FINANCE

37)
On June 1, 2005, Planet Music has accounts payable of $45,000. During the month, debits of $3,000 and credits of $11,000 were made to the account. At the end of June 2005, what was the accounts payable balance?

A credit balance of $53,000

A debit balance of $42,000

A credit balance of $56,000

A debit balance of $53,000
38)
Barnaby & Sons receives a large shipment of goods from its supplier. It pays $58,000 at the time of delivery and promises to pay the remaining $42,000 within the next two months. What is appropriate journal entry for this transaction?

Debit cash $42,000; debit inventory $16,000; credit accounts payable $58,000;

Debit inventory $100,000; credit cash $58,000; credit accounts payable $42,000

Debit accounts payable $58,000; credit cash $42,000; credit inventory $16,000

Debit accounts payable $58,000; debit cash $42,000; credit inventory $100,000
39)
Annie’s Fitness sells a set of free weights to a customer for $1,000. The customer pays $600 in cash and puts the rest on her store credit account. Which one of the following statements describes the most appropriate accounting for the transaction?

Debit cash $600; debit accounts receivable $400; credit cost of good sold $1000

Debit cash $600; debit accounts receivable $400; credit revenues $1,000

Debit revenues $1,000; credit cash $600; credit accounts receivable $400

Debit cash $600; debit accounts receivable $400; credit inventory $1,000
40)
Annie’s Fitness sells a set of free weights to a customer for which Annie’s had paid $750. Which one of the following statements describes the most appropriate accounting for the transaction?

Debit cost of goods sold expense $750; credit cash $750

Debit inventory $750; credit cost of goods sold expense $750

Debit cost of goods sold expense $750; credit inventory $750

Debit inventory $750; credit accounts payable $750

 

 

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