31) A company had credit sales of $30,000 and cash sales of $10,000 during the month of May. Also during May, the company paid wages of $12,000 and utilities of $1,800. It also received payments from customers on account totaling $4,000. At the beginning of May, the company had a cash balance of $25,000. What is the company's Cash balance at the end of May?
A) $21,200
B) $25,200
C) $35,000
D) $39,000
32) Jenkins Company began business in June when stockholders invested $80,000 in the business, which in turn issued its common stock to them. Jenkins Company then purchased a building for $40,000 cash and inventory for $20,000 cash, performed services for clients for $10,000 cash, purchased supplies for $5,000 cash, and paid utilities of $2,000 cash. What is the amount of Cash at the end of June?
A) $20,000
B) $23,000
C) $30,000
D) $43,000
33) A company received $30,000 cash and issued common stock in exchange. In transaction analysis, how does this transaction affect the accounting equation?
A) Add $30,000 to Cash account and add $30,000 to Retained Earnings account.
B) Add $30,000 to Cash account and add $30,000 to Revenue account.
C) Add $30,000 to Dividends account and subtract $30,000 to Retained Earnings account.
D) Add $30,000 to Cash account and add $30,000 to Common Stock account.
34) A company purchased supplies of $1,000 on account. In transaction analysis, how does this transaction affect the accounting equation?
A) Add $1,000 to Supplies account and add $1,000 to Notes Payable account.
B) Add $1,000 to Supplies account and subtract $1,000 from Cash account.
C) Add $1,000 to Supplies Expense account and add $1,000 to Notes Payable account.
D) Add $1,000 to Supplies account and add $1,000 to Accounts Payable account.
35) A company performed tax services for a client on account. The amount billed to the client was $5,000. In transaction analysis, how does this transaction affect the accounting equation?
A) Add $5,000 to Cash account and add $5,000 to Service Revenue account.
B) Add $5,000 to Cash account and add $5,000 to Retained Earnings account.
C) Add $5,000 to Accounts Receivable account and add $5,000 to Retained Earnings account.
D) Add $5,000 to Accounts Payable account and add $5,000 to Service Revenue account.
36) On May 1, a company provided legal services for a new client. The lawyer asked for $1,000 and the client paid with a check on May 1 before leaving the office. In transaction analysis, how does this transaction affect the accounting equation?
A) Add $1,000 to Cash and add $1,000 to Service Revenue account.
B) Add $1,000 to Cash account and add $1,000 to Retained Earnings account.
C) Add $1,000 to Cash account and subtract $1,000 from Accounts Receivable account.
D) Add $1,000 to Cash account and subtract $1,000 from Accounts Payable account.
37) A company paid $2,500 for supplies purchased earlier in the month on account. In transaction analysis, how does this transaction affect the accounting equation?
A) Add $2,500 to Supplies account and add $2,500 to Supplies Expense account.
B) Add $2,500 to Supplies Expense account and subtract $2,500 from Cash account.
C) Add $2,500 to Supplies Expense account and add $2,500 to Cash account.
D) Subtract $2,500 from Accounts Payable account and subtract $2,500 from Cash account.
38) On August 15, a customer paid $3,000 for services provided a month earlier. The customer was billed on August 1. In transaction analysis, how does this transaction affect the accounting equation?
A) Add $3,000 to Cash account and add $3,000 to Service Revenue account.
B) Add $3,000 to Cash account and add $3,000 to Retained Earnings account.
C) Add $3,000 to Cash account and subtract $3,000 from Accounts Receivable account.
D) Add $3,000 to Accounts Payable account and add $3,000 to Cash account.
39) A company received a utility bill for $500 and decided to pay it next month due to a shortage of cash. In transaction analysis, how does this transaction affect the accounting equation?
A) Add $500 to Utilities Expense account and add $500 to Cash account.
B) Subtract $500 from Cash account and add $500 to Accounts Payable account.
C) Add $500 to Accounts Receivable account and subtract $500 from Retained Earnings account.
D) Add $500 to Accounts Payable account and subtract $500 from Retained Earnings account.
40) A company went to the bank and borrowed $10,000 on a long-term note. In transaction analysis, how does this transaction affect the accounting equation?
A) Add $10,000 to Cash account and add $10,000 to Accounts Payable account.
B) Add $10,000 to Cash account and add $10,000 to Notes Payable account.
C) Add $10,000 to Cash account and add $10,000 to Retained Earnings account.
D) Add $10,000 to Accounts Receivable account and add $10,000 to Accounts Payable account.