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Financial Accounting

1. Robert Haddon contributed $70,000 in cash and some land worth $130,000 to open a new business, RH Consulting. Which of the following general journal entries will RH Consulting make to record this transaction?

A) Assets $ 200,000
Robert Haddon, Capital $ 200,000

B) Cash and Land $ 200,000
Robert Haddon, Capital $ 200,000

C) Cash $ 70,000
Land $ 130,000
Robert Haddon, Capital $ 200,000

D) Robert Haddon, Capital $ 200,000
Cash $ 70,000
Land $ 130,000

E) Robert Haddon, Capital $ 200,000
Assets $ 200,000

2. A company had the following accounts and balances year-end:
Cash $ 30,000
Accounts receivable 32,000
Accounts payable 20,000
Fees earned 65,000
Rent expense 15,000
Insurance expense 4,800
Supplies 5,000
Sam, Capital 19,800
Sam, Withdrawals 18,000

If all of the accounts have normal balances, what are the totals for the trial balance?

A. $ 45,200.

B. $ 67,000.

C. $104,800.

D. $209,600.

E. $186,600.

3. An adjusting entry was made on December 31, 2007 to accrue salary expense of $1,200. Which of the following entries would be prepared to record the next payment of salaries, on January, 2008 in the amount of $3,000?

A) Salaries Expense 3,000
Cash 3,000

B) Salaries Payable 3,000
Cash 3,000

C) Salaries Payable 1,200
Cash 1,200

D) Salaries Expense 1,200
Salaries Payable 1,200

E) Salaries Payable 1,200
Salaries Expense 1,800
Cash 3000

4. The following transactions occurred during July:
(1.) Received $900 cash for services provided to a customer during July.
(2.) Received $2,200 cash investment from Barbara Hanson, the owner of the business.
(3.) Received $750 from a customer in partial payment of his account receivable which arose from sales in June.
(4.) Provided services to a customer on credit, $375.
(5.) Borrowed $6,000 from the bank by signing a promissory note.
(6.) Received $1,250 cash from a customer for services to be rendered next year.
What was the amount of revenue for July?

A. $ 900.

B. $ 1,275.

C. $ 2,525.

D. $ 3,275.

E. $11,100.

5. J. Lown, the proprietor of Lawn Services, withdrew $8,700 from the business during the current year. The entry to close the withdrawals account at the end of the year, is:

A) J. Lown, Withdrawals 8,700
Cash 8,700

B) J. Lown, Capital 8,700
J. Lown, Withdrawals 8,700

C) J. Lown, Withdrawals 8,700
J. Lown, Capital 8,700

D) J. Lown, Capital 8,700
Salary Expense 8,700

E) Income Summary 8,700
J. Lown, Capital 8,700

Solution Preview

1. C) Cash $ 70,000
Land $ 130,000
Robert Haddon, Capital $ 200,000
Cash and land would have to be listed separately as assets and the total amount would be shown as capital

2. C. $104,800.
The total of the trial balance would be the total of the debit ...

Solution Summary

The solution explains some multiple choice questions in financial accounting

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