Accounting Cycle Quiz BCOR 2203 (solved)

RMN Perk Coffee Co. purchased a coffee grinder for $2,000 with a note payable. They expect to use the coffee grinder for two years. How does this transaction affect net income? correct answers No effect Today, Sanitas Brewery paid employees for wages incurred last month. Sanitas made the appropriate adjusting entry at the end of last month. How does today's payment affect total liabilities? correct answers Decrease Ally, Inc. collected $1,500 on account from a customer. The collection was related to a sale made last year. How does this transaction affect net income? correct answers No effect Ralphie, Inc. paid $2,000 on account. The account relates to hiring a cleaning company to clean Ralphie's stables last month. What is the effect of the payment on total liabilities? correct answers Decrease On December 1, Lewis Rae, Inc. purchased $1,000 of supplies. A physical count of the supplies on December 31 showed $300 of these supplies remaining. Lewis Rae records the corresponding adjusting entry. How does this adjusting entry affect net income? correct answers Decrease Blank Checks, Inc. declared dividends of $700 that the company expects to pay next month. How does this transaction affect total liabilities? correct answers Increase EggDrop Corp. records depreciation of equipment that it purchased last year. How does this adjusting entry affect net income? correct answers Decrease SkoBuffs paid $900 for an insurance policy that will begin next month and cover the following 12 months. How does this transaction affect net income? correct answers No Effect On August 1, 20X1, Silver Mountain prepaid $600 of expenses for 6 months of mountain access. On December 31, 20X1, an adjusting entry is made. How does this adjusting entry affect net income? correct answers Decrease On January 1, 20X1 Emerald Beach, Inc. paid $10,000 for all of its 20X1 building rent. On January 31, 20X1, Emerald Beach makes an adjusting entry related to this rent. How does this adjusting entry on January 31st affect total assets? correct answers Decrease B Tarth Inc. purchased supplies on account. How does this affect total assets? correct answers Increase The Wildlings Company records depreciation of equipment that it purchased last year. Hows does this adjusting entry affect total assets? correct answers Decrease The Clegane Brothers, Inc. purchased land by signing up for a loan. How does this transaction affect total liabilities? correct answers Increase