accounting final

Given the following journal​ entry, indicate how it would be​ posted: Salaries Expense ​10,000 Cash ​10,000

Cash 10000 Salaries Expense 10,000

The bookkeeper of Wilson Electric​ Supply, Inc. recorded a $1,500 check as $15,000 in payment of the current​ month's rent. Which of the following journal entries is needed to adjust for this error in the books of the​ company?

Cash 13,500 Rent Expense 13,500

The journal entry for a credit card sale of goods when a company uses the perpetual inventory system would​ be:

Cash XX Sales Revenue XX Cost of Goods Sold XX Merchandise Inventory XX

Zach Company received​ $1,000 cash in advance for services to be completed within the next six months. The journal entry would​ be:

Cash ​1,000 Unearned Revenue ​1,000

Smith Company pays​ $3,000 cash for Rent Expense. What is the effect on the accounting​ equation?

Cash decreases by​ $3,000 and Equity decreases by​ $3,000.

​________ typically work in a manufacturing business and help analyze accounting data.

Cost accountant

The journal entry to issue a promissory note for a company lending​ $2,000 for one year at an annual interest rate of​ 9% would​ be:

Debit Notes Receivable for​ $2,000, credit Cash for​ $2,000.

Regarding gross and net​ pay, which of the following statements is​ correct?

Gross pay minus all deductions such as income tax withheld equals net pay.

Jacobs Company owes​ $700 of federal corporate income taxes. The amount will be paid next month. The journal entry to record the amount of federal income tax owed would​ be:

Income Tax Expense 700 Income Tax Payable 700 Your answer is correct.

Which of the following statements regarding intangible assets is​ incorrect?

Intangible assets are not reported on the balance sheet.

On October​ 1, 2025,​ Bella, Inc. took out a cash loan for $59,000 by signing a six−​month, 6​% note payable. The journal entry to record the accrued interest expense on December​ 31, 2025, would​ be:

Interest Expense 885 Interest Payable 885

Which of the following is a characteristic of a plant​ asset, such as a​ building?

It is used in the operations of a business.

Tipton Corporation purchases land for $500,000 with a note payable for the same amount. The company also pays cash of $2,100 for a survey fee and $3,500 for broker commissions. The journal entry would​ be:

Land 505,600 Notes Payable 500,000 Cash 5,600

A business maintains subsidiary accounts for each of its customers. On May​ 15, the business provides services on​ account: $1,500 to customer J. Anthony​ ; $5,000 to customer A.​ Martin; and $1,400 to customer S. Lee. Which journal entry is needed to record these​ transactions?

May 15 Accounts Receivable − J. Anthony 1,500 Accounts Receivable − A. Martin 5,000 Accounts Receivable − S. Lee 1,400 Service Revenue 7,900

Which of the following entries would be made to record the purchase of inventory on account for​ $12,000, if a company uses the perpetual inventory​ system?

Merchandise Inventory ​12,000 Accounts Payable ​12,000

On November​ 1, 2025,​ Ashton, Inc. purchased merchandise inventory for $30,000 by signing a note payable. The note is for 6 months and bears interest at a rate of 4​%. Interest was accrued on December​ 31, 2025. What is the journal entry on maturity date when the note was​ paid?

Notes Payable 30,000 Interest Payable 200 Interest Expense 400 Cash 30,600

Which of the following statements regarding receivables is​ correct?

Receivables occur when a business loans money to another party.

Which of the following entries would be made because of the matching​ principle?

Salaries Expense ​1,000 Salaries Payable ​1,000

ABC Company had sales of $180,000 for the year with cost of goods sold of $126,000. ABC estimates that approximately 7​% of the merchandise sold will be returned. The adjusting journal entries to record the estimated​ returns, using the perpetual inventory system would​ be:

Sales Revenue 12,600 Refunds Payable 12,600 Estimated Returns Inventory 8,820 Cost of Goods Sold

Regarding the separation of corporate ownership and​ management, which of the following is a true​ statement?

Stockholders own the​ business, but a board of directors appoints corporate officers to manage the business.

