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This transaction involves a martins collection of

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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: AnalyticAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: AnalyzeDifficulty: MediumLearning Objective: 03-03 Understand how balance sheet accounts are increased or decreased.Topic: Debit and Credit Entries109. 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 beenrecorded amount to:A.$905,000.B.$921,000.C.$956,000.D.$794,000.$900,000 + $35,000 + $21,000 - $51,000 = $905,000AACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ApplyDifficulty: MediumLearning Objective: 03-03 Understand how balance sheet accounts are increased or decreased.Topic: Debit and Credit Entries3-93
Chapter 03 - The Accounting Cycle: Capturing Economic EventsMontauk Oil Co. reports these account balances at December 31, 2010On 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 atDecember 31, 2010the 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 = $780,000AACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ApplyDifficulty: MediumLearning Objective: 03-09 Prepare a trial balance and explain its uses and limitations.Topic: The Trial Balance3-94
Chapter 03 - The Accounting Cycle: Capturing Economic Events111. In a trial balance prepared atJanuary 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 = $760,000AACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ApplyDifficulty: MediumLearning Objective: 03-09 Prepare a trial balance and explain its uses and limitations.Topic: The Trial Balance112. OnJanuary 3, 2011, total liabilities are:A.$370,000.B.$350,000.C.$300,000.D.$70,000.$90,000 + $260,000 = $350,000AACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ApplyDifficulty: MediumLearning Objective: 03-03 Understand how balance sheet accounts are increased or decreased.Topic: Debit and Credit Entries3-95
Chapter 03 - The Accounting Cycle: Capturing Economic EventsCeramic Products, Inc. reports these account balances at January 1, 2009 (shown inalphabetical order):On January 5, Ceramic Products collected $12,000 of its accounts receivable and paid$11,000 on its note payable.

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Term
Fall
Professor
Reem Naamani
Tags
Balance Sheet, Double entry bookkeeping system, Accounting software, economic events

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