Leadership and management models mgt 410

The detailed record of the changes in a particular​ asset, liability, or​ stockholders' equity is called

A. an account.

B. a ledger.

C.a journal.

D. a trial balance.

Which of the following accounts is a​ liability?

A. Service Revenue

B. Accounts Receivable

C. Prepaid Rent Expense

D. Unearned Revenue

The left side of an account is used to record which of the​ following?

A. Debits

B. Debit or​ credit, depending on the type of account

C. Credits

D. Increases

Which of the following statements is​ correct?

A. Rent Expense is increased with a credit.

B. Unearned Revenue is increased with a debit.

C. Prepaid Expenses are decreased with a debit.

D. Accounts Payable is increased with a credit.

Pixel Copies recorded a cash collection on account by debiting Cash and crediting Accounts Payable. What will the trial balance show for this​ error?

A. Expenses are overstated

B. The trial balance will not balance

C. Liabilities are overstated

D. Cash is overstated

Which sequence correctly summarizes the accounting​ process?

A. Journalize​ transactions, post to the​ accounts, prepare a trial balance

B. Journalize​ transactions, prepare a trial​ balance, post to the accounts

C. Post to the​ accounts, journalize​ transactions, prepare a trial balance

D. Prepare a trial​ balance, journalize​ transactions, post to the accounts

Faith Laundry reported assets of $850 and equity of $630. What is Faith's debt​ ratio? ​(Round your answer to the nearest whole​ number.)

A. 74%

B. 35​%

C. 26​%

D. Not enough information is provided

Consider the following accounts and identify each account as an asset​ (A), liability​ (L), or equity​ (E).

a. Notes Receivable

b. Common Stock

c. Prepaid Insurance

d. Notes Payable

e. Rent Revenue

f. Taxes Payable

g. Rent Expense

h. Furniture

i. Dividends

j. Unearned Revenue

For each​ account, identify whether the changes would be recorded as a debit​ (DR) or credit​ (CR).

a. Increase to Accounts Receivable

b. Decrease to Unearned Revenue

c. Decrease to Cash

d. Increase to Interest Expense

e. Increase to Salaries Payable

f. Decrease to Prepaid Rent

g. Increase to Common Stock

h. Increase to Notes Receivable

i. Decrease to Accounts Payable

j. Increase to Interest Revenue

For each​ account, identify whether the normal balance is a debit​ (DR) or credit​ (CR).

a. Notes Payable

b. Dividends

c. Service Revenue

d. Land

e. Unearned Revenue

f. Common Stock

g. Utilities Expense

h. Office Supplies

i. Advertising Expense

j. Interest Payable

The following transactions occurred for Lawrence ​Engineering:

Journalize the transactions of Lawrence Engineering. Include an explanation with each journal entry. Use the following​ accounts: Cash; Accounts​ Receivable; Office​ Supplies; Equipment; Accounts​ Payable; Notes​ Payable; Common​ Stock; Dividends; Service​ Revenue; and Utilities Expense. ​(Record debits​ first, then credits. Select the explanation on the last line of the journal entry​ table.)

July 2: Received $14000 contribution from Brett Lawrence in exchange for common stock.

July ​4: Paid utilities expense of $370

July ​5: Purchased equipment on​ account, $1600

July ​10: Performed services for a client on​ account, $2900

July ​12: Borrowed $7100 cash, signing a notes payable.

July ​19: Cash dividends of $200 were paid to stockholders.

July ​21: Purchased office supplies for $840 and paid cash.

July ​27: Paid the liability from July 5.

The following transactions occurred for Webb Technology​ Solutions:

(Record debits​ first, then credits. Select the explanation on the last line of the journal entry​ table.)

May ​1: The business received cash of $110000 and issued common stock to Zach Webb

May ​2: Purchased office supplies on​ account, $300

May ​4: Paid $56 000 cash for building and land. The building had a fair market value of

Prepare a compound entry.

May ​6: Performed services for customers and received​ cash, $2200

May ​9: Paid $200 on accounts payable.

