ACC 131 Final

Given the following date : what is the COGS? Sales revenue $1,850,000 Beginning Inventory $390,000 Ending Inventory $310,000 Purchases made $1,100,000

$1,180,000

a $10,000 bond quoted at 103.5 is selling for

$10,350

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

$1000

Petry Corporation issues 20,000 shares of $.50 per common stock per share. The account for additional paid in capital will increase by

$110,000

in 2010 ABC plumbing co. sold 400 water heaters at $375 each. The water heaters carry a two-year warranty for repairs. ABC estimates that repaid costs will average 2% of the total selling price. How much is ABCs warranty expense for 2010?

$3,000

The stockholders equity accounts of Jamison Corporation include $7,500 shares of common stock with a stated value of $.50 and 5,000 shares of treasury stock with a total cost of $25,000. The total number of shares outstanding for Jamison Corporation is

$32,500

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 for 27,000 hours in 2012 and 16,000 hours in 2013. If the company uses the straight line method of depreciation what is the amount of deprecation expense for 2012?

2,000

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 t reflect discount policy?

2/10, n/30?

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:

69,000

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

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

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

Debit Cash: 9,700,000 Debit discount on bonds payable 300,000 credit bonds payable 10,000,000

Cash collected and recovered by a company but not yet reflected in a bank statement are known as:

Deposits in transit

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

Dividends , Dividends payable

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

LIFO

A check returned by a bank because the issuer's cash account balance couldn't cover the check is called

NSF Check

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

Operating Expenses

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. Lock 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:

a credit to cash for 2,060,000

The issuance of no-par common stock requires

a credit to common stock

The closing entry for utilities expense would include

a debit to income summary and a credit to utilities expense

net realizable account receivable is calculated as

accounts receivable less allowance for doubtful accounts

which of the following accounts is not involved in closing entries

accumulated depreciation- equipment

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

adding the remaining balance of premium on bonds payable to bonds payable

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

allowance for doubtful accounts

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

amortization

Which one of the following is correct fundamental accounting equation?

assets= liabilities+ stockholders' equity

the ending balance in retained earnings appears on the

balance sheet and statement of retained earnings

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

collection by the bank of a note receivable

accumulated depreciation is classified as

contra-asset account

The sales discounts account is a

contra-revenue account

the issuance of common stock above par value requires a

credit to additional paid in capital (APIC)

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

credit to common stock for $40,000

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:

credit to sales tax payable

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

debit cost of goods sold credit inventory

under the allowance method the entry to record the bad debts estimate includes a

debit to bad debt expense

receiving a check from a customer on account would include a

debit to cash and a credit to accounts receivable

the normal balance of an expense account is a __________ while the normal balance or revenue account is a _______

debit, credit

accrued interest on a short term note payable is recorded by:

debiting interest expense and crediting interest payable

which of the following accounts has a normal debit balance

dividends

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

insurance expense and a credit to prepaid insurance

which of the following is an example of an accrual?

interest earned but not yet recieved

On October 1st Hillsmith company borrowed $60,000 from eight national bank on a 1 year 7% note. If the company's fiscal year ends on December 31st Hillsmith should make a year-end adjusting entry to increase

interest payable $1050

All of the following will affect retained earnings except

investments by owners

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:

is a contra asset account

which of the following assets is not subject to depreciation?

land

There are some liabilities such as income taxes payable and the estimated warranty liability, for which the amounts must be estimated so they can be recorded in the same period as the related revenues. Failure to record these amounts in the same period as the related revenues is a violation of the

matching principle

which of the following accounts is decreased with a debit?

notes payable

the book value of a depreciable asset equals:

original cost minus accumulated depreciation

treasury stock causes a

outstanding shares to be less than issued shares

under the perpetual inventory system in additional to making the entry to record a sale a company would

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

the best definition of assets is the:

resources belonging to a company having future benefit to the company

accounts which are closed at the end of an accounting period include

revenues expenses and dividends

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

safeguard of assets and records

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

salaries payable

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

segregation of duties

a gain is recorded on the sale of property plan and equipment asset when:

the asset is sold for a price greater than the asset's book value

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

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

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

warranty liability credited

The account called accounts receivable is used:

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

an Accrual refers to an event

where the expense of revenue is recorded before the cash settlement