Question : 131. If the Debit and Credit column totals of a trial : 1256633

 

 

131. If the Debit and Credit column totals of a trial balance are equal, then: 

A. All transactions have been recorded correctly.

B. All entries from the journal have been posted to the ledger correctly.

C. All ledger account balances are correct.

D. The total debit entries and total credit entries are equal.

E. The balance sheet would be correct.

 

 

132. Accountants at Amalgamated Corporation incorrectly journalized a $50,000 equipment purchase as a debit to Buildings. This error was not discovered before the journal entry was posted. What is the correcting entry? 

A. Debit Buildings and credit Equipment for $50,000 each.

B. Debit Equipment and credit Buildings for $50,000 each.

C. Debit Buildings and credit Equipment for $100,000 each.

D. Debit Equipment and credit Buildings for $100,000 each.

E. Debit Equipment for $100,000 and credit Buildings for $50,000.

 

 

133. A $72,000 receipt of cash from a customer paying on their account was recorded as a $72,000 debit to Accounts Receivable. Assuming this journal entry was posted, what correcting entry (if any) is needed? 

A. Debit Cash and credit Accounts Receivable for $72,000 each.

B. Debit Cash and credit Accounts Receivable for $144,000 each.

C. Credit Cash and debit Accounts Receivable for $72,000 each.

D. Credit Cash and debit Accounts Receivable for $144,000 each.

E. No correcting entry is needed for this transaction.

 

 

134. Of the following errors, which one will cause the trial balance to be out of balance? 

A. A $200 cash salary payment posted as a $200 debit to Cash and a $200 credit to Salaries Expense.

B. A $100 cash receipt from a customer in payment of his account posted as a $100 debit to Cash and a $10 credit to Accounts Receivable.

C. A $75 cash receipt from a customer in payment of his account posted as a $75 debit to Cash and a $75 credit to Cash.

D. A $50 cash purchase of office supplies posted as a $50 debit to Office Equipment and a $50 credit to Cash.

E. An $800 prepayment from a customer for services to be rendered in the future was posted as an $800 debit to Unearned Revenue and an $800 credit to Cash.

 

 

135. A $130 credit to Office Equipment was credited to Fees Earned by mistake. By what amounts are the accounts under- or overstated as a result of this error? 

A. Office Equipment, understated $130; Fees Earned, overstated $130.

B. Office Equipment, understated $260; Fees Earned, overstated $130.

C. Office Equipment, overstated $130; Fees Earned, overstated $130.

D. Office Equipment, overstated $130; Fees Earned, understated $130.

E. Office Equipment, overstated $260; Fees Earned, understated $130.

 

 

136. Which of the following accounts is abalance sheet account? 

A. Wages Payable

B. Operating Activities

C. Revenues

D. Dividends

E. Expenses

 

 

137. Which of the following is a TRUE statement concerning a company’s financial statements? 

A. Balance sheet and income statement data combined contain the complete financial picture of a given company.

B. A trial balance is another name for a balance sheet.

C. Another name for the income statement is the earnings statement.

D. Dividends paid to a company’s shareholders are shown on the income statement.

E. The balance sheet shows the financial position of a company for a period of time.

 

138. According to IFRS, comparative information on financial statements is:

A. Not required.

B. Required for publicly traded companies only.

C. Required for the preceding period only.

D. Required for the last five years.

E. Not required, but considered a hallmark for companies of excellence.

 

 

 

 

 

139. What are the total assets shown on the trial balance below?

Common stock……$120,000Accounts payable……$25,000

Cash……………….$116,640Accounts receivable..$22,450

Supplies…………$ 1,500Office equipment……$23,300

Prepaid rent……….$ 3,200Unearned revenue….$  4,152

Service revenue…..$20,000Utilities expense…….$     422

Retained earnings…$30,000Shaving equipment…$31,640

 

A. $291,340

B. $106,962

C. $198,730

D. $218,730

E. $221,580

 

140. Given the trial balance amounts below, compute ending retained earnings.

Common stock…….$120,000Accounts payable……$25,000

Cash………………..$116,640Accounts receivable.$22,450

Supplies……………..$  1,500Office equipment……$23,300

Prepaid rent……….$   3,200Unearned revenue….$ 4,152

Service revenue……$20,000Utilities expense…….$    422

BeginningShaving equipment…$31,640

retained earnings.. $30,000

 

A. $19,578

B. $29,578

C. $23,728

D. $49,578

E. $45,000