acct final

Fetherston Company's goods in transit at December 31 include: sales made purchases made (1) FOB destination (3) FOB destination (2) FOB shipping point (4) FOB shipping point Which items should be included in Fetherston's inventory at December 31? Entry field with correct answer (1) and (3) (2) and (3) (1) and (4) (2) and (4)

(1) and (4)

Jean's Vegetable Market had the following transactions during 2017: 1. Issued $50,000 of par value common stock for cash. 2. Repaid a 6 year note payable in the amount of $22,000. 3. Acquired land by issuing common stock of par value $100,000. 4. Declared and paid a cash dividend of $2,000. 5. Sold a long-term investment (cost $3,000) for cash of $8,000. 6. Acquired an investment in IBM stock for cash of $15,000. What is the net cash provided used by investing activities? Entry field with correct answer $8,000 ($7,000) $33,000 $15,000

(7,000)

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: Accounts payable $ 18,000 Accounts receivable 11,000 Accumulated depreciation - equipment 28,000 Advertising expense 21,000 Cash 15,000 Common stock 42,000 Dividends 14,000 Depreciation expense 12,000 Insurance expense 3,000 Note payable, due 6/30/16 70,000 Prepaid insurance (12-month policy) 6,000 Rent expense 17,000 Retained earnings (1/1/15) 60,000 Salaries and wages expense 32,000 Service revenue 133,000 Supplies 4,000 Supplies expense 6,000 Equipment 210,000 What are total long-term liabilities at December 31, 2015? Entry field with correct answer $0 $70,000 $88,000 $90,000

0

A company just starting business made the following four inventory purchases in June: Date Number of units purchased Total cost June 1 150 units $ 390 June 10 200 units 585 June 15 200 units 630 June 28 150 units 510 $2,115 A physical count of merchandise inventory on June 30 reveals that there are 250 units on hand. Using the FIFO inventory method, the amount allocated to cost of goods sold for June is Entry field with correct answer $825. $683. $1,290. $1,432.

1,290

Brown Company has 1,000 shares of 5%, $100 par cumulative preferred stock outstanding at December 31, 2015. No dividends have been paid on this stock for 2014 or 2015. Dividends in arrears at December 31, 2015 total $10,000. $0. $500. $5,000.

10,000

A company purchased factory equipment on April 1, 2015 for $160,000. It is estimated that the equipment will have a $20,000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2015 is Entry field with correct answer $14,000. $12,000. $16,000. $10,500.

10,500

The following information is available for Everett Company at December 31, 2015: beginning inventory $80,000; ending inventory $120,000; cost of goods sold $1,050,000; and sales $1,800,000. Everett's inventory turnover in 2015 is Entry field with correct answer 18 times. 10.5 times. 13.2 times. 8.7 times.

10.5

Lakeland, Inc. has 25,000 shares of 6%, $100 par value, noncumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2015. There were no dividends declared in 2014. The board of directors declares and pays a $250,000 dividend in 2015. What is the amount of dividends received by the common stockholders in 2015? Entry field with correct answer $250,000 $0 $100,000 $150,000

100,000

Lake Company received proceeds of $188,000 on 10-year, 6% bonds issued on January 1, 2015. The bonds had a face value of $200,000, pay interest annually on January 1, and have a call price of 101. Lake uses the straight-line method of amortization. What is the amount of interest Lake must pay the bondholders on January 1, 2016? Entry field with correct answer $12,000 $13,200 $10,800 $11,200

12,000

Transactions in a journal are recorded in Entry field with correct answer chronological order. alphabetical order. account number order. dollar amount order.

chronological order

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: Accounts payable $ 18,000 Accounts receivable 11,000 Accumulated depreciation - equipment 28,000 Advertising expense 21,000 Cash 15,000 Common stock 42,000 Dividends 14,000 Depreciation expense 12,000 Insurance expense 3,000 Note payable, due 6/30/16 70,000 Prepaid insurance (12-month policy) 6,000 Rent expense 17,000 Retained earnings (1/1/15) 60,000 Salaries and wages expense 32,000 Service revenue 133,000 Supplies 4,000 Supplies expense 6,000 Equipment 210,000 What is the amount that would be reported for stockholders' equity at December 31, 2015? Entry field with correct answer $158,000 $130,000 $144,000 $102,000

130,000

Turturro Department Store utilizes the retail inventory method to estimate its inventories. It calculated its cost to retail ratio during the period at 75%. Goods available for sale at retail amounted to $600,000 and goods were sold during the period for $420,000. The estimated cost of the ending inventory is Entry field with correct answer $450,000. $135,000. $180,000. $315,000.

135,000

A company purchased factory equipment for $700,000. It is estimated that the equipment will have a $70,000 salvage value at the end of its estimated 5-year useful life. If the company uses the double-declining-balance method of depreciation, the amount of annual depreciation recorded for the second year after purchase would be Entry field with correct answer $280,000. $168,000. $120,960. $252,000.

168,000

The following information is for Sunny Day Real Estate: Sunny Day Real Estate Balance Sheet December 31, 2015 ---- The total dollar amount of assets to be classified as current assets is Entry field with correct answer $105,000. $175,000. $190,000. $260,000.

175000

A company had net income of $210,000. Depreciation expense is $27,000. During the year, Accounts Receivable and Inventory increased $17,000 and $42,000, respectively. Prepaid Expenses and Accounts Payable decreased $5,000 and $6,000, respectively. There was also a loss on the sale of equipment of $2,000. How much cash was provided by operating activities? Entry field with correct answer $271,000 $175,000 $241,000 $179,000

179,000

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: Accounts payable $ 18,000 Accounts receivable 11,000 Accumulated depreciation - equipment 28,000 Advertising expense 21,000 Cash 15,000 Common stock 42,000 Dividends 14,000 Depreciation expense 12,000 Equipment 210,000 Insurance expense 3,000 Note payable, due 6/30/16 70,000 Prepaid insurance (12-month policy) 6,000 Rent expense 17,000 Retained earnings (1/1/15) 60,000 Salaries and wages expense 32,000 Service revenue 133,000 Supplies 4,000 Supplies expense 6,000 What is the book value of the equipment at December 31, 2015? Entry field with correct answer $210,000 $182,000 $238,000 $170,000

182,000

Nick's Place recorded the following data: Units Unit Date Received Sold On Hand Cost 1/1 Inventory 600 $2.50 1/8 Purchased 1,000 1600 3.00 1/12 Sold 1,200 400 The weighted average unit cost of the inventory at January 31 is: Entry field with correct answer $2.75. $2.81. $3.400. $2.50.

2.81

The following information is for Sunny Day Real Estate: Sunny Day Real Estate Balance Sheet December 31, 2015 ---- The total dollar amount of assets to be classified as property, plant, and equipment is Entry field with correct answer $305,000. $220,000. $200,000. $285,000.

200,000

If total assets equal $345,000 and total stockholders' equity equal $140,000, then total liabilities must equal Entry field with correct answer $140,000. $205,000. $485,000. There is not enough information given to determine this.

205,000

Jean's Vegetable Market had the following transactions during 2017: 1. Issued $50,000 of par value common stock for cash. 2. Repaid a 6 year note payable in the amount of $22,000. 3. Acquired land by issuing common stock of par value $50,000. 4. Declared and paid a cash dividend of $7,000. 5. Sold a long-term investment (cost $3,000) for cash of $6,000. 6. Acquired an investment in IBM stock for cash of $10,000. What is the net cash provided by financing activities? Entry field with correct answer $67,000 $28,000 $0 $21,000

21,000

Yanik Company's delivery truck, which originally cost $84,000, was destroyed by fire. At the time of the fire, the balance of the Accumulated Depreciation account amounted to $57,000. The company received $48,000 reimbursement from its insurance company. The gain or loss as a result of the fire was Entry field with correct answer $36,000 loss. $21,000 loss. $36,000 gain. $21,000 gain.

