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Mohr Company purchases a machine at the beginning of the year at a cost of $30,000. The machine is depreciated using the double-declining-balance method. The machine's useful life is estimated to be 5 years with a $5,000 salvage value. The machine's book value at the end of year 2 is:

$10,800.

Garza Company had sales of $137,000, sales discounts of $2,050, and sales returns of $3,290. Garza Company's net sales equals:

$131,660.

Mohr Company purchases a machine at the beginning of the year at a cost of $26,000. The machine is depreciated using the straight-line method. The machine's useful life is estimated to be 5 years with a $5,000 salvage value. The book value of the machine at the end of year 2 is:

$17,600.

Riverboat Adventures pays $420,000 plus $10,000 in closing costs to purchase real estate. The real estate consists of land appraised at $61,600, a building appraised at $176,000, and land improvements appraised at $202,400. Compute the cost that should be allocated to the building.

$172,000.

At the beginning of the year, Sigma Company's balance sheet reported Total Assets of $294,000 and Total Liabilities of $22,700 and Common stock of $90,800. During the year, the company reported total revenues of $347,000 and expenses of $268,500. Also, dividends during the year totaled $70,000. Assuming no other changes to Retained earnings, the balance in the Retained earnings account at the end of the year would be: Multiple Choice $296,500. $186,000. $189,000. $183,000. $256,000.

$189,000.

Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on May 31, its Cash account shows a debit balance of $21,525. Clayborn's May bank statement shows a $19,400 balance in the bank. Determine the adjusted cash balance using the following information:

$20,450

A company had no office supplies available at the beginning of the year. During the year, the company purchased $290 worth of office supplies. On December 31, $85 worth of office supplies remained. How much should the company report as office supplies expense for the year?

$205.

A company borrowed $22,000 by signing a 180-day promissory note at 6%. The total to be paid at maturity of the note is: (Use 360 days a year.)

$22,660.00

If assets are $428,000 and liabilities are $202,000, then equity equals:

$226,000

A company has net sales of $814,100 and cost of goods sold of $588,100. Its net income is $32,410. The company's gross margin and operating expenses, respectively, are:

$226,000 and $193,590

Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by check. Ryan's June bank statement shows a $22,361 balance in the bank. Ryan's comparison of the bank statement to its cash account revealed the following: Deposit in transit. 2,250. Outstanding checks 1,053 Additionally, a $46 check written and recorded by the company was incorrectly recorded by the bank as a $64 deduction.The adjusted cash balance per the bank records should be:

$23,576

On May 31 of the current year, the assets and liabilities of Riser, Incorporated are as follows: Cash $19,300; Accounts Receivable, $7,200; Supplies, $600; Equipment, $11,950; Accounts Payable, $9,250. What is the amount of equity as of May 31 of the current year?

$29,800.

A company has net sales of $874,000 and cost of goods sold of $579,500. Its net income is $104,500. The company's gross profit and operating expenses, respectively, are:

$294,500 and $190,000

A company's Office Supplies account shows a beginning balance of $650 and an ending balance of $500. If office supplies expense for the year is $3,350, what amount of office supplies was purchased during the period?

$3,200.

A company has $107,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 4% of outstanding receivables are uncollectible. The current balance (before adjustments) in the allowance for doubtful accounts is an $970 credit. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for:

$3,310

Mohr Company purchases a machine at the beginning of the year at a cost of $26,000. The machine is depreciated using the straight-line method. The machine's useful life is estimated to be 5 years with a $5,000 salvage value. Depreciation expense in year 2 is:

$4,200.

Cushman Company had $838,000 in sales, sales discounts of $12,570, sales returns and allowances of $18,855, cost of goods sold of $398,050, and $288,270 in operating expenses. Gross profit equals:

$408,525.

A company purchased property for $100,000. The property included a building, a parking lot, and land. The building was appraised at $53,000; the land at $52,200, and the parking lot at $19,800. Land should be recorded in the accounting records with an allocated cost of:

$41,760.

Marco Nelson opened a frame shop and completed these transactions: Sold custom frames and immediately collected $40,200 cash for the sale. Purchased $90 of office supplies on credit. Paid $1,400 cash for the receptionist's salary. Sold a custom frame service and collected $4,700 cash on the sale. Completed framing services and billed the client $220. What was the balance of the cash account after these transactions were posted? Multiple Choice $12,010. $12,230. $43,500. $43,630. $43,720.

$43,500.

On April 30, Gomez Services had an Accounts Receivable balance of $19,100. During the month of May, total credits to Accounts Receivable were $53,200 from customer payments. The May 31 Accounts Receivable balance was $14,000. What was the amount of credit sales during May?

$48,100.

On November 1, Jasper Company loaned another company $290,000 at a 12% interest rate. The note receivable plus interest will not be collected until March 1 of the following year. The company's annual accounting period ends on December 31. The amount of interest revenue that should be reported in the first year is: Multiple Choice $7,275. $20,900. $8,600. $5,800. $0.

$5,800.

The balances in Labé Accounting Services' office supplies account on February 1 and February 28 were $1,050 and $450, respectively. If the office supplies expense for the month is $1,150, what amount of office supplies was purchased during February?

$550

If equity is $390,000 and liabilities are $198,000, then assets equal: Multiple Choice $192,000. $198,000. $390,000. $588,000. Correct $978,000.

$588,000.

The balances in Labé Accounting Services' office supplies account on February 1 and February 28 were $800 and $400, respectively. If the office supplies expense for the month is $1,000, what amount of office supplies was purchased during February? Multiple Choice $1,200 $800 $600 $1,400 $400

$600

If assets are $96,000 and liabilities are $31,300, then equity equals: Multiple Choice $31,300. $64,700. 96,000. $127,300. $223,300.

