ACC 290 Week 3 Apply: Connect® Exercise

Review the Knowledge Check in preparation for this assignment.

Complete the Week 3 Exercise in Connect®.

Note: You have only one attempt available to complete this assignment.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.

In which of the following transactions would Utilities Expense be debited:

Multiple Choice

the company received a bill for utilities to be paid the following month

the company received and paid a bill for utilities

the company paid a utility bill on account

both A and B

The journal entry to record the payment of the monthly rent would include:

Multiple Choice

a debit to Rent Expense and a credit to Cash.

a debit to Capital and a credit to Cash.

a debit to Rent Expense and a credit to Capital.

a debit to Rent Expense and a credit to Accounts Receivable.

The journal entry to record the withdrawal of cash by Sue Snow, the owner, to pay a personal utility bill would include:

Multiple Choice

a debit to Sue Snow, Capital, and a credit to Cash.

a debit to Utilities Expense and a credit to Cash.

a debit to Sue Snow, Capital and a credit to Utilities Expense.

a debit to Sue Snow, Drawing and a credit to Cash.

The journal entry to record a payment made in January for rent for the months of February and March would include:

Multiple Choice

a debit to Rent Expense, and a credit to Sue Snow, Capital.

a debit to Prepaid Rent and a credit to Cash.

a debit to Rent Expense and a credit to Cash.

a debit to Sue Snow, Drawing and a credit to Rent Expense.

Agatha Panthis Landscape Architect Company earned $2,500 of revenue collecting $1,000 immediately and will collect the remaining amount in 30 days. The journal entry to record this transaction is:

rev: 12_08_2017_QC_CS-111818

Multiple Choice

Debit Fees Income $2,500; Credit Accounts Receivable $2,500

Debit Cash $1,000; Credit Fees Income $1,000

Debit Cash $1,000; Debit Accounts Receivable $1,500; Credit Fees Income $2,500

Debit Fees Income $2,500; Credit Cash $1,000; credit Accounts Receivable $1,500

The journal entry to record the payment of salaries for the month is:

Multiple Choice

Debit Salaries Expense; Credit Cash

Debit Cash; Credit Salaries Expense

Debit Salaries; Credit Accounts Payable

Debit Cash; Credit Salaries Payable

On June 1, XYZ Inc. paid $400 to its landlord for rent for the current month. The journal entry to record this transaction is:

Multiple Choice

Prepaid Rent    $   400

Rent Expense           $   400

________________________________________

Prepaid Rent    $   400

Cash           $   400

________________________________________

Rent Expense    $   400

Cash           $   400

________________________________________

Cash    $   400

Rent Expense           $   400

________________________________________

ABC Co. performed $5,000 of consulting work. Their customer paid them $3,500 right away and agreed to pay the balance in 30 days. Select the correct journal entry from the options below to record the transaction:

Multiple Choice

a debit to Cash for $3,500, a debit to Accounts Receivable for $1,500 and a credit to Capital for $5,000.

a debit to Cash for $3,500 and a credit to Fees Income for $3,500.

a debit to Cash for $3,500; a debit to Accounts Receivable for $1,500 and a credit to Fees Income for $5,000.

a debit to Fees Income for $5,000, a credit to Cash for $3,500 and a credit to Accounts Receivable for $1,500.

Listed below in random order are the steps in the accounting cycle.

(1) prepare the financial statements

(2) post the journal entries to the ledger

(3) record journal entries

(4) prepare a trial balance

What is the proper order of these steps?

Multiple Choice

(2), (3), (4), (1)

(3), (2), (4), (1)

(4), (3), (2), (1)

(3), (2), (1), (4)

Bertrand Inc. purchased some shop equipment for $4,500 in cash. By mistake, the journal entry debited the Office Equipment account rather than the Shop Equipment account. What correcting entry would be necessary?

Multiple Choice

Debit Shop Equipment $4,500; credit Office Equipment $4,500

Debit Office Equipment $4,500; credit Shop Equipment $4,500

Debit Cash $4,500; credit Shop Equipment $4,500

Debit Office Equipment $4,500; credit Cash $4,500