Question 1:
Patricia Event Planning Service collects fees from their customers in advance. On January 1, 2015, the balance of the Unearned Revenue account was $6,000 (Cr.). During January and February, Patricia collected $3,000 and $1,000 as advance fees. During the two-month period, she rendered services of $6,500.
What is the balance in Unearned Revenue at the end of February?
Debit balance of $6,000
Credit balance of $6,000
Debit balance of $3,500
Credit balance of $3,500
Question 2:
The salaries for Patricia Event Planning Service are $6,000 per week of five working days and are paid weekly at the end of Fridays. The end of the month falls on a Thursday. Patricia made the appropriate accrual adjustment and posted it to the ledger. The final adjusted balance of Salaries Payable, as shown on the adjusted trial balance, will be a (Assume that there was no beginning balance in the Salaries Payable account.)
credit balance of $4,800.
debit balance of $1,200.
debit balance of $4,800.
credit balance of $1,200.
Question 3:
A company has $130,000 in current assets, $500,000 in total assets, $90,000 in current liabilities, and $110,000 in total liabilities. The company has a current ratio of
1.44.
1.48.
1.73.
1.18.
Question 4:
Sarah's Net Income for the year is $25,000. The withdrawals Sarah made during the year amounted to $30,000. Which of the following statements is true of the effect of these transactions on Sarah, Capital?
Sarah, Capital account decreases by $25,000.
Sarah, Capital account decreases by $5,000.
Sarah, Capital account increases by $30,000.
Sarah, Capital account increases by $25,000.