At October 1, 2012, Padilla Industries had an accounts payable balance of $30,000. During the month, the company made purchases on account of $25,000 and made payments on account of $36,000. At October 31, 2012, the accounts payable balance is (Points : 3) $19,000.
TransAm Mail Service purchased equipment for $2,500. TransAm paid $400 in cash and signed a note for the balance. TransAm debited the Equipment account, credited Cash and (Points : 3) nothing further must be done.
debited the Capital account for $2,100.
credited another asset account for $400.
credited a liability account for $2,100.
On May 25, Yellow House Company received a $650 check from Grizzly Bean for services to be performed in the future. The bookkeeper for Yellow House Company incorrectly debited Cash for $650 and credited Accounts Receivable for $650. The amounts have been posted to the ledger. To correct this entry, the bookkeeper should: (Points : 3) debit Cash $650 and credit Unearned Service Revenue $650.
debit Accounts Receivable $650 and credit Service Revenue $650.
debit Accounts Receivable $650 and credit Cash $650.
debit Accounts Receivable $650 and credit Unearned Service Revenue $650.
A lawyer collected $720 of legal fees in advance. He erroneously debited Cash for $270 and credited Accounts Receivable for $270. The correcting entry is (Points : 3)