problem1: Carter Cleaning completed the following transactions:
Purchased $18,000 of Office Supplies for $8,000 cash & the remainder on credit.
Purchased equipment for $7,950 on credit.
As a result of these transactions, Carter’s total assets will:
[A] Increase by $25,950
[B] Increase by $17,950
[C] Increase by $10,050
[D] Increase by $ 7,950
problem2: Ford Photo Supplies balances at the beginning of January were: Cash $25,000; Accounts Receivable $15,000; Inventory $30,000; Accounts Payable $18,000; Notes Payable $17,000; Owner’s Capital $? Ford finished the following transactions during January:
Paid off the note payable of $17,000.
Sold $36,525 of merchandise to customers on account. Cost of goods sold was $21,250.
Paid accounts payable of $3,500.
Collected $25,000 of the amounts due from customers.
As a result of these transactions, asset balances at the end of January will total:
[A] Cash: $ 4,500; Accts Rec.: $26,525; Inventory: $21,250
[B] Cash: $29,500; Accts Rec.: $26,525; Inventory: $ 8,750
[C] Cash: $ 4,500; Accts Rec.: $51,525; Inventory: $ 8,750
[D] Cash: $ 8,000; Accts Rec.: $15,000; Inventory: $30,000
problem3: On May 1, Ace Cleaners had total assets of $438,500. During May, the company completed the following transactions:
Kerry Ace, owner of the firm, donated equipment to Ace Cleaners. The equipment had a value of $3,350 at this time.
Purchased a building for $39,000 and signed a note for the purchase.
Purchased $750 of supplies on credit.
After these transactions are recorded, total assets will have a balance of:
[A] $480,850
[B] $472,850
[C] $481,600
[D] $481,500
problem4: At the beginning of October, Nirvana Carting had total assets of $86,000. During October, Nirvana had the following transactions:
Collected receivables of $17,400 from previous periods.
Generated revenues of $50,000, of which 60% were cash.
Incurred total expenses of $36,000, 40% of which were paid.
After these transactions are recorded, Nirvana’s total assets amount to:
[A] $133,400
[B] $139,000
[C] $ 97,400
[D] $121,600
problem5: A note payable is given to settle an existing account payable. The result of this transaction on the accounting records is:
[A] Total Liabilities are increased
[B] Total Owner’s Equity is increased
[C] No change in assets, liabilities, or owners’ equity
[D] Total Assets are increased