Assignment
1. A company delivered $10,000 of goods to a customer that agreed to pay cash within 30 days. The goods had cost $8,000 to manufacture.
Which of the following items would be increased by this sales transaction? (check all that apply)
Accounts Payable
Current Assets
Cash from Operations
Cost of Goods Sold
Revenue
2. A company took delivery of $50,000 of new inventory and agreed to pay cash to the supplier within 30 days.
Which of the following items would be increased by this inventory purchase transaction? (check all that apply)
Retained Earnings
Accounts Receivable
Total Assets
Accounts Payable
Cost of Goods Sold
3. A company collected $100,000 cash from a customer who both received and was billed for the goods last quarter.
Which of the following items would be increased by this cash collection transaction? (check all that apply)
Accounts Receivable
Current Assets
Cash
Cash from Operations
Revenue
4. A company collected $10,000 cash from a customer as a deposit for goods that will be shipped next quarter.
Which of the following items would be increased by this cash collection transaction? (check all that apply)
Total Liabilities
Cash from Operations
Total Assets
Revenue
Accounts Receivable
5. A company received $100,000 cash from issuing 10,000 shares of $4 par value stock.
Which of the following items would be increased by this stock issuance transaction? (check all that apply)
Total Stockholder's Equity
Dividends
Long-term Liabilities
Additional Paid in Capital
Cash from Financing
6. A company received $75,000 cash from a bank loan that must be repaid in three years.
Which of the following items would be increased by this specific transaction? (check all that apply)
Total Liabilities
Interest Expense
Total Assets
Interest Payable
Cash from Financing
7. A company declared $500,000 of dividends that will be paid two months from now.
Which of the following items would be increased by this dividend declaration transaction? (check all that apply)
Dividend Expenses
Cash from Financing
Retained Earnings
Net Income
Total Liabilities
8. A company paid $50,000 to its insurance company for fire insurance coverage over the next year.
Which of the following items would be increased by this insurance prepayment transaction? (check all that apply)
Current Liabilities
Prepaid Insurance
Insurance Expense
Net Income
Total Assets
9. At the end of the quarter, a company did an adjusting entry to record the fact that $1,000 of Prepaid Advertising had been used up during the quarter.
Which of the following items would be increased by this advertising adjusting entry? (check all that apply)
Prepaid Advertising
Cost of Goods Sold
Cash from Operations
Advertising Expense
Total Liabilities
10. A company borrowed $500,000 cash from a bank and used it to purchase $500,000 of new manufacturing equipment.
Which of the following items would be increased by the bank loan and equipment purchase transactions? (check all that apply)
Inventory
Cash from Financing
Total Assets
Cash from Investing
Notes Payable
11. At the end of the quarter, a company did an adjusting entry to record $5,000 of depreciation on the fleet of automobiles used by the sales force.
Which of the following items would be increased by this depreciation adjusting entry? (check all that apply)
Depreciation Expense
Total Assets
Retained Earnings
Cash from Operations
Cost of Goods Sold
12. A company sold a piece of manufacturing equipment for $30,000 cash. The equipment had been listed on the balance sheet at a net book value of $25,000, so the company recorded a gain on sale of equipment of $5,000.
Which of the following items would be increased by this equipment sale transaction? (check all that apply)
Net Income
Total Assets
Cash from Investing
Equipment
Cash from Operations.