Q3. On March 8, Black Candy Company bought supplies on account from the Arcade Fire Company for $550. Black Candy Company incorrectly debited Equipment for $500 and credited Accounts Payable for $500. The entries have been posted to the ledger. the correcting entry should be:
Supplies.............................. 550
Equipment......................... 500
Accounts Payable............... 50
Supplies.............................. 550
Equipment.......................... 550
Supplies.............................. 550
Accounts Payable............... 550
Supplies.............................. 550
Accounts Payable............... 500
Equipment......................... 50
Question 4
The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2014:
Accounts payable ............................. $18,000
Accounts receivable.............................11,000
Accumulated depreciation ? equipment......28,000
Advertising expense.............................21,000
Cash................................................15,000
Owners capital (1/1/14) ........................102,000
Owners drawings.................................14,000
Depreciation expense............................12,000
Insurance expense................................3,000
Note payable, due 6/30/15.....................70,000
Prepaid insurance (12-month policy) ......... 6,000
Rent expense...................................... 17,000
Salaries and wages expense.....................32,000
Service revenue...................................133,000
Supplies...............................................4,000
Supplies expense......................................6,000
Equipment.........................................210,000
What are total current liabilities at December 31, 2014?
$88,000
$120,000
$18,000
$70,000
Question 5
Jawbreaker Company paid $940 on account to a creditor. The transaction was erroneously recorded as a debit to Cash of $490 and a credit to Accounts Receivable, $490. The correcting entry is
Accounts Receivable........................................................................... 490
Cash............................................................................................... 490
Accounts Receivable........................................................................... 490
Accounts Payable............................................................................. 490
Accounts Receivable........................................................................... 490
Accounts Payable............................................................................... 940
Cash............................................................................................... 1,430
Accounts Payable............................................................................... 940
Cash............................................................................................... 940
Question 6
The heading for a post-closing trial balance has a date line that is similar to the one found on
an owner's equity statement.
an income statement.
the worksheet.
a balance sheet.