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?