Question : 51. Peckham Corporation received a 9-month, 9% note for $100,000 from : 1224888

51. Peckham Corporation received a 9-month, 9% note for $100,000 from its agent on July 1, 2012. The note is due on March 31, 2013. If Peckham’s accounting period ends on December 31, 2012, how much interest revenue should Peckham recognize during 2012 and 2013?

         2012            2013 
A. $2,250         $4,500
B. $4,500         $2,250
C. $9,000         $       0
D. $4,500         $4,500

52. Federer Corporation had $12,400 of supplies on hand at January 1. During the year, supplies with a cost of $24,000 were purchased. At December 31, the actual supplies on hand amount to $8,000. After the adjustments are recorded and posted at December 31, determine the balances in the Supplies and Supplies Expense accounts.

     Supplies   Supplies Expense 
A. $12,400             $4,400
B. $8,000             $28,400
C. $12,400           $24,000
D. $24,000           $12,400

53. Match Incorporated recorded salary expense of $120,000 in 2012. However, additional salaries of $9,000 had been earned, but not paid or recorded at December 31, 2012. After the adjustments are recorded and posted at December 31, 2012, the balances in the Salaries Expense and Salaries Payable accounts will be

   Salaries Expense   Salaries Payable 
A. $129,000                  $9,000
B. $120,000                  $       0
C. $120,000                  $9,000
D. $109,000                  $       0

54. On October 1, 2012, Zane Corporation paid $18,000 rent in advance. The rent per month is $1,500. If Zane’s accounting period ends on December 31, 2012, what will be reported on the financial statements? 
A. Prepaid Rent of $13,500 on its balance sheet at December 31, 2012
B. Prepaid Rent of $18,000 on its balance sheet at December 31, 2012
C. Rent Expense of $18,000 on its 2012 income statement
D. Rent Revenue of $13,500 on its 2012 income statement

55. Court Corporation purchased supplies at a cost of $24,000 during 2012. At January 1, 2012, supplies on hand were $2,000. At December 31, 2012, supplies on hand are $2,100. Calculate supplies expense for 2012. 
A. $24,000
B. $23,900
C. $24,100
D. $28,100

56. Point Corporation purchased supplies at a cost of $14,500 during the year. At January 1, supplies on hand were $1,000. At December 31, supplies on hand are $3,500. Determine the amount of supplies expense for the year. 
A. $14,500
B. $12,000
C. $13,500
D. $17,000

57. Staple Corp. purchased supplies at a cost of $2,581 during the year. At December 31, supplies on hand are $1,492. Supplies expense for the year was $6,213. How much were supplies on hand at January 1? 
A. $7,705
B. $8,794
C. $6,213
D. $5,124

58. Buster Corporation purchased supplies at a cost of $20,000 during 2012. At January 1, 2012, the beginning balance in the supplies account was $1,300. For 2012, supplies expense was $11,200. How much “Supplies” are on hand as of December 31, 2012? 
A. $10,100
B. $10,400
C. $20,000
D. $21,300

59. A company forgot to record four adjustments during 2012. Which one of the following omissions of adjustments will understate income? 
A. Unearned revenue is not reduced for the portion that has been earned
B. Interest on money borrowed has not yet been recorded.
C. Prepaid insurance is not reduced for the portion of the policy that has expired during the period.
D. Income taxes owed but not yet paid are ignored.

60. A company forgot to record four adjustments during 2012. Which one of the following omissions of adjustments will understate assets? 
A. Unearned revenue is not reduced for the portion that has been earned
B. Interest on money loaned out has not yet been recorded
C. Prepaid insurance is not reduced for the portion of the policy that has expired during the period
D. Income taxes owed but not yet paid are ignored