Question

11) Celery Company has assets of $150,000, liabilities of $90,000, and equity of $60,000. It buys supplies forcash $5,000. What effect would this transaction have on the accounting equation? Assets, $5,000 increase, equity, $5,000 increase. Assets, $5,000 increase, equity, $5,000 decrease. Liabilities, $5.000 increase, equity, $5.000 decrease. Assets, $5,000 decrease, equity, $5,000 decrease. Assets, no effect:liabilites, no effect 12) Unearned revenues are revenues that have been earned and received revenues that have been earned but not yet colected liabilites created by advancecash payments fromcustomers forproducts orservices recorded as an asset in the accounting records increases to owners' equity 13) On June 30, the Cash account of Majeau Company had a no mal balance of$4.300. During July the account was debited for a total of $3,400 and credited fora total of $3,600. What was the balance in the Cash account on August 1? $0 $4.100 debit $3,400 credit $3,400 debit $4,100 credit 14) Adjusting entries are joumal entries made at the end of an accounting period forthe purposeof Updating related liabl ty and asset accounts Assigning revenues to the periodin which they are earn ed Assigning expenses to the period in which the expirationof benefit has incurred Recording intemal transactions All of these 15) Before recording adjusting entries, the Office Supplies account had a $359 d ebit balance whilea physical count of the suppliesshowed $105 of unused supplies on hand. Thus, the required adjusting entry is Debit Office Supplies $105 and credt Office Supplies Expense $105 Debit Office Supplies Expense $254 and credit Office Supplies $254 Debit Office Supplies Expense $105 and credit Office Supplies $105 Debit Office Supplies $254 and credt Office Supplies Expense $254 Some other en try 16) The information on a work sheet can be used to prepare Year-end finandal statements Adjusting entries Closing entries

Answer 1

11) Assets- No effect, liability- No effect

12) Liabilities created by advance cash payments from customers for products or services

13) 4100 Debit

14) All of these

15) Debit office supplies expenses- 254 $ and credit office supplies- 254 $

16) All of these

17) 200 $ difference in unadjusted trial balance in debit and credit sides

18) 14,200

19) Current assets, Long term investment, PPE, intangible assets

20) All of the above

21) 2744 $

22) Debit cash- 60140, cash discount- 60,140 and credit customer- 62000

23) 5000 $

25) Are necessary to adjust for shrinkage

26) the beginning inventory contains highest cost

27) 34000 $

28) 0.333