0304 - The account - MCQ_Cal01

An accountant has debited an asset account for $1,000 and credited a liability account for $500. What can be done to complete the recording of the transaction?

• Nothing further must be done.
• Debit an owner's equity account for $500.
• Debit another asset account for $500.
• Credit a different asset account for $500.

An accountant has debited an asset account for $1,000 and credited a liability account for $500. Which of the following would be an incorrect way to complete the recording of the transaction?

• Credit an asset account for $500.
• Credit another liability account for $500.
• Credit an owner's equity account for $500.
• Debit an owner's equity account for $500.

In the first month of operations, the total of the debit entries to the cash account amounted to $900 and the total of the credit entries to the cash account amounted to $500. The cash account has a(n)

• $500 credit balance.
• $800 debit balance.
• $400 debit balance.
• $400 credit balance.

Dawson’s Delivery Service purchased equipment for $2,500. Dawson paid $500 in cash and signed a note for the balance. Dawson debited the Equipment account, credited Cash and

• nothing further must be done.
• debited the Dawson, Capital account for $2,000.
• credited another asset account for $500.
• credited a liability account for $2,000.

Grayton Industries purchased supplies for $1,000. They paid $500 in cash and agreed to pay the balance in 30 days. The journal entry to record this transaction would include a debit to an asset account for $1,000, a credit to a liability account for $500. Which of the following would be the correct way to complete the recording of the transaction?

• Credit an asset account for $500.
• Credit another liability account for $500.
• Credit the Grayton, Capital account for $500.
• Debit the Grayton, Capital account for $500.

On June 1, 2008, Delbert Inc. reported a cash balance of $12,000. During June, Delbert made deposits of $3,000 and made disbursements totalling $16,000. What is the cash balance at the end of June?

• $1,000 debit balance
• $15,000 debit balance
• $1,000 credit balance
• $4,000 credit balance

At January 1, 2008, Burton Industries reported owner’s equity of $130,000. During 2008, Burton had a net loss of $30,000 and owner drawings of $20,000. At December 31, 2008, the amount of owner’s equity is

• $130,000.
• $140,000.
• $100,000.
• $80,000.

Able Company pays its employees twice a month, on the 7th and the 21st. On June 21, Able Company paid employee salaries of $4,000. This transaction would

• increase owner’s equity by $4,000.
• decrease the balance in Salaries Expense by $4,000.
• decrease net income for the month by $4,000.
• be recorded by a $4,000 debit to Salaries Payable and a $4,000 credit to Salaries Expense.

In the first month of operations for Pocket Industries, the total of the debit entries to the cash account amounted to $8,000 ($4,000 investment by the owner and revenues of $4,000). The total of the credit entries to the cash account amounted to $5,000 (purchase of equipment $2,000 and payment of expenses $3,000). At the end of the month, the cash account has a(n)

• $2,000 credit balance.
• $2,000 debit balance.
• $3,000 debit balance.
• $3,000 credit balance.

   During February 2008, its first month of operations, the owner of Rutwing Enterprises invested cash of $25,000. Rutwing had cash revenues of $4,000 and paid expenses of $7,000. Assuming no other transactions impacted the cash account, what is the balance in Cash at February 28?

• $3,000 credit
• $22,000 debit
• $29,000 debit
• $18,000 credit