Professional Documents
Culture Documents
Journal Ledger
Journal Ledger
RECORDING TRANSACTIONS
Demonstration Problem 1
Debits and Credits
For each of the following accounts, indicate the side of the account that should be used to
record an increase in that account.
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Demonstration Problem 2
Debits and Credits
For each of the following independent transactions, identify the account that would be debited
and the account that would be credited.
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Practice Problem 1
Debits and Credits
For each of the following accounts, indicate the side of the account that should be used to record
an increase in that account.
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Practice Problem 2
Debits and Credits
For each of the following independent transactions, identify the account that would be debited
and the account that would be credited.
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Homework Problem 1
Debit and Credit Terminology
For each of the following accounts, indicate the side of the account that should be used to record
an increase in that account.
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Homework Problem 2
Debit and Credit Terminology
For each of the following accounts, indicate the side of the account that should be used to record
an increase in that account.
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Homework Problem 3
Debit and Credit Terminology
For each of the following independent transactions, identify the account that would be debited
and the account that would be credited.
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Homework Problem 4
Debit and Credit Terminology
For each of the following independent transactions, identify the account that would be debited
and the account that would be credited.
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Homework Quiz
Debits and Credits
5. The Accounts Payable account's proper classification and normal account balance are:
a. Asset
b. Liability
c. Owner's equity
d. Revenue
8. Altoona Plumbing acquired Office Supplies on account. Which of the following entries properly
records this transaction?
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a. Debit: Office Supplies; Credit: Cash
b. Debit: Cash; Credit: Office Supplies
c. Debit: Office Supplies; Credit: Accounts Payable
d. Debit: Accounts Payable; Credit: Office Supplies
9. Altoona Plumbing acquired Equipment by making a Cash down payment and issuing a note to
finance the remaining balance. Which of the following entries properly records this transaction?
a. Debit: Equipment; Credit: Cash, Accounts Payable
b. Debit: Equipment; Credit: Cash, Notes Payable
c. Debit: Equipment; Credit: Cash
d. Debit: Equipment; Credit: Cash, Accounts Payable, Notes Payable
10. Altoona Plumbing made its monthly office rent payment. Which of the following entries properly
records this transaction?
a. Debit: Cash; Credit: Rent Expense
b. Debit: Rent Expense; Credit: Cash
c. Debit: Rent Expense; Credit: Accounts Payable
d. Debit: Accounts Payable; Credit: Rent Expense
11. Altoona Plumbing recorded its monthly service revenue reflecting both cash sales and sales on
account. Which of the following entries properly records this transaction?
a. Debit: Accounts Receivable; Credit: Service Revenue
b. Debit: Service Revenue;Credit: Accounts Receivable, Cash
c. Debit: Accounts Receivable, Cash; Credit: Service Revenue
d. Debit: Cash; Credit: Accounts Receivable
12. Josephine Marlow, M.D. just recorded her billing to clients for services rendered. Which of the
following entries properly records this transaction?
a. Debit: Accounts Receivable; Credit: Fees Earned
b. Debit: Accounts Receivable; Credit: Cash
c. Debit: Fees Earned; Credit: Accounts Receivable
d. Debit: Cash; Credit: Fees Earned
13. Josephine Marlow, M.D. recorded the collection of cash from her cash customers. Which of the
following entries properly records this transaction?
a. Debit: Fees Earned; Credit: Cash
b. Debit: Fees Earned; Credit: Accounts Receivable
c. Debit: Cash; Credit: Fees Earned
d. Debit: Accounts Receivable; Credit: Fees Earned
14. Josephine Marlow, M.D., a sole proprietor, collected cash from customers for services performed
and billed previously. Which of the following entries properly records this transaction?
a. Debit: Fees Earned; Credit: Cash
b. Debit: Fees Earned; Credit: Accounts Receivable
c. Debit: Cash; Credit: Accounts Receivable
d. Debit: Accounts Receivable; Credit: Fees Earned
15. Ronald's Appliance Shop purchased Office Supplies for $1,000 on account. After inspecting
the purchase, $200 of the goods was found to be defective and returned. Which of the following
entries properly records the return of these goods?
