ACC 131 Final Mitchell

NSF Check

1. FA check returned by a bank because the issuer's cash account balance could not cover the check

How much is ending inventory at march 31st?/perpetual inventory and FIFO costing method/Mar. 1 On hand, 10 units at $2 each $20/Mar 4 Sold 8 units for sales price of $10 each $80/Mar 22 Purchased 50 units at $4 each $200/Mar 26 Sold 48 units for sales price of $10 each $480

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How much is cost of goods sold for March? /perpetual inventory and FIFO costing method/Mar. 1 On hand, 10 units at $2 each $20/Mar 4 Sold 8 units for sales price of $10 each $80/Mar 22 Purchased 50 units at $4 each $200/Mar 26 Sold 48 units for sales price of $10 each $480

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$10,350

A $10,000 bond quoted at 103 ½ is selling for:

$155,000

A balance sheer on Dec 31, 2011 would report a total stockholders equity:

2/10 net 30

A company has a discount policy, which states that, if a customer pays within ten days of the invoice, the customer can take a 2% discount; otherwise the full amount is due in 30 days from the date of the invoice. Which of the following abbreviations are used in business to reflect this discount policy?

$2,000

A company purchases a truck at a cost of $12,000. The truck has an estimated residual value of $2,000 and an estimated life of 5 years, or 100,000 hours of operation. The truck was purchased on January 1, 2012, and was used 27,000 hours in 2012 and 26,000 hours in 2013. If the company uses the straight-line method of depreciation, what is the amount of depreciation expense for 2012?

the asset is sold for a price greater than the assets book value

A gain is recorded on the sale of property, plant and equipment asset when:

Credit Premium $60,000

A repair to an appliance under warranty occurs within the warranty period. What adjustment is made on the seller's accounting records?

revenues, expenses, and dividends

Accounts which are closed at the end of an accounting period include:

Debit: interest expense Credit: Interest Payable

Accrued interest on a short-term note payable is recorded by:

contra-asset

Accumulated depreciation is classified as a(n):

Operating expenses

All amounts paid to acquire a property, plant and equipment asset and to get it ready for its intended use are referred to as:

where the expense or revenue is recorded before the cash settlement

An accrual refers to an event:

Blurry's annual interest expense on the bonds will be less than the amount of interest payments to bondholders each year.

Blurry Corp. issued 10-year, 9%, $100,000 bonds paying interest on an annual basis, at a $6,200 premium. Which one of the following statements is true

-$1,180,000

Given the following date: sales revenue:$1,850,000 Beginning Inventory:$390,000 Ending Inventory:$310,000 Purchases made:$1,100,000

$69,000

If ABC Corp. has 120,000 shares of common stock authorized, has 75,000 shares of common stock issued and holds 6,000 shares of common stock as treasury stock, the total number of outstanding shares of ABC Corp. amounts to:

$3,000

In 2010, ABC Plumbing Co. sold 500 water heaters at $375 each. The water heaters carry a two-year warranty for repairs. ABC estimates that repair costs will average 2% of the total selling price. How much is ABC's warranty expense for 2010?

credit to sales tax payable

Jensen Distribution Company's sales for the day totaled $10,552. Jenkins collected an additional 7.50% in sales tax. The entry to record the day's sales includes a:

Cash 9,700,000 Discount on bonds payable 300,000 Bonds payable 10,000,000

Lincoln Corp. issued $10,000,000 in bonds. The bonds were sold at a price of $97. the journal entry to record the issuance:

credit to cash for $2,000,000

Lock Corporation sold $2,000,000, 6%, 10-year bonds on January 1, 2010. The bonds were dated January 1, 2010, and pay interest on January 1. Lark uses the straight-line method to amortize bond premium or discount. The journal entry to record the issuance of the bonds, assuming that the bonds sold at 103, would include:

is a contra-asset

Market conditions may force a company to issue its bonds at less than the face value of the bonds. The Discount on Bonds Payable account is used in this situation. This account:

total accounts receivable-doubtful-accounts allowance

Net realizable account receivable is calculated as

$110,000

Poetry Co. issues 20,000 shares of $.50 par common stock at $6 per share. The account for additional paid-in capital will increase by

