4A ACCTG Final Exam Practice

Journey, Inc. provides services to customers. On June 1, a customer prepaid Journey, Inc. $6,000 for 3-months services in advance. The June 1 general journal entry on the books for this transaction will include a:

• Debit to Unearned Management Fees for $6,000.

• Credit to Management Fees Earned for $6,000.

• Credit to Cash for $2,000.

• Credit to Unearned Management Fees for $6,000.

Journey, Inc. sales which product or service?

• Cell Phones

• Parking Service

• Widgets

• Accounting Services

Journey, Inc. received its telephone bill in the amount of $250, and immediately paid it. The general journal entry to record this transaction will include a

• Debit to Telephone Expenses for $250.

• Credit to Accounts payable for $250.

• Debit to Cash for $250.

• Credit to Telephone Expenses for $250.

• Debit to Accounts payable for $250.

Joy contributed $37,000 in cash and land worth $69,000 in exchange for common stock to begin a new corporation, Journey, Inc. Which of the following general journal entries will Journey, Inc. make to record this transaction?

• Debit assets $106,000; Credit Common Stock, $106,000.

• Debit Cash and Land, $106,000; Credit Common Stock, $106,000.

• Debit cash $37,000; debit land $69,000; Credit Common Stock, $106,000.

• Debit Common Stock, $106,000; credit cash $37,000; credit land $69,000.

• Debit Common Stock, $106,000; credit assets $106,000.

Journey, Inc. billed a client $1,500 for work performed in the current month. Which of the following general journal entries will the firm make to record this transaction?

• Debit Accounts Receivable, $1,500; credit Unearned Service Fees Revenue, $1,500.

• Debit Cash, $1,500; credit Unearned Service Fees Revenue, $1,500.

• Debit Service Fees Revenue, $1,500; credit Accounts Receivable, $1,500.

• Debit Accounts Receivable, $1,500; credit Service Fees Revenue, $1,500.

• Debit Cash, $1,500; credit Accounts Receivable, $1,500.

A company made no adjusting entry for accrued and unpaid employee wages of $8,000 on December 31. This oversight would:

• Understate net income by $8,000.

• Overstate net income by $8,000.

• Have no effect on net income.

• Overstate assets by $8,000.

• Understate assets by $8,000.

Journey had cash inflows from operating activities of $30,000; cash outflows from investing activities of $14,000, and cash inflows from financing activities of $10,000. Calculate the net increase or decrease in cash.

• $26,000 decrease.

• $40,000 increase.

• $26,000 increase.

• $54,000 increase.

• $54,000 decrease.

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