account. The company paid cash of $1,500 for monthly rent. The company paid $3,100 on the office equipment purchased in transaction #5 above. Paid $275 cash for January utilities. Based on this information, the balance in the A. Apple, Capital account reported on the Statement of Owner's Equity at the end of the month would be:

(Multiple Choice)

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Question 166

A journal entry that affects no more than two accounts is called a compound entry.

(True/False)

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Question 167

Neither U.S. GAAP nor IFRS require the use of accrual basis accounting.

(True/False)

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Question 168

During the month of February, Victor Services had cash receipts of $7,500 and cash disbursements of $8,600. The February 28 cash balance was $1,800. What was the February 1 beginning cash balance?

(Multiple Choice)

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Question 169

A customer's promise to pay on credit is classified as an account payable by the seller.

(True/False)

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Question 170

The right side of an account is called the debit side.

(True/False)

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Question 171

When a company provides services for which cash will not be received until some future date, the company should record the amount billed as accounts receivable.

(True/False)

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Question 172

Describe the link between a business's income statement, the statement of owner's equity, and the balance sheet.

(Essay)

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Question 173

A debit is used to record which of the following:

(Multiple Choice)

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Question 174

The financial statement that summarizes the changes in an owner's capital account is called the balance sheet.

(True/False)

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Question 175

Geraldine Parker, the owner of Gi Gi's Dance Studio, started the business by investing $10,000 cash and donating a building worth $20,000. Identify the general journal entry below that Gi Gi's will make to record the transaction. A) Cash 10,000 G. Parker, Capital 30,000 B) Cash \& Building 30,000 G. Parker, Capital 30,000 C) Owner's Investments 30,000 G. Parker, Capital 30,000 D) Cash 10,000 Building 20,000 G. Parker, Capital 30,000 E) G. Parker, Capital 30,000 Cash 10,000 Building 20,000

(Short Answer)

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Question 176

The trial balance can serve as a replacement for the balance sheet, since total debits must equal total credits.

(True/False)

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Question 177

Able Graphics received a $400 utility bill for the current month's electricity. It is not due until the end of the next month which is when they intend to pay it. Which of the following general journal entries will Able Graphics make to record this transaction? A) No journal entry is required B) Utilities Expense 400 Cash 400 C) Utilities Expense 400 Accounts Payable 400 D) Accounts Payable 400 Utilities Expense 400 E) Cash 400 Utilities Expense 400

(Short Answer)

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Question 178

A law firm billed a client $1,800 for work performed in the current month. Which of the following general journal entries will the firm make to record this transaction?

Owner investments always decrease equity.

The debt ratio of Company A is .31 and the debt ratio of Company B is .21. Based on this information, an investor can conclude:

List the steps in processing transactions.

A journal entry that affects no more than two accounts is called a compound entry.

Neither U.S. GAAP nor IFRS require the use of accrual basis accounting.

During the month of February, Victor Services had cash receipts of $7,500 and cash disbursements of $8,600. The February 28 cash balance was $1,800. What was the February 1 beginning cash balance?

A customer's promise to pay on credit is classified as an account payable by the seller.

The right side of an account is called the debit side.

When a company provides services for which cash will not be received until some future date, the company should record the amount billed as accounts receivable.

Describe the link between a business's income statement, the statement of owner's equity, and the balance sheet.

A debit is used to record which of the following:

The financial statement that summarizes the changes in an owner's capital account is called the balance sheet.

The trial balance can serve as a replacement for the balance sheet, since total debits must equal total credits.

Accounting in Business

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resoures, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

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