The Billetts Company purchased $1,000 of supplies on account

11.

The Billetts Company purchased $1,000 of supplies on account. After this transaction has been recorded in T-accounts, the $1,000 would appear



on the left side of the Supplies account.



on the right side of the Supplies account.



on the left side of the Accounts Payable account.



on the right side of the Cash account.



13.

The information in the following T-accounts indicates that

Cash



850







Notes Payable







850



the company repaid a $850 debt.



the company loaned $850 to another company.



the company borrowed $850.



stockholders invested $850 cash in the corporation.





14.

What effect will the following entry have on Retained Earnings?



Service Revenue

18,800



Interest Expense



750

Operating Expenses



15,500

Retained Earnings



2,550



Retained Earnings will increase by $2,550.



Retained Earnings will decrease by $2,550.



Retained Earnings will increase by $5,100.



Retained Earnings will be transferred to the income statement.



15.

The following is a trial balance of Barnhart Company as December 31, 2013:



Account Title:

Debit

Credit

Cash

12,500



Accounts Receivable

3,250



Accounts Payable



2,800

Common Stock



6,600

Retained Earnings



4,500

Service Revenue



7,450

Operating Expenses

5,100



Dividends

500



Totals

21,350

21,350



Based on the trial balance, the total amount of assets appearing on the balance sheet would be:



$15,750.



$12,500.



$21,350.



$23,200.





16.

Ferris Company prepared a trial balance at December 31, 2013. A trial balance that balances



proves that all transactions have been properly recorded.



proves the equality of debits and credits.



can only be achieved after adjusting entries have been recorded.



proves that there are no missing transactions.





17.



Explain how the following general journal entry affects the accounting equation.



Supplies

800



Accounts Payable



800



Both assets and equity increase.



Both liabilities and assets increase.



Assets increase and liabilities decrease.



Liabilities increase and equity decreases.





18.

What transaction does the following general journal entry represent?



Cash

700



Accounts Receivable



700



Provided services on account.



Paid cash owed to a supplier.



Collected cash from customers.



Borrowed money to support operating activities.





19.



What business event is represented by this journal entry?



Supplies

800



Accounts Payable



800



Incurred supplies expense.



Purchased supplies with cash.



Used supplies.



Purchased supplies on account.


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