Land was purchased for $50,000 cash. What is the effect on the accounting equation? Assets (land) decreases and Equity decreases Assets (land) increases and Assets (cash) decreases Assets (land) increases and Liabilities increase Assets (cash) increases and Equity increases

Assets (land) increases and Assets (cash) decreases

Services were rendered to customers for cash. What is the effect on the accounting equation? Assets (cash) decrease and Liabilities increase Assets (cash) increase and Equity (revenue) increase Assets (cash) increase and Liabilities decrease Assets (cash) decrease and Equity (expense) increase

Assets (cash) increase and Equity (revenue) increase

A building was purchased for cash. What is the effect on the accounting equation? Assets (cash) increases and Equity increases Assets (building) decreases and Equity decreases Assets (building) increases and Liabilities increase Assets (building) increases and Assets (cash) decreases

Assets (building) increases and Assets (cash) decreases

Supplies were purchased on account. What is the effect on the accounting equation? Assets (supplies) decreases and Equity decreases Assets (supplies) increases and Equity increases Assets (supplies) decreases and Liability (AP) decreases Assets (supplies) increases and Liability (AP) increases

Assets (supplies) increases and Liability (AP) increases

Paid the office secretary's salary. What is the effect on the accounting equation? Assets (cash) increases and Equity (expense) increases Assets (cash) increases and Liabilities decrease Assets (cash) decreases and Liabilities increase Assets (cash) decreases and Equity (expense) decreases

Assets (cash) decreases and Equity (expense) decreases

At the beginning of the month, assets were $200,000 and liability was $120,000. There was an increase of $160,000 in assets and $20,000 decrease in liability. What is the beginning equity and the ending balances? Beginning Equity= $100,000, Ending Asset= $360,000, Ending Liability= $120,000, Ending Equity= $240,000 Beginning Equity= $80,000, Ending Asset= $360,000, Ending Liability= $100,000, Ending Equity= $260,000 Beginning Equity= $100,000, Ending Asset= $340,000, Ending Liability= $120,000, Ending Equity= $220,000 Beginning Equity= $80,000, Ending Asset= $340,000, Ending Liability= $100,000, Ending Equity= $240,000

Beginning Equity= $80,000, Ending Asset= $360,000, Ending Liability= $100,000, Ending Equity= $260,000

Comprehensive Accounting Principles and Transactions Flashcards

Land was purchased for $50,000 cash. What is the effect on the accounting equation?

Services were rendered to customers for cash. What is the effect on the accounting equation?

A building was purchased for cash. What is the effect on the accounting equation?

Supplies were purchased on account. What is the effect on the accounting equation?

Paid the office secretary's salary. What is the effect on the accounting equation?

At the beginning of the month, assets were $200,000 and liability was $120,000. There was an increase of $160,000 in assets and $20,000 decrease in liability. What is the beginning equity and the ending balances?

Beginning balances are $350,000 = $110,000 + $240,000. If there is an increase of $30,000 in assets and liability, what are the ending balances?

Prepare an income statement and find the Net Income given: Revenue = $80,000, Expenses = $40,000, $7,500, $3,500.

A company reported net income of $5,780 for October. Its net sales for October were $17,000. What is its profit margin?

A company had $6,940,000 in net income for the year. Its net sales were $14,600,000 for the same period. Calculate its profit margin.

On July 1, Olive Company paid $7,900 cash for management services to be performed over a two-year period beginning July 1. What is the adjusting entry on December 31?

Prior to recording adjusting entries, the Office Supplies account had a $372 debit balance. A physical count showed $112 of unused supplies available. What is the required adjusting entry?

On April 1, a company paid the $3,600 premium on a 3-year insurance policy with benefits beginning on that date. What amount of insurance expense will be reported on the annual income statement for the first year ended December 31?

On July 1, a company paid the $2,640 premium on a 1-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the first year ended December 31?

A company had no office supplies available at the beginning of the year. During the year, the company purchased $330 worth of office supplies. On December 31, $105 worth of office supplies remained. How much should the company report as office supplies expense for the year?

