Question :
71.During Bisbee’s first year of business, office supplies were purchased : 1241830
71.During Bisbee’s first year of business, office supplies were purchased for cash in the amount of $4,600 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.$4,600
b.$4,175
c.$5,025
d.$425
72.On January 1, Wages Payable for Flagstaff Company equals $19,000. 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.$10,800
73.On July1, 2015, Erie Company rented a building from another company for $60,000 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, 2015?
a.$20,000
b.$40,000
c.$50,000
d.$60,000
74.Meadville, Inc. began operations during 2015. During January of 2015, the following transactions occurred:
?Received $95,000 from shareholders as initial investments
?Received cash of $90,000 for services performed during January
?Billed customers an additional $12,000 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 $5,000 for January
?Paid dividends in January amounting to $8,000
?Paid wages equal to $34,000 for January
How much Net Income should Meadville, Inc. report for January?
a.$120,000
b.$63,000
c.$132,000
d.$52,000
75.On August 1, Amy Company borrowed $40,000 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 $40,000.
b.A credit to Cash for $40,000.
c.A credit to Notes Payable for $40,000.
d.A debit to Interest Expense for $2,400.
76.On August 1, Amy Company borrowed $40,000 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 $40,000.
b.A debit to Interest Receivable for $1,000.
c.A credit to Interest Payable for $2,400.
d.A debit to Interest Expense for $1,000.
77.If accounts receivable on January 1 totals $20,000, and during the current year sales revenue is $112,000, and cash receipts from customers is $98,000, then what is the balance in Accounts Receivable on December 31?
a.$13,000
b.$16,000
c.$34,000
d.$2,000
78.Able Industries has the following information is related to its adjusting entries at the end of December.
?On December 31, 2015, the insurance expired amounted to $100.
?Of the unearned revenue, $300 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.$400 increase.
b.$400 decrease.
c.$200 increase.
d.$200 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 $200.
?The office equipment computation for 2015 depreciation amounts to $480.
What is the net effect that the necessary adjusting entries for this information have on net income for Able?
a.$280 increase.
b.$280 decrease.
c.$680 increase.
d.$680 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
