ACC305 Homework 1 Due 9/10/2019 before class Name: 1. A journal entry to record the sale of inventory on account will include a a. debit to Inventory. b. debit to Accounts Receivable debit to Sales Revenue. d. credit to Cost of Goods Sold 2. A journal entry to record a payment on account will include a a. debit to Accounts Receivable. b. credit to Accounts Receivable. c. debit to Accounts Payable. d. credit to Accounts Payable. 3. Maso Company recorded journal entries for the issuance of common stock for $200,000, and the payment of salaries expense of $105,000. What net effect do these entries have on stockholders' equity? a. Increase of $200,000. b.Increase of $135.000.c. Increase of $95.000, d.Increase of $30,000 4.Stockholders' equity is not affected by all a.cash receipts. b. dividends. c. revenues. d. expenses. 5. Mune Company recorded journal entries for the declaration of $250.000 of dividends, the $160,000 increase in accounts receivable for services rendered, and the purchase of equipment for $105,000 What net effect do these entries have on stockholders' equity? a. Decrease of $355,000 b. Decrease of $195,000. c. Decrease of $90,000 d. Increase of $55,000. 6. Transactions for Mehta Company for the month of May are presented below, prepare journal entries for each of these transactions 5/1 B.D. Mehta invests $4000 cash in exchange for common stock in a small welding corporation. 5/3 Buys equipment on account for $1100 5/13 Pays $400 to landlord for May rent 5/21 Bills Noble Corp $500 for welding work done