If store rent has been paid in cash for the month, then

a. owner's equity will decrease.

b. an asset will increase.

c. a liability will increase.

d. the owner's equity will increase

2.

Pharoah’s Forest Products showed the following account balances at the end of 2021:

Cash		$ 99650
Accounts Receivable		19500
Accounts Payable		13900
Unearned Revenue		950
Sales		148800
Pharoah, Capital		71250
Pharoah, Withdrawals		59500
Office Supplies		2550
Wages Expense		44900
Utilities Expense		8800

Assuming all accounts have normal balances, what are the totals for the debit and credit columns in the trial balance?

a. $234900

b. $233950

c. $135250

d. $163650

3. The accounts of a business before an adjusting entry is made to record an accrued revenue reflect an

a. understated liability and an overstated owner's capital.

b. overstated asset and an understated revenue.

c. understated expense and an overstated revenue.

d. understated asset and an understated revenue.

4. If a company purchases inventory for $150000 with terms 1/5 n/30 and pays within the discount period, the amount of cash paid is

a. $151500.

b. $148500.

c. $150000.

d. $155000.

5. Windsor Farm Store had a beginning merchandise inventory of $9000. During the period, purchases were $34800; purchase returns, $1700; and freight in $2500. A physical count of inventory at the end of the period revealed that $6400 was still on hand. Using a periodic inventory system, the cost of goods sold was

a. $43800.

b. $38200.

c. $45500.

d. $42100.

Answer rating: 100% (QA)

Reasons 1 Correct option A Because Rent expense will be debited which will decr... View the full answer