Question1: Equipment is purchased with a cash down payment of dollar 60,000 and a signed note for dollar 100,000. The net effect of this transaction will be:
[A] An increase in assets of dollar 160,000
[B] An increase in assets of dollar 60,000
[C] An increase in assets of dollar 100,000
[D] No increase in assets.
Question2: Ford Photo Supplies balances at the beginning of January were: Cash dollar 25,000; Accounts Receivable dollar 15,000; Inventory dollar 30,000; Accounts Payable dollar 18,000; Notes Payable dollar 17,000; Owner's Capital dollar? Ford finished the following transactions during January: Paid off the note payable of dollar 17,000. Sold dollar 36,525 of merchandise to customers on account. Cost of goods sold was dollar 21,250. Paid accounts payable of dollar 3,500. Collected dollar 25,000 of the amounts due from customers. As a result of these transactions, liabilities and owners' equity at the end of January will total:
[A] Liabilities: dollar 14,500; Owner's Equity: dollar 50,275
[B] Liabilities: dollar 18,000; Owner's Equity: dollar 15,275
[C] Liabilities: dollar 35,000; Owner's Equity: dollar 35,000
[D] Liabilities: dollar 31,500; Owner's Equity: dollar 71,525
Question3: Ford Photo Supplies balances at the beginning of January were: Cash dollar 25,000; Accounts Receivable dollar 15,000; Inventory dollar 30,000; Accounts Payable dollar 18,000; Notes Payable dollar 17,000; Owner's Capital dollar? Ford finished the following transactions during January: Paid off the note payable of dollar 17,000. Sold dollar 36,525 of merchandise to customers on account. Cost of goods sold was dollar 21,250. Paid accounts payable of dollar 3,500. Collected dollar 25,000 of the amounts due from customers. As a result of these transactions, asset balances at the end of January will total:
[A] Cash: $4,500; Accts Rec.: dollar 26,525; Inventory: $21,250
[B] Cash: $29,500; Accts Rec.: dollar 26,525; Inventory: $8,750
[C] Cash: $4,500; Accts Rec.: dollar 51,525; Inventory: $8,750
[D] Cash: $8,000; Accts Rec.: dollar 15,000; Inventory: $30,000
Question4: At the beginning of October, Nirvana Carting had total owner's equity of dollar 86,000. During October, Nirvana had the following transactions: Collected the opening receivables balance of dollar 17,400. Generated revenues of dollar 50,000, of which 60 percent were cash. Incurred total expenses of dollar 36,000, 40 percent of which were paid. Nirvana had no payables balance at the beginning of October. After these transactions are recorded, Nirvana's Owner's Equity balance amounts to:
[A] $135,000
[B] $100,000
[C] $14,000
[D] $86,000
Question5: On May 1, Ace Cleaners had total assets of dollar 438,500. During May, the company completed the following transactions: Kerry Ace, owner of the firm, donated equipment to Ace Cleaners. The equipment had a value of dollar 3,350 at this time. Purchased a building for dollar 39,000 and signed a note for the purchase. Purchased dollar 750 of supplies on credit. After these transactions are recorded, total assets will have a balance of:
[A] $480,850
[B] $472,850
[C] $481,600
[D] $481,500