Exam 2: Processing Accounting Information

Beginning and ending Cash account balances of Crossbow, Inc. were $14,000 and $32,000 respectively. If total cash paid out during the period was $30,000, what amount of cash was received during the period?

Helen H. Designs has the following accounts in its general ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Common Stock; Dividends; Service Fees Earned; Rent Expense; and Salaries Expense. Prepare general journal entries to record the following transactions:

A company received $11,000 cash in exchange for 200 shares of the company's common stock. What would the effect of this transaction on the current year's 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 total liabilities at the end of the month?

Mouser Pet Supplies had the following transactions during December 2019: •Paid a note of $102,000, owed since March, plus $2,550 for interest. •Sold $219,150 of merchandise to customers on account. Cost of goods sold was $127,500. [Hint: Cost of goods sold is an expense related to the reduction of inventory (merchandise sold).] •Paid accounts payable of $12,300. As a result of these transactions, at year-end, liabilities and stockholders' equity would show a combined total:

If the beginning Cash account balance of Crossbow, Inc. was $36,800, the ending balance was $20,400, and total cash received during the period was $88,000, what amount of cash was paid out during the period?

Which of the following is one effect of a purchase of $600 of supplies on credit?

A company received $33,000 cash in exchange for 200 shares of the company's common stock. What would the effect of this transaction on the current year's accounting equation?

A company incurred $40,000 (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?

Ringstar Company purchased a new car for $60,000 by paying $24,000 cash, and trading in an old car with a recorded net cost and market value of $20,000. They also signed a Note for $16,000. The required journal entry will not:

Mr. Montana started a company (Montana Company) by contributing $100,000 cash, and a building valued at $800,000. The company then purchased a machine by making a $100,000 down payment (which accounted for half its purchase price), and signed a note payable to the bank. After recording the above transactions, Montana Company's balance sheet will show: Assets Liabilities Stockholders' Equity

Two examples of source documents are a seller's invoice and a bank deposit slip.

A company performed $8,635 of services and received $3,000 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?

A customer received and then paid an $18,000 utility bill from West Haven Natural Gas Company. The journal entry by West Haven Natural Gas Company to record receipt of the payment would include:

A company paid employee wages of $24,000 for the month. What would the effect of this transaction on the current month's accounting equation?

A company received a $72,000 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?

Beginning and ending Cash account balances of Firefly, Inc. were $42,000 and $96,000 respectively. If total cash paid out during the period was $90,000, what amount of cash was received during the period?

The accountant at Befuddled Company recorded the purchase of $1,800 of supplies for cash as a debit to Supplies for $1,800 and a credit to Accounts Payable for $1,800. Determine the effect of this error on the accounting equation of Befuddled Company.

The purchase of a delivery truck for $19,000 (on credit) was posted as debit to Delivery Trucks for $19,000, and a debit to Notes Payable for $19,000. What effect would this error have on the trial balance?

On February 1 2019 Cibula's Accounting Services had a cash balance of $10,000, and completed the following transactions during February 2019: 1) Purchased office supplies on account, $600. 2) Completed work for a client on credit, $1,000. 3) Paid cash for the office supplies purchased in (1). 4) Completed work for a client and received $1,600 cash. 5) Received $1,000 cash for the work described in (2). 6) Received $2,000 from a client for accounting services to be performed in March. What was the balance of the company's cash account after these transactions?