Journal Entries
Purchasing a building for $95,000 by paying cash of $25,000 and signing a note payable for $70,000 will
increase both total assets and total liabilities by $70,000.
Which financial statement would show how well a company performed over the past year
Income Statement
A corporation purchased supplies for $1,400 during 2016. At year dash–end, Storage had $400 of supplies left. The adjusting entry should
Debit expense for $1,000
The beginning Cash balance was $11,000. At the end of the period, the balance was $10,000. If total cash paid out during the period was $29,000, the amount of cash receipts was
$28,000
Using the accrual basis, in which month should revenue be recorded
In the month that goods are ordered by the customer
An investment of cash by stockholders into the business will have what effect on the accounting equation
Increase asset and increase stockholder's equity
What is the correct sequence for recording transactions and preparing financial statements
Journal, ledger, trial balance, financial statements
For 2016, Nestor Company had revenues in excess of expenses. Which statement describes Nestor's closing entries at the end of 2016 (assume there is only one closing entry for both revenue and expenses
Revenues will be debited, expenses will be credited, and retained earnings will be credited.
Salary Payable at the beginning of the month totals $29,000. During the month, salaries of $120,000 were accrued as expense. If ending Salary Payable is $5,000, what amount of cash did the company pay for salaries during the month?
$144,000
The list of all accounts with their balances is the
trail balance
A doctor purchases medical supplies of $640 and pays $290 cash with the remainder on account. The journal entry for this transaction would be?
Supplies
Account payable
Cash
Pinker Corporation began the year with cash of $135,000 and land that cost $24,800. During the year Pinker earned service revenue of $245,000 and had the following expenses: salaries, $158,000; rent, $85,000; utilizes, $20,000. At year-end Pinker’s cash balance was down to $19,000. How much net income (or net loss) did Pinker experience for the year?
(18,000)
The accountant for Trumbull Corp. failed to make the adjusting entry to record depreciation for the current year. The effect of this error is which of the following?
Assets, net income, and stockholders' equity are all overstated
January 1 of the current year, Belle Company paid $1,500 in rent to cover six months (January - June). Belle recorded this transaction as follows:
1/1 prepaid rent $1500
cash $1500
Belle adjusts the accounts at the end of each month. Belle's adjusting entry at the end of February should include
credit to prepaid rent for $250
Current assets. . . . . . . $40,600 Current liabilities. . . . . .$29,000
Long-term assets. . . . .182,000 Long-term liabilites. . . .102,000
Total revenues. . . . . . . .191,000 Total expenses. . . . . . .176,000
Based on these facts, what is Yorktown's current ratio
1.4
The journal entry to record the receipt of land and a building and the issuance of common stock
debits Land and Building and credits Common Stock
Quartz Instruments had retained earnings of $380,000 at December 31, 2015. Net income for 2016 totaled $205,000, and dividends for 2016 were $75,000. How much retained earnings should Quartz report at December 31, 2016?
$510,000
An adjusting entry that debits an expense and credits a liability is which type of account
accrued expense
If the credit to record the payment of an account payable is not posted, what will happen to the accounting equation
Liabilites will be understated
To be useful, information must have what fundamental qualitative characteristics
Relevance and faithful representation
What is the journal entry for when a business pays $2700 on 1/1 of rent covering from 1/1 to 6/30?
Prepaid rent $2700
cash $2700
Thompson Company had the following on the dates indicated
12/31/16 12/31/15
Total Asset $540,000 $36,000
Total liabilities $230,000 $30,000
Thompson had no stock transactions in 2016; thus, the change in stockholders' equity for 2016 was due to net income and dividends. If dividends were $50,000, how much was Thompson's net income for 2016? Use the accounting equation and the statement of retained earnings.
$354,000
On April 1, 2014, Jiminee Insurance Company sold a one-year insurance policy covering the year ended March 31, 2015. Jiminee collected the full $2,700 on April 1, 2014. Jiminee made the following journal entry to record the receipt of cash in advance:
Cash $2700
unearned revenue $2700
Nine months have passed, and Jiminee has made no adjusting entries. Based on these facts, the adjusting entry needed by Jiminee at December 31, 2014, is
unearned revenue $2,025
insurance revenue $2,025
An adjusting entry recorded June salary expense that will be paid in July. Which statement best describes the effect of this adjusting entry on the company's accounting equation?
Assets are not affected, liabilities are increased, and stockholders' equity is decreased
Blast Enterprises buys a warehouse for $600,000 to use for its East Coast distribution operations. On the date of the purchase, a professional appraisal shows a value of $620,000 for the warehouse. The seller had originally purchased the building for $520,000. Blast has a similar warehouse on the West Coast that has a book value of $613,000. Under the historical cost principle, Blast should record the building for
$600,000