On December 1, the owners of Smith & Sons invested $10,000 cash in the business in exchange for shares of common stock. What is the -Cash debit 10,000 -common stock credit 10,000
correct journal entry? Which of the following transactions does not affect the balance sheet totals? Ordered equipment that will be paid for upon delivery in two months Smith & Sons borrowed $1,000 from Bank of America. This journal entry would involve a credit entry to which of the following accounts: notes payable Smith & Sons purchased supplies on account. This transaction will affect: Only the balance sheet The expense recognition (matching) principle is best described as: Record an expense in the same time period that the corresponding revenue is recorded On December 1, Optima Corp. paid $6,000 for rent expense covering December, January and February rent. On December 31, after all adjusting entries, Optima Inc. will report Prepaid Rent of: $4,000 On November 1, Smith & Sons -depreciation expense: debit 2,000 -accumulated depreciation: credit 2,000
purchased communication equipment costing $96,000. The equipment will be depreciated over 48 months. The adjusting entry at November 30 would be: On May 1, Phoenix Corporation took out a bank loan of $500,000 to finance the purchase of equipment. The interest rate on the bank loan is 12 percent per year and interest is due annually on April 30. What would be the effect on the accounting equation of the May 31 adjusting entry for interest? - assets: no effect - liabilities: increase $5,000 - shareholder's equity: decrease $5,000 ($500,000x 12%x1/12) The Arizona Saguaros Soccer Team sells season tickets and collects the cash in January at the beginning of the season. They collected $24,000 for season -unearned revenue: debit 4,800 -revenue: credit 4,800 -($24,000/10 games) x 2 games
tickets. The soccer season starts in February and the season tickets are for 10 games. In February, the team played 2 games. What adjusting journal entry would the Arizona Saguaros record at the end of February? The Cholla Corporation earned rental revenue of $5,000 in December but will not receive this until January. What is the effect of making the adjusting entry at December 31? - assets increase - liabilities no effect - shareholder's equity increase Jojoba, Inc., received a one- year, 10 percent, $150,000 note receivable on May 1, with interest and principal to be received at maturity. How much interest receivable will be reported on Jojoba's balance sheet as of December 31? $10,000 ($150,000 x 10% x 8/12) Jerry's Window 8,000
Service received $14,000 from a client on February 20. This payment was an advance payment for 7 months of window cleaning starting March 1. The window cleaning services are provided equally over the 7 months.
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