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Answer3Failure to record the receipt of a utility bill for services already received will result in:aAn overstatement of assets.bAn overstatement of liabilities.cAn overstatement of equity.dAn understatement of assets.Answer4The proper journal entry to record Ransom Company's billing of clients for $500 of servicesrendered due in 15 days is:Answer5Lynn Lipincott invested land valued at $5,000 in her business. This transaction would be recordedby:
6The basic sequence in the accounting process can best be described as:AnswerChapter 031Blankenship Company pays its employees every Friday for work rendered that week. The payrollis typically $10,000 per week. Which of the following journal entries would Blankenshipordinarily record on the Friday payday?a. Salary Expense10,000 Salary Payable10,000b.Salary Expense10,000 Cash10,000c. Salary Payable10,000 Cash10,000d.Salary Payable10,000 Salary Expense10,000Answer2Blankenship Company pays its employees every Friday for work rendered that week. The payrollis typically $10,000 per week. What journal entry would be recorded on Wednesday if the end ofthe accounting period occurred on a Wednesday?
3At the end of the current accounting period, Johnson Company failed to record utilities consumedduring the period. Johnson will be billed for the utilities during the next accounting period. As aresult, current period assets, liabilities, equity, and income, respectively, are: