Question

In: Accounting

In the first month of operations for Pocket Industries, the total of the debit entries to...

In the first month of operations for Pocket Industries, the total of the debit entries to the cash account amounted to $9,000 ($5,000 investment by the owner and revenues of $4,000). The total of the credit entries to the cash account amounted to $4,000 (purchase of equipment $2,000 and payment of accoubts payable $2,000). At the end of the month, the cash account has a(n)

a. $2,000 credit balance.

b. $4,000 debit balance.

c. $2,000 credit balance.

d. $4,000 debit balance.

Grayton Industries purchased supplies for $1,200. They agreed to pay the balance of $700 in 30 days. The journal entry to record this transaction would include a debit to an asset account for $1,200, a credit to a liability account for $700. Which of the following would be the correct way to complete the recording of the transaction?

a. Credit an asset account for $500.

b. Credit the Grayton, Capital account for $500.

c. Debit the Grayton, Capital account for $500.

d. Credit another liability account for $500.

On June 1, 2008, Delbert Inc. reported a cash balance of $12,000. During June, Delbert made deposits of $3,000 and made disbursements totalling $14,000. What is the cash balance at the end of June?

a. $1,000 debit balance

b. $15,000 debit balance

c. $1,000 credit balance

d. $4,000 credit balance

At January 1, 2008, Burton Industries reported owner’s equity of $130,000. During 2008, Burton had a net income of $30,000 and owner drawings of $10,000. At December 31, 2008, the amount of owner’s equity is

a. $130,000.

b. $140,000.

c. $10,000.

d. $80,000.

Expert Solution

Answer #1
End balance = Total Debits – Total Credits
= 9000 – 4000
= $ 5000
Correct Answer = $ 5000 Debit Balance [None of the option matches this answer]
Answer #2
Correct Answer = Option ‘a’ Credit an asset account for $ 500
$ 1200 Supplies (Asset) will be debited,
$ 700 Accounts payable (Liability) will be credited,
Balance $ 500 (1200 – 700) is paid in Cash (Asset) and will be credited.
Answer #3
Cash balance at end = Beginning balance + Deposits – Disbursements
= 12000 + 3000 – 14000
= $ 1000 Debit Balance
Correct Answer = Option ‘a’ $ 1000 Debit balance
Answer #4
Owner’s Equity at end = Beginning balance+ Net Income - Net Loss – Drawings
= 130000 + 30000 – 10000
= $ 150,000
Again, none of the options matches the Correct Answer which is $ 150,000

ekkarill92 answered 2 years ago

Question: Elmo has the following information for the month of October, its first month of operations...

Question: Elmo has the following information for the month of October, its first month of operations Work in Process October 1st $0 Units completed & transferred out in October $120,000 Work in Process October 30th $32,000 100% completed for materials 80% completed for conversion costs Costs added in October shown below Materials $145,900 Direct Labour $ 96,000 Overhead $108,000 (1.) Determine the equivalent units of production for October. (2.) Determine the cost of the ending work-in-process. (3.) Determine the cost...

As of 12/31/2018, a company reports the following after making adjusting entries. Equipment $50,000 debit. Total...

As of 12/31/2018, a company reports the following after making adjusting entries. Equipment $50,000 debit. Total accumulated depreciation deprciation is $16000 For each of the following situations record the journal entries necessary: 1a. The equipment is sold for 22,000 in cash in 2019 1b. The equipment is sold for 48,000. The company receives a note receivable from the purchaser in 1/1/19 1c. The equipment falls apart and cannot be fixed. It is thrown away on 1/1/19

Daube Industries’ operations for the month of October are summarized as follows: Provided $5,800 of services...

Daube Industries’ operations for the month of October are summarized as follows: Provided $5,800 of services on account. Received $3,900 cash for services provided in October. Received $1,600 cash for services to be provided in November. Received $2,700 cash on account for service provided in September. Paid September’s warehouse rental bill on account in the amount of $1,400. Received October’s rental bill of $1,300; set it aside. Required: Prepare journal entries to record the transactions identified among activities (A) through...