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a. Debit: Cash, $200; Credit: Office Supplies, $200
b. Debit: Cash, $800; Credit: Office Supplies, $800
c. Debit: Accounts Payable, $200; Credit: Office Supplies, $200
d. Debit: Accounts Payable, $800; Credit: Office Supplies, $800
16. Richard Valort, owner of Valort Landscaping Service, recently issued paychecks to his
employees. The proper entry to record this transaction includes:
a. A debit to the Drawing account
b. A debit to Wages Payable
c. A debit to Wages Earned
d. A debit to Wages Expense
17. An employee of Valort Landscaping Service, a sole proprietorship reported an overpayment error
to the owner, Richard Valort. (The error was made in computing and paying the employee's
wages.) Valort receives cash from the employee for the amount of the overpayment, which of
the following entries will Valort make?
a. Cash, debit; Wages Expense, credit
b. Wages Payable, debit; Wages Expense, credit
c. Wages Expense, debit, Cash, credit
d. Wages Expense, debit; Wages Payable, credit
18. Overstreet Computer Services bills all customers on account. Overstreet billed clients $80,000
during July. Overstreet's beginning Accounts Receivable balances for July was $32,200. How
would July's customer billing be reflected on Overstreet's books?
a. Debit Accounts Receivable, $32,200; Credit Fees Earned, $32,200
b. Debit Accounts Receivable, $28,000; Credit Fees Earned, $28,00
c. Debit Accounts Receivable, $80,000; Credit Fees Earned, $80,00
d. Debit Cash, $32,200; Credit Fees Earned, $32,200
19. Overstreet Computer Services bills all customers on account. Overstreet billed clients $80,000
during July (Debit, Accounts Receivable; Credit, Fees Earned). No cash collections from
customers were received during July. Overstreet's beginning Accounts Receivable balance for
July was $32,200. Overstreet's ending Accounts Receivable balance for July was:
a. $ 28,000
b. $ 47,800
c. $ 80,000
d. $ 112,200
20. Overstreet Computer Services bills all customers on account. Overstreet billed clients $80,000
during July and collected $25,500 in customer payments. Overstreet's beginning Accounts
Receivable balances for July was $32,200. How would July's customer payments be reflected on
Overstreet's books?
a. Debit Cash, $25,500; Credit, Accounts Receivable, $25,500
b. Debit Cash, $32,200; Credit, Accounts Receivable, $32,200
c. Debit Cash, $80,000; Credit, Accounts Receivable, $80,000
d. Debit Cash, $32,200; Credit, Fees Earned, $32,200
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c. Revenue
d. Owners' Equity
23. Tony's Landscaping Service borrowed $7,500 from a bank. To record this transaction:
a. Notes Payable must be credited; Cash must be debited
b. Cash must be credited; Notes Payable must be debited
c. Cash debited; Notes Receivable must be credited
d. Cash credited; Notes Receivable must be debited
24. Tony's Landscaping Service purchased a truck for $2,500. $1,000 was paid in cash and
a note payable was signed for the balance. To record this transaction:
a. Notes Payable must be credited
b. Notes Payable must be debited
c. Cash must be debited
d. Trucks must be credited
27. A business sold goods to customers for $1,800 on credit. To record this transaction:
a. Accounts Receivable must be credited
b. Accounts Payable must be debited
c. Accounts Receivable must be debited
d. Accounts Payable must be credited
28. A business paid $475 to a supplier for inventory purchased previously. To record this:
transaction
a. Accounts Payable must be credited; Cash must be debited
b. Cash must be credited; Accounts Payable must be debited
c. Cash debited; Accounts Receivable must be credited
d. Cash credited; Accounts Receivable must be debited
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29. Cash was collected from a customer for services provided previously. To record this:
transaction
a. Accounts Receivable must be credited
b. Accounts Payable must be debited
c. Accounts Receivable must be debited
d. Accounts Payable must be credited
30. Supplies costing $80 were used by a business. To record this transaction:
a. Supplies Expense must be credited
b. Supplies Expense must be debited
c. Supplies must be debited
d. Cash must be credited
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MODULE 2
Sole-Proprietorships
Demonstration Problem 1
Clean-Rite Service
This example analyzes the transactions for Clean-Rite Service for March 2000. Clean-Rite Service is a
sole-proprietorship.
The transactions are recorded in the journal and posted to the ledger.
Mar. 1 Lisa used $500 of her own money to start Clean-Rite Service.
Mar. 2 Lisa's company borrowed $1,500 from her dad.
Mar. 4 Clean-Rite Service paid $400 for a used vacuum cleaner and shampoo machine.
Mar. 9 Clean-Rite Service purchased a used truck for $1,000 from Fuller Trucks Inc. Lisa paid $250
down and signed a note payable for the balance.
