Question : 21.Consider the following events for Sophia Incorporated:Under cash-basis accounting, what : 1236128

 

21.Consider the following events for Sophia Incorporated:

Under cash-basis accounting, what is the appropriate day to record the revenues related to the sand volleyball camp?
A.April 5.
B.April 12.
C.April 21.
D.April 23.

22.A company provided $1,500 of services to customers during the month of May. The customers paid in June. What would the impact of these transactions be during May on each of the following three items?

A.Option a
B.Option b
C.Option c
D.Option d

23.A company purchased $400 of office supplies on account during May. All the supplies were used in May, and the account was paid during June. What would the impact of these transactions be during May on each of the following three items?

A.Option a
B.Option b
C.Option c
D.Option d

24.A company paid $900 to workers during May. Of this amount, $600 was for work performed in April, while the other $300 was for work performed during May. What would the impact of this transaction be during May on each of the following three items?

A.Option a
B.Option b
C.Option c
D.Option d

25.Pawn Shops Unlimited recorded the following four transactions during April. Which of these transactions would have the same income statement impact in April regardless of whether the company used accrual-basis or cash-basis accounting?
A.Received $600 from customers for services to be provided in May.
B.Paid $1,800 for a six-month insurance policy covering the period July 1—December 31.
C.Paid $700 for an advertisement that appeared in the April 17 edition of the Las Vegas Sun newspaper.
D.Received $300 from customers for services performed in March.

26.Pawn Shops Unlimited recorded the following four transactions during April. Which of these transactions would have the same income statement impact in April regardless of whether the company used accrual-basis or cash-basis accounting?
A.Purchased $500 of office supplies on account (supplies were used in May and paid for in May).
B.Paid $1,800 for a six-month insurance policy covering the period July 1—December 31.
C.Paid $700 for an advertisement that appeared in the May 17 edition of the Las Vegas Sun newspaper.
D.Received $300 from customers for services performed in March.

27.The following events pertain to Jasper Corporation:

Using cash-basis accounting, on which date should Jasper record supplies expense?

A.May 1.
B.May 5.
C.May 8.
D.May 9.

28.The following events pertain to Bills Company:

Using cash-basis accounting, on which date should Bills Company record revenue for the accounting and tax services?
A.December 30, 2012.
B.December 31, 2012.
C.January 4, 2013.
D.January 11, 2013.

29.The following events pertain to Bills Company:

Using accrual-basis accounting, on which date should Bills Company record revenue for the accounting and tax services?
A.December 30, 2012.
B.December 31, 2012.
C.January 4, 2013.
D.January 11, 2013.

30.When a company provides services on account, which of the following would be recorded using cash-basis accounting?
A.Debit to Cash.
B.Debit to Service Revenue.
C.Credit to Unearned Revenue.
D.No entry would be recorded.

 

 

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