21,000 gain

Misra Company compiled the following financial information as of December 31, 2015: Revenues $340,000 Retained earnings (1/1/15) 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 stockholders' equity on December 31, 2015 is Entry field with correct answer $90,000. $140,000. $210,000. $250,000.

210,000

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: Accounts payable $ 18,000 Accounts receivable 11,000 Accumulated depreciation - equipment 28,000 Advertising expense 21,000 Cash 15,000 Common stock 42,000 Dividends 14,000 Depreciation expense 12,000 Equipment 210,000 Insurance expense 3,000 Note payable, due 6/30/16 70,000 Prepaid insurance (12-month policy) 6,000 Rent expense 17,000 Retained earnings (1/1/15) 60,000 Salaries and wages expense 32,000 Service revenue 133,000 Supplies 4,000 Supplies expense 6,000 What is total liabilities and stockholders' equity at December 31, 2015? Entry field with correct answer $232,000 $176,000 $218,000 $190,000

218,000

The net income reported on the income statement for the current year was $220,000. Depreciation recorded on plant assets was $35,000. Accounts receivable and inventories increased by $2,000 and $8,000, respectively. Prepaid expenses and accounts payable decreased by $2,000 and $12,000 respectively. How much cash was provided by operating activities? Entry field with correct answer $220,000 $235,000 $200,000 $255,000

235,000

During 2015, Parker Enterprises generated revenues of $90,000. The company's expenses were as follows: cost of goods sold of $45,000, operating expenses of $18,000 and a loss on the sale of equipment of $3,000. Parker's net income is Entry field with correct answer $45,000. $24,000. $27,000. $90,000.

24,000

Double Nickels Company purchased equipment for $9,000 on January 1, 2015. The company expects to use the equipment for 3 years. It has no salvage value. Monthly depreciation expense on the asset is Entry field with correct answer $3,000. $9,000. $0. $250.

250

Misra Company compiled the following financial information as of December 31, 2015: Revenues $340,000 Retained earnings (1/1/15) 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, 2015 are Entry field with correct answer $360,000. $490,000. $180,000. $250,000.

250,000

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. Stockholders' equity at the end of the year was Entry field with correct answer $100,000. $250,000. $300,000. $200,000.

250,000

Multiple Choice Question 107 Correct answer. Your answer is correct. The following data are available for Sampson Corporation. Net income $200,000 Depreciation expense 60,000 Dividends paid 90,000 Loss on sale of land 15,000 Decrease in accounts receivable 30,000 Decrease in accounts payable 45,000 Net cash provided by operating activities is: Entry field with correct answer $140,000. $160,000. $260,000. $240,000.

260,000

During 2015, Parker Enterprises generated revenues of $90,000. The company's expenses were as follows: cost of goods sold of $45,000, operating expenses of $18,000 and a loss on the sale of equipment of $3,000. Parker's income from operations is Entry field with correct answer $90,000. $45,000. $27,000. $18,000.

27,000

In 2015, Warehouse 13 had net credit sales of $750,000. On January 1, 2015, Allowance for Doubtful Accounts had a credit balance of $16,000. During 2015, $29,000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivable basis). If the accounts receivable balance at December 31 was $150,000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2015? Entry field with correct answer $29,000 $28,000 $31,000 $150,000

28,000

The following data are available for Alamo Corporation. Sale of land $225,000 Sale of equipment $130,000 Issuance of common stock 140,000 Purchase of equipment 70,000 Payment of cash dividends 120,000 Net cash provided by investing activities is: Entry field with correct answer $260,000. $285,000. $305,000. $425,000.

285,000

The following information was available for Pete Company at December 31, 2015: beginning inventory $90,000; ending inventory $70,000; cost of goods sold $984,000; and sales $1,350,000. Pete's days in inventory in 2015 was Entry field with correct answer 29.7 days. 21.6 days. 25.9 days. 33.5 days.

29.7

Partridge Bookstore had 500 units on hand at January 1, costing $9 each. Purchases and sales during the month of January were as follows: Date Purchases Sales Jan. 14 375 @ $14 17 250 @ $10 25 250 @ $11 29 260 @ $16 Partridge does not maintain perpetual inventory records. According to a physical count, 365 units were on hand at January 31. The cost of the inventory at January 31, under the LIFO method is: Entry field with correct answer $3,285. $3,650. $3,900. $4,015.

3,285

Partridge Bookstore had 500 units on hand at January 1, costing $9 each. Purchases and sales during the month of January were as follows: Date Purchases Sales Jan. 14 375 @ $14 17 250 @ $10 25 250 @ $11 29 260 @ $16 Partridge does not maintain perpetual inventory records. According to a physical count, 365 units were on hand at January 31. The cost of the inventory at January 31, under the FIFO method is: Entry field with correct answer $3,900. $4,015. $3,285. $3,650.

3,900

A factory machine was purchased for $375,000 on January 1, 2015. It was estimated that it would have a $75,000 salvage value at the end of its 5-year useful life. It was also estimated that the machine would be run 40,000 hours in the 5 years. The company ran the machine for 4,000 actual hours in 2015. If the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2015 would be Entry field with correct answer $37,500. $60,000. $75,000. $30,000.

30,000

On July 1, 2015, Jenks Company purchased the copyright to Jackson Computer tutorials for $324,000. It is estimated that the copyright will have a useful life of 5 years with an estimated salvage value of $24,000. The amount of Amortization Expense recognized for the year 2015 would be Entry field with correct answer $64,800. $60,000. $30,000. $32,400.

30,000

Sargent Corporation bought equipment on January 1, 2015. The equipment cost $360,000 and had an expected salvage value of $60,000. The life of the equipment was estimated to be 6 years. The depreciable cost of the equipment is Entry field with correct answer $50,000. $360,000. $300,000. $200,000.

300,000

Alfalfa Company developed the following information about its inventories in applying the lower-of-cost-or-market (LCM) basis in valuing inventories: Market Product Cost value A $112,000 $120,000 B 80,000 76,000 C 155,000 162,000 If Alfalfa applies the LCM basis, the value of the inventory reported on the balance sheet would be Entry field with correct answer $347,000. $362,000. $358,000. $343,000.

343,000

If a company has net sales of $700,000 and cost of goods sold of $455,000, the gross profit percentage is Entry field with correct answer 25%. 65%. 35%. 100%.

35

Farr Company purchased a new van for floral deliveries on January 1, 2015. The van cost $56,000 with an estimated life of 5 years and $14,000 salvage value at the end of its useful life. The double-declining-balance method of depreciation will be used. What is the balance of the Accumulated Depreciation account at the end of 2016? Entry field with correct answer $13,440 $8,960 $35,840 $26,880

35,840

TB Nelson Company prepares monthly financial statements and uses the gross profit method to estimate ending inventories. Historically, the company has had a 40% gross profit rate. During June, net sales amounted to $180,000; the beginning inventory on June 1 was $54,000; and the cost of goods purchased during June amounted to $90,000. The estimated cost of TB Nelson Company's inventory on June 30 is Entry field with correct answer $72,000. $126,000. $21,600. $36,000.

