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External link to Question : 41) ________ measures the change in operating income attributable solely to : 1196087
Accounting

Question : 41) ________ measures the change in operating income attributable solely to : 1196087

  41) ________ measures the change in operating income attributable solely to changes in a company’s profit margins between years 1 and 2. 41) ______ A) The strategy component B) The growth component C) The productivity component D) The cost leadership component E) The price-recovery component 42) ________ measures the reduction in costs attributable to a reduction in the quantity of inputs used in year […]

External link to Question : 116. During January, Sundown Corporation had sales of $300,000 and a : 1229790
Accounting

Question : 116. During January, Sundown Corporation had sales of $300,000 and a : 1229790

    116. During January, Sundown Corporation had sales of $300,000 and a cost of goods available for sale of $600,000. The company consistently earns a gross profit rate of 45%. Using the gross profit method, the estimated inventory at January 31 amounts to:  A. $135,000. B. $435,000. C. $165,000. D. $465,000.     117. Colonial uses the retail method to estimate its monthly cost of goods sold and month-end inventory. […]

External link to Question : 7) What the closing entry to allocate net income $24,000 : 1177223
Accounting

Question : 7) What the closing entry to allocate net income $24,000 : 1177223

  7) What is the closing entry to allocate net income $24,000 to Eric, Von, and Derek? Their respective capital balances are $20,000, $40,000, and $60,000. Net income is shared in a ratio of their capital balances. A) Debit Income Summary $24,000; credit Eric, Capital $4,000; credit Von, Capital $8,000; credit Derek, Capital $12,000 B) Debit Income Summary $24,000; credit Eric, Capital $8,000; credit Von, […]

External link to Question : 121. The balance sheet of Hidden Valley Farms reports total : 1255960
Accounting

Question : 121. The balance sheet of Hidden Valley Farms reports total : 1255960

    121. The balance sheet of Hidden Valley Farms reports total assets of $450,000 and $550,000 at the beginning and end of the year, respectively. The return on assets for the year is 10%. What is Hidden Valley’s net income for the year? a. $5,000,000. b. $55,000. c. $5,500,000. d. $50,000.     122. Recognition of impairment for long-term assets is required if book […]

External link to Question : 151. Which of the following financial statements reports information as of : 1246491
Accounting

Question : 151. Which of the following financial statements reports information as of : 1246491

  151. Which of the following financial statements reports information as of a specific date?  A. income statement B. retained earnings statement C. statement of cash flows D. balance sheet 152. Four financial statements are usually prepared for a business.  The statement of cash flows is usually prepared last.  The retained earnings statement (RE), the balance sheet (B), and the income statement (I) are prepared in a certain order to obtain […]

External link to Question : Multiple Choice Questions 44.The classification and normal balance of the accounts : 1220518
Accounting

Question : Multiple Choice Questions 44.The classification and normal balance of the accounts : 1220518

  Multiple Choice Questions 44.The classification and normal balance of the accounts receivable account is:   A.an asset with a credit balance B.a liability with a debit balance C.an asset with a debit balance D.a revenue with a debit balance 45.The classification and normal balance of the salaries expense account is:   A.an expense with a credit balance B.a liability with a debit balance C.an asset with […]

External link to Question : SHORT ANSWER. Write the word or phrase that best completes each : 1196141
Accounting

Question : SHORT ANSWER. Write the word or phrase that best completes each : 1196141

  SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. 72) Distinguish among spoilage, reworked units, and scrap. Give an example of each.    72) _____________ 73) For each of the following items identify whether it is spoilage, reworked units, or scrap.     _______________a.Defective jeans sold as seconds _______________b.Shavings _______________c.Edges from plastic moldings _______________d.Carpets sold as seconds […]

External link to Question : 76. State CorporationBelow a note Disclosure of Leases for the State : 1224946
Accounting

Question : 76. State CorporationBelow a note Disclosure of Leases for the State : 1224946

  76. State CorporationBelow is a note on Disclosure of Leases for the State Corporation.The State Corporation leases office, warehouse and showroom space, retail stores and office equipment under operating leases, which expire no later than 2027. The Corporation normalizes fixed escalations in rental expense under its operating leases. Minimum annual rentals under non-cancelable operating leases, excluding operating cost escalations and contingent rental amounts based upon […]

External link to Question : 51. Barney’s Bagels invested in a new oven for $12,000. The : 1208027
Accounting

Question : 51. Barney’s Bagels invested in a new oven for $12,000. The : 1208027

  51. Barney’s Bagels invested in a new oven for $12,000. The oven reduced the amount of time for baking which increased production and sales for five years by the following amounts of cash inflows:    Using the averaging method, the payback period for the investment in the oven would be:  A. 5.0 years. B. 2.4 years. C. 2.0 years. D. 1.7 years. 52. Which of the following statements concerning payback […]

