Exam 2: Processing Accounting Information

Ken Baar started a company (Baar Company) by contributing $300,000 cash, and a building valued at $2,400,000. The company then purchased a machine by making a $300,000 down payment (which accounted for half its purchase price), and signed a note payable to the bank. After recording the above transactions, Larson Company's balance sheet will show: Assets Liabilities Stockholders' Equity

The unadjusted Trial Balance for Ann Z. Company shows the following accounts (in alphabetical order) on December 31, 2019. Each account shown has a normal balance. Assuming the Trial Balance is in balance, determine Ann Z, Company's Utilities Expense for 2019:

During the current week, Julissa, (1) received a cash payment for services previously billed to one of her clients. Also, she (2) paid her telephone bill, and (3) bought equipment on credit. For the three separate transactions, at least one of the journal entries will include a:

A compound journal entry involves at least three accounts.

Bousfield Company had $28,460 of Accounts Payable on September 1 and $25,520 on September 30. During September, the company paid total cash of $26,550 on accounts payable. Determine the total purchases on account during September.

Posting is the process of transferring the debits and credits of each journal entry to the appropriate general ledger accounts.

The purchase of a delivery truck for $57,000 (on credit) was posted as debit to Delivery Trucks for $57,000, and a debit to Notes Payable for $57,000. What effect would this error have on the trial balance?

Rabbit Company's Accounts Payable account had a balance of $22,200 on September 1, 2019, and a balance of $27,000 on September 30, 2019. During September 2019, the company made total payments of $196,800 on accounts payables. What must have been their total purchases on account during September 2019.

A transaction caused a $200,000 increase in both assets and total liabilities. This transaction could have been:

Suzanne Mi, starting her own business, made an investment of a building to the company. The building is valued at $400,000 with a $360,000 outstanding mortgage payable. The effect of this transaction on the accounting equation of the business would be to:

As of December 31, 2019, the Balance Sheet of Pokagon Products, Inc. contains the following items (in random order): Determine the amount of Equipment.

Hannibal Company's Accounts Payable account had a balance of $7,400 on September 1, 2019, and a balance of $9,000 on September 30, 2019. During September 2019, the company made total payments of $65,600 on accounts payables. What must have been their total purchases on account during September 2019.

If the beginning Cash account balance of Firefly, Inc. was $60,000, the ending balance was $100,800, and the total cash paid out during the period was $192,000, what amount of cash was received during the period?

The Cash T-account of Rainbow, Inc. has a beginning balance of $52,000. During the year, $244,000 was debited and $241,000 was credited to the account. What is the ending balance of cash?

Posting is the process of formally recording a business transaction in the appropriate journal.

The following T-accounts contain numbered entries for the July transactions of NCN, Inc., which opened on July 1 of this year. Give a reasonable description of each of the nine numbered transactions entered in the above accounts. Example: (1) Shareholders invested $90,000 cash in the business.

Patrick's Show Choir Company's Accounts Receivable account had a balance of $45,000 on September 1, 2016, and a balance of $64,200 on September 30, 2019. During September 2019, the company received cash of $118,200 from credit customers. Determine the amount of sales on account that occurred in September 2019.

To meet its cash flow needs, a company obtained a 6 month bank loan in the amount of $10,000. Annual interest on the loan (note payable) is 10%, payable when the note is due. What would the effect of this transaction on the company's current month accounting equation?

During its first month of operations, Lavender Company (1) borrowed $600,000 from a bank, and then (2) purchased an equipment costing $240,000 by paying cash of $120,000 and signing a long term note for the remaining amount. During the month, the company also (3) purchased inventory for $180,000 on credit, (4) performed services for clients for $360,000 on account, (5) paid $90,000 cash for accounts payable, and (6) paid $180,000 cash for utilities. What is the amount of Stockholders' equity at the end of the month?

Didwania Company had a transaction that caused a $40,000 decrease in both assets and liabilities. This transaction could have been a(n):