Multiple choice question 112 jawbreaker company paid $940 on account
Multiple Choice Question 112
Jawbreaker Company paid $940 on account to a creditor. The transaction was erroneously recorded as a debit to Cash of $490 and a credit to Accounts Receivable, $490. The correcting entry is
|
[removed] |
|
||||||||||||
|
[removed] |
|
||||||||||||
|
[removed] |
|
||||||||||||
|
[removed] |
|
||||||||||||||||
Multiple Choice Question 111
Zen Arcade paid the weekly payroll on January 2 by debiting Salaries and Wages Expense for $47,000. The accountant preparing the payroll entry overlooked the fact that Salaries and Wages Expense of $27,000 had been accrued at year end on December 31. The correcting entry is
|
[removed] |
|
||||||||||||
|
[removed] |
|
||||||||||||
|
[removed] |
|
||||||||||||
|
[removed] |
|
||||||||||||
Multiple Choice Question 81
The income statement for the year 2014 of Fugazi Co. contains the following information:
|
Revenues |
$70,000 |
|||
|
Expenses: |
||||
|
Salaries and Wages Expense |
$45,000 |
|||
|
Rent Expense |
12,000 |
|||
|
Advertising Expense |
10,000 |
|||
|
Supplies Expense |
6,000 |
|||
|
Utilities Expense |
2,500 |
|||
|
Insurance Expense |
2,000 |
|||
|
Total expenses |
77,500 |
|||
|
Net income (loss) |
($7,500) |
|||
The entry to close the expense accounts includes a
|
[removed] |
debit to Income Summary for $7,500. |
|
[removed] |
debit to Income Summary for $77,500. |
|
[removed] |
credit to Income Summary for $7,500. |
|
[removed] |
debit to Wages Expense for $2,500. |
Multiple Choice Question 122
The following information is for Bright Eyes Auto Supplies:
|
Bright Eyes Auto Supplies |
||||||||||
|
Balance Sheet |
||||||||||
|
December 31, 2014 |
||||||||||
|
Cash |
$ 40,000 |
Accounts Payable |
$ 130,000 |
|||||||
|
Prepaid Insurance |
80,000 |
Salaries and Wages Payable |
50,000 |
|||||||
|
Accounts Receivable |
100,000 |
Mortgage Payable |
150,000 |
|||||||
|
Inventory |
140,000 |
Total Liabilities |
330,000 |
|||||||
|
Land Held for Investment |
180,000 |
|||||||||
|
Land |
250,000 |
|||||||||
|
Building |
$200,000 |
|||||||||
|
Less Accumulated |
Owner’s Capital |
740,000 |
||||||||
|
Depreciation |
(60,000) |
140,000 |
||||||||
|
Trademark |
140,000 |
Total Liabilities and |
||||||||
|
Total Assets |
$1,070,000 |
Owner’sEquity |
$1,070,000 |
|||||||
The total dollar amount of assets to be classified as investments is
Multiple Choice Question 121
The following information is for Bright Eyes Auto Supplies:
|
Bright Eyes Auto Supplies |
||||||||||
|
Balance Sheet |
||||||||||
|
December 31, 2014 |
||||||||||
|
Cash |
$ 40,000 |
Accounts Payable |
$ 130,000 |
|||||||
|
Prepaid Insurance |
80,000 |
Salaries and Wages Payable |
50,000 |
|||||||
|
Accounts Receivable |
100,000 |
Mortgage Payable |
150,000 |
|||||||
|
Inventory |
140,000 |
Total Liabilities |
330,000 |
|||||||
|
Land Held for Investment |
180,000 |
|||||||||
|
Land |
250,000 |
|||||||||
|
Building |
$200,000 |
|||||||||
|
Less Accumulated |
Owner’s Capital |
740,000 |
||||||||
|
Depreciation |
(60,000) |
140,000 |
||||||||
|
Trademark |
140,000 |
Total Liabilities and |
||||||||
|
Total Assets |
$1,070,000 |
Owner’sEquity |
$1,070,000 |
|||||||
The total dollar amount of assets to be classified as property, plant, and equipment is
Multiple Choice Question 94
Which account listed below would be double ruled in the ledger as part of the closing process?
|
[removed] |
Accumulated Depreciation—Equipment |
|
[removed] |
Owner’s Drawings |
Multiple Choice Question 108
If errors occur in the recording process, they
|
[removed] |
should be corrected as soon as they are discovered. |
|
[removed] |
should be corrected as adjustments at the end of the period. |
|
[removed] |
cannot be corrected until the next accounting period. |
|
[removed] |
should be corrected when preparing closing entries. |
Multiple Choice Question 148
Which statement about long-term investments is not true?
|
[removed] |
They are not currently used in the operation of the business. |
|
[removed] |
They will be held for more than one year. |
|
[removed] |
They include investments in stock of other companies and land held for future use. |
|
[removed] |
They can never include cash accounts. |
Multiple Choice Question 59
Closing entries are
|
[removed] |
journalized in the general journal. |
|
[removed] |
an optional step in the accounting cycle. |
|
[removed] |
made to close permanent or real accounts. |
|
[removed] |
posted to the ledger accounts from the worksheet. |
Multiple Choice Question 102
Which of the following steps in the accounting cycle may be performed most frequently?
|
[removed] |
Prepare a trial balance. |
|
[removed] |
Prepare a post-closing trial balance. |
|
[removed] |
Journalize closing entries. |
|
[removed] |
Post closing entries. |