44) A business purchased a building by paying part of the purchase price in cash as a down payment and signing a mortgage note for the remainder. The business should:
A) debit the mortgage note payable for the amount of the mortgage.
B) debit the building account for the amount of the mortgage.
C) debit cash for the amount paid on the down payment.
D) credit the mortgage note payable for the amount of the mortgage.
45) A company received $75,000 from a customer "on account." The journal entry would be to:
A) debit Accounts receivable and credit Sales revenue.
B) debit Accounts receivable and credit Cash.
C) debit Cash and credit Accounts receivable.
D) debit Sales revenue and credit Accounts receivable.
46) ABC Company reported the following transactions for September, 2013.
A) The company opened the business with a capital contribution of $23,500 cash. It was credited to common stock.
B) The company purchased office equipment for $11,500. The company paid $2,500 down and put the balance on a note payable.
C) The company paid a utility bill for $980 cash.
D) The company paid $2,000 cash for September rent.
E) The company had sales of $15,000 in September. Of these sales, 60% were cash sales, and the balance was credit sales.
F) The company paid $9,700 cash for office furniture.
What is the net income for September, 2013?
A) $12,020
B) $9,000
C) $6,020
D) $5,300
47) ABC Company reported the following transactions for September, 2013.
A) The company opened the business with a capital contribution of $23,500 cash. It was credited to common stock.
B) The company purchased office equipment for $11,500. The company paid $2,500 cash down and put the balance on a note payable.
C) The company paid insurance expense of $1,350 cash.
D) The company paid a utility bill for $980 cash.
E) The company paid $2,000 cash for September rent.
F) The company had sales of $12,000 in September. Of these sales, 60% were cash sales, and the balance was credit sales.
G) The company paid $9,700 cash for office furniture.
What are the total liabilities at the end of September, 2013?
A) $980
B) $2,330
C) $9,000
D) $4,800
48) ABC Company reported the following transactions for September, 2013.
A) The company opened the business with a capital contribution of $23,500 cash. It was credited to common stock.
B) The company purchased office equipment for $11,500. The company paid cash of $2,500 down and put the balance on a note payable.
C) The company purchased $1,350 of supplies on account.
D) The company paid a utility bill for $980 cash.
E) The company paid $2,000 cash for September rent.
F) The company had sales of $20,000 in September. Of these sales, 60% were cash sales, and the balance was credit sales.
G) The company paid $9,700 cash for office furniture.
What is the total amount in the Cash account at the end of September, 2013?
A) $15,520
B) $20,320
C) $28,320
D) $18,970
49) The following transactions have been journalized and posted to the proper accounts.
1. Mark Call invested $7,000 cash in his new design services corporation in exchange for stock.
2. The corporation paid the first month's rent with $700 cash.
3. The corporation purchased equipment by paying $2,000 down and executing a note payable for $4,500.
4. The corporation purchased supplies for $850 cash.
5. The corporation billed its clients a total of $4,000 for design services rendered.
6. The corporation collected $3,000 on account from one of its clients.
What is the balance in Accounts receivable?
A) $8,500
B) $1,000
C) $7,000
D) $4,000
50) The following transactions have been journalized and posted to the proper accounts.
1. Mark Call invested $7,000 cash in his new design services corporation in exchange for stock.
2. The corporation paid the first month's rent with $700 cash.
3. The corporation purchased equipment by paying $2,000 down and executing a note payable for $4,500.
4. The corporation purchased supplies for $850 cash.
5. The corporation billed its clients a total of $4,000 for design services rendered.
6. The corporation collected $3,000 on account from one of its clients.
What is the total amount of assets after all the above transactions have been completed?
A) $7,800
B) $13,800
C) $12,800
D) $14,800
51) The following transactions have been journalized and posted to the proper accounts.
1. Mark Call invested $7,000 cash in his new design services corporation in exchange for stock.
2. The corporation paid the first month's rent with $700 cash.
3. The corporation purchased equipment by paying $2,000 down and executing a note payable for $4,500.
4. The corporation purchased supplies for $850 cash.
5. The corporation billed its clients a total of $4,000 for design services rendered.
6. The corporation collected $3,000 on account from one of its clients.
What is the balance in Service revenue?
A) $1,000
B) $3,000
C) $4,000
D) $3,150
52) The following transactions have been journalized and posted to the proper accounts.
1. Mark Call invested $7,000 cash in his new design services corporation in exchange for stock.
2. The corporation paid the first month's rent with $700 cash.
3. The corporation purchased equipment by paying $2,000 down and executing a note payable for $4,500.
4. The corporation purchased supplies for $850 cash.
5. The corporation billed its clients a total of $4,000 for design services rendered.
6. The corporation collected $3,000 on account from one of its clients.
How much was net income?
A) $700
B) $300
C) $3,300
D) $2,450
53) The following entries were made by the accountant of Patel Pastries, Inc. during its first month of operation.
1. James Patel, the sole shareholder, deposited $3,000 in the company's new checking account in exchange for stock.
2. Patel Pastries, Inc. paid the first month's rent of $400 in cash.
3. Patel Pastries, Inc. purchased equipment by signing a note payable of $11,000.
4. Cash sales for the month were $4,500.
5. Patel Pastries, Inc. purchased cooking supplies for $1,400 cash.
After the accountant posts these entries to the general ledger, what is the balance in the Cash account?
A) $7,500
B) $7,100
C) $5,700
D) $16,700