Full file at https://testbankuniv.eu/Cornerstones-of-Financial-Accounting-3rd-Edition-Rich-Test-Bank
Accounts Receivable Inventory Accounts Payable Unearned Revenue
Retained Earnings Sales Revenue Selling Expenses Administrative Expenses
A)
Bills are mailed for musical instruments sold to customers, $225,000
B)
Customers pay for musical instruments in advance, $130,000
C)
Administrative employees are paid their monthly salaries, $14,000
D)
An invoice is received for $15,200 of new musical instruments purchased for sale to customers; payment is due in 30 days
E)
Payments are received from customers for amounts billed in a previous transaction, $135,000
F)
Full payment is made for the musical instruments invoice received in a previous transaction
ANS: A)
B)
C)
D)
E)
F)
PTS: OBJ: STA: KEY:
Account Accounts Receivable Sales Revenue
Debit 225,000
Cash Unearned Revenue
130,000
Administrative Expenses Cash
14,000
Inventory Accounts Payable
15,200
Credit 225,000
130,000
14,000
15,200
Cash Accounts Receivable
135,000 135,000
Accounts Payable Cash
15,200 15,200
1 DIF: Difficulty: Easy REF: CS2-4 LO: 2-5 NAT: BUSPROG: Communication AICPA FN-Reporting | ACBSP-APC-05-Accounting Cycle Bloom's: Application NOT: 30 min.
5. Several transactions are listed below, with the accounting equation stated to the right side of each. Use the following identification codes to indicate the effects of each transaction on the accounting equation: I = Increase; D = Decrease; NE = No Effect. Write your answers in the space provided under the accounting equation, being sure to include an identification code for each element of the accounting equation. An example is provided before the first transaction. Assets
Example: Common stock is issued to investors
I
=
Liabilities
NE
Full file at https://testbankuniv.eu/Cornerstones-of-Financial-Accounting-3rd-Edition-Rich-Test-Bank
+
Stockholders' Equity
I