Accounting 2301 midterm

is owned by its stockholders.

A business organized as a corporation

$1,274

A credit sale of $1,400 is made on July 15, terms 2/10, net/30, on which a return of $100 is granted on July 18. What amount is received as payment in full on July 22?

indicates an increase in the amount owed to creditors.

A credit to a liability account

an asset that a company expects to convert to cash or use up within one year.

A current asset is

an increase in the asset.

A debit to an asset account indicates

a distribution of the company's earnings to its stockholders.

A dividend is

November 30.

A flower shop makes a large sale for $1,200 on November 30. The customer is sent a statement on December 5 and a check is received on December 10. The flower shop follows GAAP and applies the revenue recognition principle. When is the $1,200 considered to be recognized?

contra asset account.

Accumulated Depreciation is a(n):

accruals and deferrals.

Adjusting entries can be classified as:

total assets remained unchanged.

Camper Van Company purchased equipment for $2,600 cash. As a result of this event,

$525 debit.

At January 31, 2018, the balance in Aislers Inc.'s supplies account was $750. During February, Aislers purchased supplies of $900 and used supplies of $1,125. At the end of February, the balance in the supplies account should be

$1,824

Baker Bakery Company just began business and made the following four inventory purchases in June: June 1 150 units $ 1,040 June 10 200 units 1,560 June 15 200 units 1,680 June 28 150 units 1,320 $5.600 A physical count of merchandise inventory on June 30 reveals that there are 210 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory for June is

Dividends.

Each of the following accounts is closed to Income Summary except

property, plant, and equipment.

Equipment is classified in the balance sheet as

managers.

Financial accounting provides economic and financial information for all of the following except

$42,000.

Financial information is presented below: Sales returns and allowances 7,000 Sales discounts 3,000 Sales revenue 150,000 Cost of goods sold 98,000 Gross profit would be

retained earnings account should be debited.

In order to close the dividends account, the

$14,700

Davies Company purchased merchandise inventory with an invoice price of $15,000 and credit terms of 2/10, n/30. What is the net cost of the goods if Davies Company pays within 5 days?

*not in notes*

Retained earnings at the end of the period is equal to

retained earnings at the beginning of the period plus net income minus dividends.

Retained earnings at the end of the period is equal to

$1,269

Serene Stereos has the following inventory data: Nov. 1 Inventory 30 units @ $6.00 each 8 Purchase 120 units @ $6.45 each 17 Purchase 60 units @ $6.30 each 25 Purchase 90 units @ $6.60 each A physical count of merchandise inventory on November 30 reveals that there are 100 units on hand. Cost of goods sold under FIFO is

debit Depreciation Expense, $3,000; credit Accumulated Depreciation, $3,000.

The Harris Company purchased equipment for $15,000 on January 1. It is estimated that annual depreciation on the computer will be $3,000. If financial statements are to be prepared on December 31, the company should make the following adjusting entry:

the first to be allocated to cost of goods sold.

The LIFO inventory method assumes that the cost of the latest units purchased are

credit to Sales Revenue for $1,800.

The entry to record a sale of $1,800 with terms of 2/10, n/30 will include a

credit to Accounts Receivable for $900.

The entry to record the receipt of payment within the discount period on a sale of $900 with terms of 2/10, n/30 will include a

debit to Sales Returns and Allowances.

The entry to record the return of goods from a customer would include a

analyze each transaction for its effect on the accounts.

The first step in the recording process is to

credit to Income Summary for $7,000.

The income statement for the month of June, 2018 of Camera Obscura Enterprises contains the following information: Revenues $7,000 Expenses: Salaries and Wages Expense $3,000 Rent Expense 1,500 Advertising Expense 800 Supplies Expense 300 Insurance Expense 100 Total expenses 5,700 Net income $1,300 The entry to close the revenue account includes a

credited a liability account for $2,100.

TransAm Mail Service purchased equipment for $2,500. TransAm paid $400 in cash and signed a note for the balance. TransAm debited the Equipment account, credited Cash and

paid and recorded in an asset account before they are used or consumed.

Prepaid expenses are

accumulates the effects of journalized transactions in the individual accounts.

Posting

$340,000.

* Black Keys Company began the year with stockholders' equity of $280,000. During the year, the company recorded revenues of $375,000, expenses of $285,000, and paid dividends of $30,000. What was Black Keys' stockholders' equity at the end of the year?

revenues.

*Stockholders' equity is increased by

expenses exceed revenues.

A net loss will result during a time period when

after closing entries have been journalized and posted.

A post-closing trial balance is prepared

only permanent account balances.

A post-closing trial balance will show

optional device used by accountants.

A worksheet can be thought of as a(n)

$1,508

Alpha First Company just began business and made the following four inventory purchases in June: June 1 150 units $ 1,040 June 10 200 units 1,560 June 15 200 units 1,680 June 28 150 units 1,320 $5,600 A physical count of merchandise inventory on June 30 reveals that there are 210 units on hand. Using the LIFO inventory method, the value of the ending inventory on June 30 is

affects a balance sheet account and an income statement account.