36,000

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: Accounts payable $ 18,000 Accounts receivable 11,000 Accumulated depreciation - equipment 28,000 Advertising expense 21,000 Cash 15,000 Common stock 42,000 Dividends 14,000 Depreciation expense 12,000 Insurance expense 3,000 Note payable, due 6/30/16 70,000 Prepaid insurance (12-month policy) 6,000 Rent expense 17,000 Retained earnings (1/1/15) 60,000 Salaries and wages expense 32,000 Service revenue 133,000 Supplies 4,000 Supplies expense 6,000 Equipment 210,000 What are total current assets at December 31, 2015? Entry field with correct answer $36,000 $32,000 $42,000 $26,000

36,000

The income statement for the month of June, 2015 of Camera Obscura Enterprises contains the following information: Revenues $7,000 Expenses: Salries 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 At June 1, 2015, Camera Obscura reported retained earnings of $35,000. The company had no dividends during June. At June 30, 2015, the company will report retained earnings of Entry field with correct answer $36,300. $35,000. $29,300. $42,000.

36,300

Angie's Blooms purchased a delivery van for $40,000. The company was given a $4,000 cash discount by the dealer, and paid $2,000 sales tax. Annual insurance on the van is $1,000. As a result of the purchase, by how much will Angie's Blooms increase its van account? Entry field with correct answer $38,000 $40,000 $39,000 $36,000

38,000

Jarmin Company received proceeds of $377,000 on 10-year, 8% bonds issued on January 1, 2014. The bonds had a face value of $400,000, pay interest annually on June 30 and December 31, and have a call price of 101. Jarmin uses the straight-line method of amortization. What is the carrying value of the bonds on January 1, 2016? Entry field with correct answer $381,600 $400,000 $395,400 $379,300

381,600

Cobb Company's accounting records show the following at the year ending on December 31, 2015: Purchase Discounts $ 11,200 Freight - In 15,600 Purchases 402,000 Beginning Inventory 47,000 Ending Inventory 57,600 Purchase Returns 12,800 Using the periodic system, the cost of goods sold is Entry field with correct answer $393,600. $404,200. $378,000. $383,000.

383,000

Cobb Company's accounting records show the following at the year ending on December 31, 2015: Purchase Discounts $ 11,200 Freight - In 15,600 Purchases 402,000 Beginning Inventory 47,000 Ending Inventory 57,600 Purchase Returns 12,800 Using the periodic system, the cost of goods purchased is Entry field with correct answer $378,000. $393,600. $383,000. $404,200.

393,600

Bargain Company has $1,500,000 of bonds outstanding. The unamortized premium is $19,600. If the company redeemed the bonds at 101, what would be the gain or loss on the redemption? Entry field with correct answer $4,600 loss $15,000 gain $15,000 loss $4,600 gain

4,600 gain

During 2015, Stein Corporation reported net sales of $5,000,000 and net income of $2,100,000. Stein also reported beginning total assets of $1,000,000 and ending total assets of $1,500,000. Stein's asset turnover is Entry field with correct answer 5.0 times. 1.7 times. 4.0 times. 3.3 times.

4.0

A company purchased office equipment for $40,000 and estimated a salvage value of $8,000 at the end of its 5-year useful life. The constant percentage to be applied against book value each year if the double-declining-balance method is used is Entry field with correct answer 5%. 20%. 25%. 40%.

40

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) Entry field with correct answer $400 credit balance. $1,200 debit balance. $800 credit balance. $400 debit balance

400 debit balance

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: Accounts payable $ 18,000 Accounts receivable 11,000 Accumulated depreciation - equipment 28,000 Advertising expense 21,000 Cash 15,000 Common stock 42,000 Dividends 14,000 Depreciation expense 12,000 Insurance expense 3,000 Note payable, due 6/30/16 70,000 Prepaid insurance (12-month policy) 6,000 Rent expense 17,000 Retained earnings (1/1/15) 60,000 Salaries and wages expense 32,000 Service revenue 133,000 Supplies 4,000 Supplies expense 6,000 Equipment 210,000 What is the company's net income for the year ending December 31, 2015? Entry field with correct answer $42,000 $12,000 $28,000 $133,000

42,000

The cash account shows a balance of $40,000 before reconciliation. The bank statement does not include a deposit of $9,200 made on the last day of the month. The bank statement shows a collection by the bank of $3,960 and a customer's check for $1,300 was returned because it was NSF. A customer's check for $1,380 was recorded on the books as $1,920, and a check written for $318 was recorded as $390. The correct balance in the cash account was Entry field with correct answer $42,048. $43,128. $42,192. $51,392.

42,192

Clooney Department Store estimates inventory by using the retail inventory method. The following information was developed: At Cost At Retail Beginning inventory $360,000 $ 750,000 Goods purchased 900,000 1,350,000 Net sales 1,400,000 The estimated cost of the ending inventory is Entry field with correct answer $280,000. $466,667. $336,000. $420,000.

420,000

Electrelene Company showed the following balances at the end of its first year: Cash $4,000 Prepaid insurance 7,000 Accounts receivable 5,000 Accounts payable 4,000 Notes payable 6,000 Common stock 2,000 Dividends 1,000 Revenues 32,000 Expenses 25,000 What did Electrelene Company show as total credits on its trial balance? Entry field with correct answer $9,000 $44,000 $45,000 $49,000

44,000

During 2015, Parker Enterprises generated revenues of $90,000. The company's expenses were as follows: cost of goods sold of $45,000, operating expenses of $18,000 and a loss on the sale of equipment of $3,000. Parker's gross profit is Entry field with correct answer $45,000. $90,000. $27,000. $24,000.

45,000

A corporation issued $600,000, 10%, 7-year bonds on January 1, 2015 for $648,666, which reflects an effective-interest rate of 7%. Interest is paid annually on January 1. If the corporation uses the effective-interest method of amortization of bond premium, the amount of bond interest expense to be recognized on December 31, 2015, is Entry field with correct answer $42,000. $45,407. $60,000. $64,867.

45,407

If the month-end bank statement shows a balance of $54,000, outstanding checks are $15,000, a deposit of $6,000 was in transit at month end, and a check for $900 was erroneously charged by the bank against the account, the correct balance in the bank account at month end is Entry field with correct answer $45,000. $45,900. $62,100. $44,100.

45,900

Horton Company purchased a building on January 2 by signing a long-term $480,000 mortgage with monthly payments of $4,500. The mortgage carries an interest rate of 10 percent. The amount owed on the mortgage after the first payment will be Entry field with correct answer $475,500. $479,500. $476,000. $480,000.

479,500

The balance in the supplies account on June 1 was $5,200, supplies purchased during June were $3,500, and the supplies on hand at June 30 were $3,000. The amount to be used for the appropriate adjusting entry is Entry field with correct answer $3,500. $6,500. $5,700. $11,700.

5,700

If total liabilities increased by $30,000 and stockholders' equity increased by $20,000 during a period of time, then total assets must change by what amount and direction during that same period? Entry field with correct answer $50,000 increase $50,000 decrease $10,000 increase $10,000 decrease

50,000 increase

The maturity value of a $50,000, 9%, 60-day note receivable dated July 3 is Entry field with correct answer $54,500. $50,750. $59,000. $50,000.

50,750

At January 31, 2015, 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 Entry field with correct answer $775 debit. $975 debit. $525 debit. $525 credit

525 debit

In 2015, Chandler Company had net credit sales of $1,125,000. On January 1, 2015, Allowance for Doubtful Accounts had a credit balance of $27,000. During 2015, $42,000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivables basis). If the accounts receivable balance at December 31 was $380,000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2015? Entry field with correct answer $23,000 $97,500 $38,000 $53,000

53,000

Jake's Market recorded the following events involving a recent purchase of merchandise: Received goods for $60,000, terms 2/10, n/30. Returned $1,200 of the shipment for credit. Paid $300 freight on the shipment. Paid the invoice within the discount period. As a result of these events, the company's inventory increased by Entry field with correct answer $59,100. $57,624. $57,918. $57,924.

