A journal entry for a $290 payment to purchase office supplies was erroneously recorded as a debit to Office Supplies for $600 and a credit to Cash for $290
Which of the following statements correctly states the effect of the error on the trial balance?
A) The sum of the credits will exceed the sum of the debits by $310.
B) The sum of the debits will exceed the sum of the credits by $290.
C) The sum of the debits will exceed the sum of the credits by $310.
D) The sum of the debits will exceed the sum of the credits by $600.
C
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A bank loaned Darden Company $10,000 on a 1-year, 6% note, but deducted the interest in advance. The journal entry made by Darden to record receipt of the cash would include a
a. an increase in Cash for $9,400 b. an increase in Cash for $600 c. a decrease in Notes Payable for $10,600 d. a decrease in Notes Payable for $9,400
Cloning can only be carried out using adult stem cells.
Answer the following statement true (T) or false (F)
For which of the following accounts receivable customer populations would the use of negative confirmations be most appropriate?
a. A retail truck and trailer sales company with high inherent risk and moderate control risk over the revenue cycle. b. A utility company with control risk over the revenue cycle assessed high. c. A mortgage banking company with excellent control over the purchasing cycle. d. A cable company with control risk over the revenue cycle assessed low.
Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions: 1) issued stock for $48,000 2) borrowed $29,000 from its bank 3) provided consulting services for $46,000 4) paid back $19,000 of the bank loan 5) paid rent expense for $11,000 6) purchased equipment costing $16,000 7) paid $3400 dividends to stockholders 8) paid employees' salaries, $25,000 What is Yowell's net income?
A. $10,000 B. $3400 C. $44,600 D. $19,000