On January 1, a company purchased a 5-year insurance policy for $3,400 with coverage starting immediately. If the purchase was recorded in the Prepaid insurance account, and the company records adjustments only at year-end, what is the adjusting entry at the end of the first year?

On May 1, a 2-year insurance policy was purchased for $38,400 with coverage to begin immediately. What is the amount of insurance expense that would appear on the company's income statement for the first year ended December 31?

Fragment Company leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $1,250. Fragment collected the entire $10,000 cash on October 1 and recorded it as unearned revenue. Assuming adjusting entries are only made at year-end, what is the adjusting entry made on December 31?

A company pays its employees $4,100 each Friday, which amounts to $820 per day for a 5-day work week that begins on Monday. If the monthly accounting period ends on Thursday and the employees worked through Thursday, what is the amount of salaries earned but unpaid at the end of the accounting period?

On January 1, Northern College received $1,400,000 from its students for the spring semester that it recorded in unearned revenue. The term spans 4 months beginning on January 1 and the college earns the revenue evenly over the months of the term. Assuming the college prepares adjustments on January 31, what amount of tuition revenue should the college recognize for the month of January?

An adjusting entry was made on year-end December 31 to accrue salary expense of $2,000. Assuming the company does not prepare reversing entries, which of the following entries would be prepared to record the $4,600 payment of salaries in January of the following year?

A company purchased a new delivery van at a cost of $54,000 on January 1. The delivery van is estimated to have a useful life of 6 years and a salvage value of $4,200. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the van during the first year ended December 31?

A company's office supplies account shows a beginning balance of $790 and an ending balance of $780. If the office supplies expense for the year is $4,050, what amount of office supplies was purchased during the period?

A company recorded 2 days of accrued salaries of $2,000 for its employees on January 31. On February 9, it paid its employees $8,200 for these accrued salaries and for other salaries earned through February 9. What are the January 31 and February 9 journal entries?

On December 1, Oren Marketing Company received $6,000 from a customer for a 2-month marketing plan to be completed January 31 of the following year. The cash receipt was recorded as unearned revenue. What is the adjusting entry for the year ended December 31?

What is the proper adjusting entry at December 31, the end of the accounting period, if the balance in the prepaid insurance account is $9,050 before adjustment, and the unexpired amount per analysis of policies is $3,900?

On April 1, Garcia Publishing Company received $1,998 from Otisco Incorporated for 36-month subscriptions to several different magazines. The subscriptions started immediately. What is the amount of revenue that should be recorded by Garcia Publishing Company for the first year of the subscription assuming the company uses a calendar-year reporting period?

On April 1, Garcia Publishing Company received $21,780 from Otisco Incorporated for 36-month subscriptions to several different magazines. The company credited unearned revenue for the amount received and the subscriptions started immediately. Assuming adjustments are only made at year-end, what is the adjusting entry that should be recorded by Garcia Publishing Company on December 31 of the first year?

On April 1, Otisco Incorporated paid Garcia Publishing Company $1,908 for 36-month subscription to several different magazines. Otisco debited the prepayment to a prepaid subscriptions account, and the subscription started immediately. What amount should appear in the prepaid subscription account for Otisco after adjustments on December 31 of the first year assuming the company is using a calendar-year reporting period and no previous adjustment has been made?

Determine the net income of a company for which the following information is available for the month of July: Employee salaries expense $200,000, Interest expense $30,000, Rent expense $40,000, Consulting revenue $480,000.

If a company receives $13,100 from a client for services provided, what is the effect on the accounting equation?

Determine the net income of a company for which the following information is available for the month of September: Service revenue $306,000, Rent expense $51,000, Utilities expense $3,500, Salaries expense $84,000.

Echo Company has assets of $606,000, liabilities of $253,000, and equity of $353,000. It buys office equipment on credit for $78,000. What would be the effects of this transaction on the accounting equation?

Zinc has beginning equity of $267,000, total revenues of $67,000, and total expenses of $45,000. The company has no other transactions impacting equity. What is its ending equity?

