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A.

TRUE OR FALSE

1. When payment is received for services not yet rendered, no entry is recorded until that service
has been rendered.
2. When revenue has been earned, no entry is recorded until the related cash has been collected.
3. In a trial balance, all debits are listed before all credits.
4. In a proper journal entry, credits are always indented.
5. Office supplies are classified as expense
6. It is sometimes correct for a compound entry`s debit totals and credit totals to be unequal
7. The accounts in a chart of accounts are normally listed in alphabetical order
8. When an entity hires a new employee, a recordable event has occurred
9. Companies use the same standard set of accounts
10. Investments by the owner are recorded in the owner`s capital account and not on revenue

B. MULTIPLE CHOICE

1. The accrual basis of accounting recognizes


a. Expenses when cash is paid
b. Revenues when cash is received
c. Revenues when products are produced as part of operating activities
d. Expenses when resources are consumed as part of operating activities
2. A purchase is recognized in the accounting records when
a. Title passes from the seller to buyer
b. Payment is made for the item purchased
c. Purchase requisition is sent to the purchasing department
d. None of the above
3. To find an explanation for a transaction, one should look at the
a. Journal
b. Ledger
c. Chart of accounts
d. Trial balance
4. Which of the following statements is true?
a. All debits are listed before all credits
b. The name of the month should be reported for each entry
c. An explanation must follow under each debit and each credit
d. All are true
5. What function do general ledgers serve in the accounting process?
a. Reporting
b. Recording
c. Classifying
d. Summarizing
On July 1, 2018, Feeldog started medical practice. During the month of July, the following transactions
were completed.

July 1 Feeldog invested 42,500 personal funds in the business

2 Acquired medical equipment costing 95,000 from Bora Medical Equipment paying
15,000 in cash, and financing the remainder by issuing a note payable

3 Paid rent for the month 7,500

5 Acquired medical supplies from Bigstar Medical Supply on account 15,250

7 Received 18,450 cash from patients for medical services rendered this week

12 Paid salaries of medical technician and receptionist 9,600

15 Billed patients 51,700 for services rendered

17 Paid Bigstar Medical Supply 3,750 on account

21 Paid miscellaneous expense 1,150

22 Received 27,500 from patients billed on July 15

26 Billed patients 40,150 for services rendered

27 Paid Bigstar 6,150

28 Withdraw 15,000 for personal use

For the above transactions, use the following accounts:

110 CASH
120 ACCOUNTS RECEIVABLE
130 MEDICAL SUPPLIES
140 MEDICAL EQUIPMENT
210 ACCOUNTS PAYABLE
220 NOTES PAYABLE
310 FEELDOG, CAPITAL
320 FEELDOG, WTIHDRAWAL
410 MEDICAL REVENUES
510 SALARIES EXPENSE
520 RENT EXPENSE
530 LABORATORY EXPENSE
540 MISCELLANEOUS EXPENSE