Question Details

ACCTG 1A Week 3 QUIZ

Indicate the best answer for each question in the space provided.

		The account balances for Creative Band, Inc. as of May 31, 2009, are listed below in alphabetical order:

		Accounts Payable		$12,000	Equipment		$18,000
		Accounts Receivable		$14,000	Land		$52,000
		Building		$42,000	Notes Payable		$30,000
		Cash			$8,000	Capital Stock		$92,000
		
                    On June 3, Creative Band, Inc collected $4,000 of its accounts receivable and paid $7,000 of its accounts payable. In addition, 2,000 of additional shares of capital stock are issued for $5,600.
	
		1	Refer to the above data.  In a trial balance prepared on May 31, 2009, the sum of the debit column is:
			a	$120,000.	c	$134,000.
			b	$156,000.	d	Some other amount.
		
		2	Refer to the above data.  On June 4, the balance in the Cash account is:
			a	$17,600.	c	$10,600.
			b	$  5,000.	d	Some other amount.

		3	Refer to the above data.  On June 4, the balance in the Capital Stock account is:
			a	$86,400.	c	$94,000.
			b	$97,600.	d	Some other amount.

		4	Refer to the above data.  In a trial balance prepared on June 4, the sum of the credit column is:
			a	$130,000.	c	$127,000
			b	$132,600.	d	Some other amount.

		5	Refer to the above data.  On June 6, the bookkeeper for Creative Band, Inc makes this entry:
				Equipment		7,400
					Cash			4,200
					Accounts Payable			3,200

			This transaction:
			a	Decreases total assets.
			b	Involves the sale of equipment for $7,400.
			c	Increases total assets $7,400.
			d	Increases liabilities.

 
CHAPTER 3	NAME						 #	

10-MINUTE QUIZ B	SECTION 						

Enter the following transactions in the two-column journal provided for Charlie- Cabinetry. You may omit explanations.

Mar.	2	Purchased auto cleaning supplies from Robert Suppliers for $750 on account.
	4	Collected an account receivable of $525 from a customer, Elegant Kitchens.
	5	Paid $275 in partial payment of an account payable to Lucy Co for equipment purchased in February.
	7	Issued capital stock in exchange for $5,600 cash.
	9	Purchased office equipment from Diamond- Warehouse for $3,700; paid $1,700 cash and issued a note payable due in 90 days for the balance.

     Date                                         General Journal	
20__			
Mar 2 			
			
			
			
4 			
			
			
			
5 			
			
			
			
7 			
 			
			
			
9 			
 			
			
			
			
			

 
CHAPTER 3	NAME		 #	

10-MINUTE QUIZ C	SECTION 						

	Capital Financial Advisors, Inc. had the following transactions during January, its first month of operations:

	a	Issued to Marvin Tycoon 9,000 shares of capital stock in exchange for his investment of $45,000 cash.
	b	Borrowed $30,000 from a bank and signed a note payable due in three months.
	c	Purchased office furniture costing $19,750; paid $6,000 cash and charged the balance on account.
	d	Paid $6,000 of the amount owed for office furniture.
	e	Issued an additional 2,000 shares of capital stock to an individual who invests $10,000 in the business.

	Instructions
		Record the above transactions directly in the T accounts below. Identify each entry in a T 
		account with the letter shown for the transaction.
	
Cash 		Office Furnishings		Notes Payable
							
							
							
							
Accounts Payable		Capital Stock			
							
							
							




	
 
CHAPTER 3	NAME						 #	

10-MINUTE QUIZ D	SECTION						 

	The following transactions occurred during June, the first month of operations for Accurate Manufacturing.:

	*	Issued 60,000 shares of capital stock to the owners of the corporation in exchange for $600,000 cash.
	*	Purchased a piece of land for $250,000, making an $80,000 cash down payment and signing a note payable for the balance.
	*	Made a $100,000 cash payment on the note payable from the purchase of land.
	*	Purchased equipment on credit from National Supply for $40,000.

		1	Refer to the above data.  The balance in the Cash account at the end of June:
			a	$52,000.	c	$420,000.
			b	$350,000.	d	$380,000.

		2	Refer to the above data.  What are total assets of Precision Manufacturing at the end of June?
			a	$710,000.	c	$630,000.
			b	$890,000.	d	$460,000.

		3	Refer to the above data.  What is the total of Precision- liabilities at the end of June?
			a	$70,000.	c	$200,000.
			b	$110,000.	d	$240,000.

		4	Refer to the above data.  What is the total owners’ equity at the end of June?
			a	$60,000.	c	$240,000.
			b	$110,000.	d	$600,000