External link to Question : Evans Products uses a process costing system with two processing : 1229526
Accounting

Question : Evans Products uses a process costing system with two processing : 1229526

    Evans Products uses a process costing system with two processing departments: the Mixing Department and the Finishing Department. In June, unit costs incurred by the Mixing Department amounted to $4.00 per unit. Unit costs transferred to the finished goods warehouse during the month amounted to $22. Work-in-process inventories are reduced to zero each month. 53. The transfer of 35,000 units to the Finishing Department […]

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201.After preparing an (unadjusted) trial balance at year-end, R. Chang of Chang Window Company, Inc. discovered the following errors: 1. Cash payment of the $225 telephone bill for December was recorded twice. 2. Cash payment of a note payable was recorded as a debit to Cash and a debit to Notes Payable for $1,000. 3. A $900 cash dividend paid to the owner was recorded to the correct accounts as $90. 4. An additional investment of $5,000 cash by the owner was recorded as a debit to Common Stock and a credit to Cash. 5. A credit purchase of office equipment for $1,800 was recorded as a debit to the Office Equipment account with no offsetting credit entry. Using the form below, indicate whether the error would cause the trial balance to be out of balance by placing an X in either the yes or no column. Would the error cause the trial balance to be out of balance? 

ErrorYesNo

1.

2.

3.

4.

5.

Would the error cause the trial balance to be out of balance?    

 

 

 

202.The balances for the accounts of Milo's Management Co., Inc. for the year ended December 31 are shown below. Each account shown had a normal balance. 

Accounts payable$6,500Wages expense36,000

Accounts receivable7,000Rent expense6,000

Cash?

Office supplies1,200

Building125,000

Supplies expense21,500Land50,000

Common stock118,700Unearned management fees4,000

Management revenue175,000 Dividends48,000

Calculate the correct balance for Cash and prepare a trial balance.    

 

 

203.At year-end, Henry Laundry Service, Inc. noted the following errors in its trial balance: 1. It understated the total debits to the Cash account by $500 when computing the account balance. 2. A credit sale for $311 was recorded as a credit to the revenue account, but the offsetting debit was not posted. 3. A cash payment to a creditor for $2,600 was never recorded. 4. The $680 balance of the Prepaid Insurance account was listed in the credit column of the trial balance. 5. A $24,900 van purchase was recorded as a $24,090 debit to Equipment and a $24,090 credit to Notes Payable. 6. A purchase of office supplies for $150 was recorded as a debit to Office Equipment. The offsetting credit entry was correct. 7. An additional investment of $4,000 by Del Henry was recorded as a debit to Common Stock and as a credit to Cash. 8. The cash payment of the $510 utility bill for December was recorded (but not paid) twice. 9. The revenue account balance of $79,817 was listed on the trial balance as $97,817. 10. A $1,000 cash withdrawal by the stockholder was recorded as a $100 debit to Dividends and $100 credit to cash. Using the form below, indicate whether each error would cause the trial balance to be out of balance, the amount of any imbalance, and whether a correcting journal entry is required. 

Would the errorcause the trialbalance to be outof balance?Amount ofImbalanceCorrectingJournal EntryRequired

ErrorYesNoYesNo

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

  

 

 

 

204.The following trial balance is prepared from the general ledger of HG's Auto Maintenance, Inc. 

HG’S AUTO MAINTENANCE, Inc.Trial BalanceOctober 31

DebitCredit

Cash$1,975

Accounts receivable2,800

Supplies500

Shop equipment13,000

Office equipment6,600

Accounts payable $4,510

Common stock 22,000

Dividends4,200

Repair fees earned 11,875

Supplies expense    8,600

Totals$37,675$38,385

Because the trial balance did not balance, you decided to examine the accounting records. You found that the following errors had been made: 1. A purchase of supplies on account for $245 was posted as a debit to Supplies and as a debit to Accounts Payable. 2. An investment of $500 cash by the owner was debited to Common Stock and credited to Cash. 3. In computing the balance of the Accounts Receivable account, a debit of $600 was omitted from the computation. 4. One debit of $300 to the Dividends account was posted as a credit. 5. Office equipment purchased for $800 was posted to the Shop Equipment account. 6. One entire entry was not posted to the general ledger. The transaction involved the receipt of $125 cash for repair services performed for cash. Prepare a corrected trial balance for the HG's Auto Maintenance, Inc. as of October 31.    

