Accounting final

Doubtful Accounts Expense Allowance for Doubtful Accounts

$3,100; Income Statement $4,000; Balance Sheet

Given the Deferred Revenue T-account, match the correct description with each number.

1. A. Blank 2. B. Beginning Balance 3. D. Revenues Earned 4. C. Collections in Advance from Customers 5. A. Blank 6. G. Ending Balance

Thistle Do Nicely had $200 of supplies on May 1. During May, it purchased $400 of supplies on account. It paid $250 of the $400 it owed for its supplies. At May 31, Thistle Do Nicely only had $75 of supplies left. Supplies on the balance sheet equals ______.

75

Sale fifo

A - Deb accounts rec. Cred inventory L- No effect SE - Credit sales Debit COGS

Salaries expense Salaries payed to employees Salaries payable

Income Statement of cash Balance sheet

Match each item below with the appropriate description using each one only once.

Income Statement Reports a summary of all revenues minus all expenses during a period Statement of Shareholders' Equity Reports the changes that took place in the amount of the owners' investment during a period Statement of Cash Flows Reports a summary of cash collected and cash paid during a period Balance Sheet Reports the assets, liabilities and shareholders' equity of a company at a specific point in time Notes (or footnotes) Reports additional information needed to better understand the financial statements

Quiche & Tell, Inc., is authorized to sell 2,000,000, $3 par value common stock. On May 3, it issued 60,000 at $11 each. The journal entry to record the issuance of this stock includes a ______. (Select all that apply.)

credit Common Stock $180,000 debit Cash $660,000 credit Paid-in Capital in Excess of Par $480,000

Stacos Bell, Inc., issues 100 shares of $10 par value common stock for $50 per share. This transaction will include a ______.

credit to Common Stock fo $1,000 and a credit to Paid-in Capital in Excess of Par for $4,000

The adjusting entry to record interest owed on obligations at the end of the accounting period includes a debit to ______.

Interest Expense and credit to Interest Payable

A $100,000 truck was depreciated using straight-line and assuming a 5-year life and $10,000 salvage value. After 3 years, it was sold for $40,000 cash. The sale of the truck appears under A.___________ activities on the Statement of Cash Flows in the amount of B. $______________.

Investing 40k

Which of the following statements is FALSE?

Paid-in-Capital

A corporation repurchased 1,000 shares of its $1 par value common stock for $8,000. The effect of this transaction on the accounting equation includes a(n) ______. (Select all that apply.)

decrease in assets decrease in shareholders' equity

Accounts Receivable, Net ______.

decreases when the adjusting entry for estimated doubtful accounts is recorded remains the same after a write off is recorded

A company's distribution of its acccumulated earnings is a(n) ______.

dividend

The adjusting entry to record amounts earned that were collected in advance include a(n) ______. (Select all that apply.)

increase to Revenues decrease to Deferred Revenue

The number of shares outstanding equals the number of shares ______.

issued minus the number of shares in treasury

Pasta Disasta, Inc., sold its $14,000 equipment with accumulated depreciation of $10,000 for $5,000. What is the amount of the gain or loss on this sale Pasta Disasta would record?

1000

Florist Gump, Inc., purchased a truck on January 1, Year 1, at a cost of $106,000. The truck has an estimated useful life of 5 years or 115,000 miles. The estimated salvage value is $13,000. In Year 1, the truck was driven 17,000 miles. In Year 2, the truck was driven 25,000 miles. Accumulated Depreciation using straight-line depreciation at December 31, Year 2, after two years of use, equals (rounded to the nearest dollar) ______.

37,200 Cost - Salvage Value)/Useful Life * after how many years

At December 31, Year 1, Sea the World Cruises, Inc.'s assets were $50,000 and liabilities were $40,000. At December 31, Year 2, its assets are $120,000 and liabilities are $50,000. During the year, it did not issue new stock, and it declared and paid $100 dividend. Calculate net income for Year 2.

60,100 Beginning SE + R - E - D + S = Ending SE Third, Net Income (NI) = R - E Lastly, solve for NI: Beginning SE + NI - D + S = Ending SE; NI = Ending SE - Beginning SE + D - S

When a company is owed for sales made to customers on credit, the asset called ______.

Accounts Receivable will be reported on the balance sheet

Which account shows the amount of accounts receivable that the business does not expect to collect?

Allowance for Doubtful Accounts

During the year, Clean Dirt, Inc., recorded $80,000 for the CEO's salary as a capital expenditure. Determine whether this is the appropriate accounting treatment by showing the effect of this accounting treatment on the accounting equation.

Assets are: Too High Liabilities are: Correctly Stated Shareholders' Equity is: Too High

cash notes payable equipment

asset liability asset

Which of these would be reported as cash flows from investing activities? (Select all that apply.)

Cash paid to buy equipment Cash paid to build a new corporate headquarters

The entry to record cash collected from customers in advance includes a ______.

Cred. Differed revenue Debit to cash

After posting all entries to the ledger, the Accounts Payable T-account will show which of the following?

Ending balance on the bottom of the credit side. Purchases on account on the credit side. Beginning balance on the top of the debit side. Payments made on the debit side. Payments made on the credit side. Beginning balance on the top of the credit side.

Doolittle & Dalley, Inc., collected $400 owed from customers for services previously recorded.

D: Cash for 400 C: Service rev for 400

Squid Roe, Inc., purchased $500 of supplies with cash. Record the entry below. DO NOT INCLUDE $ SIGNS IN YOUR ANSWER.

Deb Supples Cred Cash

If a company debited an expense, the credit may have been to ______. (Select all that apply.)

a payable account such as Supplies Payable, Utilities Payable, Interest Payable an asset such as Prepaid Insurance, Supplies, Inventory, or Accumulated Depreciation Cash

The income statement reports the ______.

revenues minus expenses for the accounting period

Paid-in Capital in Excess of Par of $1,000,000 is found in the ______ section of the ______.

shareholders' equity; balance shee

The dollar amount shown on the Balance Sheet for Supplies represents ______.

the cost of supplies that remain unused at the end of the period

On May 1, Lord of the Fries, Inc., issued a $10,000, 3-month, 12% note. It also issued another $10,000 6-month, 12% note on the same day. On May 31, the adjusting entry to record the interest owed will be ______.

the same amount for both notes.