Mar. 11 Clean-Rite Service paid $115 for cleaning supplies.
Mar. 15 During the first half of March, Clean-Rite Service performed $450 of cleaning services.
Customers paid $200 in cash and promised the remaining payment by March 30.
Mar. 17 Clean-Rite Service used $80 of the cleaning supplies.
Mar. 22 $250 was collected from customers for services performed previously.
Mar. 24 Lisa's company paid back $500 to her dad.
Mar. 31 Lisa withdrew $100 from the business.
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Practice Problem 1
Burton Precision Tools
This assignment lists some transactions for Burton Precision Tools for January 2000. You have to
analyze the accounts affected by each transaction and record it in the general journal.
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Practice Problem 2
East West Travels
East West Travels began operations in April 2000. The company is a sole-proprietorship. This
assignment requires you to record the transactions for April in the general journal.
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Homework Problem 1
Aiken Consulting
This assignment lists some typical transactions for Aiken Consulting for March 2000. You have to
analyze the accounts affected by each transaction and record it in a journal.
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Homework Problem 2
Annie’s Bakery
This assignment lists some typical transactions for Annie's Bakery for November 2000. You have to
analyze the accounts affected by each transaction and record it in the journal.
Chart of Accounts
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Homework Problem 3
Carlson Realty I
On June 1, 2000, George Carlson started Carlson Realty. The company is a sole-proprietorship.This
assignment requires you to record the transactions for the first month of operations in the accounting
system.
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Homework Problem 4
Jackie’s Floral Designs
Jackie's Floral Designs sells plants, flowers, and silk and dried arrangements. The company is a sole-
proprietorship. This assignment requires you to record the transactions for February 2000 in the
accounting system.
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Homework Quiz
Sole-Proprietorships
2. A business entity can be organized in one of three major types. They are:
a. Corporations, partnerships, and sole proprietorships
b. Corporations, associations, and nonprofit organizations
c. Profit, nonprofit, and corporate organizations
d. Institutions, partnerships, and corporations
3. A sole proprietorship can obtain financial resources from which of the following types of
accounts?
a. Liabilities
b. Owner's Equity
c. Assets
d. Both a and b
4. In a sole proprietorship, which of the following accounts reflects the owner's financial position in
the business?
a. Capital Stock
b. Retained Earnings
c. Inventory
d. Owner's Capital
6. Robert Pringle, a sole proprietor, invested $10,000 in his business to fund initial operations. This
transaction will be reflected as a:
a. Debit to Cash and a credit to Note Payable.
b. Debit to Cash and a credit to Accounts Receivable.
c. Debit to Cash and a credit to Robert Pringle, Capital.
d. Debit to Cash and a credit to Fees Earned.
7. Robert Pringle, a sole proprietor, borrowed $10,000 from a local bank. It will be repaid with
interest over the next year. This transaction will be reflected as a:
a. Debit to Cash and a credit to Note Payable.
b. Debit to Cash and a credit to Accounts Receivable.
c. Debit to Cash and a credit to Robert Pringle, Capital.
d. Debit to Cash and a credit to Fees Earned.
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8. Robert Pringle, a sole proprietor, repaid $2,000 of the $10,000 he recently borrowed from a local
bank. The payment applied exclusively to the principal borrowed. This transaction will be
reflected as a:
a. Debit to Note Payable and a credit to Robert Pringle, Capital.
b. Debit to Note Payable and a credit to Accounts Receivable.
c. Debit to Note Payable and a credit to Cash.
d. Debit to Notes Payable and a credit to Fees Earned.
9. Robert Pringle, a sole proprietor, purchased Supplies on account for $2,500 during June. These
items will be used over the next 18 months. This transaction will be recorded as a:
a. Debit to Supplies Expense and a credit to Cash.
b. Debit to Supplies Expense and a credit to Accounts Payable.
c. Debit to Supplies and a credit to Cash.
d. Debit to Supplies and a credit to Accounts Payable.
