Question :
51) Refer to Table 11-4. The adjusting entry necessary at : 1212499
51) Refer to Table 11-4. The adjusting entry necessary at December 31, 2013, would be:
A)
Interest Expense
1,319.18
Interest Payable
1,319.18
B)
Note Payable
1,319.18
Interest Payable
1,319.18
C)
Interest Expense
1,319.18
Note Payable
1,319.18
D) no adjusting entry is necessary
52) Refer to Table 11-4. The entry on the maturity date to record the payment of the note payable plus accrued interest would include a:
A) credit to Note Payable of $50,000.00.
B) debit to Interest Payable of $900.00.
C) credit to Cash of $52,219.18.
D) debit to Interest Expense of $1,319.18.
Table 11-5
On March 1, 2014, William Browning received $15,000 in advance for services to be provided over the next 12 months.
53) Refer to Table 11-5. The entry on March 1, 2014, would include a:
A) credit to Sales Revenue for $15,000.
B) credit to Unearned Revenue for $15,000.
C) debit to Sales Revenue for $15,000.
D) debit to Unearned Revenue for $15,000.
54) Refer to Table 11-5. The adjusting entry on December 31, 2014, would include a:
A) debit to Sales Revenue for $12,500.
B) debit to Unearned Revenue for $12,500.
C) credit to Sales Revenue for $2,500.
D) debit to Unearned Revenue for $2,500.
55) All of the following are unearned revenues except:
A) deferred revenues.
B) accrued revenues.
C) revenues collected in advance.
D) customer prepayments.
56) Liabilities that exist but whose exact amount is not known must be:
A) ignored.
B) estimated.
C) reported in the notes to the financial statements.
D) treated as a contingent liability.
57) GST Tax Expense would appear:
A) on the balance sheet as a current liability.
B) on the income statement as an expense.
C) There is no such account.
D) on the balance sheet as a long-term liability.
Table 11-10
Benny’s Bagels operates in a province that has HST collected by the federal government at a rate of 12%. During the month of December 2013 Benny’s Bagels purchased baking materials for $12,000; bought a new oven for $15,000; paid salaries of $14,000; and, had cash sales of $35,000.
58) Refer to Table 11-10. What is the correct journal entry to record the payments made during December that require HST?
A)
Inventory
12,000
Equipment
15,000
Salaries expense
14,000
HST recoverable
4,920
Cash
45,920
B)
Inventory
12,000
Equipment
15,000
HST recoverable
3,240
Cash
30,240
C)
Inventory
12,000
Equipment
15,000
HST payable
3,240
Cash
30,240
D)
Inventory
12,000
Equipment
15,000
Salaries expense
14,000
Cash
41,000
59) Refer to Table 11-10. What is the correct journal entry to record the sales made during December?
A)
Cash
35,000
HST payable
4,200
Sales
30,800
B)
Cash
35,000
Sales revenue
35,000
C)
Cash
35,000
HST recoverable
4,200
Sales revenue
39,200
D)
Cash
39,200
HST payable
4,200
Sales revenue
35,000
60) Refer to Table 11-10. What is the correct journal entry to record the payment of the HST amount owing at the end of December?
A)
HST payable
4,200
HST recoverable
3,240
Cash
960
B)
HST payable
4,200
HST receivable
720
HST recoverable
4,920
C)
HST receivable
960
Cash
960
D)
HST recoverable
4,200
HST payable
3,240
Cash
960
Table 11-11
On April 1st 2013 Maudlin Sales purchased inventory for $80,000 by signing a one-year note payable, due March 31, 2014. The note bears interest at an annual rate of 8%.
