Net income is entered as the balancing amount on the debit side of the income statement columns and the credit side of the balance sheet columns of the worksheet. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
An invoice is also known as a bill. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Explore, a travel magazine, collected $500,000 in subscription revenue in May. Each subscriber will receive an issue of the magazine for each of the next 12 months, beginning with the June issue. The company uses the accrual method of accounting Provide the journal entry for collection of cash in May. (Ignore explanation). Assume the magazine […]
Date: September 2nd, 2020
Prepaid Rent in the worksheet’s unadjusted trial balance column is $5,000. Prepaid Rent in the balance sheet column is $2,000. Which of the following entries would have caused this difference? A) a $3,000 debit entry to Prepaid Rent in the worksheet’s adjustments column B) a $3,000 credit entry to Rent Expense in the worksheet’s adjustments […]
Date: September 2nd, 2020
Which of the following adjusted balances would appear in the balance sheet credit column of a worksheet? A) Rent Revenue B) Insurance Expense C) Salaries Payable D) Equipment ANSWER C
Date: September 2nd, 2020
An invoice is a request by the seller for payment from the purchaser. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Prepaid Insurance is an asset account that appears on the balance sheet. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
A business renders services to its customer for $50,000 on account. Record the transaction in the journal. What will be an ideal response ANSWER Accounts Receivable 50,000 Service Revenue 50,000 Performed services on account.
Date: September 2nd, 2020
A business purchased land for $250,000 cash. Record the transaction in the journal. What will be an ideal response ANSWER Land 250,000 Cash 250,000 Purchased land for cash.
Date: September 2nd, 2020
The Merchandise Inventory account is an asset account that is used only for goods purchased that the business owns and intends to resell to customers. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