May ​17: Performed services for customers on​ account, $2600

May ​19: Paid rent expense for the​ month, $800

May ​20: Received $1200 from customers for services to be performed next month.

May ​21: Paid $400 for advertising in next​ month's IT Technology magazine.

May ​23: Received $1900 cash on account from a customer.

May 31​: Incurred and paid​ salaries, $1500

The accounts of Amity Moving Company follow with their normal balances as of August 31

2018. Prepare Amity's trial balance as of August 31 2018

​Jason Hilton M.D. reported the following trial balance as of September 30 2018: Calculate the debt ratio for Jason Hilton M.D. Select the debt ratio formula on the first line and then calculate the ratio. ​(Round the percentage to the nearest whole​ percent.)

York practices medicine under the business title Vince York comma M.D. During

July​, the medical practice completed the following​ transactions:

Requirement 1. Journalize each transaction. Explanations are not required. ​(Record debits​ first, then credits. Exclude explanations from journal​ entries.)

July ​1: York contributed $63000 cash to the business in exchange for common stock.

July ​5: Paid monthly rent on medical​ equipment, $510

July ​9: Paid $23000 cash to purchase land to be used in operations.

July ​10: Purchased office supplies on​ account, $1600

July ​19: Borrowed $22000 from the bank for business use.

July ​22: Paid $1100 on account.

July ​28: The business received a bill for advertising in the daily newspaper to be paid in August​, $240

July 31​: Revenues earned during the month included $6400 cash and $6000 on account. Record as a compound entry.

July 31​: Paid​ employees' salaries $2200​, office rent $1900​, and utilities $560. Record these entries as a compound entry.

July 31​: The business received $1120 for medical screening services to be performed next month.

July 31​: Paid cash dividends of $7200.

Requirement 2. Post the journal entries to the​ T-accounts, using transaction dates as posting references in the ledger accounts. Label the balance of each account Bal. We will post to the accounts one transaction at a time. Begin by posting the events from the 1st.

July ​1: York contributed $63000 cash to the business in exchange for Common Stock. ​(We will post to the accounts one transaction at a time. Post only the transaction from

July ​5: Paid monthly rent on medical​ equipment, $510. ​

July ​9: Paid $23000 cash to purchase land to be used in operations. ​(Post only the transaction from

July 9 in this​ step.)

July ​10: Purchased office supplies on​ account, $1600.

July ​19: Borrowed $22000 from the bank for business use. ​(Post only the transaction from July 19

July ​22: Paid $1100 on account. ​(Post only the transaction from July 22 in this​ step.)

July ​28: The business received a bill for advertising in the daily newspaper to be paid in August​, $240

July 31​: Revenues earned during the month included $6400 cash and $6000 on account

July 31​: Paid​ employees' salaries $2200​, office rent $1900​, and utilities $560. Record as a compound entry.

July 31​: The business received $1120 for medical screening services to be performed next month. ​(Post only the third transaction from July 31

July 31​: Paid cash dividends of $7200.

Calculate the account balances. Use a​ "Bal." posting reference on the proper side of each account to show the ending balances of the accounts.

Requirement 3. Prepare the trial balance of Vince York comma M.D. as of July 31​, 2018

The trial balance as of July 31 2018​, for Sara Simon comma Registered Dietician​, is presented​ below:

Requirement 1. Prepare the income statement for the month ended July 31 2018

Requirement 2. Prepare the statement of retained earnings for the month ended July 31 2018

The beginning balance of retained earnings was​ $0. ​(Enter any increases in retained earnings prior to the subtotal and any decreases to retained earnings below the subtotal. Enter a​ "0" for any zero​ balances.)

Requirement 3. Prepare the balance sheet as of July 31 2018

​(If a box is not used in the​ statement, leave the box​ empty; do not select a label or enter a​ zero.)

Requirement 4. Calculate the debt ratio as of July 31 2018

Select the debt ratio formula on the first line and then calculate the ratio.