This transaction involves a martins collection of

108. This transaction involves:
A. Martin's collection of $35,000 on an account receivable.
B. Payment of $21,000 cash by Martin.
C. A $21,000 overall increase in Martin's assets.
D. Sale of equipment by Martin for $51,000.
AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Measurement
Bloom's: Analyze
Difficulty: Medium
Learning Objective: 03-03 Understand how balance sheet accounts are increased or decreased.
Topic: Debit and Credit Entries
109. Before the journal entry above, Martin had assets of $900,000; liabilities of $460,000;
and owners' equity of $440,000. Total assets immediately after the above transaction has been
recorded amount to:
A. $905,000.
B. $921,000.
C. $956,000.
D. $794,000.
$900,000 + $35,000 + $21,000 - $51,000 = $905,000
AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Measurement
Bloom's: Apply
Difficulty: Medium
Learning Objective: 03-03 Understand how balance sheet accounts are increased or decreased.
Topic: Debit and Credit Entries
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Chapter 03 - The Accounting Cycle: Capturing Economic Events
Montauk Oil Co. reports these account balances at December 31, 2010
On January 2, 2011, Montauk Oil collected $50,000 of its accounts receivable and paid
$20,000 of its accounts payable.
110. In a trial balance prepared at December 31, 2010 the total of the debit column is:
A. $1,540,000.
B. $780,000.
C. $1,020,000.
D. $700,000.
$80,000 + $100,000 + $200,000 + $160,000 + $240,000 = $780,000
AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Measurement
Bloom's: Apply
Difficulty: Medium
Learning Objective: 03-09 Prepare a trial balance and explain its uses and limitations.
Topic: The Trial Balance
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Chapter 03 - The Accounting Cycle: Capturing Economic Events
111. In a trial balance prepared at January 3, 2011 , the total of the debit column is:
A. $760,000.
B. $1,570,000.
C. $740,000.
D. $370,000.
$110,000 + $50,000 + $200,000 + $160,000 + $240,000 = $760,000 or
$780,000 (from above) - $20,000 payment of liability = $760,000
AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Measurement
Bloom's: Apply
Difficulty: Medium
Learning Objective: 03-09 Prepare a trial balance and explain its uses and limitations.
Topic: The Trial Balance
112. On January 3, 2011 , total liabilities are:
A. $370,000.
B. $350,000.
C. $300,000.
D. $70,000.
$90,000 + $260,000 = $350,000
AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Measurement
Bloom's: Apply
Difficulty: Medium
Learning Objective: 03-03 Understand how balance sheet accounts are increased or decreased.
Topic: Debit and Credit Entries
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Chapter 03 - The Accounting Cycle: Capturing Economic Events
Ceramic Products, Inc. reports these account balances at January 1, 2009 (shown in
alphabetical order):
On January 5, Ceramic Products collected $12,000 of its accounts receivable and paid
$11,000 on its note payable.