Penn foster book keeping course exam number 98610200

23

(A) 5/8—Paid telephone bill of $154.32 with cash (check 106).

	Account	Classification	Increase	Decrease
Debit	_______	_______	_______	_______
Credit	_______	_______	_______	_______

(B) 5/9—Paid $15.00 in cash for office cleaning (check 107).

	Account	Classification	Increase	Decrease
Debit	_______	_______	_______	_______
Credit	_______	_______	_______	_______

(C) 5/10—Received cash for weekly Fees Earned of $1,532.94 (tape 1).

	Account	Classification	Increase	Decrease
Debit	_______	_______	_______	_______
Credit	_______	_______	_______	_______

(D) 5/11—Made $500.00 payment to Bellhaven Bank, (check 108).

	Account	Classification	Increase	Decrease
Debit	_______	_______	_______	_______
Credit	_______	_______	_______	_______

(E) 5/14—Paid cash of $1,000.00 for rent for month of May (check 109).

	Account	Classification	Increase	Decrease
Debit	_______	_______	_______	_______
Credit	_______	_______	_______	_______

(F) 5/15—Received cash of $1,385.03 for weekly Fees Earned (tape 2).

	Account	Classification	Increase	Decrease
Debit	_______	_______	_______	_______
Credit	_______	_______	_______	_______

(G) 5/16—Paid $15.93 in cash for auto repairs (check 110).

	Account	Classification	Increase	Decrease
Debit	_______	_______	_______	_______
Credit	_______	_______	_______	_______

(H) 5/17—Paid $430.00 cash to owner for personal use (check 111).

	Account	Classification	Increase	Decrease
Debit	_______	_______	_______	_______
Credit	_______	_______	_______	_______

²⁴ Revenue, Expenses, and Trial Balance

(I) 5/18—Paid cash of $100.00 for cleaning the office (check 112).

	Account	Classification	Increase	Decrease
Debit	_______	_______	_______	_______
Credit	_______	_______	_______	_______

(J) 5/23—Paid $253.00 cash to the Daily News newspaper for advertising (check 113).

	Account	Classification	Increase	Decrease
Debit	_______	_______	_______	_______
Credit	_______	_______	_______	_______

1. In transaction (A) on 5/8, the Cash account is an

A. asset account, which increases.

B. expense account, which decreases.

C. expense account, which increases.

D. asset account, which decreases.

2. In transaction (C) on 5/10, the Fees Earned account is a(n)

A. expense account, which increases.

B. revenue account, which increases.

C. revenue account, which decreases.

D. asset account, which decreases.

3. The A/P—Bellhaven Bank account and the Cash account in transaction (D) on 5/11

A. both increase.

B. decrease and increase respectively.

C. increase and decrease respectively.

D. both decrease.

4. In transaction (E) on 5/14, the account that will increase is the

A. Cash account, which is an asset account.

B. Rent Expense account, which is an expense account.

C. Rent Expense account, which is an asset account.

D. Cash account, which is an expense account.

5. The two accounts that change because of transaction (G) on 5/16 are

A. Auto Expense and Cash.

B. Equipment and Cash.

C. Auto Expense and Auto Repair.

D. Equipment and Owner’s Equity.

Revenue, Expenses, and Trial Balance ²⁵

6. In transaction (H) on 5/17, the account that increases is the

A.	Cash account.	C.	Payroll Expense account.
B.	P. Woodsley, Drawing account.	D.	Employee Asset account.

7. You would classify the account debited in transaction (J) on 5/23, as a(n)

A.	asset account.	C.	revenue account.
B.	liability account.	D.	expense account.

8. The Advertising Expense account and the Cash account in transaction (J) on 5/23

A. both increase.

B. both decrease.

C. increase and decrease respectively.

D. decrease and increase respectively.

We based questions 9–15 on the following information.

Journalize the transactions listed on pages 24 and 25 using the journal on page 27 and assign the proper account numbers to the new accounts.

In answering questions 9–15, use only transactions (A)–(J). Don’t use the example given before (A) on page 23.