57,924

Kern Company sells merchandise on account for $8,000 to Block Company with credit terms of 2/10, n/30. Block Company returns $1,600 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check? Entry field with correct answer $6,400 $6,272 $7,872 $7,840

6,272

Crawford Company has total proceeds (before segregation of sales taxes) from sales of $7,155. If the sales tax is 6%, the amount to be credited to the account Sales Revenue is: Entry field with correct answer $7,155. $6,750. $6,726. $7,584.

6,750

The interest on a $6,000, 6%, 60-day note receivable is Entry field with correct answer $360. $60. $180. $120.

60

During July, the following purchases and sales were made by Big Dan Company. There was no beginning inventory. Big Dan Company uses a perpetual inventory system. Purchases Sales July 3 40 units @ $12 July 13 50 units 11 40 units @ $13 22 20 units 20 20 units @ $15 Under the FIFO method, the cost of goods sold for each sale is: July 13 July 22 Entry field with correct answer 750 300 610 260 $600 $240 650 260

610 260

During July, the following purchases and sales were made by Big Dan Company. There was no beginning inventory. Big Dan Company uses a perpetual inventory system. Purchases Sales July 3 40 units @ $12 July 13 50 units 11 40 units @ $13 22 20 units 20 20 units @ $15 Under the LIFO method, the cost of goods sold for each sale is: July 13 July 22 Entry field with correct answer 750 260 650 300 $600 $240 640 300

640 300

In preparing its August 31, 2015 bank reconciliation, Annie Corp. has available the following information: Balance per bank statement, 8/31/15 $64,950 Deposit in transit, 8/31/15 11,700 Return of customer's check not sufficient funds, 8/30/15 1,800 Outstanding checks, 8/31/15 8,250 Bank service charges for August 300 At August 31, 2015, Annie's adjusted cash balance is Entry field with correct answer $56,700. $56,400. $61,500. $68,400.

68,400

A company just starting business made the following four inventory purchases in June: Date Number of units purchased Total cost June 1 150 units $ 390 June 10 200 units 585 June 15 200 units 630 June 28 150 units 510 $2,115 A physical count of merchandise inventory on June 30 reveals that there are 250 units on hand. Using the LIFO inventory method, the value of the ending inventory on June 30 is Entry field with correct answer $1,432. $683. $825. $1,290.

683

Don's Copy Shop bought equipment for $450,000 on January 1, 2014. Don estimated the useful life to be 3 years with no salvage value, and the straight-line method of depreciation will be used. On January 1, 2015, Don decides that the business will use the equipment for a total of 5 years. What is the revised depreciation expense for 2015? Entry field with correct answer $150,000 $112,500 $ 60,000 $ 75,000

75,000

The following information is for Sunny Day Real Estate: Sunny Day Real Estate Balance Sheet December 31, 2015 ----- The total dollar amount of liabilities to be classified as current liabilities is Entry field with correct answer $15,000. $60,000. $160,000. $75,000.

75,000

A company just starting business made the following four inventory purchases in June: Date Number of units purchased Total cost June 1 150 units $ 390 June 10 200 units 585 June 15 200 units 630 June 28 150 units 510 $2,115 A physical count of merchandise inventory on June 30 reveals that there are 250 units on hand. Using the average-cost method, the amount allocated to the ending inventory on June 30 is Entry field with correct answer $683. $755. $825. $1,360.

755

If a corporation has only one class of stock, it is referred to as Entry field with correct answer common stock. classless stock. solitary stock. preferred stock.

common stock

In preparing its bank reconciliation for the month of April 2015, Delano, Inc. has available the following information. Balance per bank statement, 4/30/15 $78,600 NSF check returned with 4/30/15 bank statement 940 Deposits in transit, 4/30/15 10,000 Outstanding checks, 4/30/15 10,400 Bank service charges for April 60 What should be the adjusted cash balance at April 30, 2015? Entry field with correct answer $77,260. $78,020. $78,200. $77,600.

78,200

The interest charged on a $400,000, 90-day note payable, at the rate of 8%, would be Entry field with correct answer $17,776. $8,000. $2,666. $32,000.

8,000

The following information is for Sunny Day Real Estate: Sunny Day Real Estate Balance Sheet December 31, 2015 --------- The total dollar amount of assets to be classified as investments is Entry field with correct answer $0. $155,000. $85,000. $70,000.

85,000

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: Accounts payable $ 18,000 Accounts receivable 11,000 Accumulated depreciation - equipment 28,000 Advertising expense 21,000 Cash 15,000 Common stock 42,000 Dividends 14,000 Depreciation expense 12,000 Insurance expense 3,000 Note payable, due 6/30/16 70,000 Prepaid insurance (12-month policy) 6,000 Rent expense 17,000 Retained earnings (1/1/15) 60,000 Salaries and wages expense 32,000 Service revenue 133,000 Supplies 4,000 Supplies expense 6,000 Equipment 210,000 What are total current liabilities at December 31, 2015? Entry field with correct answer $120,000 $70,000 $88,000 $18,000

88,000

Glenn Company purchased merchandise inventory with an invoice price of $9,000 and credit terms of 2/10, n/30. What is the net cost of the goods if Glenn Company pays within the discount period? Entry field with correct answer $9,000 $8,100 $8,280 $8,820

8820

Magneto Company had net credit sales during the year of $1,350,000 and cost of goods sold of $810,000. The balance in accounts receivable at the beginning of the year was $180,000, and the end of the year it was $120,000. What was the accounts receivable turnover? Entry field with correct answer 9.0 7.5 11.3 5.6

9.0

On January 1, Gage Corporation issues $1,000,000, 10-year, 12% bonds at 95 with interest payable on January 1. The carrying value of the bonds, using straight-line amortization, at the end of the third interest period is: Entry field with correct answer $970,000. $965,000. $930,000. $935,000.

965,000

A $1,000 face value bond with a quoted price of 98 is selling for Entry field with correct answer $98. $908. $1,000. $980.

980

McIntyre Company made a purchase of merchandise on credit from Marvin Company on August 8, for $9,000, terms 3/10, n/30. On August 17, McIntyre makes the appropriate payment to Marvin. The entry on August 17 for McIntyre Company is: Entry field with correct answer Accounts Payable 9,000 Cash 9,000 Accounts Payable 9,000 Purchase Returns and Allowances 270 Cash 8,730 Accounts Payable 9,000 Inventory 270 Cash 8,730 Accounts Payable 8,730 Cash 8,730

Accounts Payable 9,000 Inventory 270 Cash 8,730

Notification by the bank that a deposited customer check was returned NSF requires that the company make the following adjusting entry: Entry field with correct answer Miscellaneous Expense Accounts Receivable No adjusting entry is necessary. Accounts Receivable Cash Cash Accounts Receivable

Accounts Receivable Cash

Jawbreaker Company paid $940 on account to a creditor. The transaction was erroneously recorded as a debit to Cash of $490 and a credit to Accounts Receivable, $490. The correcting entry is Entry field with correct answer Accounts Receivable 490 Accounts Payable 490 Accounts Receivable 490 Accounts Payable 940 Cash 1,430 Accounts Payable 940 Cash 940 Accounts Receivable 490 Cash 490

Accounts Receivable 490 Accounts Payable 940 Cash 1,430

When an account becomes uncollectible and must be written off, Entry field with correct answer Accounts Receivable should be credited. Allowance for Doubtful Accounts should be credited. Bad Debt Expense should be credited. Sales Revenue should be debited.

Accounts Receivable should be credited.

