On May 31 of the current year, the assets and liabilities of Riser, Inc. are as follows: Cash $20,500; Accounts Receivable, $7,250; Supplies, $650; Equipment, $12,000; Accounts Payable, $9,300. What is the amount of equity as of May 31 of the current year?
A) $49,700.
B) $13,050.
C) $20,500.
D) $31,100.
E) $40,400.
Saddleback Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?
A) Assets, $30,000 increase; equity, $30,000 increase.
B) Assets, $30,000 decrease; liabilities, $30,000 decrease.
C) Assets, $30,000 decrease; liabilities, $30,000 increase.
D) Liabilities, $30,000 decrease; equity, $30,000 increase.
E) Assets, $30,000 decrease; equity $30,000 decrease.
Ralph Pine Consulting received its telephone bill in the amount of $300, and immediately paid it. Which of the following general journal entries will Pine Consulting make to record this transaction?
A) Debit Telephone Expense, $300; Credit Cash, $300.
B) Debit Telephone Expense, $300; Credit Accounts Payable, $300.
C) Debit Cash, $300; Credit Telephone Expense, $300.
D) Debit Accounts Payable, $300; Credit Telephone Expense, $300.
E) Debit Prepaid Expense, $300; Credit Cash, $300.
Willow Rentals purchased $800 of office supplies on credit. Which of the following general journal entries will Willow Rentals make to record this transaction?
A) Debit Accounts Payable, $800; credit Office Supplies, $800.
B) Debit Accounts Receivable, $800; credit Office Supplies, $800.
C) Debit Office Supplies, $800; credit Accounts Receivable, $800.
D) Debit Office Supplies, $800; credit Accounts Payable, $800.
E) Debit Cash, $800; credit Office Supplies, $800.
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