Which of the following statements is true of the Sarbanes

The Public Company Accounting Oversight Board oversees the work of auditors of public companies.

Which of the following describes the environment in internal​ control?

The environment is the​ "tone at the​ top" of the business.

Cash received in advance of providing goods or performing services is recorded as​ ________.

Unearned Revenue

On January 1 of the current​ year, Talbert Services received $3,000 in advance of performing the services from a customer for the next three months. What adjusting entry is needed at the end of February​ (assume an equal amount each​ month)?

Unearned Revenue 2,000 Service Revenue 2,000

Johnson Company has ten employees who have each accrued $2,000 in vacation benefits. What is the journal entry to record accrued vacation pay​ earned?

Vacation Benefits Expense 20,000 Vacation Benefits Payable 20,000

Amounts owed for products or services purchased on account are called​ ________.

accounts payable

Which of the following is a current asset that is expected to be converted to​ cash, sold, or consumed during the next year​ (or the normal operating​ cycle, if​ longer)?

accounts receivable

An adjusting entry that credits Salaries Payable is an example of​ a(n) ________.

accrued expense

The matching principle states that

all expenses should be recorded when they are incurred during the period

Notes receivable​ ________.

are supported by a promissory note

Which of the following is representative of safeguarding​ assets?

attaching electronic sensors to merchandise inventory

Which of the following items are reconciling items on the book side of the​ reconciliation?

bank service charge and correction of book error

​Unfortunately, sometimes​ ____________ can beat internal controls.

cullusion

On a balance sheet for a​ merchandiser, Refunds payable is listed as​ a(n) ________.

current liability

Dynamic​ Services, Inc. purchased computers that are to be used in its consulting services. Based on the matching​ principle, the related account that should appear on the income statement for the year ended December 31 is​ ________.

dep expense computers

The cost of a plant asset minus its estimated residual value is ​ ________.

depreciable cost

Distribution of cash or other assets to the stockholders is called​ ________.

dividends

Which of the following is NOT recorded as part of the cost of a​ building?

fencing

Which of the following inventory costing methods yields the lowest cost of goods sold during a period of rising inventory​ costs?

first in first out

Those who grant credit to customers should not​ ___________.

have access to cash

Inventory turnover measures​ ________.

how rapidly merchandise inventory is sold

Bank Routing Number

identifies the bank upon which the payment is drawn

If Service Revenue is closed out for​ $11,000 and the total of all expenses is closed out for​ $6,300, how much is the increase or decrease in Retained Earnings after closing entries have been​ posted?

increase by 4700

In an accounting​ cycle, which of the following steps takes place only at the end of the accounting​ period?

journalize adjusting entries

Which of the following accounts is an​ asset?

land

A debt that does not need to be paid within one year or within the​ entity's operating​ cycle, whichever is longer is considered​ _______.

long term liability

A company decides to ignore a very small error in its inventory balance. This is an example of the application of the​ ________.

materiality concept

When expenses are greater than​ revenues, the result is a

net loss

The entity to whom the payment of the note is owed is the​ ________.

payee of the note

Merchandise inventory accounting systems can be broadly categorized into two types. They are​ ________.

perpetual and periodic

Which of the following accounts is an​ asset?

pre paid expense

On January​ 21, Cressent, Inc. received merchandise from​ Neptune, Inc. On that​ date, Cressent found a few of these goods to be damaged. On January​ 22, Cressent returned the damaged goods to the seller. Such returns will be treated as​ ________ by Cressent.

purchase returns

A permanent account is also known as a ​ ________.

real account

When determining how businesses record or do not record contingent​ liabilities, which is not one of the three likelihoods that are​ considered?

reasonably probable

Which of the following accounts increases with a​ debit?

rent expense

To which of the following accounts should the balance in the Income Summary account be​ closed?

retained earnings

The Allowance for Bad Debts account on the balance sheet is​ ___________.

subtracted from Accounts Receivable

Under the revenue recognition​ principle, a good or service is considered transferred when​ ________.

