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%.