Merchant Corporation provides plumbing services. Transactions of Merchant during the first year of operations are given below. a) Received $12,000 cash and issued common stock to Sharon b) Paid $1,600 cash for equipment to be used for plumbing repairs. c) Borrowed $14,000 from a local bank and deposited the money in the checking account. d) […]
Crusoe Waterworks Corporation provides plumbing services. Transactions of Crusoe Waterworks during the first year of operations are given below. a) Received $4,000 cash and issued common stock to Robinson b) Paid $3,000 cash for equipment to be used for plumbing repairs. c) Borrowed $27,000 from a local bank and deposited the money in the checking […]
Glendale Corporation had the following transactions in August: Earned $5,000 of revenues on account; collected $5,000 from a customer for services provided last month; incurred $500 of repair expense and paid cash; paid $600 for rent that it owed from A) $500 B) $5,000 C) $9,500 D) $4,500 ANSWER D .Net income = Revenue – […]
Fitch Supply Services received $1,000 cash from a customer; the amount was owed to the business from the previous month. What is the effect of this transaction on the accounting equation? A) Accounts Receivable increases and Service Revenue increases B) Cash increases and Accounts Receivable decreases C) Cash increases and Service Revenue increases D) Cash […]
________ represent the right to receive cash in the future from customers for goods sold or for services performed. A) Accounts Receivable B) Accounts Payable C) Equity D) Expenses ANSWER A
Homeward Supply Services received $1,000 cash from a customer; the amount was owed to the business from the previous month. Which of the following accounts will decrease as a result of this transaction? A) Cash B) Revenue C) Accounts Payable D) Accounts Receivable ANSWER D
________ represents a short-term liability created by purchasing “on account.” A) Accounts Receivable B) Notes Payable C) Accounts Payable D) Expenses ANSWER C
Venus, Inc. paid $12,000 on accounts payable. How does this transaction affect the accounting equation of Venus? A) assets decrease by $12,000 and equity increases by $12,000 B) assets decrease by $12,000 and liabilities decrease by $12,000 C) assets increase by $12,000 and equity decreases by $12,000 D) assets increase by $12,000 and liabilities increase […]
Indicate the effects on the accounting equation of the following business transactions of Mayflower Service Corporation for b) to d) below. Use proper account titles. Transaction a) is answered as a guide a) Received cash from Don Jones; issued common stock to him. What will be an ideal response ANSWER Increase asset (Cash); Increase equity […]
Ace, Inc. had the following transactions during June: Performed services for $5,000 on account; received cash on account, $7,000; paid $600 for repair expense; paid $2,000 to a supplier that it owed from the previous month What is the combined effect on Cash of the June transactions? A) $4,400 increase B) $4,400 decrease C) $7,000 […]