Open new ledger sheets for the new accounts on pages 28–33, and post the journal entries to the general ledger. Balance and foot the ledger accounts. The balances in these ledger accounts were brought forward from the exam in Assets, Liabilities, and Owner’s Equity.

PLATT HARDWARE STORE

CHART OF ACCOUNTS

	Division 1	Asset Accounts	11–19
	Division 2	Liabilities	21–29
	Division 3	Owner’s Equity Accounts	31–39
	Division 4	Revenue Accounts	41–49
	Division 5	Expense Accounts	51–59
(1)	ASSETS	(4) REVENUE
	11	Cash	41
	12	Prepaid Insurance
	13	Equipment—Store	(5) EXPENSES
	14	Equipment—Office	51
	15	Supplies	52
			53
(2)	LIABILITIES	54
	21	A/P—Bellhaven Bank	55
	22	A/P—Taylor Investments

ACCOUNT

ACCOUNT NO.

DATE

DATE

ITEM

P.R.

DEBIT

ITEM

P.R.

CREDIT

Now answer questions 9–15.

9. What is the balance in the Cash account after you made all the entries?

A.	$3,309.30	C.	$3,463.62
B.	$3,363.62	D.	$3,643.62

10. What is the balance in the Rent Expense account?

A.	$100.00	C.	$1,000.00
B.	$253.00	D.	$1,500.00

11. The A/P—Bellhaven Bank account has a debit entry for $500.00. What is the account balance?

A.	$3,500.00 debit	C.	$4,500.00 credit
B.	$3,500.00 credit	D.	$5,500.00 debit

12. Which of the following statements is true about the Advertising Expense account?

A. It has a single $253.00 credit entry.

B. It has a $253.00 credit balance.

C. It has a $253.00 debit balance.

D. Its account balance is zero.

Revenue, Expenses, and Trial Balance ³³

13. The P. Woodsley, Capital account balance

A. increased $1,000 during the month of May.

B. has a $5,265.82 debit balance.

C. has a $4,256.82 credit balance.

D. didn’t change during the month of May and has a $5,256.82 credit balance.

14. What were the postings to the Fees Earned account during May?

A. A credit of $1,532.94 and a debit of $1,385.03

B. A credit of $1,532.94 and a credit of $1,385.03

C. A debit of $1,532.94 and a credit of $1,385.03

D. A debit of $1,532.94 and a debit of $1,385.03

15. The balance in the Office Cleaning Expense account is

A.

$115.00 credit.

C.

$115.00 debit.

B.

$85.00 debit.

D.

$15.00 credit.

³⁴ Revenue, Expenses, and Trial Balance

We based questions 16–20 on the trial balance, which you’ll prepare using the form on the previous page. First, prepare a trial balance as of May 31, 20—. Then answer questions 16–20.

16. Which of the following is the correct heading for the trial balance?

A. Platt Hardware Store May 31, 20— Trial Balance

B. Trial Balance

May 31, 20—

Platt Hardware Store

C. Platt Hardware Store

Trial Balance

For the period ending May 31, 20—

D.Platt Hardware Store

Trial Balance

As of May 31, 20—

17. Which of the following best describes the trial balance?

A. It’s a list of all the debit balances and credit balances in the ledger.

B. It has the same information in it as the balance sheet.

C. It’s prepared after the balance sheet.

D. It’s the final statement prepared before closing the books.

18. What is the balance of both the debit and the credit columns in the trial balance?

A.	$19,564.79	B.	$19,554.79
C.	$18,357.82	D.	$18,552.82

19. The accounts listed on the trial balance with a credit balance include

A. liability, owner’s capital, and revenue accounts.

B. asset, liability, and owner’s capital accounts.

C. owner’s capital, revenue, and expense accounts.

D. liability, owner’s capital, and expense accounts.

20. Revenue and expense accounts are considered temporary accounts because they

A. are used only once in a while.

B. are closed out periodically.

C. represent the asset and liability accounts.

D. are used when preparing the balance sheet.

Revenue, Expenses, and Trial Balance ³⁵

³⁶ Revenue, Expenses, and Trial Balance