Question : During Bisbee’s first year of business, office supplies were : 1253622

 

 

        During Bisbee’s first year of business, office supplies were purchased for cash in the amount of $4,300 and the amount was debited to supplies expense. At the end of the first year, the physical count indicated that $425 of supplies was unused. How much should be reported on the balance sheet for office supplies?

a. $4,300

b. $3,875

c. $4,725

d. $425

72.On January 1, Wages Payable for Flagstaff Company equals $18,500. By the end of the current year, Wage Expense equals $345,000, and cash payments for wages were $353,200. What is the balance in the T-account, Wages Payable, on December 31?

a. $17,500

b. $8,200

c. $25,700

d. $10,300

73.On July1, 2010, Erie Company rented a building from another company for $90,000 for a three-year time period. Erie Company debited the rent expense account when the payment was made. What adjustment for rent is necessary at December 31, 2010?

a. $20,000

b. $40,000

c. $75,000

d. $80,000

 

 

 

 

 

 

 

74.Meadville, Inc. began operations during 2010. During January of 2010, the following transactions occurred:

            Received $80,000 from shareholders as initial investments

            Received cash of $90,000 for services performed during January

            Billed customers an additional $12,300 for services performed during January

            Borrowed $11,500 from Regions Bank Company, and signed a one-year note payable

            Paid rent in the amount of $4,925 for January

            Paid dividends in January amounting to $8,000

            Paid wages equal to $33,220 for January

How much Net Income should Meadville, Inc. report for January?

a. $119,655

b. $64,155

c. $131,155

d. $51,155

75.On August 1, Amy Company borrowed $38,000 from another company on a 6%, one-year note. The journal entrythat Amy would record on August 1 would include which of the following?

a. A debit to Notes Receivable for $38,000.

b. A credit to Cash for $38,000.

c. A credit to Notes Payable for $38,000.

d. A debit to Interest Expense for $2,220.

 

 

 

 

 

 

 

76.On August 1, Amy Company borrowed $38,000 from another company on a 6%, one-year note. The journal entry on December 31 would include which of the following?

a.A debit to Notes Payable for $38,000.

b.  A debit to Interest Receivable for $950.

c.  A credit to Interest Payable for $2,220.

d.  A debit to Interest Expense for $950.

 

 

 

 

 

 

 

    If accounts receivable on January 1 totals $17,375, and during the current year sales revenue is $112,000, and cash receipts from customers is $97,855, then what is the balance in Accounts Receivable on December 31?

a. $14,145

b. $16,375

c. $31,520

d. $2,230

78.Able Industries has the following information is related to its adjusting entries at the end of December.

             On December 31, 2010, the insurance expired amounted to $100.

             Of the unearned revenue, $335 of services had been performed.

What is the net effect that the necessary adjusting entries for this information have on net income for Able?

a. $435 increase.

b. $435 decrease.

c. $235 increase.

d. $235 decrease.

79.Able Industries has the following information is related to its adjusting entries at the end of December.

             Services have been performed for customers that have not yet been billed or paid totaling $100.

         The office equipment computation for 2010 depreciation amounts to $480.

What is the net effect that the necessary adjusting entries for this information have on net income for Able?

a. $380 increase.

b. $380 decrease.

c. $580 increase.

d. $580 decrease.

80.Interest receivable on January 1 and December 31 totals $3,780 and $3,450, respectively. During the year, cash received from interest is $11,000. Determine interest revenue for the current year.

a. $3,115

b. $1,330

c. $12,330

d. $10,670

81.Accounts receivable on January 1 and December 31 is $19,500 and $22,400, respectively. During the year, sales revenue is $223,000. What is the current year’s cash received from customers?

a. $3,900

b. $263,900

c. $220,100

d.$226,900

82.Inventory on January 1 and December 31 is $29,500 and $43,000, respectively. During the year, cash paid to suppliers of inventory is $80,000. If all purchases of inventory are for cash, how much is the current year’s cost of goods sold?

a. $14,500

b. $66,500

c. $94,500

d. $151,500

83.Inventory on January 1 and December 31 is $46,000 and $42,000, respectively. Accounts payable on January 1 and December 31 are $31,000 and $29,000, respectively.  During the year, cost of goods sold is $186,000. How much is the current year’s cash payments to suppliers of inventory?

a. $184,000

b. $213,000

c. $181,000

d. $191,000

84.Retained earnings on January 1 and December 31 are $65,000 and $58,000, respectively. During the year, net income is $113,000. How much dividends did the company declare and pay to the shareholders?

a. $177,000

b. $171,000

c. $107,000

d. $120,000