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
![http://edugen.wiley.com/edugen/art2/common/pixel.gif]()
|
[removed]
|
|
Accounts Receivable…………………………………………………………………
|
490
|
|
| |
Cash…………………………………………………………………………………..
|
|
490
|
| |
|
|
|
|
|
[removed]
|
|
Accounts Payable…………………………………………………………………….
|
940
|
|
| |
Cash…………………………………………………………………………………..
|
|
940
|
| |
|
|
|
|
|
[removed]
|
|
Accounts Receivable…………………………………………………………………
|
490
|
|
| |
Accounts Payable…………………………………………………………………..
|
|
490
|
| |
|
|
|
|
|
[removed]
|
|
Accounts Receivable…………………………………………………………………
|
490
|
|
|
Accounts Payable…………………………………………………………………….
|
940
|
|
| |
Cash…………………………………………………………………………………..
|
|
1,430
|
| |
|
|
|
|
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
![http://edugen.wiley.com/edugen/art2/common/pixel.gif]()
|
[removed]
|
|
Salaries and Wages Payable…………………………………………………………………….
|
27,000
|
|
| |
Salaries and Wages Expense…………………………………………………………………..
|
|
27,000
|
| |
|
|
|
|
|
[removed]
|
|
Salaries and Wages Payable…………………………………………………………………….
|
27,000
|
|
| |
Cash…………………………………………………………………………………………………
|
|
27,000
|
| |
|
|
|
|
|
[removed]
|
|
Cash………………………………………………………………………………………………….
|
20,000
|
|
| |
Salaries and Wages Expense…………………………………………………………………..
|
|
20,000
|
| |
|
|
|
|
|
[removed]
|
|
Cash………………………………………………………………………………………………….
|
27,000
|
|
| |
Salaries and Wages Expense…………………………………………………………………..
|
|
27,000
|
| |
|
|
|
|
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
![http://edugen.wiley.com/edugen/art2/common/pixel.gif]()
|
[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
![http://edugen.wiley.com/edugen/art2/common/pixel.gif]()
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
![http://edugen.wiley.com/edugen/art2/common/pixel.gif]()
Multiple Choice Question 94
Which account listed below would be double ruled in the ledger as part of the closing process?
![http://edugen.wiley.com/edugen/art2/common/pixel.gif]()
|
[removed]
|
Accumulated Depreciation—Equipment
|
|
[removed]
|
Owner’s Drawings
|
Multiple Choice Question 108
If errors occur in the recording process, they
![http://edugen.wiley.com/edugen/art2/common/pixel.gif]()
|
[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?
![http://edugen.wiley.com/edugen/art2/common/pixel.gif]()
|
[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
![http://edugen.wiley.com/edugen/art2/common/pixel.gif]()
|
[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?
![http://edugen.wiley.com/edugen/art2/common/pixel.gif]()
|
[removed]
|
Prepare a trial balance.
|
|
[removed]
|
Prepare a post-closing trial balance.
|
|
[removed]
|
Journalize closing entries.
|
|
[removed]
|
Post closing entries.
|
