ACC131-Final

Petry Corporation issues 20,000 shares of $.50 par common stock for $6 per share. The account for Additional Paid-In Capital in excess of par will increase by:

$110,000

A balance sheet prepared on December 31, 2011 would report total paid-in capital of:

$115,000

A balance sheet on December 31, 2011 would report a total Stockholder's equity of:

$155,000

The stockholder's equity accounts of Jamison Corporation include $7,500 shares of common stock with a stated value of $.50, and 5,000 shares of treasury stock with a total cost of $25,000. The total number of shares outstanding for Jamison Corporation is:

$32,500

The interest on a $50,000 note at 12% for 2 months is:

1,000

Given the following date: COGS?

1,180,000

A $10,000 bond quoted at 103 1/2 is selling for:

10,350

How much is ending inventory at March 31st?

16

In 2010, ABC Plumbing Co sold 400 heaters as $375 each. The water heaters carry a two-year warranty for repairs. ABC estimates that repair costs average 2% of the total selling price. How much is ABC'S warranty expense for 2010?

3,000

How much is the cost of goods sold for March?

560

If ABC Corp. has 120,000 shares of common stock authorized, has 75,000 shares of common stock issued and holds 6,000 shares of common stock as treasury stock, the total number of outstanding shares of ABC Corp. amounts to:

69,000

Lock Corporation sold $2,000,000, 6%, 10-year bonds on January 1, 2010. The bonds were dated January 1, 2010, and pay interest on January 1. Lark uses the straight-line method to amortize bond premium or discount. The journal entry to record the issuance of the bonds, assuming that the bonds sold at 103, would include:

A credit to cash for $2,060,000

Which of the following is the appropriate entry to record the declaration of cash dividends?

A debit to dividends and a credit to dividends payable

The closing entry for utilities expense would include

A debit to income summary and a credit to utilities expense

Net realizable account receivable is calculated as:

Accounts receivable less allowance for doubtful accounts

Which of the following accounts is not involved in closing entries?

Accumulated depreciation-equipment

The carrying value of bonds issued at a premium is calculated by:

Adding the remaining balance of Premium on Bond Payable to Bonds Payable

The matching principle

All of the above

The account that shows the amount of accounts receivable that the business does not expect to collect is:

Allowance for Doubtful accounts

The process of allocating a property, plant, and equipment asset's cost to expense over the period the asset is used is called:

Amortization

The ending balance in Retained Earnings appears on the:

Balance sheet and statement of retained earnings

Blurry Corp. issued 10-year, 9%, $100,000 bonds paying interest on an annual basis, at a $6,200 premium. Which one of the following statements is true?

Blurry's annual interest expense on the bonds will be less than the amount of interest payment to bondholders each year

Which of the following items are withheld from an employee's paycheck?

Both a and c

Which of the following does not require a journal entry for a bank reconciliation?

Collection by the bank of a note receivable

Accumulated depreciation is classified as a(n):

Contra-asset account

The Sales Discounts is a(n):

Contra-revenue account

The issuance of common stock above par value requires a:

Credit to Additional paid-in capital (APIC)

The issuance of no-par common stock requires a:

Credit to Common Stock

The entry to record the issuance of 8,000 shares of $5 par value common stock at $9 per share includes a:

Credit to common stock for 40,000

Jensen Distribution Company's sales for the day totaled $10,552. Jenkins collected an additional 7.50% in sales tax. The entry to record the day's sales includes a:

Credit to sales tax payable

Under the allowance method, the entry to record the bad debts estimate includes a:

Debit to bad debt expense

Receiving a check from a customer on account would include a:

Debit to cash and credit to accounts receivable

Lincoln Corporation issued $10,000,000 in bonds. The bonds were sold at a price of $97. The journal entry to record the issuance is:

Debit to cash for $9,700,000 Debit to discount on bonds payable for 300,000 Credit to bonds payable for 10,000,000

The normal balance of an expense account is a BLANK while the normal balance of revenue account is a BLANK

Debit, credit

Accrued interest on a short-term not payable is recorded by:

Debiting interest expense and crediting interest payable

Cash collected and recorded by a company but not yet reflected in a bank statement are known as:

Deposits in transit

Which of the following has a normal debit balance?

Dividends

The adjustment for the expiration of prepaid insurance originally recorded as an asset, consists of a debit to:

Insurance expense and a credit to prepaid insurance

On October 1st, Hillsmith Company borrowed $60,000 from Eight National Bank on a 1-year, 7% note. If the company's fiscal year ends on December 31st, Hillsmith should make a year-end adjusting entry to increase:

Interest payable $1,050

All of the following will affect retained earnings except:

Investments by owners

Market conditions may force a company to issue its bonds at less than the face value of the bonds. The discount on bonds payable account is used in this situation. This account:

Is a contra-asset account

Which inventory cost flow method assigns the cost of the most recent items purchased to COGS?

LIFO

Which of the following assets is not subject to depreciation?

Land

There are some liabilities, such as income taxes payable and the estimated warranty liability, for which the amounts must be estimated so they can be recorded in the same period as the related revenues. Failure to record these amounts in the same period as the related revenues is a violation of the:

Matching principle

A check returned by a bank because the issuer's cash account balance could not cover the check is called a(n):

NSF check

Which of the following accounts is decreased with a debit?

Notes Payable

All amounts paid to acquire a property, plant, and equipment asset and to get it ready for its intended use are referred to as:

Operating expenses

The book value of a depreciable asset equals:

Original cost minus accumulated depreciation

Treasury stock causes a:

Outstanding shares to be less than issued shares

Under the perpetual system, in addition to making the entry to record a sale, a company would:

Record a decrease in inventory and an increase in COGS for the cost of the merchandise sold

The best definition of assets is the:

Resources belonging to a company having future benefit to the company

Accounts which are closed at the end of an accounting period include:

Revenues expenses and dividends

Which internal control activity is followed when inventory storage areas are secured with limited access?

Safeguard of assets and records

The adjusting entry to record salaries owed to employees but not paid until the next accounting period involves a credit to:

Salaries Payable

A gain is recorded on the sale of property, plant, and equipment asset when:

The asset is sold for a price greater than the assets' book value

Which of the following best describes the term "expenses"?

The cost of assets used, or the liabilities created, in the operation of a business

A repair to an appliance under warranty occurs within the warranty period. What adjustment is made?

Warranty liability credited

The amount called "Accounts Receivable" is used:

When money is due the company from another business or individual generally fro selling to a customer on credit.

An accrual refers to an event:

Where the expense or revenue is recorded before the cash settlement

Which of the following is an example of an accrual?

interest earned but not yet received