Question 1: Mystic Trolling, Inc., has just purchased a new fishing boat for $5,000 cash. The entry that Mustic Trolling will record includes a
a. debit to Boat-Fishing; credit to Cash.
b. debit to Cash; credit to Boat-Fishing.
c. debit to Boat-fishing; credit to Accounts Payable.
d. debit to Cash; debit to Boat-Fishing.
Question 2: An indication that the general ledger is in an acceptable state is when
a. all accounts in the chart of accounts have been listed on the trial balance.
b. the number of debit accounts listed on the trial balance equal the number of credit accounts listed.
c. the trial balance debit column and credit column total amounts are equal.
d. None of these answers is correct.
Question 3:
The cash balance in ABC Company's general ledger is $14,000 and the cash balance shown on its bank statement is $19,000. Reconciling items include outstanding checks totaling $8,000, deposits in transit totaling $4,000, unrecorded bank service charges of $1,000, and interest revenue shown on the bank statement of $2,000. For what amounts should ABC Company make correcting entries?
a. $14,000 and $19,000
b. $8,000 and $4,000
c. $1,000 and $2,000
d. $8,000, $4,000, $1,000, and $2,000