10. Of the supplies purchased in question #9, $1,500 was used in the current year. The entry
reflecting this consumption will include a:
a. Debit to Supplies
b. Debit to Supplies Expense
c. Credit to Supplies Expense
d. Credit to Supplies Revenue
11. Ruth's Computer Consulting, a sole proprietorship, purchased computer supplies and recorded
the acquisition as a debit to the asset account, Supplies. The entry to record the cost of supplies
used during an accounting period is:
a. Debit Supplies; credit Accounts Payable
b. Debit Accounts Payable; credit Supplies
c. Debit Supplies Expense; credit Supplies
d. Debit Supplies Expense; credit Accounts Payable
12. Ruth's Computer Consulting, a sole proprietorship, purchased supplies during July of $3,000 and
recorded the acquisition as a debit to the asset account, Supplies. At the end of July, the supplies
on hand at July 31 totaled $2,800. The amount to be recorded as Supplies Expense for July is:
a. $200
b. $2,800
c. $3,000
d. $5,800
13. Ruth's Computer Consulting is a sole proprietorship. The balance in her Office Supplies account
on March 1 was $3,200. Supplies purchased during March amounted to $2,800, and the supplies
on hand at March 31 were $2,500. The amount to be used for debited to Supplies Expense on
March 31st is:
a. $3,500
b. $2,800
c. $3,200
d. $2,500
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14. Ruth's Computer Consulting is a sole proprietorship. Her Office Supplies account has a balance
of $1,950 at the beginning of the year and was debited during the year for $5,600, representing
the total of supplies purchased during the year. If $1,500 of supplies is on hand at the end of the
year, the supplies expense to be reported on the income statement for the year is:
a. $1,500
b. $1,950
c. $5,600
d. $6,050
15. Ruth's Computer Consulting is a sole proprietorship. She recently purchased Computer
Equipment costing $15,000. One third was paid in cash and the remainder was on account. To
record this entry, Ruth should include a:
a. Debit to Computer Equipment of $5,000.
b. Debit to Computer Equipment for $10,000.
c. Debit to Computer Equipment of $15,000.
d. Debit to Computer Expense of $10,000.
16. Ruth's Computer Consulting is a sole proprietorship. She recently purchased Computer
Equipment costing $15,000. One third was paid in cash and the remainder was on account. To
record this entry, Ruth should include a:
a. Credit to Cash for $5,000.
b. Credit to Cash for $10,000.
c. Credit to Cash for $15,000.
d. Credit to Cash for some other amount.
17. Ruth's Computer Consulting is a sole proprietorship. She recently purchased Computer
Equipment costing $15,000. One third was paid in cash and the remainder was on account. To
record this entry, Ruth should include a:
a. Credit to Accounts Payable for $5,000.
b. Credit to Accounts Payable for $10,000.
c. Credit to Accounts Payable for $15,000.
d. Credit to Accounts Payable for some other amount.
18. Ruth's Computer Consulting is a sole proprietorship. During August, she billed clients $12,000
for services rendered on account. To record this entry, Ruth should:
a. Debit Cash and credit Fees Earned.
b. Debit Accounts Receivable and credit Fees Earned.
c. Debit Cash and credit Accounts Receivable.
d. Debit Fees Earned and credit Cash.
19. Ruth's Computer Consulting is a sole proprietorship. During September, she billed clients
$15,000 for services rendered and received $10,000 in payment of prior Accounts Receivable.
Ruth's entries for September should include a:
a. Debit to Cash for $5,000.
b. Debit to Cash for $10,000.
c. Debit to Cash for $15,000.
d. Debit to Cash for $25,000.
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20. Ruth's Computer Consulting is a sole proprietorship. During September, she billed clients
$15,000 for services rendered and received $10,000 in payment of prior Accounts Receivable.
Ruth's entries for September should include a:
a. Debit to Accounts Receivable for $5,000.
b. Debit to Accounts Receivable for $10,000.
c. Debit to Accounts Receivable for $15,000.
d. Debit to Accounts Receivable for $25,000.
25. To record the payment of cash for inventory purchased on credit earlier:
a. Accounts Payable must be debited
b. Accounts Payable must be credited
c. Accounts Receivable must be debited
d. Accounts Receivable must be credited
26. The account used to record withdrawals of cash by owners of sole-proprietorships is:
a. Capital
b. Retained Earnings
c. Capital Stock
d. Drawings
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27. Owner investments in sole-proprietorships are recorded by:
a. Debiting Capital; crediting Cash
b. Debiting Cash; crediting Capital
c. Debiting Capital Stock; crediting Cash
d. Debiting Cash; crediting Capital Stock
30. A business paid salaries of $1,800 for November. To record this transaction:
a. Salaries Expense must be credited
b. Salaries Expense must be debited
c. Cash must be debited
d. None of the above
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MODULE 2
Corporations
Demonstration Problem 1
Music Stop
This example analyzes the transactions for Music Stop for April 2000. The company is a corporation.