the customer obtains control of the good or service

Which of the following is an attribute of the internal control procedure—​competent, ​reliable, and ethical​ personnel?

the need to train and supervise employees

Which depreciation method always generates an equal amount of depreciation expense each​ period?

the straight line method

Journal entries are required for the reconciling items on the book side because​ ________.

those transactions have not yet been recorded on the​ company's books

A business received a utility bill for​ $200 and will pay this expense next month. Which of the following accounts is debited when receiving the​ bill?

utilities expense

When does a company account for revenue if it uses cash basis​ accounting?

when cash is​ received, either prior​ to, at the time​ of, or after the services are performed

A​ _______________ is a merchandiser who buys goods from a manufacturer and then sells them to retailers.

wholesaler

When using Lower−of−Cost−or−​Market, if the merchandise inventory market value is greater than the​ cost, the adjusting entry

will not be needed

A company using the perpetual inventory system purchased inventory worth $10,000 on account with credit terms of 4​/15, ​n/30. Defective inventory was​ received, but instead of a​ return, an allowance of $1,200 is given. The allowance is before the invoice is paid. The journal entry to record the allowance would be​ ________.

$1,200 debit to Accounts Payable and $1,200 credit to Merchandise Inventory

The following are the current​ month's balances for selected accounts of Basic Company. All accounts have normal balances. Accounts Payable $8,700 Service Revenue 7,300 Cash 7,600 Expenses 1,500 Furniture 12,900 Accounts Receivable 13,300 Common Stock 10,800 Notes Payable 8,500 Calculate total assets for the current month.

$33800

Assume the following​ information: April 1 Inventory 8 units at cost of $12 April 10 purchase 10 units at cost of $12 April 12 sale 11 units Using the perpetual inventory​ system, what is the amount of ending merchandise​ inventory? Question content area bottom Part 1 A.$ 216

$84

James, Inc. had the following financial data for the year ended December​ 31, 2025. Cash $130,000 Cash equivalents 185,000 Long term investments 155,000 Total current liabilities 344,000 What is the cash ratio as of December​ 31, 2025, for​ James, Inc.?​ (Round your answer to two decimal​ places.)

.92

Following is a list of account balances of Nabers Delivery Services as of December​ 31, after the first year of operations. Accounts Receivable $4,000 Accounts Payable 4,000 Salaries Expense 5,000 Repairs Expense 600 Truck 10,000 Equipment 9,000 Notes Payable 8,500 Cash 14,400 Supplies Expense 1,100 Service Revenue 35,000 Gasoline Expense 3,700 Salaries Payable 300 What is the amount of total liabilities at the end of the​ year?

12,800

The balances of select accounts of​ Elliott, Inc. as of December​ 31, 2024 are given​ below: Notes Payable—short−term $1,000 Salaries Payable 5,000 Notes Payable—long−term 23,000 Accounts Payable 3,200 Unearned Revenue 3,000 Interest Payable 2,400 The Unearned Revenue is the amount of cash received for services to be rendered in​ January, 2025. The Interest Payable is due on February​ 15, 2025. What are the total current liabilities shown on the balance sheet at December​ 31, 2024?

14,600

Following is a list of account balances of Tanner Lawn Services as of December​ 31, after the first year of operations. Accounts Receivable $7,200 Accounts Payable 6,600 Salaries Expense 7,900 Repairs Expense 1,600 Truck ​12,000 Equipment ​13,000 Notes Payable ​27,100 Cash 19,300 Supplies Expense 1,400 Service Revenue 35,000 Gasoline Expense 8,500 Salaries Payable ​2,200 Calculate the net income.

15,600

Given the following account balances before closing​ entries, what would be the balance for Retained Earnings on the Post−Closing Trial Balance​ (assuming the beginning Retained Earnings balance is​ zero)? Dividends — ​22,000 Service Revenue — ​302,000 Salaries Expense — ​64,000 Depreciation Expense−Building and Equipment — ​6,700 Supplies Expense — ​14,400 Insurance Expense — ​16,700 Utilities Expense — ​20,200

158000

The Accounts Payable account of​ Waterford, Inc. has the following​ postings: Accounts Payable 18,000 29,000 7,000 12,000 Calculate the ending balance of the account.

