The double-entry system requires that each transaction must be recorded
| in a journal and in a ledger. |
| first as a revenue and then as an expense. |
| in at least two different accounts.
An accountant has debited an asset account for $1200 and credited a liability account for $500. What can be done to complete the recording of the transaction?
| Credit a different asset account for $700. |
| Nothing further must be done. |
| Debit a Stockholders' equity account for $700. |
| Debit another asset account for $700.
On January 14, Edamame Industries purchased supplies of $700 on account. The entry to record the purchase will include
| a debit to Supplies Expense and a credit to Accounts Receivable. |
| a debit to Supplies and a credit to Cash. |
| a debit to Accounts Receivable and a credit to Supplies. |
| a debit to Supplies and a credit to Accounts Payable.
Chik Chik Company showed the following balances at the end of its first year:
| Cash | $6000 | | Prepaid insurance | 9400 | | Accounts receivable | 7000 | | Accounts payable | 5600 | | Notes payable | 8400 | | Common stock | 2800 | | Dividends | 1400 | | Revenues | 44000 | | Expenses | 35000 |
What did Chik Chik Company show as total credits on its trial balance?
| $51400
At September 1, 2018, Promise Ring Co. Reported stockholders’ equity of $156000. During the month, Promise Ring generated revenues of $38000, incurred expenses of $21000, purchased equipment for $5000 and paid dividends of $2000. What is the amount of stockholders’ equity at September 30, 2018?
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A flower shop makes a large sale for $1200 on November 30. The customer is sent a statement on December 5 and a check is received on December 10. The flower shop follows GAAP and applies the revenue recognition principle. When is the $1200 considered to be recognized? On January 1, 2018, Superfuzz Company purchased equipment for $40000. The company is depreciating the equipment at the rate of $800 per month. The book value of the equipment at December 31, 2018 is |
Uncle Tupelo's Gifts signs a three-month note payable to help finance increases in inventory for the
Christmas shopping season. The note is signed on November 1 in the amount of $75000 with annual
interest of 12%. What is the adjusting entry to be made on December 31 for the interest expense accrued to that date, if no entries have been made previously for the interest?
| | Interest Expense | 2250 | | | Interest Payable | | 2250 |
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| | Interest Expense | 1500 | | | Interest Payable | | 1500 |
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| | Interest Expense | 1500 | | | Cash | | 1500 |
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| | Interest Expense | 1500 | | | Notes Payable | | 1500 |
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