Randomly listed below are the steps for preparing a trial balance: (1). Verify that the total of the Debit column equals the total of the credit column

(2). List the accounts from the ledger and enter their debit or credit balance in the debit or credit column of the trial balance.

(3). List the name of the company, the title of the trial balance, and the date the trial balance is prepared.

(4). Total the Debit and Credit columns of the trial balance.

A. (3), (2), (1), (4)

B. (3), (2), (4), (1)

C. (4), (3), (2), (1)

D. (2), (3), (4), (1)

The statement of owner’s equity shows

Only net income, beginning capital, and withdrawals

All of the changes in the owner’s capital as a result of net income, net loss, additional investments, and withdrawals

Only total assets, beginning and ending capital

Only net income, beginning and ending capital

3. Sales to customers who use bank credit cards, such as MasterCard and Visa, are generally treated as

A. Sales when the credit card company remits the cash

B. Sales returns

C. Cash sales

D. Sales on account

4. Isaac Co. sells merchandise on credit to Sonar Co in the amount of $5,700. The invoice is dated on April 1 with terms of 1/15, net 45. What is the amount of the discount and up to what date must the invoice be paid in order for the buyer to take advantage of the discount? (3 points)

A. $57, April 16

B. $114, April 15

C. $57, April 15

D. $114, April 16

5. The Corbit Corp. sold merchandise $10,000 for cash. The cost of the merchandise sold was $7,590. The journal entry(s) to record this transaction would be: (3 points)

A. Cash 10,000

Merchandise Inventory 10,000

Cost of goods Sold 7,590

Sales 7,590

B. Cash 10,000

Sales 10,000

Cost of goods Sold 7,590

Merchandise Inventory 7,590

C. Cash 7,590

Merchandise Inventory 7,590

Cost of goods Sold 7,590

Sales 7,590

D. Cash 10,000

Merchandise Inventory 10,000

Cost of goods Sold 10,000

Sales