The transactions are recorded in the general journal and posted to the general ledger.
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Practice Problem 1
Downtown Fitness Center
This assignment lists some typical transactions for Downtown Fitness Center for April 2000. After
analyzing the transactions, you must record them in the general journal.
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Practice Assignment 2
O’Grady Building Supplies
This assignment analyzes the transactions for O'Grady Building Supplies for July 2000. This companyt
is a corporation. After analyzing the transactions, you must record them in the general journal.
July 1 The owners started the business by investing $50,000. O’Grady Building
Supplies issued stock for $50,000.
July 2 The business purchased inventory on credit for $22,500.
July 5 The business purchased supplies for $500.
July 31 Goods were sold to customers for $18,000. The customers paid cash.
July 31 The cost of goods sold for the month was $13,500.
July 31 Supplies costing $100 was used during the month.
July 31 Rent of $1,800 was paid for July.
July 31 $6,000 was paid to suppliers for inventory purchased previously.
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Homework Problem 1
Osborne Office Supplies
This assignment lists some typical transactions for Osborne Office Supplies for January 2000. You have
to record each transaction in the general journal.
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Homework Problem 2
Discount Books
This assignment lists some transactions for Discount Books for September 2000. You have to analyze
the accounts affected by each transaction and record it in the general journal.
Sept. 1 Boston Bank loaned the firm $16,000 in exchange for the firm's one year note payable.
Sept. 2 Merchandise costing $8,000 was purchased on 30-day credit.
Sept. 5 Goods were sold for $3,000 in cash.
Sept. 5 The cost of the goods sold was $2,000.
Sept. 9 Employees were paid $1,000 in wages.
Sept. 12 A payment of $2,000 was made for the merchandise purchased previously.
Sept. 16 Goods were sold for cash totaling $4,500.
Sept. 16 The cost of the goods sold was $3,000.
Sept. 22 $1,800 of notes payable was paid.
Sept. 28 A payment of $800 was made for rent.
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Homework Problem 3
The Audio Exchange
The Audio Exchange sells used audio equipment and provides repair services. Below are the transactions
occurring during November 2000. This assignment requires you to prepare journal entries for these
transactions.
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Homework Problem 4
Hoffman Consulting
The transactions for the first month of operations of Hoffman Consulting Inc. are given below. This
assignment requires you to prepare journal entries for these transactions.
Oct. 1 The owners started the business by investing $25,000. Hoffman Consulting Inc. issued
stock for $25,000.
Oct. 5 A computer system was purchased for $2,000 on credit.
Oct. 10 $400 was paid for office supplies.
Oct. 17 Services were performed for $2,500 on credit.
Oct. 21 $1,000 was paid for the computer purchased previously.
Oct. 31 Services were performed for $8,000. The customers paid cash.
Oct. 31 $275 was paid for advertisements in October.
Oct. 31 $155 was paid for utilities for October.
Oct. 31 Supplies costing $135 were used in October.
Oct. 31 Customers paid $1,500 for services performed previously on credit.
Oct. 31 $1,800 was paid as rent for the office for October.
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Homework Quiz
Corporations
1. Which organizational form allows the business to be a separate, distinct entity from the owners?
a. Proprietorship
b. Partnership
c. Corporation
d. All of the above
2. The Retained Earnings account is unique to which of the following forms of business organization?
a. Partnership
b. Proprietorship
c. Corporation
d. A Retained Earnings account is used in all of the above choices.
5. A corporation issuing only one class of stock will usually title it:
a. Common Stock
b. Treasury Stock
c. No-par Stock
d. Preferred Stock
6. Bob and Ray recently purchased shares of BR, Incorporated, a corporation, for $100,000 each.
This transaction will consist of the following entries to BR, Incorporated's records:
a. Debit Accounts Receivable; credit Capital Stock
b. Debit Cash; credit Accounts Payable
c. Debit Cash; credit Capital Stock
d. Debit Accounts Receivable; credit Accounts Payable
7. Bob and Ray organized BR, Incorporated, a corporation for which they are the only stockholders.
At the end of the first year of operations, they elect to withdraw dividends in the amount of $2,000
each. This transaction will consist of the following entries on BR Incorporated's records:
a. Debit Drawing; credit Cash
b. Debit Wages Expense; credit Cash
c. Debit Capital Stock; credit Cash
d. Debit Dividends; credit Cash
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8. Bob and Ray have just purchased shares of BR, Incorporated, a corporation, for $100,000 each.