16,000 credit

Carson Corp. purchased a used machine for $179,000. The machine required installation costs of $5,800​, transportation costs of $3,200​, and insurance while in transit of $1,500. An extended warranty was acquired on the machine for $4,900 and the machine needed $10,300 of repairs before it could be used. At which of the following amounts would the machine be​ recorded?

199,800

Assume the following​ information: May 1 Inventory 17 units at cost of $15 May 9 purchase 12 units at cost of $15 May 15 sale 18 units Using the perpetual inventory​ system, what is the amount of cost of goods​ sold?

270

The following are the current​ month's balances for ABC Financial​ Services, Inc. before preparing the trial balance. Accounts Payable ​$6,000 Revenue ​3,000 Cash ​4,000 Expenses ​14,500 Furniture ​13,000 Accounts Receivable ​13,000 Common Stock ​? Notes Payable ​8,500 What amount should be shown for Common Stock on the trial​ balance?

27000

High Quality Jewelers uses the perpetual inventory system. On March​ 3, High Quality sold merchandise for $50,000 to a customer on account with terms 2​/15, ​n/30. The cost of goods sold was $20,000. On March​ 18, High Quality received payment from the customer. Calculate the amount of gross profit.

29,000

The following contains information from the records of Bourne Engineers and Architects. Bourne Engineers and Architects Selected Financial Information December​ 31, 2025 Current Assets ​$94,500 Current Liabilities ​27,000 Long−Term Assets ​99,000 Long−Term Liabilities ​65,000 Total Revenues ​52,000 Total Expenses ​37,000 Calculate the current ratio.​ (Round your answer to two decimal​ places.)

3.5

Johnson​ Gardens, Inc. provided the following for the​ year: Cost of Goods Sold​ (Cost of​ sales) $2,500,000 Beginning Merchandise Inventory 660,000 Ending Merchandise Inventory 650,000 Calculate the​ company's inventory turnover ratio for the year.​ (Round your answer to two decimal​ places.)

3.82 times per year

On the first day of​ January, Builders, Inc. borrowed $10,000 on a one−year note payable bearing interest at 7​% per year. The note specifies that principal and interest must be paid in full at the end of the one−year period. On June​ 30, the adjusted trial balance will show Interest Payable of​ ________.

350 credit

If the beginning retained earnings balance is $5,300​, net income is $4,700​, and ending retained earnings is $6,100​, what is the amount of dividends​ paid?

3900

Classic Designs Company had the following total​ assets, liabilities, and equity as of December 31. Total Assets ​$123,000 Total Liabilities ​49,200 Total Equity ​73,800 What is the​ company's debt ratio as of December​ 31?

40%

Dynamic Production Services started the year with total assets of $110,000 and total liabilities of $50,000. The revenues and the expenses for the year amounted to $100,000 and $60,000​, respectively. During the​ year, the company did not issue any common​ stock, but it distributed dividends of $55,000. Calculate​ Dynamic's net income for the year.

40,000

On January​ 1, 2025, a corporation acquired a truck for $60,000. Residual value was estimated to be $20,000. The truck can be driven for 50,000 miles or a useful life of four years. Actual usage of the truck was recorded as 7,000 miles for the first year and 8,000 miles for the second year. What is the book value at the end of year​ 2, calculated by the units−of−production ​method? (Round any intermediate calculations to the nearest​ cent, and round your final answer to the nearest​ dollar.)

48,000

Beverly Dalton incorporated her CPA practice 5 years ago. At that​ time, the corporation purchased land for $49,000. The December 31 of the current​ year, the market value of the land is $66,000. On the balance sheet for December 31 of the current​ year, the asset should be reported at​ ________ under U.S. GAAP.

