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 would Bedrock Wholesale record the October 1 transaction?
a. Increase both Accounts Payable and Inventory
b. Increase both Purchases and Inventory
c. Increase both Accounts Payable and Inventory Expense
d. Increase both Purchases and Inventory Expense
e. Increase both Accounts Payable and Purchases
Enter the letter that corresponds to your choice. (A B C D E)
How would Bedrock Wholesale record the October 2 transaction?
a. Increase both Inventory and Accounts Payable
b. Increase Freight Expense and decrease Cash
c. Increase both Freight Expense and Accounts Payable
d. Increase both Inventory and Freight Expense
e. No entry is required.
Enter the letter that corresponds to your choice. (A B C D E)
How would Bedrock Wholesale record the October 6 transaction?
a. Decrease both Purchases and Inventory Expense
b. Decrease Inventory and increase Purchase Returns
c. Decrease both Accounts Payable and Inventory
d. Decrease both Accounts Payable and Inventory Expense
e. Decrease Accounts Payable and increase Purchase Returns
Enter the letter that corresponds to your choice. (A B C D E)
How would Bedrock Wholesale record the October 7 transaction?
a. Increase Sales and
b. Increase Sales and Accounts Receivable $16,000 each, and increase Cost of Goods Sold and decrease Inventory $16,000 each
c. Increase Sales and Accounts Receivable $16,000 each
d. Increase Sales and Accounts Receivable $16,000 each, and increase Cost of Goods Sold and decrease Inventory $11,000 each
e. Increase Cost of Goods Sold and decrease Inventory $11,000 each
Enter the letter that corresponds to your choice. (A B C D E)
How would Bedrock Wholesale record the October 8 transaction?
a. Increase both Accounts Payable and Freight Expense
b. Decrease Cash and increase Freight Expense
c. Decrease both Cash and Inventory
d. Decrease both Cash and Inventory
e. No entry is required
Enter the letter that corresponds to your choice. (A B C D E)
How would Bedrock Wholesale record the October 10 transaction?
a. Decrease Cash, Inventory, and Accounts Payable.
b. Decrease Cash and Accounts Payable, and increase Inventory.
c. Decrease Cash and Inventory, and increase Accounts Payable.
d. Decrease Cash and increase both Inventory and Accounts Payable.
e. Decrease Cash and Accounts Payable only.
Enter the letter that corresponds to your choice. (A B C D E)
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