Haven Company uses the percentage of sales method for recording bad debt expense. For the year, cash sales are $600,000 and credit sales are $2,700,000. Management estimates that 1% is the sales percentage to use. What adjusting entry will Haven Company make to record the bad debt expense? Entry field with correct answer Bad Debt Expense 33,000 Accounts Receivable 33,000 Bad Debt Expense 27,000 Accounts Receivable 27,000 Bad Debt Expense 27,000 Allowance for Doubtful Accounts 27,000 Bad Debt Expense 33,000 Allowance for Doubtful Accounts 33,000

Bad Debt Expense 27,000 Allowance for Doubtful Accounts 27,000

Carter Company sells merchandise on account for $4,000 to Hannah Company with credit terms of 2/10, n/30. Hannah Company returns $600 of merchandise that was damaged, along with a check to settle the account within the discount period. What entry does Carter Company make upon receipt of the check? Entry field with correct answer Cash 3,332 Sales Returns and Allowances 600 Sales Discounts 68 Accounts Receivable 4,000 Cash 3,920 Sales Discounts 80 Sales Returns and Allowances 600 Accounts Receivable 3,400 Cash 3,400 Accounts Receivable 3,400 Cash 3,332 Sales Returns and Allowances 668 Accounts Receivable 4,000

Cash 3,332 Sales Returns and Allowances 600 Sales Discounts 68 ------Accounts Receivable 4,000

A cash register tape shows cash sales of $3,500 and sales taxes of $210. The journal entry to record this information is Entry field with correct answer Cash 3,710 Sales Tax Revenue 210 Sales Revenue 3,500 Cash 3,500 Sales Tax Expense 210 Sales Revenue 3,710 Cash 3,500 Sales Revenue 3,500 Cash 3,710 Sales Revenue 3,500 Sales Taxes Payable 210

Cash 3,710 Sales Revenue 3,500 Sales Taxes Payable 210

On July 9, Sheb Company sells goods on credit to Wooley Company for $5,000, terms 1/10, n/60. Sheb receives payment on July 18. The entry by Sheb on July 18 is: Entry field with correct answer Cash 5,000 Accounts Receivable 5,000 Cash 5,050 Sales Discounts 50 Accounts Receivable 5,000 Cash 4,950 Sales Discounts 50 Accounts Receivable 5,000 Cash 5,000 Sales Discounts 50 Accounts Receivable 4,950

Cash 4,950 Sales Discounts 50 -------Accounts Receivable 5,000

On January 1, 2015, Carter Corporation issued $5,000,000, 10-year, 8% bonds at 102. Interest is payable annually on January 1. The journal entry to record this transaction on January 1, 2015 is Entry field with correct answer Cash 5,000,000 Bonds Payable 5,000,000 Premium on Bonds Payable 100,000 Cash 5,000,000 Bonds Payable 5,100,000 Cash 5,100,000 Bonds Payable 5,000,000 Premium on Bonds Payable 100,000 Cash 5,100,000 Bonds Payable 5,100,000

Cash 5,100,000 Bonds Payable 5,000,000 Premium on Bonds Payable 100,000

A truck costing $110,000 was destroyed when its engine caught fire. At the date of the fire, the accumulated depreciation on the truck was $50,000. An insurance check for $125,000 was received based on the replacement cost of the truck. The entry to record the insurance proceeds and the disposition of the truck will include a Entry field with correct answer credit to the Truck account of $60,000. Gain on Disposal of $15,000. Gain on Disposal of $65,000. credit to the Accumulated Depreciation account for $50,00

Gain on Disposal of $65,000.

Which of the following should be included in the physical inventory of a company? Entry field with correct answer Goods in transit to another company shipped FOB shipping point. Goods in transit to or from another company shipped FOB shipping point. Goods held on consignment from another company. Goods in transit from another company shipped FOB shipping point.

Goods in transit from another company shipped FOB shipping point.

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? Entry field with correct answer August 5 July 31 August 6 August 1

July 31

On October 1, Steve's Carpet Service borrows $350,000 from First National Bank on a 3-month, $350,000, 8% note. The entry by Steve's Carpet Service to record payment of the note and accrued interest on January 1 is Entry field with correct answer Notes Payable 357,000 Cash 357,000 Notes Payable 350,000 Interest Payable 7,000 Cash 357,000 Notes Payable 350,000 Interest Payable 28,000 Cash 378,000 Notes Payable 350,000 Interest Expense 7,000 Cash 357,000

Notes Payable 350,000 Interest Payable 7,000 Cash 357,000

Admire County Bank agrees to lend Givens Brick Company $600,000 on January 1. Givens Brick Company signs a $600,000, 8%, 9-month note. What entry will Givens Brick Company make to pay off the note and interest at maturity assuming that interest has been accrued to September 30? Entry field with correct answer Interest Payable 24,000 Notes Payable 600,000 Interest Expense 12,000 Cash 636,000 Notes Payable 636,000 Cash 636,000 Notes Payable 600,000 Interest Payable 36,000 Cash 636,000 Interest Expense 36,000 Notes Payable 600,000 Cash 636,000

Notes Payable 600,000 Interest Payable 36,000 Cash 636,000

Which of the following expressions is incorrect? Entry field with correct answer Sales revenue - cost of goods sold - operating expenses = net income Net income + operating expenses = gross profit Operating expenses - cost of goods sold = gross profit Gross profit - operating expenses = net income

Operating expenses - cost of goods sold = gross profit

If Vickers Company issues 5,000 shares of $5 par value common stock for $175,000, Paid-In Capital in Excess of Par will be credited for $150,000. Cash will be debited for $150,000. Common Stock will be credited for $175,000. Paid-In Capital in Excess of Par will be credited for $25,000

Paid-In Capital in Excess of Par will be credited for $150,000.

Accumulated Depreciation is Entry field with correct answer a liability account. a contra asset account. an expense account. a stockholders' equity account.

a contra asset account

Treasury stock is stock issued by the U.S. Treasury Department. stock purchased by a corporation and held as an investment in its treasury. corporate stock issued by the treasurer of a company. a corporation's own stock which has been reacquired but not retired

a corporation's own stock which has been reacquired but not retired

The income statement for the month of June, 2015 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 After the revenue and expense accounts have been closed, the balance in Income Summary will be Entry field with correct answer a credit balance of $7,000. $0. a debit balance of $1,300. a credit balance of $1,300.

a credit balance of $1,300.

The income statement for the month of June, 2015 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 Income Summary to Retained Earnings includes Entry field with correct answer a credit to Retained Earnings for $1,300. a credit to Income Summary for $1,300 a debit to Revenues for $7,000. credits to Expenses totalling $5,700.

a credit to Retained Earnings for $1,300.

A trial balance will not balance if Entry field with correct answer a journal entry is posted twice. incorrect account titles are used in journalizing. a wrong amount is used in journalizing. a journal entry is only partially posted.

a journal entry is only partially posted

Unearned revenue is classified as Entry field with correct answer an asset account. a contra-revenue account. a liability account. a revenue account.

a liability account

An account consists of Entry field with correct answer a title, a debit balance, and a credit balance. a title, a right side, and a debit balance. a title, a left side, and a debit balance. a title, a debit side, and a credit side.

a title, a debit side, and a credit side

Which of the following is in accordance with generally accepted accounting principles? Entry field with correct answer Accrual-basis accounting Cash-basis accounting Both accrual-basis and cash-basis accounting Neither accrual-basis nor cash-basis accounting

accrual - basis accounting

On a bank reconciliation, deposits in transit are Entry field with correct answer added to the book balance. deducted from the book balance. deducted from the bank balance. added to the bank balance.

added to the bank balance

An adjusting entry Entry field with correct answer affects a balance sheet account and an income statement account. is always a compound entry. affects two balance sheet accounts. affects two income statement accounts.

affects a balance sheet account and an income statement account

A post-closing trial balance is prepared Entry field with correct answer before closing entries have been journalized but after the entries are posted. after closing entries have been journalized and posted. after closing entries have been journalized but before the entries are posted. before closing entries have been journalized and posted.

after closing entries have been journalized and posted.

