Accounting Test 2 (chapter 4-6)
The May bank statement for Rental shows a balance of $6,000, but the balance per books shows a cash balance of $8,000. Other information includes: 1. A check for $190 to pay the electric bill was recorded on the books as $10. 2. Included on the bank statement was a note collected by the bank for $450 plus interest of $30. 3. Checks outstanding totaled $270. 4. Bank service charges were $60. 5. Deposits in transit were $2,510. Which item(s) will require a journal entry to update the balance in the Cash account?
Bank service charges, note collected by the bank and error made by the Bookkeeper
Online Service received its telephone bill for January, but is not going to pay the bill until February. What journal entry is needed to record the transaction when the bill is received in January?
Debit Telephone Expense; credit Accounts payable
Which of the following would not be considered a permanent account
Depreciation Expense
one internal control safeguard is to assign all the duties of reiceving, depositing, and recording cash to the same employee
False
accumulated deprecation accounts will appear in which of the following worksheet columns?
The Balance Sheet credit column
The post-closing trial balance is used to determie if the ledger is in balance after posting adjustments and closing entries.
True
Cash short and over is:
a Miscellaneous Expense or Miscellaneous Revenue account depending on the balance in the account.
Larry's Snowboards estimated depreciation for office equipment at $450. The adjusting entry to record the depreciation would include:
a credit to accumulated deprecation, office equipment $450
The bank deducted another companies check from our account. This would be included on the bank reconciliation as a(n):
addition to the balance per bank
prepaid rent is considered to be a(n):
asset
which of the financial statements is prepared last from the worksheet
balance sheet
which of the following bank reconciliation items would be reflected in a journal entry
bank service charges
Assuming no investments were made during the period, the balance of Capital shown on the worksheet is
beginning capital
The income statement credit column of the worksheet showed the following revenues: Catering Fees Earned $670 Cleaning Fees Earned 820 The journal entry to close the revenue accounts is:
catering fees earned, cleaning fees earned, income summary
the bank would issue a credit memorandum to Marion's Life Management with the bank
collects a note receivable from a customer
Jim's Limousines' entry to establish a $160 petty cash fund for the office would include a:
credit for Cash for $160
J. Oakely showed a net loss of $3500. The entry to close the Income Summary account would include a:
debit to J Oakely, Capital $3500
Alcartaz Boat Tours showed a store supplies available during the year, $600. If at the end of the month supplies used were $200, the adjusting entry would include:
debit to supplies expense for $200
John's Tree Service's depreciation expense on its equipment for the month is $1,000. The adjusting journal entry is:
depreciation expense, equipment accumulated deprecation, equipment
Residual value is the:
estimated value of the asset at the end of its useful life
The worksheet contains a Depreciation Schedule of Assets.
false
a signature card is used by the drawer of a check
false
the worksheet is a formal financial statement
false
the worksheet is the first financial statement prepared
false
when an asset expires or is used up, it becomes revenue
false
All permanent can be found
on the Balance Sheet
when original cost is used in the accounting records, the book value of the plant asset is
original cost less accumulated
the adjustment for accrued wages included days from the accounting period instead of the current accounting period. This would:
overstate the liabilities
closing entries will affect
owner's capital
which of the following accounts is most likely be debited in the replenishment of petty cash
postage expense
The order of the steps to prepare the worksheet are:
prepare the trial balance, complete adjustments, prepare the adjusted trial balance, extend the respective totals to the Income Statement and Balance Sheet columns.
which of the following would cause liability to be credited and an expense to be debited
recording the accural of salaries
On a worksheet, the income statement debit column totals $24,400 and the credit column totals $40,300. Which of the following statements is correct?
the company has a net income of 15,900
the amount for withdrawals to be used the Statement of Owner's Equity, would be obtained from:
the worksheet in the balance sheet debit column
vanessa's gymnastics' cash register tapes do not agree with cash receipts. the facts are: total cash register tapes $430; total coins and currency $433. the summary journal entry to record the day's transactions would include a:
$433 debit to cash; $3 credit to cash short and over, and $430 credit to service revenue
permanent accounts
- accounts receivable - prepaid rent - accounts payable
The following normal account balances were found on the general ledger before closing entries were prepared: Revenue $910 Cash $800 Expenses $550 Accounts Receivable $430 Capital $7,300 Withdrawals $1,700 After closing entries are posted, what is the balance in the Revenue account?
0
The adjusted trial balance on the worksheet shows Accumulated Depreciation, $1,700, and Depreciation Expense, $100. What was the balance in the Accumulated Depreciation account before the adjustment?
1600
Equipment with a cost of $570000 has an accumulated depreciation of $320000 what is the book value of the equipment?
250,00
Bob purchased a truck for $56,000 with a residual value of $27,000 and a life of 5 years; using straight−line depreciation, the amount of the depreciation adjustment for the first year would be:
5800
if the balance of supplies at the start of the month was $1800 and at the end of the month you had $900 on hand, the adjustment for supplies would be
900
if the balance of supplies at the start of the month was 1800 at the end of the month you had 900 on hand the adjustment for supplies would be
900