This transaction will impact the corporation's Stockholders' Equity by what amount?
a. $ -0-
b. $ 100,000
c. $ 200,000
d. Some other amount.
9. Which of the following properly reflects the transaction to record a Corporation's issuance of stock?
a. Capital Stock: Credit; Cash: Debit
b. Capital Stock: Debit; Cash: Debit
c. Capital Stock: Credit; Cash: Credit
d. Capital Stock: Debit; Cash: Credit
10. Which of the following properly reflects a Corporation's issuance of stock on the Capital Stock and
Dividends accounts?
a. Capital Stock: Increases; Dividends: Decreases
b. Capital Stock: Increases; Dividends: No effect
c. Capital Stock: No effect; Dividends: Increases
d. Capital Stock: Decreases; Dividends: Increases
11. BR, Incorporated, a corporation, pays $4,000 in dividends. This $4,000 payment will:
a. Increase the Cash account.
b. Increase the Dividends account.
c. Increase the Capital Stock account.
d. Decrease the Capital Stock account.
12. BR, Incorporated, a corporation, pays $4,000 in dividends. This $4,000 payment will be recorded
as a:
a. Dividends: Credit; Cash: Debit
b. Dividends: Debit; Cash: Credit
c. Dividends: No effect; Cash: No effect
d. Dividends: Debit; Cash: No effect
13. BR, Incorporated, a corporation, has a $100,000 Capital Stock balance at the beginning of the
year. Additional Common Stock of $45,000 was issued during the year. The Capital Stock
balance at the end of the year is:
a. $ 145,000
b. $ 100,000
c. $ 55,000
d. $ 45,000
14. BR, Incorporated issued $100,000 in Capital Stock to each of its two shareholders. The
Corporation paid Dividends of $20,000 during the year. The balance in the Capital Stock account at
the end of the year is:
a. $ 220,000
b. $ 200,000
c. $ 120,000
d. $ 100,000
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15. Carriage Company, Inc.'s Capital Stock balance was $38,000 on December 31, 2001. Additional
stock of $13,000 was issued during the year. Carriage's Capital Stock balance on January 1, 2001
was:
a. $51,000
b. $38,000
c. $25,000
d $13,000
16. StarCo, a newly formed corporation, paid its office rental for the month of April 2001. What
accounts are impacted by this transaction?
a. Debit Dividends; credit Capital Stock
b. Debit Rent Revenue; credit Cash
c. Debit Drawings; credit Capital Stock
d. Debit Rent Expense; credit Cash
17. StarCo, a newly formed corporation, purchased Inventory on account from a vendor. What
accounts are impacted by this transaction?
a. Debit Inventory; credit Cash
b. Debit Inventory; credit Accounts Payable
c. Debit Drawings; credit Cash
d. Debit Drawings; credit Accounts Payable
18. The corporation, Joe's Discount Furniture, recorded sales for the month of May 2001 amounting to
$200,000. Sixty percent (60%) of these sales were on account. As a result of this transaction, Joe's
Accounts Receivable account will increase by:
a. $ -0-
b. $ 80,000
c. $120,000
d. $200,000
19. The corporation, Joe's Discount Furniture, recorded sales for the month of May 2001 amounting to
$200,000. Sixty percent (60%) of these sales were on account. As a result of this transaction, Joe's
Revenue account will increase by:
a. $ -0-
b. $ 80,000
c. $120,000
d. $200,000
20. The corporation, Joe's Discount Furniture, recorded sales for the month of May 2001 amounting to
$200,000. Sixty percent (60%) of these sales were on account. As a result of this transaction, how
will the following accounts be impacted?
a. Cash: $ -0-; Capital Stock: $200,000 increase
b. Cash: $ 80,000 increase; Capital Stock: No effect
c. Cash: $120,000 increase; Capital Stock: No effect
d. Cash: $200,000 increase; Capital Stock: $200,000 increase
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21. A corporation and its' owners are distinct entities:
a. From a legal standpoint
b. From an accounting standpoint
c. From an accounting and legal standpoint
d. None of the above
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28. Owner investments in corporations are recorded by:
a. Debiting Capital; crediting Cash
b. Debiting Cash; crediting Capital
c. Debiting Capital Stock; crediting Cash
d. Debiting Cash; crediting Capital Stock
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