Exam 2: Processing Accounting Information

A transaction caused a $600,000 increase in both assets and total liabilities. This transaction could have been:

Li Company had a transaction that caused a $90,000 increase in both assets and liabilities. This transaction could have been a(n):

To take advantage of a zero percent rent increase for the coming year, a company paid, at year-end, $150,000 rent for the first three months of the next year. What would the effect of this transaction on the company's year-end accounting equation?

At the beginning of the month, a company purchased a new truck for $135,000, paying $63,000 cash and agreeing to pay the balance over 12 months through a no-interest financing offer provided by the car dealer. The entry to record the purchase of the truck is recorded at month-end. What would the effect of this transaction on the company's current month-end accounting equation? (Hint: First financing payment was made before current month-end.)

To take advantage of a zero percent rent increase for the coming year, a company paid, at year-end, $450,000 rent for the first three months of the next year. What would the effect of this transaction on the company's year-end accounting equation?

Which of the following is true of a chart of accounts?

Xia Company purchased supplies for $42,000 on credit on January 1, 2019. On January 15, the company made a cash payment of $12,000 to the supplier, and signed a one-year note for the remaining amount to settle the account. Xia Company's journal entry on January 15 will include:

A company incurred $60,000 (to be paid next year) for the current year's advertising activities. What would the effect of this transaction on the current year's accounting equation?

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

During January 2019, Randolph Corporation purchased $200,000 of inventory; they paid one-fourth in cash, and signed a note for the remaining balance. This transaction will be recorded as:

Beginning and ending Cash account balances of Crossbow, Inc. were $19,000 and $8,000, respectively. If total cash received during the period was $37,000, what amount of cash was paid out during the period?

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 assets at the end of the month?

Which of the following is not true of the general journal?

On November 30, Brisbane Company had Accounts Receivable of $390,840. During the month of December, the company received total payments of $480,000 from credit customers. The Accounts Receivable on December 31 was $258,960. What was the amount of credit sales during December?

If the beginning Cash account balance of Crossbow, Inc. was $20,000, the ending balance was $33,600, and the total cash paid out during the period was $64,000, what amount of cash was received during the period?

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

During its first month of operations, Saturn Company (1) borrowed $200,000 from a bank, and then (2) purchased an equipment costing $80,000 by paying cash of $40,000 and signing a long term note for the remaining amount. During the month, the company also (3) purchased inventory for $60,000 on credit, (4) performed services for clients for $120,000 on account, (5) paid $30,000 cash for accounts payable, and (6) paid $60,000 cash for utilities. What is the amount of total liabilities at the end of the month?

On February 1 2019, Zultner's Accounting Services had a cash balance of $30,000, and completed the following transactions during February 2019: 1) Purchased office supplies on account, $1,800. 2) Completed work for a client on credit, $3,000. 3) Paid cash for the office supplies purchased in (1). 4) Completed work for a client and received $4,800 cash. 5) Received $3,000 cash for the work described in (2). 6) Received $6,000 from a client for accounting services to be performed in March. What was the balance of the company's cash account after these transactions?

Vista Company, an internet service provider, has 2,000,000 customers. The customers make electronic payments of $420 each for that month's service on the last day of each month. Buena Company does not send any bills to their customers. The company's journal entry on the day they receive the payment will include:

A company paid a cash dividend of $24,000 to stockholders. What would the effect of this transaction on the current month's accounting equation?