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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 Retained Earnings, $4,000

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)

 
 
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
Transcribed Image Text: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
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