Question : 41. The financial statements prepared immediately after: A. business transactions recorded.B. adjustments recorded.C. the accounts : 1224887

 

41. The financial statements are prepared immediately after: 
A. business transactions are recorded.
B. adjustments are recorded.
C. the accounts are closed.
D. the adjusted trial balance is prepared.

42. Which one of the following steps in the accounting cycle is completed only at the end of an accounting period? 
A. Business transactions are analyzed
B. Adjustments are recorded
C. Transactions are journalized
D. Journal entries are posted to the ledger

43. Some of the steps in the accounting cycle are listed below. Select the choice that places these steps in the correct order.
 

 

 

 

 

 

 

 

 

 

 

 

 

44. Andre’s Tennis Club sells season memberships for $1,500 each. During January of 2012, 50 season memberships were sold. As of March 31, 2012, only $45,000 of season membership fees had been collected from customers. The tennis season runs for 6 months starting April 01, 2012. Which one of the following is an amount reported on the Balance Sheet dated March 31, 2012? 
A. Unearned tennis membership revenue of $45,000
B. Unearned tennis membership revenue of $37,500
C. Accounts Receivable $75,000
D. Tennis membership revenue of $45,000

45. On December 31, 2012, Bosco Corporation signed a one-year contract to provide services to Cosco Company for $120,000. Cosco will pay for the services on January 1, 2013. Using the accrual basis of accounting, when should Bosco Corporation recognize revenue? 
A. On January 1, 2013, when the cash is received from Cosco.
B. On December 31, 2013 (the end of the next year), when all services have been provided.
C. Equally throughout the year 2013, as the revenue is earned.
D. On December 31, 2012, when the contract is signed.

46. Sharp Inc. purchased equipment at a cost of $700,000 in January, 2003. As of January 1, 2012, depreciation of $315,000 had been recorded on this asset. Depreciation expense for 2012 is $35,000. After the adjustments are recorded and posted at December 31, 2013, what are the balances of Equipment and Accumulated Depreciation?

     Equipment      Accumulated Depreciation 
A. $700,000                  $350,000
B. $700,000                  $           0     
C. $385,000                  $  35,000
D. $350,000                  $350,000

47. Axis Corporation purchased equipment at a cost of $100,000 in January, 2003. As of January 1, 2012, depreciation of $45,000 had been recorded on this asset. Depreciation expense for 2012 is $5,000. After the adjustments are recorded and posted at December 31, 2012, what are the balances for the Depreciation Expense and Accumulated Depreciation?

Depreciation Expense   Accumulated Depreciation 
A. $  5,000                            $50,000
B. $45,000                            $45,000
C. $  5,000                            $45,000
D. $45,000                            $50,000

48. Timberland Company received advance payments from customers during 2012 of $240,000. At December 31, 2012, $20,000 of the advance payments still had not been earned. After the adjustments are recorded and posted at December 31, 2012, what will the balances be in the Unearned Service Revenue and Service Revenue accounts?

Unearned Service Revenue   Service Revenue 
A. $  20,000                            $220,000
B. $220,000                            $  20,000
C. $           0                            $240,000
D. $240,000                            $           0

49. Duck Insurance Company received advance payments from customers during 2012 of $100,000. At December 31, 2012, $15,000 of the advance payments still had not been earned. After the adjustments are recorded and posted at December 31, 2012, what will the balances be in the Unearned Insurance Revenue and Insurance Revenue accounts?

Unearned Insurance Revenue   Insurance Revenue 
A. $ 85,000                                     $ 15,000
B. $          0                                    $100,000
C. $ 15,000                                     $ 15,000
D. $ 15,000                                     $ 85,000

50. Blackrock Company received a 6-month, 15% note for $100,000 from its president on November 1, 2012. The note is due on April 30, 2013. If Blackrock’s accounting period ends on December 31, how much interest revenue should Blackrock recognize during 2012 and 2013?

         2012            2013 
A. $5,000        $  2,500
B. $2,500        $  5,000
C. $       0        $15,000
D. $       0        $  7,500

 

 

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