Depreciation is the process of Entry field with correct answer allocating the cost of an asset to expense over its useful life in a rational and systematic manner. increasing the value of an asset over its useful life in a rational and systematic manner. writing down an asset to its real value each accounting period. valuing an asset at its fair value.

allocating the cost of an asset to expense over its useful life in a rational and systematic manner

Cost allocation of an intangible asset is referred to as Entry field with correct answer capitalization. amortization. accretion. depletion.

amortization

The book value of an asset is equal to the Entry field with correct answer asset's fair value less its historical cost. replacement cost of the asset. asset's cost less accumulated depreciation. blue book value relied on by secondary markets.

asset's cost less accumulated depreciation.

Internal control is defined, in part, as a plan that safeguards Entry field with correct answer all balance sheet accounts. capital stock. assets. liabilities.

assets

The basic accounting equation cannot be restated as Entry field with correct answer Assets - Liabilities = Stockholders' Equity. Stockholders' Equity + Liabilities = Assets. Assets - Stockholders' Equity = Liabilities. Assets + Liabilities = Stockholders' Equity.

assets + liabilities = stockholders equity

Which of the following correctly identifies normal balances of accounts? Entry field with correct answer Assets Debit Liabilities Credit Stockholders' Equity Credit Revenues Debit Expenses Credit Assets Debit Liabilities Credit Stockholders' Equity Credit Revenues Credit Expenses Credit Assets Debit Liabilities Credit Stockholders' Equity Credit Revenues Credit Expenses Debit Assets Credit Liabilities Debit Stockholders' Equity Debit Revenues Credit Expenses Debit

assets - debit liabilities - credit stockholders equity - credit revenues - credit expenses - debit

The basic accounting equation may be expressed as Entry field with correct answer Assets = Liabilities. Assets + Liabilities = Stockholders' Equity. Assets = Liabilities + Stockholders' Equity. All of these answers are correct.

assets = liabilities + stockholders equity

A balance sheet shows Entry field with correct answer revenues, liabilities, and stockholders' equity. assets, liabilities, and stockholders' equity. expenses, dividends, and stockholders' equity. revenues, expenses, and dividends.

assets liabilities and stockholders equity

A patent should Entry field with correct answer be amortized over its useful life or 20 years, whichever is shorter. be amortized over a period of 20 years. not be amortized if it has an indefinite life. be amortized over its useful life or 20 years, whichever is longer.

be amortized over its useful life or 20 years, whichever is shorter.

Cost of goods sold is computed from the following equation: Entry field with correct answer beginning inventory - cost of goods purchased + ending inventory. sales - cost of goods purchased + beginning inventory - ending inventory. sales + gross profit - ending inventory + beginning inventory. beginning inventory + cost of goods purchased - ending inventory.

beginning inventory + cost of goods purchased - ending inventory.

A gain or loss on disposal of a plant asset is determined by comparing the Entry field with correct answer replacement cost of the asset with the asset's original cost. book value of the asset with the asset's original cost. original cost of the asset with the proceeds received from its sale. book value of the asset with the proceeds received from its sale

book value of the asset with the proceeds received from its sale

Preferred stockholders have a priority over common stockholders as to Entry field with correct answer dividends only. assets in the event of liquidation only. voting rights. both dividends and assets in the event of liquidation.

both dividends and assets in the event of liquidation.

Paden Company purchased merchandise from Emmett Company with freight terms of FOB shipping point. The freight costs will be paid by the Entry field with correct answer seller. transportation company. buyer. buyer and the seller.

buyer

FOB shipping point means that the Entry field with correct answer goods are placed free on board to the buyer's place of business. seller pays the freight. buyer pays the freight. common carrier pays the freight.

buyer pays freight

Costs incurred to increase the operating efficiency or useful life of a plant asset are referred to as Entry field with correct answer ordinary repairs. expense expenditures. revenue expenditures. capital expenditures.

capitol expenditures

From an internal control standpoint, the asset most susceptible to improper diversion and use is Entry field with correct answer prepaid insurance. cash. buildings. land.

cash

Liabilities of a company would not include Entry field with correct answer notes payable. accounts payable. cash. salaries and wages payable.

cash

The entry to replenish a petty cash fund includes a credit to Entry field with correct answer Freight-in. Postage Expense. Cash. Petty Cash.

cash

The category that is generally considered to be the best measure of a company's ability to continue as a going concern is cash flows from operating activities. usually different from year to year. cash flows from investing activities. cash flows from financing activities.

cash flows from operating activities.

A $100 petty cash fund has cash of $12 and receipts of $85. The journal entry to replenish the account would include a credit to Entry field with correct answer Cash Over and Short for $2. Cash for $85. Petty Cash for $88. Cash for $88.

cash for 88

An expense is recorded under the cash basis only when Entry field with correct answer cash is paid. it is incurred. services are performed. it is earned.

cash is paid

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: Accounts payable $ 18,000 Accounts receivable 11,000 Accumulated depreciation - equipment 28,000 Advertising expense 21,000 Cash 15,000 Common stock 42,000 Dividends 14,000 Depreciation expense 12,000 Insurance expense 3,000 Note payable, due 6/30/16 70,000 Prepaid insurance (12-month policy) 6,000 Rent expense 17,000 Retained earnings (1/1/15) 60,000 Salaries and wages expense 32,000 Service revenue 133,000 Supplies 4,000 Supplies expense 6,000 Equipment 210,000 The current assets should be listed on Postal Service's balance sheet in the following order: equipment, supplies, prepaid insurance, accounts receivable, cash. cash, accounts receivable, supplies, prepaid insurance. cash, accounts receivable, prepaid insurance, equipment. cash, prepaid insurance, supplies, accounts receivable.

cash, accounts receivable, supplies, prepaid insurance.

A company using the same accounting principles from year to year is an application of Entry field with correct answer full disclosure. materiality. timeliness. consistency.

consistency

Owners enjoy limited liability in a sole proprietorship. corporation. proprietorship. partnership.

corperation

Depreciation is a process of Entry field with correct answer asset valuation. asset devaluation. cost accumulation. cost allocation.

cost allocation

An accountant has debited an asset account for $1,200 and credited a liability account for $500. What can be done to complete the recording of the transaction? Entry field with correct answer Debit another asset account for $700. Credit a different asset account for $700. Nothing further must be done. Debit a Stockholders' equity account for $700.

credit a different asset account for $700

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? Entry field with correct answer Credit the retained earnings account for $400. Debit the retained earnings account for $400. Credit an asset account for $400. Credit another liability account for $400.

credit an asset account for $400

Seven thousand shares of treasury stock of Marker, Inc., previously acquired at $14 per share, are sold at $20 per share. The entry to record this transaction will include a Entry field with correct answer debit to Treasury Stock for $98,000. credit to Paid-In Capital from Treasury Stock for $42,000. credit to Treasury Stock for $140,000. debit to Paid-In Capital from Treasury Stock for $42,000.

credit to Paid-In Capital from Treasury Stock for $42,000.

The income statement for the month of June, 2015 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 expense accounts includes a Entry field with correct answer debit to Income Summary for $1,300. credit to Rent Expense for $1,500. credit to Income Summary for $5,700. debit to Salaries and Wages Expense for $3,000.

credit to Rent Expense for $1,500.

Correct answer. Your answer is correct. The income statement for the month of June, 2015 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 Entry field with correct answer credit to Income Summary for $7,000. debit to Income Summary for $1,300. credit to Income Summary for $1,300. debit to Income Summary for $7,000.

credit to income summary for 7,000

If Income Summary has a credit balance after revenues and expenses have been closed into it, the closing entry for Income Summary will include a Entry field with correct answer debit to the dividends account. credit to the retained earnings account. credit to the dividends account. debit to the retained earnings account.

credit to the dividends account.

