Accounting Final

Green Realty paid $6,000 rent on a building in advance for two years on May 1. The amount that should be recorded as rent expense as of December 31 at the end of Year 1 is:

2,000

Johnson Supplies has $530,000 in net sales and $300,000 in gross profit. Cost of Goods Sold equals:

230,000

Beginning inventory was $3,600, purchases totaled $20,200 and and Cost of Goods Sold was $17,200. What is the ending inventory? Assume gross profit is $0.

6600

Returned merchandise paid for within the discount period for a Cash refund. This will be recorded with:

A debit to an asset

Freight-in:

Adds to the cost of goods sold

Prepaid Workers' Compensation Insurance is what type of account?

Asset

The entry to record a purchase of $13,000 on account, terms of 2/10, n/30, would include a:

Credit to accounts payable for 13,000

The entry to close the Freight-in account will include which of the following?

Debit to income summary

Wages and Salaries Expense is:

Equal to gross pay

Most employers are levied a payroll tax for:

FICA taxes, federal and state unemployment taxes

Another name for the Fair Labor Standards Act is:

Federal wage and hour law

What type of an account is Wages and Salaries Payable?

Liability

Merchandise purchased for resale under the perpetual inventory method is added to:

Purchases

The income statement columns on a worksheet have subtotals as follows: debit column, $12,000, and credit column, $9,300. This indicates that:

The company incurred a net loss of 2700

As the Prepaid Workers' Compensation is recognized, the amount will transfer to:

Workers' compensation insurance expense

The payment of FUTA would include:

a debit to FUTA payable

Returned merchandise under the periodic inventory method. This will be recorded with:

a debit to accounts payable and a credit to purchases returns and allowances

If a credit memorandum is issued, what account will be decreased on the seller's books?

accounts receivable

On the worksheet the ending Merchandise Inventory account appears in the:

adjustment, adjusted trial balance, and balance sheet columns

The information to prepare the Statement of Owner's Equity comes from the:

balance sheet columns on the worksheet

The income summary amounts in the income statement columns of the worksheet represent:

beginning and ending inventory

Recording to the accounts receivable subsidiary ledger is done:

daily

A discount on merchandise purchased would be a:

debit to accounts payable, and a credit to merchandise inventory

A purchase of merchandise inventory for cash:

decrease net income

Ending inventory:

decreases cost of goods sold

A summary record of each person's earnings, deductions, and net pay is called a(n):

employee individual earnings record

Which form is sent to the Social Security Administration along with the W-2s? It reports total wages, FICA tax withheld, etc., for the previous year.

form w-3

The payroll register:

is a worksheet

Gross profit less operating expenses equals:

net income

The shipping paid on goods purchased F.O.B. Shipping Point was not recorded. This error will cause:

net income to be overstated

In which section does Interest Revenue appear in the Income Statement?

other income

When closing income statement accounts having credit balances, which of the following accounts will also be closed?

purchases discount

When counting supplies, several boxes were missed. This would cause:

supplies expense to be overstated

The return of merchandise was recorded as a debit to Accounts Receivable and a credit to Merchandise Inventory. This error will cause:

total assets to be overstated

When the term F.O.B. shipping point is used, title passes:

when goods are shipped