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