Sales taxes collected by a retailer are recorded by Entry field with correct answer crediting Sales Taxes Payable. crediting Sales Taxes Revenue. debiting Sales Taxes Payable. debiting Sales Tax Expense.

crediting Sales Taxes Payable.

A petty cash fund of $100 is replenished when the fund contains $4 in cash and receipts for $93. The entry to replenish the fund would Entry field with correct answer credit Miscellaneous Revenue for $3. debit Cash Over and Short for $3. debit Miscellaneous Expense for $3. credit Cash Over and Short for $3.

debit Cash Over and Short for $3.

Merriweather Post Pavillion received a $820 check from a customer for the balance due. The transaction was erroneously recorded as a debit to Cash $280 and a credit to Service Revenue $280. The correcting entry is Entry field with correct answer debit Cash, $820; credit Accounts Receivable, $820. debit Cash, $540 and Service Revenue, $280; credit Accounts Receivable, $820. debit Cash, $540 and Accounts Receivable, $280; credit Service Revenue, $820. debit Accounts Receivable, $820; credit Cash, $540 and Service Revenue, $280.

debit Cash, $540 and Service Revenue, $280; credit Accounts Receivable, $820.

The standard form of a journal entry has the Entry field with correct answer debit account entered first at the extreme left margin. credit account entered first at the extreme left margin. credit account entered first and indented. debit account entered first and indented.

debit account entered first at the extreme left margin

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 Entry field with correct answer Debit Supplies Expense, $5,100; Credit Supplies, $5,100. Debit Supplies, $1,900; Credit Supplies Expense, $1,900. Debit Supplies, $5,100; Credit Supplies Expense, $5,100. Debit Supplies Expense, $1,900; Credit Supplies, $1,900.

debit supplies expense 5,100 ; credit supplies 5,100

To record estimated uncollectible accounts using the allowance method, the adjusting entry would be a Entry field with correct answer debit to Loss on Credit Sales Revenue and a credit to Accounts Receivable. debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts. debit to Accounts Receivable and a credit to Allowance for Doubtful Accounts. debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable.

debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts.

An aging of a company's accounts receivable indicates that $14,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,100 credit balance, the adjustment to record bad debts for the period will require a Entry field with correct answer debit to Bad Debt Expense for $14,000. debit to Allowance for Doubtful Accounts for $12,900. credit to Allowance for Doubtful Accounts for $14,000. debit to Bad Debt Expense for $12,900.

debit to Bad Debt Expense for $12,900.

REM Real Estate received a check for $27,000 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 $27,000. Financial statements will be prepared on July 31. REM Real Estate should make the following adjusting entry on July 31: Entry field with correct answer Debit Rent Revenue, $4,500; Credit Unearned Rent Revenue, $4,500. Debit Unearned Rent Revenue, $27,000; Credit Rent Revenue, $24,000. Debit Cash, $27,000; Credit Rent Revenue, $27,000. Debit Unearned Rent Revenue, $4,500; Credit Rent Revenue, $4,500.

debit unearned rent revenues 4,500 ; credit rent revenue 4,500

The date on which a cash dividend becomes a binding legal obligation is on the date of record. last day of the fiscal year-end. declaration date. payment date.

declaration date

Credits Entry field with correct answer decrease both assets and liabilities. decrease assets and increase liabilities. increase assets and decrease liabilities. increase both assets and liabilities.

decrease assets, increase liabilities

The purchase of treasury stock Entry field with correct answer decreases common stock authorized. has no effect on common stock outstanding. decreases common stock issued. decreases common stock outstanding.

decreases common stock outstanding.

Each of the following accounts is closed to Income Summary except Entry field with correct answer Expenses. Dividends. Revenues. All of these are closed to Income Summary.

dividends

In preparing closing entries Entry field with correct answer each expense account will be credited. the dividends account will be debited. each revenue account will be credited. the retained earnings account will be debited if there is net income for the period.

each expense account will be credited.

The cost of goods available for sale is allocated between Entry field with correct answer beginning inventory and cost of goods purchased. beginning inventory and ending inventory. beginning inventory and cost of goods on hand. ending inventory and cost of goods sold.

ending inventory and cost of goods sold.

On August 13, 2015, Swell Maps Enterprises purchased equipment for $1,300 and supplies of $200 on account. Which of the following journal entries is recorded correctly and in the standard format? Entry field with correct answer

equipment 1,300 supplies 200 ------ accounts payable 1,500

An unacceptable way to make a correcting entry is to Entry field with correct answer reverse the incorrect entry. correct it immediately upon discovery. compare the incorrect entry with the correct entry and make a correcting entry to correct the accounts. erase the incorrect entry.

erase the incorrect entry

A net loss will result during a time period when Entry field with correct answer dividends exceed investments. liabilities exceed assets. expenses exceed revenues. revenues exceed expenses.

expenses exceeds revenues

the private sector organization involved in developing accounting principles is the

financial accounting standerds board

GAAP stands for

generally accepted accounting principles

Sales revenue less cost of goods sold is called Entry field with correct answer gross profit. net profit. net income. marginal income.

gross profit

martin corp purchased land in 2007 for 290,000. in 2015 it purchased a nearly identical parcel of land for 460,ooo. in its 2015 balance sheet, martin valued the two parcels of land at a combined value of 920,000. by reporting the land in this manner, martin corp. has violated the

historical cost principle

A debit balance in the Allowance for Doubtful Accounts Entry field with correct answer indicates that actual bad debt write-offs have exceeded previous provisions for bad debts. indicates that actual bad debt write-offs have been less than what was estimated. cannot occur if the percentage of sales method of estimating bad debts is used. is the normal balance for that account.

indicates that actual bad debt write-offs have exceeded previous provisions for bad debts.

Indicate where the purchase of land for cash would appear, if at all, on the indirect statement of cash flows. Investing activities section Does not represent a cash flow Financing activities section Operating activities section

investing activities section

An item is considered material if Entry field with correct answer it is likely to influence the decision of an investor or creditor. it is of a tangible good. the cost of reporting the item is greater than its benefits. it doesn't cost a lot of money.

it is likely to influence the decision of an investor or creditor.

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: Accounts payable $ 18,000 Accounts receivable 11,000 Accumulated depreciation - equipment 28,000 Advertising expense 21,000 Cash 15,000 Common stock 42,000 Dividends 14,000 Depreciation expense 12,000 Equipment 210,000 Insurance expense 3,000 Note payable, due 6/30/16 70,000 Prepaid insurance (12-month policy) 6,000 Rent expense 17,000 Retained earnings (1/1/15) 60,000 Salaries and wages expense 32,000 Service revenue 133,000 Supplies 4,000 Supplies expense 6,000 The sub-classifications for assets on the company's classified balance sheet would include all of the following except Entry field with correct answer Intangible Assets. Current Assets. Property, Plant, and Equipment. Long-term Assets.

long term assets

When the allowance method is used to account for uncollectible accounts, Bad Debt Expense is debited when Entry field with correct answer an account becomes bad and is written off. management estimates the amount of uncollectibles. a customer's account becomes past-due. a sale is made.

management estimates the amount of uncollectibles.

A debit balance in Cash Over and Short is reported as a Entry field with correct answer miscellaneous asset. miscellaneous revenue. miscellaneous expense. contra asset.

miscellaneous expense.

A credit balance in Cash Over and Short is reported as a(n) Entry field with correct answer liability. miscellaneous expense. asset. miscellaneous revenue.

miscellaneous revenue.