An adjusting entry:

in order to transfer net income (or loss) and dividends to the retained earnings account.

Closing entries are made

temporary accounts only.

Closing entries are necessary for

affect two or more accounts.

For the basic accounting equation to stay in balance, each transaction recorded must

$62,700

Hoover Company had beginning inventory of $15,000 at March 1, 2017. During the month, the company made purchases of $65,000. The inventory at the end of the month is $17,300. What is cost of goods sold for the month of March?

$205,000.

If total assets equal $345,000 and total stockholders' equity equal $140,000, then total liabilities must equal

LIFO method

In a period of rising prices, which of the following inventory methods generally results in the lowest net income figure?

each time a sale occurs.

In a perpetual inventory system, cost of goods sold is recorded

$400 debit balance.

In the first month of operations, the total of the debit entries to the cash account amounted to $1,200 and the total of the credit entries to the cash account amounted to $800. The cash account has a(n)

Dr. Wages Expense 500 Cr. Wages Payable 500

Jill earned a salary of $500 for the last week of October. She will be paid on November 5. The adjusting entry for Jill's employer on October 31 is:

Debit Supplies Expense, $5,100; Credit Supplies, $5,100.

Lake of Fire Company purchased supplies costing $7,000 and debited Supplies for the full amount. At the end of the accounting period, a physical count of supplies revealed $1,900 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be

debit Unearned Rent Revenue, $3,000; credit Rent Revenue, $3,000.

Leyland Realty Company received a check for $18,000 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 $18,000. Financial statements will be prepared on July 31. Leyland Realty should make the following adjusting entry on July 31:

are existing debts and obligations.

Liabilities

current liabilities and long-term liabilities.

Liabilities are generally classified on a balance sheet as

cash.

Liabilities of a company would not include

July 31

Live Wire Hot Rod Shop follows the revenue recognition principle. Live Wire services a car on July 31. The customer picks up the vehicle on August 1 and mails the payment to Live Wire on August 5. Live Wire receives the check in the mail on August 6. When should Live Wire show that the revenue was recognized?

$250,000.

Misra Company compiled the following financial information as of December 31, 2018: Revenues $340,000 Retained earnings (1/1/18) 60,000 Equipment 80,000 Expenses 250,000 Cash 90,000 Dividends 20,000 Supplies 10,000 Accounts payable 40,000 Accounts receivable 70,000 Common stock 80,000 Misra's assets on December 31, 2018 are

$200,000.

Mofro's Computer Repair Shop started the year with total assets of $300,000 and total liabilities of $200,000. During the year, the business recorded $500,000 in computer repair revenues, $300,000 in expenses, and Mofro paid dividends of $50,000. The net income reported by Mofro's Computer Repair Shop for the year was

gross profit.

Net Sales revenue less cost of goods sold is called

a debit to Insurance Expense and a credit to Prepaid Insurance for $200.

Oakville Inc. purchased a 12-month insurance policy on March 1, 2017 for $2,400. At March 31, 2017, the adjusting journal entry to record expiration of this asset will include:

a debit to Supplies and a credit to Accounts Payable.

On January 14, Edamame Industries purchased supplies of $700 on account. The entry to record the purchase will include

debit Rent Expense, $4,000; credit Prepaid Rent, $4,000.

On July 1 the Fisher Shoe Store paid $24,000 to Acme Realty for 6 months rent beginning July 1. Prepaid Rent was debited for the full amount. If financial statements are prepared on July 31, the adjusting entry to be made by the Fisher Shoe Store is:

Credit an asset account for $400.

Radio Moscow Industries purchased supplies for $1,000. They paid $400 in cash and agreed to pay the balance in 30 days. The journal entry to record this transaction would include a debit to an asset account for $1,000, a credit to a liability account for $600. Which of the following would be the correct way to complete the recording of the transaction?

debit Supplies Expense, $7,000; credit Supplies, $7,000.

The Vintage Laundry Company purchased $8,500 worth of laundry supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the laundry supplies indicated only $1,500 on hand. The adjusting entry that should be made by the company on June 30 is:

side which increases that account.

The normal balance of any account is the

determines the inventory on hand only at the end of the accounting period.

The primary difference between a periodic and perpetual inventory system is that a periodic system

prove the equality of the balance sheet account balances that are carried forward into the next accounting period.

The purpose of the post-closing trial balance is to

credit, debit, debit.

The respective normal account balances of Sales Revenue, Sales Returns and Allowances, and Sales Discounts are

liability.

Unearned revenue is classified as a(n):

Credits decrease assets and increase liabilities.

Which of the following statements is true?

Creditors of a company.

Which of the following would not be considered internal users of accounting data for a company?