Talbridge Ltd. had the following account balances at December 31, 2021: Account Name Repairs expense Wages expense Prepaid expenses Dividends Purchase of intangibles Cash (end of year) Deferred revenue Owners' capital Accounts payable Prepaid insurance Collections from customers Rent expense Contributions by owners Accounts receivable Payment of dividends Website design Service revenue Cash received from debt Income tax expense Office supplies Office supplies expense Payments to suppliers Amount $1,125 21,350 2,500 17,155 Cash (beginning of year) 16,890 Retained earnings (beginning of year) 8,575 Interest expense 900 Business licence 60 Bank loan payable, due in 2025 Website expense Income tax payable 1,400 3,500 1,360 36,385 1,500 12,000 12,810 900 28,350 2,100 3,500 1,300 47,560 12,500 4,450 2,550 1,845 18,995 12,500 500 575
How will IFFA record the May 1 transaction?
a. No entry is needed.
b. decrease Cash and increase Bank Loan Payable, $12
c. decrease Cash and increase Accounts Payable, $12
d. increase both Cash and Owner's Capital, $12
Enter the letter that corresponds to your choice. (A B C D)
How will IFFA record the May 2 transaction?
a. increase both Cash and Accounts Payable, $4,000
b. increase both Cash and Bank Loan Payable, $4,000
c. increase both Cash and Owner's Capital, $4,000
d. increase both Cash and Revenue, $4,000
e. increase both Cash and
Enter the letter that corresponds to your choice. (A B C D E)
How will IFFA record the May 3 transaction?
a. increase both Cash and Accounts Payable, $3,000
b. increase both Cash and Bank Loan Payable, $3,000
c. increase both Cash and Owner's Capital, $3,000
d. increase both Cash and Revenue, $3,000
e. increase both Cash and Retained Earnings, $3,000
Enter the letter that corresponds to your choice. (A B C D E)
How will IFFA record the May 4 transaction?
a. decrease Cash $2,400 and increase Rent Expense $2,400
b. decrease Cash $400 and increase Rent Expense $400
c. decrease Cash $2,400 and increase Prepaid Rent $2,400
d. decrease Cash $2,400, increase Rent Expense $2,400
e. no entry is required.
Enter the letter that corresponds to your choice. (A B C D E)
How will IFFA record the May 6 transaction?
a. increase both Equipment and Accounts Payable, $565
b. increase Supplies Expense and decrease Cash, $500
c. increase Supplies and decrease Cash,$565
d. increase both Supplies Expense and Accounts Payable, $565
e. increase both Supplies and Accounts Payable, $565
Enter the letter that corresponds to your choice. (A B C D E)
How will IFFA record the May 7 transaction?
a. increase Supplies and decrease Cash, $3,000
b. increase both Supplies Expense and Accounts Payable, $3,000
c. increase Supplies Expense and decrease Accounts Payable, $3,000
d. increase both Supplies and Accounts Payable, $3,000
e. increase both Equipment and Accounts Payable, $3,000
f. increase Equipment and decrease Cash, $3,000
Enter the letter that corresponds to your choice. (A B C D E F)
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