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Accounting problems

Question 17

Mystic Trolling, Inc., has just purchased a new fishing boat for $5,000 cash. The entry that Mustic Trolling will record includes a

a. debit to Boat-Fishing; credit to Cash.

b. debit to Cash; credit to Boat-Fishing.

c. debit to Boat-fishing; credit to Accounts Payable.

d. debit to Cash; debit to Boat-Fishing.

Question 18

An indication that the general ledger is in an acceptable state is when

a. all accounts in the chart of accounts have been listed on the trial balance.

b. the number of debit accounts listed on the trial balance equal the number of credit accounts listed.

c. the trial balance debit column and credit column total amounts are equal.

d. None of these answers is correct.

Question 19

The cash balance in ABC Company's general ledger is $14,000 and the cash balance shown on its bank statement is $19,000. Reconciling items include outstanding checks totaling $8,000, deposits in transit totaling $4,000, unrecorded bank service charges of $1,000, and interest revenue shown on the bank statement of $2,000. For what amounts should ABC Company make correcting entries?

a. $14,000 and $19,000

b. $8,000 and $4,000

c. $1,000 and $2,000

d. $8,000, $4,000, $1,000, and $2,000

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Question 17

Mystic Trolling, Inc., has just purchased a new fishing boat for $5,000 cash. The entry that Mustic Trolling will record includes a

a. debit to Boat-Fishing; credit to Cash.

b. debit to Cash; credit to Boat-Fishing.

c. debit to Boat-fishing; credit to Accounts Payable.

d. debit to Cash; debit to Boat-Fishing.

Answer: a because the payment is made in cash. If ...

Solution Summary

This solution is comprised of a detailed explanation to answer the request of the assignment of more than 200 words of text.

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