Two bases for estimating uncollectible accounts are: Entry field with correct answer percentage of receivables and percentage of sales. percentage of current assets and percentage of sales. percentage of assets and percentage of sales. percentage of receivables and percentage of total revenue.

percentage of receivables and percentage of sales.

The existing balance in Allowance for Doubtful Accounts is considered in computing bad debt expense in the Entry field with correct answer percentage of receivables basis. direct write-off method. percentage of sales basis. percentage of receivables and percentage of sales basis.

percentage of receivables basis.

Natural resources are Entry field with correct answer physically extracted in operations and are replaceable only by an act of nature. reported at their market value. amortized over a period no longer than 40 years. depreciated using the units-of-activity method.

physically extracted in operations and are replaceable only by an act of nature.

A journal is not useful for Entry field with correct answer providing a record of transactions. locating and preventing errors. disclosing in one place the complete effect of a transaction. preparing financial statements.

preparing financial statements

An income statement Entry field with correct answer reports the assets, liabilities, and stockholders' equity at a specific date. reports the changes in assets, liabilities, and stockholders' equity over a period of time. presents the revenues and expenses for a specific period of time. summarizes the changes in retained earnings for a specific period of time.

presents the revenues and expenses for a specific period of time

which of the following would not be considered an internal user of accounting data for the GHI company

president of the employees labor union

The purpose of the post-closing trial balance is to Entry field with correct answer prove that no mistakes were made. prove the equality of the balance sheet account balances that are carried forward into the next accounting period. prove the equality of the income statement account balances that are carried forward into the next accounting period. list all the balance sheet accounts in alphabetical order for easy reference.

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

Under a perpetual inventory system Entry field with correct answer purchases on account are debited to Purchases. purchases on account are debited to Inventory. freight costs are debited to Freight-Out. purchase returns are debited to Purchase Returns and Allowances

purchases on account are debited to Inventory.

financial information that is capable of making a difference in a decision is

relevant

Retained earnings at the end of the period is equal to Entry field with correct answer assets plus liabilities. retained earnings at the beginning of the period plus net income minus liabilities. retained earnings at the beginning of the period plus net income minus dividends. net income.

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

A law firm received $3,000 cash for legal services to be rendered in the future. The full amount was credited to the liability account Unearned Service Revenue. If the legal services have been rendered at the end of the accounting period and no adjusting entry is made, this would cause Entry field with correct answer revenues to be understated. net income to be overstated. liabilities to be understated. expenses to be overstated.

revenues to be understated

ethics are the standereds of conduct by which ones actions are judged as

right or wrong honest or dishonest fair or unfair ALL OF THE ABOVE

A company shows a balance in Salaries and Wages Payable of $38,000 at the end of the month. The next payroll amounting to $48,000 is to be paid in the following month. What will be the journal entry to record the payment of salaries? Entry field with correct answer Salaries and Wages Expense 48,000 Cash 48,000 Salaries and Wages Expense 48,000 Salaries and Wages Payable 48,000 Salaries and Wages Expense 10,000 Cash 10,000 Salaries and Wages Expense 10,000 Salaries and Wages Payable 38,000 Cash 48,000

salaries and wage expense 10,000 salaries and wages payable 38,000 cash 48,000

The control principle related to not having the same person authorize and pay for goods is known as Entry field with correct answer independent internal verification. establishment of responsibility. segregation of duties. rotation of duties.

segregation of duties.

Which of the following would not result in unearned revenue? Entry field with correct answer Sale of two-year magazine subscriptions Rent collected in advance from tenants Services performed on account Sale of season tickets to football games

services performed on account

generally accepted accounting principles are

standerds that indicate how to report economic events

At March 1, Psychocandy Inc. reported a balance in Supplies of $200. During March, the company purchased supplies for $750 and consumed supplies of $800. If no adjusting entry is made for supplies Entry field with correct answer stockholders' equity will be overstated by $800. assets will be understated by $250. net income will be understated by $800. expenses will be understated by $750.

stockholders equity will be overstated by 800

All of the following are property, plant, and equipment except Entry field with correct answer buildings. machinery. land. supplies

supplies

In recording an accounting transaction in a double-entry system the amount of the debits must equal the amount of the credits. there must only be two accounts affected by any transaction. the number of debit accounts must equal the number of credit accounts. there must always be entries made on both sides of the accounting equation.

the amount of the debits must equal the amount of the credits

The credit terms offered to a customer by a business firm are 2/10, n/30, which means that Entry field with correct answer two sales returns can be made within 10 days of the invoice date and no returns thereafter. the customer can deduct a 2% discount if the bill is paid within 10 days of the invoice date. the customer must pay the bill within 10 days. the customer can deduct a 2% discount if the bill is paid between the 10th and 30th day from the invoice date.

the customer can deduct a 2% discount if the bill is paid within 10 days of the invoice date.

The left side of an account is Entry field with correct answer the debit side. blank. a description of the account. the balance of the account.

the debit side

andre dickinson, owner of andres fine wines also owns a personal residence that costs 475,000. the market value of his residence is 625,000. during preparation of the financial statements for andres fine wines the accounting concept most prevalent to the presentation of andres home is

the economic entity assumption

The LIFO inventory method assumes that the cost of the latest units purchased are Entry field with correct answer the last to be allocated to cost of goods sold. the first to be allocated to ending inventory. the first to be allocated to cost of goods sold. not allocated to cost of goods sold or ending inventory

the first to be allocated to cost of goods sold.

Othello Company understated its inventory by $20,000 at December 31, 2014. It did not correct the error in 2014 or 2015. As a result, Othello's stockholder's equity was: Entry field with correct answer understated at December 31, 2014, and properly stated at December 31, 2015. overstated at December 31, 2014, and overstated at December 31, 2015. understated at December 31, 2014, and understated at December 31, 2015. understated at December 31, 2014, and overstated at December 31, 2015.

understated at December 31, 2014, and properly stated at December 31, 2015.

An error in the physical count of goods on hand at the end of a period resulted in a $15,000 overstatement of the ending inventory. The effect of this error in the current period is Cost of Goods Sold Net Income Entry field with correct answer Overstated Overstated Overstated Understated Understated Overstated Understated Understated

understated overstated

When valuing ending inventory under a perpetual inventory system, the Entry field with correct answer valuation using the LIFO assumption is the same as the valuation using the LIFO assumption under the periodic inventory system. moving average requires that a new average be computed after every sale. earliest units purchased during the period using the LIFO assumption are allocated to the cost of goods sold when units are sold. valuation using the FIFO assumption is the same as under the periodic inventory system.

valuation using the FIFO assumption is the same as under the periodic inventory system.

Under the direct write-off method of accounting for uncollectible accounts, Bad Debt Expense is debited Entry field with correct answer whenever a pre-determined amount of credit sales have been made. when an account is determined to be uncollectible. when a credit sale is past due. at the end of each accounting period.

when an account is determined to be uncollectible.

The revenue recognition principle dictates that revenue should be recognized in the accounting records Entry field with correct answer when cash is received. when the performance obligation is satisfied. at the end of the month. in the period that income taxes are paid.

when the performance obligation is satisfied

Fugazi City College sold season tickets for the 2015 football season for $240,000. A total of 8 games will be played during September, October and November. In September, three games were played. The adjusting journal entry at September 30 Entry field with correct answer is not required. No adjusting entries will be made until the end of the season in November. will include a debit to Cash and a credit to Ticket Revenue for $60,000. will include a debit to Ticket Revenue and a credit to Unearned Ticket Revenue for $80,000. will include a debit to Unearned Ticket Revenue and a credit to Ticket Revenue for $90,000.

will include a debit to unearned ticket revenue and a credit to ticket revenue for 90,000