ACC290 Week 3 Apply Exercise SCORE 100 PERCENT

  

Question 1

Selected activity of Mason Consulting Services follow.
 

  

DATE

TRANSACTIONS

 

2019

 

Sept.

1

Zack Mason invested $44,000 in cash to start the firm.

 

4

Purchased office equipment for $4,900 on credit from Den,   Inc.; received Invoice 9823, payable in 30 days.

 

16

Purchased an automobile that will be used to visit   clients; issued Check 1001 for $12,900 in full payment.

 

20

Purchased supplies for $360; paid immediately with Check   1002.

 

23

Returned damaged supplies for a cash refund of $90.

 

30

Issued Check 1003 for $2,600 to Den, Inc., as payment on   account for Invoice 9823.

 

30

Withdrew $1,400 in cash for personal expenses.

 

30

Issued Check 1004 for $900 to pay the rent for September.

 

30

Performed services for $3,050 in cash.

 

30

Paid $355 for monthly telephone bill, Check 1005.

 Prepare journal entries for the transactions incurred during September of 2019.

  

Question 2

Selected activity of Mason Consulting Services follow.
 

  

DATE

TRANSACTIONS

 

2019

 

Sept.

1

Zack Mason invested $54,000 in cash to start the firm.

 

4

Purchased office equipment for   $5,900 on credit from Den, Inc.; received Invoice 9823, payable in 30 days.

 

16

Purchased an automobile that will   be used to visit clients; issued Check 1001 for $13,900 in full payment.

 

20

Purchased supplies for $460; paid immediately with Check   1002.

 

23

Returned damaged supplies for a cash refund of $140.

 

30

Issued Check 1003 for $3,400 to Den, Inc., as payment on   account for Invoice 9823.

 

30

Withdrew $2,400 in cash for personal expenses.

 

30

Issued Check 1004 for $1,400 to pay the rent for   September.

 

30

Performed services for $2,450 in cash.

 

30

Paid $405 for monthly telephone bill, Check 1005.

 

Post the above transactions into the appropriate Ledger accounts.

  

Question 3

The following transactions took place at the Cook Employment Agency during November 2019.
 

  

DATE

TRANSACTIONS

 

Nov.

5

Performed   services for Job Search, Inc., for $28,000; received $13,000 in cash and the   client promised to pay the balance in 60 days.

 

18

Purchased   a graphing calculator for $365 and some supplies for $515 from Office Supply;   issued Check 1008 for the total.

 

23

Received   Invoice 1602 for $1,500 from Automotive Technicians Repair for repairs to the   firm’s automobile; issued Check 1009 for half the amount and arranged to pay   the other half in 30 days.

Prepare journal entries for the above transactions.

  

Question 4

On June 10, 2019, an employee of Williams Corporation mistakenly debited Telephone Expense rather than Utilities Expense when recording a bill of  $985 for the May utility service. The error was discovered on June 30. Prepare a general journal entry to correct the error.

  

Question 5

On August 22, 2019, an employee of Bell Company mistakenly debited the Repair Expense account rather than the Truck Expense account when recording a bill of $725 for repairs. The error was discovered on October 1. Prepare a general journal entry to correct the error 

  

Question 6

The journal entry to record the purchase of equipment for a $210 cash down payment and a balance of $620 due in 30 days would include

Multiple Choice

  

Question 7

The Accounts Payable account has a $4,700 credit balance. An entry for the payment of $1,850 on the amount owed is recorded and posted. The new balance of the Accounts Payable account is

  

Question 8

Bertrand Inc. performed services for clients in the amount of $2,000 on credit. If this transaction had been posted in error to the Cash account instead of the Accounts Receivable account, what correcting entry would be necessary?

  

Question 9

Bertrand Inc. purchased some shop equipment for $6,100 in cash. By mistake, the journal entry debited the Office Equipment account rather than the Shop Equipment account. What correcting entry would be necessary?