21) Which account has a normal debit balance? A) Salaries payable B) Common Stock C) Advertising Expense D) Service revenue 22) The normal balance of the Accounts Receivable account is a...







21) Which account has a normal debit balance?



A) Salaries payable



B) Common Stock



C) Advertising Expense



D) Service revenue





22) The normal balance of the Accounts Receivable account is a ________ because it is a(n) ________ account.



A) credit; liability



B) debit; stockholders' equity



C) credit; expense



D) debit; asset





23) When using a four-column ledger account format, the pair of columns on the far right is used to show the:



A) names of the accounts being debited and credited.



B) transaction dates and journal reference.



C) account balance.



D) debit and credit amounts posted from journal entries.





24) Andy Company had a Cash balance on May 1 of $27,000. At the end of May, the Cash balance had increased to $28,000. During the month of May, Andy received cash of $46,000 from various sources. Based on this information, cash payments for the month of May were:



A) $27,000.



B) $28,000.



C) $45,000.



D) $55,000.



25) Yellow Company had a balance of $30,000 in Accounts Payable at the beginning of June, and purchased $100,000 of merchandise on account during the month. At the end of June, Yellow's Account Payable balance was $28,000. What amount did Yellow pay on account during June?



A) $62,000



B) $72,000



C) $100,000



D) $102,000





26) The Accounts Receivable account for Johnny's Mechanic Shop had a beginning balance of $32,000. During the month, Johnny made sales on account of $42,000. The ending balance in the Accounts Receivable account is $30,000. What are cash collections for the month?



A) $32,000



B) $42,000



C) $44,000



D) $74,000





27) The Diamond Store began business on June 1. During the month of June, it had cash payments of $9,000. At the end of June, it had a $14,000 balance in Cash. Based on this information, the cash receipts for the month of June were:



A) $5,000.



B) $14,000.



C) $23,000.



D) $32,000.



28) Simmons Company began the month with a balance of $80,000 in Accounts Receivable. An analysis of the account determined that sales on account for the month totaled $110,000. At the end of the month, the balance in Accounts Receivable was $85,000. From this information, it can be determined that Simmons Company had collections from customers on account of:



A) $30,000.



B) $55,000.



C) $95,000.



D) $105,000.





29) The accounts of Local Company at May 31, 2015 are as follows:





















































Account




Balance




Accounts Payable




$23,500




Accounts Receivable




$15,600




Cash




$68,000




Common Stock




$32,000




Dividends




$3,000




Insurance Expense




$2,100




Retained Earnings




$25,800




Salary Expense




$1,100




Sales Revenue




$10,000




Supplies




$1,500






What are the first four lines, in proper order, on the trial balance at May 31, 2015?



A) Accounts Payable, Accounts Receivable, Cash, Common Stock



B) Sales Revenue, Salary Expense, Insurance Expense, Supplies



C) Cash, Accounts Receivable, Supplies, Accounts Payable



D) Accounts Payable, Notes Payable, Common Stock, Retained Earnings



30) The accounts of Yardy Company are as follows on November 30, 2015:





















































Account




Balance




Accounts Payable




$23,500




Accounts Receivable




$15,600




Cash




$68,000




Common Stock




$32,000




Dividends




$3,000




Insurance Expense




$2,100




Retained Earnings




$25,800




Salary Expense




$1,100




Sales Revenue




$10,000




Supplies




$1,500






What is the total of the debit column in the trial balance at November 30, 2015?



A) $84,300



B) $88,300



C) $91,300



D) $182,600





May 15, 2022
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