49000

​Travis, Inc. purchased land to build a future office location. In the first​ quarter, the following amounts were​ incurred: Acquisition of land $44,000 Broker Fee 2,200 Surveys and legal fees 2,000 Land clearing 500 Fencing 8,900 Install lighting and signage 1,600 Parking lot 2,300 Delinquent taxes 5,000 What amount should be recorded as the cost of the land in the​ corporation's books?

53700

Classic Autos specializes in selling gently used specialty sports cars and uses the specific identification method of determining ending inventory and cost of goods sold. Item 507K was sold for $89,000. Classic purchased the sports car for $53,000 and paid $1,300 for freight in and $1,500 for freight out. What is the cost of goods​ sold?

54,300

​Carpenter, Inc. generated sales revenues of​ $1,600,000 during the current year. Its cost of goods sold amounted to​ $720,000. Calculate​ Carpenter's gross profit percentage.

55%

On January​ 1, 2024, Tyson Manufacturing Corporation purchased a machine for $40,200,000. ​Tyson's management expects to use the machine for 29,000 hours over the next six years. The estimated residual value of the machine at the end of the sixth year is $43,000. The machine was used for 4,100 hours in 2024 and 5,600 hours in 2025. What is the depreciation expense for 2024 if the corporation uses the units−of−production method of​ depreciation? (Round any intermediate calculations to two decimal​ places, and your final answer to the nearest​ dollar.)

5677352

On December​ 1, Accounts Receivable has a debit balance of $6,400 and Allowance for Bad Debts has a credit balance of $260. On December​ 31, the company determined it could not collect $80 from Charter Company and wrote if off using the allowance method. What is the balance in Accounts Receivable on December​ 31?

6320

What is the maturity value of a 6−​month, 11​% note for $60,000​? ​(Round any intermediate calculations to two decimal​ places, and your final answer to the nearest​ dollar.)

63300

ABC Company had the following transactions during the month. What would be the total amount of service revenues for the month if ABC Company uses the cash basis​ method? a. Paid $2,400 for insurance for the next 12 months. b. Received $6,000 for services to be performed equally over the next 6 months. c. Paid $800 for the current​ month's rent. d. Paid $350 cash for office supplies. e. Paid $900 in Salaries Expense. f. Received $1,200 in cash for service revenue earned this month.

7200

On January​ 1, 2024,​ Sanderson, Inc. acquired a machine for $1,160,000. The estimated useful life of the asset is five years. Residual value at the end of five years is estimated to be $78,000. What is the book value of the machine at the end of 2025 if the company uses the straight−line method of​ depreciation?

727200

The asset​ account, Office Supplies had a beginning balance of $5,400. During the accounting​ period, office supplies were​ purchased, on​ account, for $4,700. A physical​ count, on the last day of the accounting​ period, shows $2,500 of office supplies on hand. What is the amount of Supplies Expense for the accounting​ period?

7600

Martha, Inc. had 20,000 units of ending inventory that were recorded at the cost of $5 per unit using the FIFO method. The current replacement cost is $4.00 per unit. Which of the following amounts would be reported as ending Merchandise Inventory on the balance sheet using the lower−of−cost−or−market ​rule?

80,000

A company that uses the perpetual inventory system sold goods to a customer on account on June 14 for $52. The company has the following inventory​ information: June 1 Beginning Inventory 14 units at $4 each June 10 Purchase 16 units at $5 each June 11 Sale 11 units June 14 Sale 8 units The company uses the LIFO method of inventory costing. Which of the following journal entries correctly records the sale on June​ 14?

Accounts Receivable 52 Sales Revenue 52 Cost of Goods Sold 37 Merchandise Inventory

Question content area top Part 1 On May​ 15, Baxtor, Inc. sold​ $26,000 of merchandise to​ James, on account. Baxtor could not collect cash from James and wrote off the account. What is the journal entry to record the write−​off, assuming Baxtor uses the allowance​ method?

Allowance for Bad Debts ​26,000 Accounts Receivable—James ​26,000 This is the correct answer.

Mulberry Corporation collected $7,000 from one of its​ customers, the amount owed from the previous month. How does this affect the accounting equation for​ Mulberry?

Assets increase by $7,000​; assets decrease by $7,000.