Account Unadjusted trial balance(debit) Unadjusted trial balance(credit Adjusting entries(debit) adjusting entries(credit) adjusted trial balance(debit) Adjusted trial...

Account Unadjusted trial balance(debit) Unadjusted trial balance(credit Adjusting entries(debit) adjusting entries(credit) adjusted trial balance(debit) Adjusted trial balance(credit) Cash 32,236.75 32,236.75 baking supplies 18,500 18,500 merchandise inventory(fifo) 175.65 175.65 prepaid rent 1500 1500 prepaid insurance 2400 2400 baking equipment 6000 6000 accumulated depreciation 208.33 208.33 office supplies 600 600 accounts receivable 7700 7700 notes payable 10,000 10,000 wages payable 480 480 common stock 16,000 16,000 dividends 10,000 10,000 bakery sales 55,000 55,000 merchandise sales 221 221 baking supplies expense rent expense...

As of the end of the first year of operations, the projected total current assets is?

A family friend, Mr. Burn Out availed of the early retirement scheme offered by his employer. He said that he was already tired of the same routine of spending eight full hours in an office doing the same thing for the last twenty years. Mr. Burn Out plans to get into the field of entrepreneurship. He would invest part of his retirement pay in a business that would deal with the sale of medical supplies to local clinics and hospitals....

Preparing Adjusting Entries, Financial Statements, and Closing Entries Murdock Carpet Cleaners ended its first month of...

Preparing Adjusting Entries, Financial Statements, and Closing Entries Murdock Carpet Cleaners ended its first month of operations on June 30, 2015. Monthly Financial statements will be prepared. The unadjusted account balances are as follows. MURDOCK CARPET CLEANERS Unadjusted Trial Balance June 30, 2015 Debit Credit Cash ........................................................ $ 1,180 Accounts receivable............................................ 450 Prepaid rent .................................................. 3,100 Supplies ..................................................... 2,520 Equipment ................................................... 4,440 Accounts payable.............................................. $ 760 Common stock................................................ 2,000 Retained earnings ............................................. 5,300 Service fees earned ............................................ 4,650 Wages expense...

I'll rate thanks Adjusting Entries and Errors At the end of August, the first month of...

I'll rate thanks Adjusting Entries and Errors At the end of August, the first month of operations, the following selected data were taken from the financial statements of Tucker Jacobs, an attorney: Net income for August $156,900 Total assets at August 31 832,000 Total liabilities at August 31 275,000 Total owner’s equity at August 31 557,000 In preparing the financial statements, adjustments for the following data were overlooked: Required: Unbilled fees earned at August 31, $8,680. Depreciation of equipment for...

On October 31, the end of the first month of operations, Morristown & Co. prepared the...

On October 31, the end of the first month of operations, Morristown & Co. prepared the following income statement based on absorption costing: Morristown & Co. Absorption Costing Income Statement For Month Ended October 31, 20-- Sales (2,600 units) $117,000 Cost of goods sold: Cost of goods manufactured $85,500 Less ending inventory (400 units) 11,400 Cost of goods sold 74,100 Gross profit $42,900 Selling and administrative expenses 21,500 Income from operations $21,400 If the fixed manufacturing costs were $42,900 and...

You work for Johnson International. This is the first month of operations. The company designs and...

You work for Johnson International. This is the first month of operations. The company designs and manufactures specialty tables. Each table is specially customized for the customer. This month, you have been asked to develop and manufacture two new tables for customers. You will design and build the tables. This is a no nail, no screw, and no glue manufacturing ( no indirect materials used). You will be keeping track of the costs incurred to manufacture the tables using Job...

Below are the transactions for Ute Sewing Shop for March, the first month of operations. ...

Below are the transactions for Ute Sewing Shop for March, the first month of operations. March 1 Issue common stock in exchange for cash of $1,500. March 3 Purchase sewing equipment by signing a note with the local bank, $1,200. March 5 Pay rent of $450 for March. March 7 Martha, a customer, places an order for alterations to several dresses. Ute estimates that the alterations will cost Martha $650. Martha is not required to pay for the alterations...