If a company uses $1,600 of its cash to purchase supplies, what is the effect on the accounting equation?

If Dallas Company billed a client for $28,000 of consulting work completed, the accounts receivable asset increases by $28,000 and what happens to revenue?

If a company purchases equipment costing $3,800 on credit, what is the effect on the accounting equation?

Darden has beginning equity of $293,000, total revenues of $79,000, and total expenses of $41,000. The company has no other transactions impacting equity. What is the company's ending equity?

A company reported total equity of $161,000 at the beginning of the year. The company reported $226,000 in revenues and $173,000 in expenses for the year. Liabilities at the end of the year totaled $100,000. What are the total assets of the company at the end of the year?

Given the following information, find the Net Income: Cash $15,200, Cash dividends $460, Accounts receivable $12,410, Consulting revenue $12,410, Office supplies $1,770, Rent expense $2,140, Office equipment $6,450, Salaries expense $5,300, Land $46,080, Telephone expense $750, Accounts payable $6,060, Miscellaneous expenses $560, Common stock $82,650.

Given the following information, find the retained earnings: Cash $15,200, Cash dividends $460, Accounts receivable $12,410, Consulting revenue $12,410, Office supplies $1,770, Rent expense $2,140, Office equipment $6,450, Salaries expense $5,300, Land $46,080, Telephone expense $750, Accounts payable $6,060, Miscellaneous expenses $560, Common stock $82,650.

Prepare a balance sheet given the following information: Cash $15,200, Cash dividends $460, Accounts receivable $12,410, Consulting revenue $12,410, Office supplies $1,770, Rent expense $2,140, Office equipment $6,450, Salaries expense $5,300, Land $46,080, Telephone expense $750, Accounts payable $6,060, Miscellaneous expenses $560, Common stock $82,650.

Adriana Graphic Design receives $1,800 from a client billed in a previous month for services provided. Which of the following general journal entries will Adriana Graphic Design make to record this transaction?

Marco Nelson opened a frame shop and completed these transactions: 1. Sold custom frames and immediately collected $41,800 cash for the sale. 2. Purchased $250 of office supplies on credit. 3. Paid $3,000 cash for the receptionist's salary. 4. Sold a custom frame service and collected $6,300 cash on the sale. 5. Completed framing services and billed the client $380. What was the balance of the cash account after these transactions were posted?

Ted Catering received $880 cash in advance from a customer for catering services to be provided in three months. Determine the general journal entry that Ted Catering will make to record the cash receipt.

Specter Consulting purchased $8,200 of supplies and paid cash immediately. Which of the following general journal entries will Specter Consulting make to record this transaction?

A company paid $1,800 cash for this month's utilities. Identify the general journal entry below that the company will make to record the transaction.

A company opened on January 1 of the current year. During January, the following transactions occurred and were recorded in the company's books: 1. The company received $14,500 cash for services provided. 2. The company paid $3,100 cash for an insurance policy covering the next 24 months. 3. The company received $6,700 cash for services provided. 4. The company purchased $7,200 of office equipment on credit. 5. The company provided $3,750 of services to customers on account. 6. The company paid cash of $2,500 for monthly rent. 7. The company paid $4,100 on the office equipment purchased in transaction #5 above. 8. Paid $375 cash for January utilities. Based on this information, what is the balance in the cash account at the end of January?

A company purchased $1,500 of supplies on credit. Identify the general journal entry below that the company will make to record the transaction.

Alicia Tax Services paid $640 to settle an account payable. Which of the following general journal entries will Alicia Tax Services make to record this transaction?

The following transactions occurred during July: 1. Received $970 cash for services provided to a customer during July. 2. Collected $3,400 cash for services previously completed in June. 3. Received $820 from a customer in partial payment of his account receivable which arose from sales in June. 4. Provided services to a customer on credit, $445. 5. Borrowed $6,700 from the bank by signing a promissory note. 6. Received $1,320 cash from a customer for services to be performed next year. What was the amount of revenue for July?

