On May 31 of the present year, the assets and 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 existing year?A) $49,700.B) $13,050.C) $20,500.D) $31,100.E) $40,400.
You are watching: A business uses a credit to record
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
Saddleearlier Company type of paid off $30,000 of its accounts payable in cash. What would be the results of this transaction 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 increase.D) Liabilities, $30,000 decrease; equity, $30,000 rise.E) Assets, $30,000 decrease; equity $30,000 decrease.
Answer: BExplanation: Assets = Liabilities + EquityAssets would 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 obligation. There is no effect on Equity.
Contessa Company type of collected $42,000 cash on its accounts receivable. The effects of this transactivity as reflected in the accountancy equation are:A) Total assets decrease and also equity rises.B) Both complete assets and also full liabilities decrease.C) Total assets, complete liabilities, and also total equity are unreadjusted.D) Both full assets and also equity are unreadjusted and liabilities rise.E) Total assets rise and also equity decreases.
If the liabilities of a agency raised $74,000 throughout a duration of time and equity in the firm decreased $19,000 in the time of the very same period, what was the impact on the assets?A) Assets would have actually enhanced $55,000.B) Assets would certainly have actually reduced $55,000.C) Assets would certainly have actually raised $19,000.D) Assets would have actually lessened $19,000.E) None of the options 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 organization provides a crmodify to record:A) An rise in an expense account.B) A decrease in an asset 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 is supplied to record which of the following:A) A decrease in an asset account.B) A decrease in an expense account.C) An rise in a revenue account.D) An rise in the prevalent stock account.E) An rise in the dividends account.
Ralph Pine Consulting obtained its telephone bill in the amount of $300, and instantly passist it. Which of the adhering to basic journal entries will Pine Consulting make to record this transaction?A) Debit Telephone Expense, $300; Credit Cash, $300.B) Delittle Telephone Expense, $300; Credit Accounts Payable, $300.C) Delittle bit Cash, $300; Crmodify Telephone Expense, $300.D) Delittle Accounts Payable, $300; Crmodify Telephone Expense, $300.E) Delittle Prepassist Expense, $300; Credit Cash, $300.
Spafford Services, Inc. gives services to clients. On May 1, a client prepaid Spafford Services $30,000 for 6-months solutions in advance. Spafford Services" basic journal entry to document this transaction will incorporate a: A) Delittle bit 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) Delittle bit to Management Fees Earned for $30,000.
See more: Which Same Three-Letter Word Can Be Placed In Front Of The Following Words To Make A New Word?
Willow Rentals purchased $800 of office provides on crmodify. Which of the complying with basic journal entries will certainly Willow Rentals make to document this transaction?A) Debit Accounts Payable, $800; crmodify Office Supplies, $800.B) Delittle Accounts Receivable, $800; crmodify Office Supplies, $800.C) Delittle bit Office Supplies, $800; crmodify Accounts Receivable, $800.D) Delittle Office Supplies, $800; credit Accounts Payable, $800.E) Delittle bit Cash, $800; credit Office Supplies, $800.