Debit to Cash Credit to Accounts Receivable

Receiving a check from a customer on account would include a:

$32,000

Stockholders equity accounts of Jamison Co. include $75,000 shares of common stock. States value of $.50, and 5,000 shares of treasury stock with a total cost of $25,000. total number of shares outstanding is

recording expense in the period in which it occurred

The Matching principle

contra revenue

The Sales Discounts account is a(N)?

when money is owed to the company from another business or individual generally from selling to a customer on credit

The account called "accounts receivable" is used:

allowance for doubtful accounts

The account that shows the amount of accounts receivable that the business does not expect to collect is

salaries payable

The adjusting entry to record salaries owed to employees but not paid until the next accounting period involves a credit to:

insurance expense and credit to prepaid insurance

The adjustment for the expiration of prepaid insurance originally recorded as an asset, consists of a debit to:

resources belonging to a company having future benefit to the company

The best definition of Assets is

original cost- accumulated depreciation

The book value of a depreciable asset equals:

Adding the remaining balance of Premium of Bonds Payable to Bonds Payable

The carrying value of bonds issued at a premium is calculated by:

retained earnings and balance sheet

The ending balance in Retained Earnings appears on the:

Credit to common stock for $40,000

The entry to record the issuance of 8,000 shares of $5 par value common stock at $9 per share includes a:

$1,000

The interest on a $50,000 note at 12% for 2 months is:

Credit to APIC

The issuance of common stock above par value requires a:

Credit to common stock

The issuance of no-par common stock requires a

Debit, Credit

The normal balance of an expense account is a ___ while the normal balance of revenue account is a ____

Amortization

The process of allocating a property, plant and equipment asset's cost to expense over the period the asset is used is called

outstanding shares to be less than issued shares

Treasury stock causes a:

debit to bad debt expense

Under the allowance method, the entry to record the bad debts estimate includes a:

record a decrease in inventory and an increase in COGS for the cost of merchandise sold

Under the perpetual inventory system, in addition to making the entry to record a sale, a company would:

Debit: accounts receivable Credit: COGS

Using a perpetual inventory system, which of the following entries would record the cost of merchandise sold on credit?

Segregation of duties

Which internal control activity is violated when the cashier at a cash register in a retail store also records the daily receipts in a journal?

LIFO

Which inventory cost flow method assigns the cost of the most recent items purchased to cost of goods sold?

dividends

Which of the following accounts has a normal debit balance

Permanent accounts (ones on the balance sheet)

Which of the following accounts is not involved in closing entries

the cost of assets used, or the liabilities created, in operations of the business

Which of the following best describes the term "expenses"?

collection by the bank of a note receivable

Which of the following does not require a journal entry for a bank reconciliation?

interest earned but not yet received

Which of the following is an example of an accrual?

D: Dividends C: Dividends payable

Which of the following is the appropriate entry to record the declaration of cash dividends?

FICA

Which of the following items are withheld from an employee's paycheck?

assets=liability + SE

Which one of the following is a correct fundamental accounting equation?

$115,000

a balance sheet prepared on Dec 31st, 2011 would report total pain-in capital of:

investments by owners

all the following will affect retained earnings except

Deposits in Transit

cash collected and recorded by a company but not yet reflected in a bank statement is a..

Matching Principle

failure to record liabilities in the same time period as the related revenues is a violation of

Interest payable $1,050

on Oct 1st, Hillsmith co. borrowed $60,000 on a 1-year, 7% note. fiscal year ends on Dec 31st, Hillsmith should make a year ending adjusting entry to increase

a debit to Income Summary and a credit to Utilities Expense

the closing entries for utilities expense would include

safeguard of assets and records

which internal control activity is followed when inventory storage areas are secured with limited access

notes payable

which of the following accounts is decreased with a debit

land

which of the following assets is not subject to depreciation?