On April 30, Gomez Services had an Accounts Receivable balance of $29,000. During the month of May, total credits to Accounts Receivable were $64,000 from customer payments. The May 31 Accounts Receivable balance was $23,000. What was the amount of credit sales during May?

A company recorded 2 days of accrued salaries of $2,200 for its employees on January 31. On February 9, it paid its employees $8,600 for these accrued salaries and for other salaries earned through February 9. What are the January 31 and February 9 journal entries?

What is the proper adjusting entry at December 31, the end of the accounting period, if the balance in the prepaid insurance account is $8,150 before adjustment, and the unexpired amount per analysis of policies is $3,450?

On January 1, a company purchased new furniture at a cost of $17,000. The furniture is estimated to have a useful life of 5 years and a salvage value of $2,300. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the furniture for the first year ended December 31?

The correct adjusting entry for accrued and unpaid employee salaries of $9,200 on December 31 is:

A physical count of supplies on hand at the end of May for Masters, Incorporated indicated $1,240 of supplies available. The general ledger balance before any adjustment is $2,000. What is the adjusting entry for supplies that should be recorded on May 31?

The balances in Labé Accounting Services' office supplies account on February 1 and February 28 were $1,550 and $350, respectively. If the office supplies expense for the month is $1,650, what amount of office supplies was purchased during February?

On April 1, a company paid the $1,800 premium on a three-year insurance policy with benefits beginning on that date. What amount of insurance expense will be reported on the annual income statement for the first year ended December 31?

On October 1, Vista View Company rented warehouse space to a tenant for $1,600 per month and received $8,000 for five months' rent in advance on that date, with the lease beginning immediately. The cash receipt was credited to the Unearned Revenue account. The company's annual accounting period ends on December 31. What should the Unearned Revenue account balance be at the end of December, after adjustment?

On April 1, Garcia Publishing Company received $1,638 from Otisco, Incorporated for 36-month subscriptions to several different magazines. The subscriptions started immediately. What is the amount of revenue that should be recorded by Garcia Publishing Company for the first year of the subscription assuming the company uses a calendar-year reporting period?

Chase Company rents space to a tenant for $2,400 per month. The tenant currently owes rent for November and December. The tenant has agreed to pay the November, December, and January rents in full on January 15 and has agreed not to fall behind again. What is the adjusting entry needed on December 31?

If the trucking revenue is $137,000, prepare a closing entry for revenue.

Prepare a closing entry for expenses given: Depreciation expense- truck- 24,200, Salaries expense- 63,100, Office supplies expense- 8,700, Interest expense- 12,700.

Prepare a closing entry for income summary if it is $28,300.

According to Donald R. Cressey, all these conditions must exist for someone to commit fraud except:

Which is the best approach and least expensive in a fraud environment?

Accounting is an information and measurement system that involves _____ an organization's business activities.

What is bookkeeping? Provide a detailed explanation with supporting examples.

Accounting is called the language of business because it communicates data that help people make better decisions. Which of these is not a user of accounting information?

Which of the following is an external user of financial statements?

Which body issues generally accepted accounting principles (GAAP)?

_____ is to provide information useful to investors, creditors, and others.

_____ defines the items in financial statements.

A company records its expenses incurred to generate the revenue reported. What principle is being explained?

Revenue is recognized when goods and services are provided to customers at an amount expected to be received from the customer. Is this statement true or false?

Which body issues international financial reporting standards?

In which organization is the owner responsible for all debts of the business?

What is the name of the exchanges of economic value between one entity and another entity?

The purpose of this statement is to describe a company's financial position at a point in time. What is it called?

Nike reports total net income of $3,090 million for the current year. At the beginning of the current year, its total assets are $11,500 million, and at the end of the current year, assets total $15,700 million. What is Nike's return on assets for the current year?

Brunswick borrows $50,000 cash from Third National Bank. How does this transaction affect the accounting equation for Brunswick?

A building is offered for sale at $500,000 but is currently assessed at $400,000. The purchaser of the building believes the building is worth $475,000, but ultimately purchased the building for $450,000. At what value should the purchaser record the building?

Comprehensive Accounting Principles and Transactions Flashcards

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