Question

A company received payment of $10,000 from a customer that had previously received services performed on account. What would the effect of this transaction on the company’s current month accounting equation?

Select one:

A. No effect on Assets; No effect on Liabilities; No effect on Stockholders’ Equity

B. $10,000 increase in Assets; $10,000 increase in Liabilities; No effect on Stockholders’ Equity

C. No effect on Assets; $10,000 increase in Liabilities; $10,000 decrease in Stockholders’ Equity

D. $10,000 increase in Assets; No effect on Liabilities; $10,000 increase in Stockholders’ Equity

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A company received payment of $30,000 from a customer that had previously received services performed on account. What would the effect of this transaction on the company’s current month accounting equation?

Select one:

A. $30,000 increase in Assets; No effect on Liabilities; $30,000 increase in Stockholders’ Equity

B. No effect on Assets; No effect on Liabilities; No effect on Stockholders’ Equity

C. $30,000 increase in Assets; $30,000 increase in Liabilities; No effect on Stockholders’ Equity

D. No effect on Assets; $30,000 increase in Liabilities; $30,000 decrease in Stockholders’ Equity

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Question 23

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Anisha Company had a transaction that caused a $30,000 increase in both assets and liabilities. This transaction could have been a(n):

Select one:

A. Purchase of office equipment for $44,000, paying $14,000 cash and issuing a note payable for the balance

B. Investment of $30,000 cash in the business by the stockholders

C. Repayment of a $30,000 bank loan

D. Purchase of office equipment for $30,000 cash

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Question 24

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A customer received and then paid an $18,000 utility bill from West Haven Natural Gas Company. The journal entry by West Haven Natural Gas Company to record receipt of the payment would include:

Select one:

A. A credit to Utilities Revenue

B. A credit to Accounts Receivable

C. A debit to Accounts Receivable

D. A credit to Accounts Payable

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Question 25

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Stone Circle Company purchased a new car for $135,000 by paying $54,000 cash, and trading in an old car with a recorded net cost and market value of $45,000. They also signed a Note for $36,000.

The required journal entry will not:

Select one:

A. Debit New Car for $135,000

B. Debit Notes Payable for $36,000

C. Credit Notes Payable for $36,000

D. Credit Notes Payable for $45,000

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Question 26

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Koala Company provided consulting service to a client on January 1, and billed them for $30,000. On February 1, the client made cash payment of $16,000 and signed a note for $14,000 to settle the account.

What is Koala Company’s journal entry on February 1?

Select one:

A.

Cash		16,000
Accounts Receivable		14,000
	Notes Receivable		30,000

B.

Cash		16,000
Notes Receivable		14,000
	Consulting Revenue		30,000

C.

Accounts Payable		30,000
	Notes Payable		14,000
	Cash		16,000

D.

Cash		16,000
Notes Receivable		14,000
	Accounts Receivable		30,000

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On November 30, Sydney Company had Accounts Receivable of $130,280. During the month of December, the company received total payments of $160,000 from credit customers. The Accounts Receivable on December 31 was $86,320.

What was the amount of credit sales during December?

Select one:

A. $ 63,840

B. $373,360

C. $116,040

D. $196,720

Answer 1

1)correct option is"A"- No effect on Assets; No effect on Liabilities; No effect on Stockholders’ Equity

Entry to record this includes :Debit cash and credit accounts receivable by 10000

Since both cash and accounts receivable are asset so Increase in cash(Asset ) is offset by decrease in accounts receivable (asset) thus overall no effect on asset side .

No liability and equity account is affected.

22)correct option is "B"-

No effect on Assets; No effect on Liabilities; No effect on Stockholders’ Equity

Entry to record this includes :Debit cash and credit accounts receivable by 30000

Since both cash and accounts receivable are asset so Increase in cash(Asset ) is offset by decrease in accounts receivable (asset) thus overall no effect on asset side .

No liability and equity account is affected.

23)correct option is A"- Purchase of office equipment for $44,000, paying $14,000 cash and issuing a note payable for the balance

Journal entry to record this includes:

Account title	Debit	credit
Office equipment (Asset)	44000
cash (asset)		14000
Note payable (liability)		30000

Because of these transaction net asset is increased by 44000-14000 = 30000 and liability increased by 30000

24)correct option is "A"- A credit to Utilities Revenue

Account title	Debit	credit
Cash	18000
utilities revenue		18000