ACG FINAL PAPER 2025/2026 QUESTIONS AND SOLUTION RATED A+

ACG FINAL PAPER 2025/2026 QUESTIONS AND
SOLUTION RATED A+
✔✔Buys office furniture for $3,800, on account. - ✔✔INCREASE 3,800 Equipment and
INCREASE 3,800 in Accounts Payable

✔✔Sells a house and lot for M.E. Graves; commissions due from Graves, $10,800 (not
paid by Graves at this time). - ✔✔INCREASE Accounts Receivable 10,800 and
INCREASE 10,800 of Service Revenue

✔✔Receives cash of $140 as commission for acting as rental agent renting an
apartment. - ✔✔INCREASE Cash 140 and INCREASE 140 in Service Revenue

✔✔Pays $700 on account for the office furniture purchased on October 3.

(Buys office furniture for $3,800, on account.) - ✔✔DECREASE Accounts Payable 700
and Decrease 700 of Cash

✔✔Pays the administrative assistant $3,000 in salary for October. - ✔✔DECREASE
Salaries and Wage Expense 3,000 and DECREASE 3,000 of Cash

✔✔Stockholders invested $30,000 cash in the company in exchange for common stock.
- ✔✔INCREASE Cash 30,000 and Increase Common Stock 30,000

✔✔Paid $900 cash for April office rent. - ✔✔DECREASE Cash (900) and DECREASE
(900) of Rent Expenses

✔✔Purchased office equipment for $3,400 cash. - ✔✔DECREASE Cash (3,400) and
INCREASE 3,400 of Equipment

✔✔Purchased $200 of advertising in the Chicago Tribune, on account. - ✔✔INCREASE
200 Account Payable and DECREASE 200 Advertising Expenses

✔✔Paid $500 cash for office supplies. - ✔✔DECREASE (500) Cash and INCREASE
500 of Supplies

✔✔Performed services worth $12,000. Cash of $3,000 is received from customers, and
the balance of $9,000 is billed to customers on account. - ✔✔INCREASE 3,000 Cash
and INCREASE 9,000 of Accounts Payable and INCREASE 12,000 of Service
Revenues

✔✔Paid $400 cash dividends. - ✔✔DECREASE (400) Cash and DECREASE (400) in
Dividends

, ✔✔Paid Chicago Tribune amount due in transaction (4).

(Purchased $200 of advertising in the Chicago Tribune, on account.) - ✔✔DECREASE
(200) Cash and Decrease (200) in Accounts Payable

✔✔Paid employees' salaries $1,800. - ✔✔DECREASE (1,800) Cash and DECREASE
(1,800) in Salaries and Wages Expense

✔✔Received $9,000 in cash from customers billed previously in transaction (6).

(Performed services worth $12,000. Cash of $3,000 is received from customers, and
the balance of $9,000 is billed to customers on account.) - ✔✔INCREASE 9,000 Cash
and DECREASE (9,000) Accounts Receivable

✔✔Collected $1,100 of accounts receivable due from customers. - ✔✔INCREASE
1,100 Cash and DECREASE (1,100) in Accounts Recivable

✔✔Paid $2,700 cash for accounts payable due. - ✔✔DECREASE (2,700) Cash and
DECREASE (2,700) in Accounts Payable

✔✔Performed services worth $5,400, of which $3,600 is collected in cash and the
balance is due in September. - ✔✔INCREASE 3,600 Cash and INCREASE 1,800 in
Accounts Receivable and INCREASE 5,400 in Service Revenues

✔✔Purchased additional office equipment for $4,000 , paying $700 in cash and the
balance on account. - ✔✔DECREASE (700) Cash and INCREASE 4,000 Equipment
and INCREASE 3,300 in Accounts Payable

✔✔Paid salaries $1,400, rent for August $700, and advertising expenses $350 . -
✔✔DECREASE (1,400) Cash and DECREASE (1,400) in Salaries and Wages Expense

DECREASE (700) Cash and DECREASE (700) in Rent Expenses

DECREASE (350) Cash and DECREASE (350) in Advertising Expenses

✔✔Paid a cash dividend of $700. - ✔✔DECREASE (700) Cash and DECREASE (700)
in Dividends

✔✔Borrowed $5,000 from Standard Federal Bank; the money was borrowed on a 4-
month note payable. - ✔✔INCREASE 5,000 Cash and INCREASE 5,000 in Noes
Payable

✔✔Incurred utility expenses for the month on account $380. - ✔✔INCREASE 380 in
Accounts Payable and DECREASE (380) in Utilities Expenses