Question 1

Jeff Jackson opened Jackson's Repairs on March 1 of the current year. During March, the following transactions occurred: 1. Jackson invested $25,000 cash in the business in exchange for common stock.
2)  Jackson contributed $100,000 of equipment to the business.
3)  The company paid $2,000 cash to rent office space for the month of March.
4)  The company received $16,000 cash for repair services provided during March.
5)  The company paid $6,200 for salaries for the month of March.
6)  The company provided $3,000 of services to customers on account.
7)  The company paid cash of $500 for utilities for the month of March.
8)  The company received $3,100 cash in advance from a customer for repair services to be provided in April.
9)  The company paid $5,000 in cash dividends.
Based on this information, net income for March would be:

Accepted Answer

A)   $10,300.
B)   $13,400.
C)   $5,300.
D)   $8,400.
E)   $13,500.F) A) and B)
G) A) and C)

Question 2

You increase the Service Revenue account on the ________ side of its account.

Accepted Answer

The answer of You increase the Service Revenue account on...

Question 3

Geoff Parker, the sole stockholder of Parker Tax Services, started the business by investing $10,000 cash and a building worth $20,000. Identify the general journal entry below that Parker Tax Services will make to record the transaction.

Accepted Answer

A)     Cash 10,000 Common Stock 30,000\begin{array}{|l|r|r|}\hline 	ext { Cash } & 10,000 & \\hline 	ext { Common Stock } & & 30,000 \\hline\end{array} Cash  Common Stock ​10,000​30,000​​ 
B)     Common Stock 30,000 Cash 10,00 Building 20,000\begin{array}{|l|r|r|}\hline 	ext { Common Stock } & 30,000 & \\hline 	ext { Cash } & & 10,00 \\hline 	ext { Building } & & 20,000 \\hline\end{array} Common Stock  Cash  Building ​30,000​10,0020,000​​ 
C)     Cash 10,000 Building 20,000 Common Stock 30,000\begin{array}{|l|r|l|}\hline 	ext { Cash } & 10,000 & \\hline 	ext { Building } & 20,000 & \\hline 	ext { Common Stock } & & 30,000 \\hline\end{array} Cash  Building  Common Stock ​10,00020,000​30,000​​ 
D)     Notes Payable 30,000 Common Stock 30,000\begin{array}{|l|r|r|}\hline 	ext { Notes Payable } & 30,000 & \\hline 	ext { Common Stock } & & 30,000 \\hline\end{array} Notes Payable  Common Stock ​30,000​30,000​​ 
E)     Dividends 30,000 Common Stock 30,000\begin{array}{|l|r|r|}\hline 	ext { Dividends } & 30,000 & \\hline 	ext { Common Stock } & & 30,000 \\hline\end{array} Dividends  Common Stock ​30,000​30,000​​F) C) and D)
G) A) and C)

Question 4

A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense is known as a(n) :

Accepted Answer

A)   Journal.
B)   Posting.
C)   Trial balance.
D)   Account.
E)   Chart of accounts.F) A) and D)
G) A) and E)

Question 5

A general journal gives a complete record of each transaction in one place, and shows the debits and credits for each transaction.

Accepted Answer

A) True 
 B)False

Question 6

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: 1. Andrea invested $13,500 cash in the business in exchange for common stock.
2)  Andrea contributed $20,000 of photography equipment to the business.
3)  The company paid $2,100 cash for an insurance policy covering the next 24 months.
4)  The company received $5,700 cash for services provided during January.
5)  The company purchased $6,200 of office equipment on credit.
6)  The company provided $2,750 of services to customers on account.
7)  The company paid cash of $1,500 for monthly rent.
8)  The company paid $3,100 on the office equipment purchased in transaction #5 above.
9)  Paid $275 cash for January utilities.
Based on this information, the balance in the cash account at the end of January would be:

Accepted Answer

A)   $41,450.
B)   $12,225.
C)   $18,700.
D)   $15,250.
E)   $13,500.F) A) and B)
G) A) and C)

Question 7

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?

