The following account balances are taken from the December 31, 2018, financial statements of ABZ Advertising Company. The company uses accrual basis accounting. Advertising Revenue$46,482Cash 41,516Accounts Receivable 7,296Interest Expense 2,299Accounts Payable 5,000Operating Expenses 37,460Deferred Revenue 1,178Equipment 18,048Income Tax Expense 2,326The following activities occurred in 2019:1. Performed advertising services on account, $55,000. 2. Received cash payments on account, $10,400. 3. Received deposits from customers for advertising services to be performed in 2020, $2,500. 4. Made payments to suppliers on account, $5,000. 5. Incurred $45,000 of operating expenses; $39,000 was paid in cash and $6,000 was on account and unpaid as of the end of the
year. Which of the following is the journal entry that will be used to record activity #4?
A. Debit Accounts Payable and credit Operating Expense for $5,000.
B. Debit Operating Expense and credit Cash for $5,000.
C. Debit Accounts Payable and credit Cash for $5,000.
D. Debit Cash and credit Accounts Payable for $5,000.
Answer: C
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If an asset costs $41,000, has a residual value of $3,000, and has a useful life of five years, the entry to record depreciation in the second year using the double-declining-balance method is
A) debit to Depreciation Expense, 9,430; credit to Cash, 9,430. B) debit to Depreciation Expense, 9,840; credit to Accumulated Depreciation, 9,840. C) debit to Depreciation Expense, 10,250; credit to Accumulated Depreciation, 10,250. D) debit to Accumulated Depreciation, 10,660; credit to Depreciation Expense, 10,660.
Productivity is measured by the
a. total quantity of output generated from a limited amount of input during a time period. b. quantity of good output generated from a specific amount of input during a time period. c. quantity of good output generated from the quantity of good input used during a time period. d. total quantity of input used to generate total quantity of output for a time period.
Riley Company borrowed $50,000 on April 1, Year 1 from Titan Bank. The note issued by Riley carried a one-year term and a 7% annual interest rate. Riley earned cash revenues of $1160 during Year 1 and $1800 during Year 2. Assume no other transactions.Based on this information alone, what is the amount of net income (loss) that will be reported on the Year 2 income statement?
A. $925 B. $(50) C. $2675 D. $875
Misleading commercial speech may be outlawed altogether without violating the Constitution
a. True b. False Indicate whether the statement is true or false