• Collect cash from customer prior to providing service.
• Provide services to customer and receive cash at time of service.
• Provide services on account to customer.
• Collect cash from customer for services provided on account.
A) One.
B) Two.
C) Three.
D) Four.
Answer: C
• Pay for advertising that will not occur until the following period.
• Collect cash from customer prior to providing service.
• Incur, but not pay, utilities cost in the current period.
• Order supplies that have not yet been received.
A) One.
B) Two.
C) Three.
D) Four.
Answer: B
• Pay dividends to stockholders.
• Delay payment on supplies purchased until the following period.
• Provide services on account to customers.
• Borrow cash from a local bank.
A) One.
B) Two.
C) Three.
D) Four.
Answer: A
• Pay dividends to stockholders.
• Delay payment on supplies purchased until the following period.
• Provide services on account to customers.
• Borrow cash from a local bank.
A) One.
B) Two.
C) Three.
D) Four.
Answer: A
Following are transactions of Gotebo Tanners, Inc., a new company, during the month of January:
Issued 10,000 shares of common stock for $15,000 cash.
Purchased land for $12,000, signing a note payable for the full amount.
Purchased office equipment for $1,200 cash.
Received cash of $14,000 for services provided to customers during the month.
Purchased $300 of office supplies on account.
Paid employees $10,000 for their first month's salaries.
A) $12,300.
B) $27,300.
C) $22,600.
D) $15,500.
Answer: A
Following are transactions of Gotebo Tanners, Inc., a new company, during the month of January:
Issued 10,000 shares of common stock for $15,000 cash.
Purchased land for $12,000, signing a note payable for the full amount.
Purchased office equipment for $1,200 cash.
Received cash of $14,000 for services provided to customers during the month.
Purchased $300 of office supplies on account.
Paid employees $10,000 for their first month's salaries.
A) One.
B) Two.
C) Three.
D) Four.
Answer: A
Following are transactions of Gotebo Tanners, Inc., a new company, during the month of January:
Issued 10,000 shares of common stock for $15,000 cash.
Purchased land for $12,000, signing a note payable for the full amount.
Purchased office equipment for $1,200 cash.
Received cash of $14,000 for services provided to customers during the month.
Purchased $300 of office supplies on account.
Paid employees $10,000 for their first month's salaries.
A) Four.
B) Three.
C) Two.
D) One.
Answer: C