$64,700.

On April 30, Gomez Services had an Accounts Receivable balance of $36,700. During the month of May, total credits to Accounts Receivable were $72,400 from customer payments. The May 31 Accounts Receivable balance was $30,000. What was the amount of credit sales during May? Multiple Choice $6,700. $65,700. $72,400. $79,100. $45,600.

$65,700.

A company purchased $8,500 of merchandise on June 15 with terms of 3/10, n/45. On June 20, it returned $425 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it was entitled to. The cash paid on June 24 equals:

$7,833.

Easton Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on June 30, its Cash account shows a debit balance of $72,209. Easton's June bank statement shows a $67,949 balance in the bank. Determine the adjusted cash balance using the following information:

$72,224

Giorgio had cost of goods sold of $9,457 million, ending inventory of $2,125 million, and average inventory of $2,001 million. Its inventory turnover equals:

4.73.

A company had total sales of $880,000, net sales of $858,800, and an average accounts receivable, net of $113,000. Its accounts receivable turnover equals:

7.6

Identify which error will cause the trial balance to be out of balance.

A $200 cash receipt from a customer in payment of her account posted as a $200 debit to Cash and a $20 credit to Accounts Receivable.

Identify which error will cause the trial balance to be out of balance. Multiple Choice A $360 cash salary payment posted as a $360 debit to Cash and a $360 credit to Salaries Expense. A $260 cash receipt from a customer in payment of her account posted as a $260 debit to Cash and a $26 credit to Accounts Receivable. A $155 cash receipt from a customer in payment of her account posted as a $155 debit to Cash and a $155 credit to Cash. A $98 cash purchase of office supplies posted as a $98 debit to Office Equipment and a $98 credit to Cash. An $1,600 prepayment from a customer for services to be rendered in the future was posted as an $1,600 debit to Unearned Revenue and an $1,600 credit to Cash.

A $260 cash receipt from a customer in payment of her account posted as a $260 debit to Cash and a $26 credit to Accounts Receivable.

If the liabilities of a company increased $110,000 during a period of time and equity in the company decreased $37,000 during the same period, what was the effect on the assets? Multiple Choice Assets would have increased $73,000. Assets would have decreased $73,000. Assets would have increased $147,000. Assets would have decreased $147,000. None of the above.

Assets would have increased $73,000.

GreenLawn Company provides landscaping services to clients. On May 1, a customer paid GreenLawn $66,000 for 6-months services in advance. GreenLawn's general journal entry to record this transaction will include a: Multiple Choice Debit to Unearned Revenue for $66,000. Credit to Accounts Receivable for $66,000. Credit to Cash for $66,000. Credit to Unearned Revenue for $66,000. Debit to Accounts Receivable for $66,000.

Credit to Unearned Revenue for $66,000.

A law firm billed a client $2,100 for work performed in the current month. Which of the following general journal entries will the firm make to record this transaction?

Debit Accounts Receivable, $2,100; credit Services Revenue, $2,100.

At the end of the day, the cash register's record shows $1,262, but the count of cash in the cash register is $1,251. The correct entry to record the cash sales is

Debit Cash $1,251; debit Cash Over and Short $11; credit Sales $1,262.

Jasper makes a $34,000, 90-day, 8% cash loan to Clayborn Company. Jasper's entry to record the collection of the note and interest at maturity should be: (Use 360 days a year.)

Debit Cash $34,680; credit Interest Revenue $680; credit Notes Receivable $34,000

Jervis accepts all major bank credit cards, including those issued by Northern Bank (NB), which assesses a 4.0% charge on sales for using its card. On June 28, Jervis had $4,700 in NB Card credit sales. What entry should Jervis make on June 28 to record the deposit?

Debit Cash $4,512.00; debit Credit Card Expense $188.00; credit Sales $4,700

The Retained earnings account has a credit balance of $39,000 before closing entries are made. Services revenue for the period is $57,200, wages expense is $40,800, and dividends are $9,800. What is the correct closing entry for the expense accounts? Multiple Choice Debit Dividends account $40,800; credit Wages Expense $40,800. Debit Wages Expense $39,000; credit Retained Earnings $39,000. Debit Income Summary $40,800; credit Wages Expense $40,800. Debit Wages Expense $40,800; credit Income Summary $40,800. Debit Income Summary $40,800; credit Retained Earnings $40,800.

Debit Income Summary $40,800; credit Wages Expense $40,800

The Retained earnings account has a credit balance of $49,000 before closing entries are made. Services revenue for the period is $67,200, wages expense is $45,800, and dividends are $13,800. What is the correct closing entry for the expense accounts?

Debit Income Summary $45,800; credit Wages Expense $45,800.

A bookkeeper has debited an asset account for $5,900 and credited a liability account for $3,200. Which of the following would be an incorrect way to complete the recording of this transaction:

Debit another asset account for $2,700.

Edison Consulting received a $430 utilities bill and immediately paid it. Edison's general journal entry to record this transaction will include a:

Debit to Utilities Expense for $430.

During the month of July, Clanton Industries issued a check in the amount of $834 to a supplier on account. The check did not clear the bank during July. In preparing the July 31 bank reconciliation, the company should:

Deduct the check amount from the bank balance.

If the assets of a business increased $97,000 during a period of time and its liabilities increased $71,000 during the same period, equity in the business must have: Multiple Choice Increased $26,000. Decreased $26,000. Increased $97,000. Decreased $168,000. Increased $168,000.

Increased $26,000.