1. Larry Bar opened a frame shop and completed these transactions:

1. Larry started the shop by investing $40,800 cash and equipment valued at $18,800.

2. Purchased $150 of office supplies on credit.

3. Paid $2,000 cash for the receptionist's salary.

4. Sold a custom frame service and collected a $5,300 cash on the sale.

5. Completed framing services and billed the client $280.

What was the balance of the cash account after these transactions were posted?

2. A debit is used to record which of the following?

An increase in a contributed capital account.

An increase in the dividends account.

An increase in a revenue account.

A decrease in an asset account.

A decrease in an expense account.

3. Identify the account below that is classified as an asset in a company's chart of accounts:

Unearned Revenue

Accounts Payable

Accounts Receivable

Service Revenue

Common Stock

4. At the beginning of January of the current year, Little Mikey's Catering ledger reflected a normal balance of $64,000 for accounts receivable. During January, the company collected $17,200 from customers on account and provided additional services to customers on account totaling $13,700. Additionally, during January one customer paid Mikey $6,200 for services to be provided in the future. At the end of January, the balance in the accounts receivable account should be:

$61,300.

$3,500.

$66,700.

$67,500.

$60,500.