51The 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
52The 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
53The 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
54The 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, how much are total assets?
A) $16,700
B) $18,100
C) $ 7,100
D) $ 6,100
55Equipment is purchased for cash. Which of the following would be TRUE?
A) There is an increase in total assets.
B) There is a decrease in both total assets and total liabilities.
C) There is an increase in total assets and a decrease in total liabilities.
D) There is no effect on total assets.
56A corporation paid dividends. Which of the following would be TRUE?
A) Net income would decrease.
B) Total assets would increase.
C) There would be no effect on total assets.
D) Stockholders’ equity would decrease.
57A utility bill is received for expenses incurred. It will be paid in the following accounting period. Which of the following would be TRUE as a result of the receipt of the utility bill?
A) Net income will increase.
B) Stockholders’ equity will decrease.
C) Total liabilities will decrease.
D) There will be no effect on total liabilities.
58A business has the following transactions: The business is started by receiving $20,000 from an investor
A)
Cash
20,000
2,000
3,000
500
1,500
16,000
B)
Cash
20,000
2,000
3,000
15,000
C)
Cash
20,000
2,000
3,000
500
1,500
16,000
D)
Cash
20,000
2,000
3,000
500
1,500
24,000
59A business has the following transactions: The business is started by receiving $20,000 from an investor in exchange for common stock. The business purchases $500 of supplies on account. The business purchases $2,000 of furniture on account. The business renders services to various clients totaling $9,000 on account. The business pays out $2,000 for Salary expense and $3.000 for Rent expense. Business pays $500 to a supplier for the supplies purchased earlier. The business collects $1,500 from one of its clients for services rendered earlier in the month. At the end of the month, all journal entries are posted to the ledger. The Accounts receivable account will appear as follows:
A)
Accounts receivable
9,000
1,500
7,500
B)
Accounts receivable
9,000
1,500
10,500
C)
Accounts receivable
9,000
9,000
D)
Accounts receivable
9,000
1,500
7,500
60A business has the following transactions: The business is started by receiving $20,000 from an investor in exchange for common stock. The business purchases $500 of supplies on account. The business purchases $2,000 of furniture on account. The business renders services to various clients totaling $9,000 on account. The business pays out $2,000 for Salary expense and $3.000 for Rent expense. The business pays $500 to a supplier for the supplies purchased earlier. The business collects $1,500 from one of its clients for services rendered earlier in the month. At the end of the month, all journal entries are posted to the ledger. The Accounts payable account will appear as follows:
A)
500
2,000
2,500
B)
Accounts payable
500
2,000
500
2,000
C)
Accounts payable
2,000
500
500
2,000
D)
Accounts payable
500
2,000
500