Quiz 2

1. The following amounts are reported in the ledger of Mariah Company:

What is the balance in the common stock account?

2. Childers Service Company provides services to customers totaling $3,400, for which it billed the customers. How would the transaction be recorded?

3.  A company received a bill for newspaper advertising services, $440. The bill will be paid in 10 days. How would the transaction be recorded today?

4. When a company pays utilities of $1,760 in cash, the transaction is recorded as:

5. Summer Leasing received $11,000 from a customer to cover 24 months of rent in advance. How should Summer record this transaction?

6.  Assume that $18,300 cash is paid for insurance to cover the next year. The appropriate debit and credit would be:

7. When a company pays $1,700 dividends to its stockholders, the transaction should be recorded as:

8.  Clement Company paid an account payable related to a previous utility bill of $990. This transaction should be recorded as follows on the payment date:

9.  On July 7, Saints Incorporated received $10,500 in cash from a customer for services to be provided on October 10. Which of the following describes how the transaction should be recorded on July 7?

10.  The Accounts Payable account has a beginning balance of $10,300 and the company purchased $54,000 of supplies on account during the month. The ending balance was $18,700.
 
How much did the company pay to creditors during the month?
 

Quiz 2 Answers

10.  The Accounts Payable account has a beginning balance of $10,300 and the company purchased $54,000 of supplies on account during the month. The ending balance was $18,700.
 
How much did the company pay to creditors during the month?
 

Answer  $45,600

Payment to Creditors = Beginning Balance ($10,300) + Purchases ($54,000) − Ending Balance ($18,700)
Payment to Creditors = $45,600.