ACC290 Week 3 Apply Exercise SCORE 100 PERCENT

Question 1

Selected activity of Mason Consulting Services follow.
 

DATE			TRANSACTIONS
2019
Sept.		1	Zack Mason invested $44,000 in cash to start the firm.
		4	Purchased office equipment for $4,900 on credit from Den, Inc.; received Invoice 9823, payable in 30 days.
		16	Purchased an automobile that will be used to visit clients; issued Check 1001 for $12,900 in full payment.
		20	Purchased supplies for $360; paid immediately with Check 1002.
		23	Returned damaged supplies for a cash refund of $90.
		30	Issued Check 1003 for $2,600 to Den, Inc., as payment on account for Invoice 9823.
		30	Withdrew $1,400 in cash for personal expenses.
		30	Issued Check 1004 for $900 to pay the rent for September.
		30	Performed services for $3,050 in cash.
		30	Paid $355 for monthly telephone bill, Check 1005.

Prepare journal entries for the transactions incurred during September of 2019.

 

Question 2

Selected activity of Mason Consulting Services follow.
 

DATE			TRANSACTIONS
2019
Sept.		1	Zack Mason invested $54,000 in cash to start the firm.
		4	Purchased office equipment for $5,900 on credit from Den, Inc.; received Invoice 9823, payable in 30 days.
		16	Purchased an automobile that will be used to visit clients; issued Check 1001 for $13,900 in full payment.
		20	Purchased supplies for $460; paid immediately with Check 1002.
		23	Returned damaged supplies for a cash refund of $140.
		30	Issued Check 1003 for $3,400 to Den, Inc., as payment on account for Invoice 9823.
		30	Withdrew $2,400 in cash for personal expenses.
		30	Issued Check 1004 for $1,400 to pay the rent for September.
		30	Performed services for $2,450 in cash.
		30	Paid $405 for monthly telephone bill, Check 1005.

Post the above transactions into the appropriate Ledger accounts.

Question 3

The following transactions took place at the Cook Employment Agency during November 2019.
 

DATE			TRANSACTIONS
Nov.	5		Performed services for Job Search, Inc., for $28,000; received $13,000 in cash and the client promised to pay the balance in 60 days.
	18		Purchased a graphing calculator for $365 and some supplies for $515 from Office Supply; issued Check 1008 for the total.
	23		Received Invoice 1602 for $1,500 from Automotive Technicians Repair for repairs to the firm's automobile; issued Check 1009 for half the amount and arranged to pay the other half in 30 days.

 
Prepare journal entries for the above transactions.

Question 4

On June 10, 2019, an employee of Williams Corporation mistakenly debited Telephone Expense rather than Utilities Expense when recording a bill of  $985 for the May utility service. The error was discovered on June 30. Prepare a general journal entry to correct the error.

 

Question 5

On August 22, 2019, an employee of Bell Company mistakenly debited the Repair Expense account rather than the Truck Expense account when recording a bill of $725 for repairs. The error was discovered on October 1. Prepare a general journal entry to correct the error.

Question 6


The journal entry to record the purchase of equipment for a $210 cash down payment and a balance of $620 due in 30 days would include

Multiple Choice
a debit to Equipment for $210 and a credit to Accounts Payable for $620.
debit to Equipment for $830 and a credit to Cash for $830.
a debit to Equipment for $830, a credit to Cash for $210, and a credit to Accounts Payable for $620.
a debit to Equipment for $210 and a credit to Cash for $210.

Question 7
The Accounts Payable account has a $4,700 credit balance. An entry for the payment of $1,850 on the amount owed is recorded and posted. The new balance of the Accounts Payable account is

Multiple Choice
a $6,550 debit balance.
a $2,850 debit balance.
a $6,550 credit balance.
a $2,850 credit balance.
Question 8
Bertrand Inc. performed services for clients in the amount of $2,000 on credit. If this transaction had been posted in error to the Cash account instead of the Accounts Receivable account, what correcting entry would be necessary?

Multiple Choice
    Debit Cash $2,000; credit Accounts Receivable $2,000
    Debit Accounts Receivable $2,000; credit Fees Income $2,000
    Debit Fees Income $2,000; credit Cash $2,000
    Debit Accounts Receivable $2,000; credit Cash $2,000

Question 9
Bertrand Inc. purchased some shop equipment for $6,100 in cash. By mistake, the journal entry debited the Office Equipment account rather than the Shop Equipment account. What correcting entry would be necessary?

Multiple Choice
    Debit Cash $6,100; credit Shop Equipment $6,100
Debit Shop Equipment $6,100; credit Office Equipment $6,100
    Debit Office Equipment $6,100; credit Shop Equipment $6,100
    Debit Office Equipment $6,100; credit Cash $6,100