Accepted Answer

A)   Debit Accounts Receivable, $1,800; credit Unearned Legal Fees Revenue, $1,800.
B)   Debit Cash, $1,800; credit Unearned Legal Fees Revenue, $1,800.
C)   Debit Legal Fees Revenue, $1,800; credit Accounts Receivable, $1,800.
D)   Debit Accounts Receivable, $1,800; credit Legal Fees Revenue, $1,800.
E)   Debit Cash, $1,800; credit Accounts Receivable, $1,800.F) C) and D)
G) C) and E)

Question 8

In a double-entry accounting system, total debits must equal total credits for all entries, and total debit account balances in the ledger must equal total credit account balances.

Accepted Answer

A) True 
 B)False

Question 9

Jennings Co. has total assets of $425 million. Its total liabilities are $110.5 million. Its equity is $314.5 million. Calculate the debt ratio.

Accepted Answer

A)   38%.
B)   13%.
C)   34%.
D)   26%.
E)   14%.F) None of the above
G) A) and C)

Question 10

Langley has a debt ratio of 0.3 and its competitor, Appleton, has a debt ratio equal to 0.7. Determine the statement below that is correct.

Accepted Answer

A)   Appleton finances a smaller percentage of its assets with liabilities as compared to Langley.
B)   Appleton's financial leverage is less than Langley's financial leverage.
C)   Appleton's financial leverage is greater than Langley's financial leverage.
D)   Langley has a higher risk from its financial leverage.
E)   Higher financial leverage involves lower risk.F) All of the above
G) D) and E)

Question 11

Explain the recording and posting processes.

Accepted Answer

Information from business transactions a...

Exam 16: Accounting for Business Transactions

Jennings Co. has total assets of $425 million. Its total liabilities are $110.5 million. Its equity is $314.5 million. Calculate the debt ratio.

Correct Answer
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Langley has a debt ratio of 0.3 and its competitor, Appleton, has a debt ratio equal to 0.7. Determine the statement below that is correct.

Correct Answer
verified

Explain the recording and posting processes.

Correct Answer
verified
Information from business transactions a...
View Answer

You increase the Service Revenue account on the ________ side of its account.

Correct Answer
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A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense is known as a(n) :

Correct Answer
verified

Correct Answer
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Correct Answer
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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?

Correct Answer
verified

Geoff Parker, the sole stockholder of Parker Tax Services, started the business by investing $10,000 cash and a building worth $20,000. Identify the general journal entry below that Parker Tax Services will make to record the transaction.

Correct Answer
verified

A general journal gives a complete record of each transaction in one place, and shows the debits and credits for each transaction.

Correct Answer
verified

In a double-entry accounting system, total debits must equal total credits for all entries, and total debit account balances in the ledger must equal total credit account balances.

Correct Answer
verified

Exam 16: Accounting for Business Transactions

Jennings Co. has total assets of $425 million. Its total liabilities are $110.5 million. Its equity is $314.5 million. Calculate the debt ratio.

Correct AnswerverifiedShow Answer

Langley has a debt ratio of 0.3 and its competitor, Appleton, has a debt ratio equal to 0.7. Determine the statement below that is correct.

Correct AnswerverifiedShow Answer

Explain the recording and posting processes.

Correct AnswerverifiedInformation from business transactions a...View AnswerShow Answer

You increase the Service Revenue account on the ________ side of its account.

Correct AnswerverifiedShow Answer

A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense is known as a(n) :

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Geoff Parker, the sole stockholder of Parker Tax Services, started the business by investing $10,000 cash and a building worth $20,000. Identify the general journal entry below that Parker Tax Services will make to record the transaction.

Correct AnswerverifiedShow Answer

A general journal gives a complete record of each transaction in one place, and shows the debits and credits for each transaction.

Correct AnswerverifiedShow Answer

In a double-entry accounting system, total debits must equal total credits for all entries, and total debit account balances in the ledger must equal total credit account balances.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Information from business transactions a...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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