118.On August 13, 2011, Merrill Enterprises purchased office equipment for $1,500 and office supplies of $300 on account. Which of the following journal entries is recorded correctly and in the standard format?
a.Office Equipment.....................................1,500
Account Payable.....................................1,800
Office Supplies300
b.Office Equipment......................................1,500
Office Supplies.....................................300
Accounts Payable.....................................1,800
c.Accounts Payable.....................................1,800
Office Equipment.....................................1,500
Office Supplies.....................................300
d.Office Equipment.....................................1,500
Office Supplies300
Accounts Payable......................................1,800
119.Robitaille Company received a cash advance of $500 from a customer. As a result of this event,
a.assets increased by $500.
b.stockholders' equity increased by $500.
c.liabilities decreased by $500.
d.both a and b.
120. Pastorek Company purchased equipment for $1,800 cash. As a result of this event,
a.stockholders' equity decreased by $1,800.
b.total assets increased by $1,800.
c.total assets remained unchanged.
d.Both a and b.
121. Root Company provided consulting services and billed the client $2,500. As a result of this event,
a.assets remained unchanged.
b.assets increased by $2,500.
c.stockholders' equity increased by $2,500.
d.Both b and c.
122.The first step in posting involves
a.entering in the appropriate ledger account the date, journal page, and debit amount shown in the journal.
b.writing in the journal the account number to which the debit amount was posted.
c.writing in the journal the account number to which the credit amount was posted.
d.entering in the appropriate ledger account the date, journal page, and credit amount shown in the journal.
123.A chart of accounts usually starts with
a.asset accounts.
b.expense accounts.
c.liability accounts.
d.revenue accounts.
124.The procedure of transferring journal entries to the ledger accounts is called
a.journalizing.
b.analyzing.
c.reporting.
d.posting.
125.A number in the reference column in a general journal indicates
a.that the entry has been posted to a particular account.
b.the page number of the journal.
c.the dollar amount of the transaction.
d.the date of the transaction.
126.A chart of accounts for a business firm
a.is a graph.
b.indicates the amount of profit or loss for the period.
c.lists the accounts and account numbers that identify their location in the ledger.
d.shows the balance of each account in the general ledger.
127.Posting
a.should be performed in account number order.
b.accumulates the effects of journalized transactions in the individual accounts.
c.involves transferring all debits and credits on a journal page to the trial balance.
d.is accomplished by examining ledger accounts and seeing which ones need updating.