accounting... yikes

Sunshine, inc. failed to adjust prepaid insurance for insurance that had partially expired. the original entry was recorded by debating the prepaid insurance

an overstatement of assets and an understatement of expenses

Golden Leaf Inc borrows $15,000 at 8% interest for 3 months on March, 1. If adjusting entries are prepared on March 30, how much will be credited to interest payable.

300

Golden Leaf Company will report its accounts receivables on the balance sheet at

present value

Brown Company bank reconciliation should be prepared

to explain any difference between the depositers balance per books with the balance per bank

Beginning accounts recievable was 200,000 and ending accounts recievable were 300,000. Assuming cash collections totalled 1,100,000, what were the credit sales?

1,200,000

SRC has the following items: cash on hand $1000, cash in checking account $3000, cash in a savings account $5000, postage stamps $50, and treasury bill..... cash on the balance sheet

19,000

On Jan. 15 Nifty Company sells merchandise on account to Martinez Associates for $3000 with terms 3/10, n/30. On Jan. 20, Martines returns merchandise the balnce due. What is the amount of cash received?

2,328

Golden Leaf company received its monthly bank statement, which showed an ending balance of 30,000. Adjustments on Golden Leaf's monthly bank reconcilliation check for 1000; a bank service charge of $60; proceeds of a customer's note collected by the bank of $8000. What was the ____________

34,940

Given the following information on activity in football, Inc's supplies asset account: Beginning Balance- 5000, Purchases during year- 6,400 Used during the year- 6000 The amount which should be shown on the year end balance sheet as supplies would be

5400

The Chiefs, recieved and accepted a $500, 60 day, 12 percent note ont Oct. 15 in payment of an account receivable. The cheifs should expect a check in payment of

560

An internal control system is imp. to SRC . because it

All of the above

If a company uses the allowance method to account for doubtful accounts, when will the company's Stockholders equity decrease?

At the end of the accounting period when an adjusting entry for bad debts is recorded

Brown makes 500 on credit card sales. The visa card company charges 5 percent of gross sales. Which of the following statements is true?

Brown will incur a $25 service charge expense on the sales.

Which one of the following is an accurate description of the Allowance for Doubtful Account

Contra Account

Cranberry's monthly bank statement shows a collection by the bank of a note in the amount of 500 and related interest of 30. The journal entry to record the collection will include a:

Credit to Note Receivable for 500

SRC purchased a three year insurance policy on March 1 2010 for $7,200. Assuming that SRC debited the prepaid insurance account in recorded the original transaction would have included

Credit to prepaid insurance for $200

Golden Leaf Company will classify cash, accounts receivable, and prepaid insurance on their balance sheet as

Current assets

Green Realty Company received a check for $30,000 on July 1 which represents a 6 month advance payment of rent on a building it rents to a client. Unearned Rent Revenue was credited for the full $30,000. Financial statements will be prepared on July 31. Green Realty should make the following adjusting entry on July 31:

Debt unearned rent revenue, $5000, credit rent revenue $5,000

If a friend who is taking an upper level finance course asks you the two methods of accounting for uncollectible accounts, your answer would be the

Direct write-off method and the allowance method

If a company uses the direct write off method of accounting for bad debt

It will record bad debt expense only when an account is determined to be uncollected

Which is the correct order of steps in the accounting cycle?

Journalize and post transactions, journalize and post adjusting entries, journalize and post closing entries

A flower shop makes a large sale. they sale and ship the flowers to a customer for $1000 on Nov. 30. The customer is sent a statement on Dec. 5 and........ applies the revenue recognition principle. When is the $1000 considered to be recognized

November 30

Assuming Rams Inc has a $1000 credit balance in Allowance for Doubtful Accounts, the journal entry to write off an uncollectible account receivable of 400 will.......

Reduce both current assets and net income

Internal controls are concerned with

Safeguarding assets

Which statement is correct?

The use of the cash-basis of accounting violates both the revenue recognition and expense recognition principles.

When an NSF check is returned by the bank, it should be shown on the company's books as:

a receivable

Having one person responsible for the related activities of ordering merchandise, receiving goods, and paying for them

increases the potential for errors and fraud

Accured expenses are

incurred but not yet paid or recorded

When straw man inc closes their books for the year, the closing entry process consists of closing

out the retained earning account

The control principle related to not having the same person authorize and pay for goods is known as

separation of duties

The revenue recognition principle dictates that revenue should be recognized in the accounting records

when the performance obligation is satisfied