On March 3, Cobra Inc. purchased a desk for $450 on account. On March 22, Cobra purchased another desk for $500 also on account, and then on March 24, Cobra paid $400 on account. At the end of March, what amount should Cobra report for desks (assuming these two desks were the only desks they had)?

A) $50.

B) $450.

C) $500.

D) $950.

Answer: D

The Accounts Payable account has a beginning balance of $12,000 and the company purchased $50,000 of supplies on account during the month. The ending balance was $10,000.
How much did the company pay to creditors during the month?

A) $50,000.

B) $52,000.

C) $60,000.

D) $62,000.

Answer: B

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.

What was the balance of Gotebo's Cash account following these six transactions?

A) $29,800.

B) $19,300.

C) $17,800.

D) $22,400.

Answer: C

The figure below is a depiction of a T-account.

Account

1,700 Beg.

1,200 800

3,300 End.

Which of the following statements is correct?

A) The account could be a liability account.

B) During the period, a journal entry was recorded that included a credit to the account for $800.

C) The amount reported to stockholders at the end of the period for this account is $3,300.

D) All of the other answers provide a correct statement.

Answer: D

Below is the company's Cash T-account.

Cash

Beg. 1,200

5,200 3,100

End. 3,300

The $5,200 amount could represent which of the following?

A) Purchase of supplies on account.

B) Ending balance of cash.

C) Payment for salaries.

D) Collection from customers.

Answer: D

Below is the company's Cash T-account.

Cash

Beg. 1,200

5,200 3,100

End. 3,300

The $3,100 amount could represent which of the following?

A) Purchase of supplies on account.

B) Ending balance of cash.

C) Payment for salaries.

D) Collection from customers.

Answer: C

Posting transactions to T-accounts involves:

A) Analyzing source documents to determine the effects of transactions on the company's accounts.

B) Listing all accounts and their balances at a particular date to ensure that debits equal credits.

C) Preparing a chronological record of all transactions affecting the company.

D) Transferring debit and credit information from the journal to the accounts in the general ledger.

Answer: D