On May 31 of the current year, the assets and also liabilities of Riser, Inc. are as follows: Cash $20,500; Accounts Receivable, $7,250; Supplies, $650; Equipment, $12,000; Accounts Payable, $9,300. What is the amount of equity as of May 31 of the current year?A) $49,700.B) $13,050.C) $20,500.D) $31,100.E) $40,400.
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Answer: DExplanation: Assets = Liabilities + EquityCash + Accounts Receivable + Supplies + Equipment = Accounts Payable + Equity$20,500 + $7,250 + $650 + $12,000 = $9,300 + Equity$40,400 = $9,300 + Equity; Equity = $31,100
Saddleback Company kind of passist off $30,000 of its accounts payable in cash. What would be the effects of this transactivity on the accountancy equation?A) Assets, $30,000 increase; equity, $30,000 boost.B) Assets, $30,000 decrease; liabilities, $30,000 decrease.C) Assets, $30,000 decrease; liabilities, $30,000 rise.D) Liabilities, $30,000 decrease; equity, $30,000 rise.E) Assets, $30,000 decrease; equity $30,000 decrease.
Answer: BExplanation: Assets = Liabilities + EquityAssets would certainly decrease by $30,000 in Cash due to the payment of the accounts payable.Liabilities would certainly likewise decrease by $30,000 in Accounts Payable as a result of the payment of an duty. Tbelow is no impact on Equity.
Contessa Company kind of built up $42,000 cash on its accounts receivable. The results of this transactivity as reflected in the accountancy equation are:A) Total assets decrease and also equity boosts.B) Both total assets and full liabilities decrease.C) Total assets, total liabilities, and complete equity are unadjusted.D) Both total assets and equity are unadjusted and liabilities boost.E) Total assets boost and also equity decreases.
If the liabilities of a company raised $74,000 in the time of a duration of time and equity in the agency decreased $19,000 during the same period, what was the effect on the assets?A) Assets would have enhanced $55,000.B) Assets would have reduced $55,000.C) Assets would certainly have actually boosted $19,000.D) Assets would certainly have actually lessened $19,000.E) None of the choices are correct.
Answer: AExplanation: Assets = Liabilities + EquityChange in Assets = Change in Liabilities + Change in EquityChange in Assets = + $74,000 − $19,000Change in Assets = + $55,000
Identify the account below that is classified as an ascollection account:A) Unearned RevenueB) Accounts PayableC) SuppliesD) Usual StockE) Service Revenue
A business supplies a crmodify to record:A) An rise in an expense account.B) A decrease in an ascollection account.C) A decrease in an unearned revenue account.D) A decrease in a revenue account.E) A decrease in a common stock account.
A delittle bit is supplied to record which of the following:A) A decrease in an ascollection account.B) A decrease in an price account.C) An boost in a revenue account.D) An rise in the common stock account.E) An boost in the dividends account.
Ralph Pine Consulting got its telephone bill in the amount of $300, and instantly phelp it. Which of the adhering to general journal entries will certainly Pine Consulting make to document this transaction?A) Debit Telephone Expense, $300; Credit Cash, $300.B) Delittle Telephone Expense, $300; Credit Accounts Payable, $300.C) Delittle Cash, $300; Credit Telephone Expense, $300.D) Debit Accounts Payable, $300; Credit Telephone Expense, $300.E) Delittle bit Prepaid Expense, $300; Crmodify Cash, $300.
Spafford Services, Inc. provides solutions to clients. On May 1, a customer prepassist Spafford Services $30,000 for 6-months solutions in development. Spafford Services" general journal entry to record this transaction will include a: A) Delittle to Unearned Management Fees for $30,000.B) Credit to Management Fees Earned for $30,000.C) Crmodify to Cash for $30,000.D) Crmodify to Unearned Management Fees for $30,000.E) Debit to Management Fees Earned for $30,000.
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Willow Rentals purchased $800 of office gives on crmodify. Which of the following basic journal entries will Willow Rentals make to document this transaction?A) Debit Accounts Payable, $800; crmodify Office Supplies, $800.B) Delittle bit Accounts Receivable, $800; credit Office Supplies, $800.C) Delittle bit Office Supplies, $800; crmodify Accounts Receivable, $800.D) Delittle Office Supplies, $800; crmodify Accounts Payable, $800.E) Debit Cash, $800; credit Office Supplies, $800.