Chapter 2: Measurement Concepts: Recording Business Transactions

82. The controller for Tires and More, Inc. has recorded the following transactions during the month: the purchase of supplies on credit, $4,200; receipt of a bill for utilities for the month which is due on the 15th of the next month, $1,200; and, partial payment on the balance due for supplies, $800. What is the balance in the Accounts Payable account at the end of the month assuming a beginning balance of $0, and is the balance a debit or a credit?
A. $4,600 debit.
B. $4,600 credit.
C. $3,400 credit.
D. $5,400 credit.

83. The controller for Tires and More, Inc. has recorded the following transactions during the month: the company was established by selling 10,000 shares of stock to the public for $20,000 on the 1st of the month; the company recorded $36,000 of revenue for tires and services provided during the month; and expenses of $22,000 were recorded for the month. What is the balance of StockholdersÂ’ Equity at the end of the month, and is the balance a debit or a credit?
A. $34,000 debit.
B. $34,000 credit.
C. $20,000 credit.
D. $6,000 debit.

84. The controller for Tires and More, Inc. has recorded the following transactions during the month: the company was established by selling 10,000 shares of stock to the public for $20,000 on the 1st of the month; the company recorded $36,000 of revenue for tires and services provided during the month; and expenses of $22,000 were recorded for the month. Additionally, on the last day of the month the company declared dividends of $2,000. What is the balance of StockholdersÂ’ Equity at the end of the month, and is the balance a debit or a credit?
A. $32,000 debit.
B. $32,000 credit.
C. $18,000 credit.
D. $36,000 debit.

85. An $800 debit item is accidentally posted as a credit. The trial balance column totals will therefore differ by
A. $0
B. $400
C. $800
D. $1,600

86. The trial balance for Parker Company is as follows:

Parker Company

Trial Balance

January 31, 20×5

Cash

$ 6,000

Accounts Receivable

4,000

Art Supplies

6,000

Office Supplies

10,000

Prepaid Rent

14,000

Prepaid Insurance

10,000

Art Equipment

10,000

Office Equipment

6,000

Accounts Payable

$ 10,000

Common Stock

30,000

Dividends

?

Advertising Fees Earned

?

Wages Expense

?

Utilities Expense

10,000

Telephone Expense

6,000

________

$ A

$ B

If the balance of the Dividends account were $100,000 and the balance of the Wages Expense account were $10,000, what would be the amount of B?
A. $124,000
B. $150,000
C. $192,000
D. $152,000

87. The trial balance for Parker Company is as follows:

Parker Company

Trial Balance

January 31, 20×5

Cash

$ 6,000

Accounts Receivable

4,000

Art Supplies

6,000

Office Supplies

10,000

Prepaid Rent

14,000

Prepaid Insurance

10,000

Art Equipment

10,000

Office Equipment

6,000

Accounts Payable

$ 10,000

Common Stock

30,000

Dividends

?

Advertising Fees Earned

?

Wages Expense

?

Utilities Expense

10,000

Telephone Expense

6,000

________

$ A

$ B

If the trial balance showed a balance of $14,000 in the Dividends account and a balance of $30,000 in the Wages Expense account, what would be the amount of Advertising Fees Earned for the period?
A. $106,000
B. $86,000
C. $116,000
D. $56,000

88. The trial balance for Parker Company is as follows:

Parker Company

Trial Balance

January 31, 20×5

Cash

$28,000

Accounts Receivable

4,000

Art Supplies

6,000

Office Supplies

10,000

Prepaid Rent

14,000

Prepaid Insurance

10,000

Art Equipment

10,000

Office Equipment

6,000

Accounts Payable

$ 10,000

Common Stock

30,000

Dividends

14,000

Advertising Fees Earned

108,000

Wages Expense

30,000

Utilities Expense

10,000

Telephone Expense

6,000

_______

$148,000

$148,000

On the trial balance, total assets equal
A. $108,000
B. $104,000
C. $88,000
D. $68,000