Exam 2: Processing Accounting Information

Fernando Company had a transaction that had no effect on assets, liabilities, or on stockholders' equity. This transaction could have been a(n):

A general journal has three amount columns: a debit column, a credit column, and a balance column.

If the beginning Cash account balance of Firefly, Inc. was $110,400, the ending balance was $61,200, and total cash received during the period was $264,000, what amount of cash was paid out during the period?

Andes Transport, Inc. has the following accounts (among others) in its general ledger: Cash; Accounts Receivable; Prepaid Rent; Supplies; Delivery Trucks; Accounts Payable; Unearned Delivery Fees; Common Stock; Dividends; Delivery Fees Earned; Rent Expense; and Salaries Expense. Prepare general journal entries to record the following transactions:

Use the T-account below, to answer the following questions. a. What journal entry is most likely represented by $4,800,400 in the T-account? What business event caused this? b. What journal entry is most likely represented by the $3,013,000 in the T-account? What business event caused this? c. What is the balance of Accounts Receivable on December 31?

Which of the following errors, each considered individually, would cause the trial balance totals to be unequal?

Stone Circle Company purchased a new car for $135,000 by paying $54,000 cash, and trading in an old car with a recorded net cost and market value of $45,000. They also signed a Note for $36,000. The required journal entry will not:

When Trina received her paycheck, she realized that her employer made an error in computing her wages, and overpaid her by $7,800. So, Trina promptly returned the excess amount. When the employer receives a check from her for the amount of the overpayment, which of the following journal entries will be made by the employer?

A company performed $25,905 of services and received $9,000 in cash with the remaining amount to be paid in 60 days with no interest. What would the effect of this transaction on the company's current month-end accounting equation?

Xia Company had a transaction that caused a $150,000 increase in both assets and stockholders' equity. This transaction could have been a(n):

Beginning and ending Cash account balances of Firefly, Inc. were $57,000 and 24,000, respectively. If total cash received during the period was $111,000, what amount of cash was paid out during the period?

A company received payment of $30,000 from a customer that had previously received services performed on account. What would the effect of this transaction on the company's current month accounting equation?

A company paid a cash dividend of $72,000 to stockholders. What would the effect of this transaction on the current month's accounting equation?

A company received a $24,000 payment for services to be performed over the next few months. What would the effect of this transaction on the current year's accounting equation?

A company paid employee wages of $72,000 for the month. What would the effect of this transaction on the current month's accounting equation?

Anisha Company had a transaction that caused a $30,000 increase in both assets and liabilities. This transaction could have been a(n):

A company received payment of $10,000 from a customer that had previously received services performed on account. What would the effect of this transaction on the company's current month accounting equation?

A company incurred $120,000 (to be paid next year) for the current year's insurance coverage. What would the effect of this transaction on the current year's accounting equation?

On November 30, Sydney Company had Accounts Receivable of $130,280. During the month of December, the company received total payments of $160,000 from credit customers. The Accounts Receivable on December 31 was $86,320. What was the amount of credit sales during December?

The following balance sheet information is given for Minerva, Inc., at June 30, 2019: Assume that, during the next three days, the following transactions occurred: July 1 Paid $15,000 on accounts payable. 2 Purchased equipment for $75,000 and gave a note payable for the amount due. 3 Declared and paid a cash dividend, $12,000. a. What was the amount of retained earnings on June 30, 2019? b. Assume a balance sheet is prepared on July 3, 2019, after the three transactions have occurred: (1) What amount of total assets would appear? (2) What amount of total liabilities would appear? (3) What amount of stockholders' equity would appear?