 

 

 

 

 

 

 

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July 1, 2023
    

 

 

 

201.After preparing an (unadjusted) trial balance at year-end, R. Chang of Chang Window Company, Inc. discovered the following errors: 1. Cash payment of the $225 telephone bill for December was recorded twice. 2. Cash payment of a note payable was recorded as a debit to Cash and a debit to Notes Payable for $1,000. 3. A $900 cash dividend paid to the owner was recorded to the correct accounts as $90. 4. An additional investment of $5,000 cash by the owner was recorded as a debit to Common Stock and a credit to Cash. 5. A credit purchase of office equipment for $1,800 was recorded as a debit to the Office Equipment account with no offsetting credit entry. Using the form below, indicate whether the error would cause the trial balance to be out of balance by placing an X in either the yes or no column. Would the error cause the trial balance to be out of balance? 

ErrorYesNo

1.

2.

3.

4.

5.

Would the error cause the trial balance to be out of balance?    

 

 

 

202.The balances for the accounts of Milo's Management Co., Inc. for the year ended December 31 are shown below. Each account shown had a normal balance. 

Accounts payable$6,500Wages expense36,000

Accounts receivable7,000Rent expense6,000

Cash?

Office supplies1,200

Building125,000

Supplies expense21,500Land50,000

Common stock118,700Unearned management fees4,000

Management revenue175,000 Dividends48,000

Calculate the correct balance for Cash and prepare a trial balance.    

 

 

203.At year-end, Henry Laundry Service, Inc. noted the following errors in its trial balance: 1. It understated the total debits to the Cash account by $500 when computing the account balance. 2. A credit sale for $311 was recorded as a credit to the revenue account, but the offsetting debit was not posted. 3. A cash payment to a creditor for $2,600 was never recorded. 4. The $680 balance of the Prepaid Insurance account was listed in the credit column of the trial balance. 5. A $24,900 van purchase was recorded as a $24,090 debit to Equipment and a $24,090 credit to Notes Payable. 6. A purchase of office supplies for $150 was recorded as a debit to Office Equipment. The offsetting credit entry was correct. 7. An additional investment of $4,000 by Del Henry was recorded as a debit to Common Stock and as a credit to Cash. 8. The cash payment of the $510 utility bill for December was recorded (but not paid) twice. 9. The revenue account balance of $79,817 was listed on the trial balance as $97,817. 10. A $1,000 cash withdrawal by the stockholder was recorded as a $100 debit to Dividends and $100 credit to cash. Using the form below, indicate whether each error would cause the trial balance to be out of balance, the amount of any imbalance, and whether a correcting journal entry is required. 

Would the errorcause the trialbalance to be outof balance?Amount ofImbalanceCorrectingJournal EntryRequired

ErrorYesNoYesNo

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

  

 

 

 

204.The following trial balance is prepared from the general ledger of HG's Auto Maintenance, Inc. 

HG’S AUTO MAINTENANCE, Inc.Trial BalanceOctober 31

DebitCredit

Cash$1,975

Accounts receivable2,800

Supplies500

Shop equipment13,000

Office equipment6,600

Accounts payable $4,510

Common stock 22,000

Dividends4,200

Repair fees earned 11,875

Supplies expense    8,600

Totals$37,675$38,385

Because the trial balance did not balance, you decided to examine the accounting records. You found that the following errors had been made: 1. A purchase of supplies on account for $245 was posted as a debit to Supplies and as a debit to Accounts Payable. 2. An investment of $500 cash by the owner was debited to Common Stock and credited to Cash. 3. In computing the balance of the Accounts Receivable account, a debit of $600 was omitted from the computation. 4. One debit of $300 to the Dividends account was posted as a credit. 5. Office equipment purchased for $800 was posted to the Shop Equipment account. 6. One entire entry was not posted to the general ledger. The transaction involved the receipt of $125 cash for repair services performed for cash. Prepare a corrected trial balance for the HG's Auto Maintenance, Inc. as of October 31.    

 

 

 

 

 

 

 

default image
July 1, 2023
    

 

 

 

201.After preparing an (unadjusted) trial balance at year-end, R. Chang of Chang Window Company, Inc. discovered the following errors: 1. Cash payment of the $225 telephone bill for December was recorded twice. 2. Cash payment of a note payable was recorded as a debit to Cash and a debit to Notes Payable for $1,000. 3. A $900 cash dividend paid to the owner was recorded to the correct accounts as $90. 4. An additional investment of $5,000 cash by the owner was recorded as a debit to Common Stock and a credit to Cash. 5. A credit purchase of office equipment for $1,800 was recorded as a debit to the Office Equipment account with no offsetting credit entry. Using the form below, indicate whether the error would cause the trial balance to be out of balance by placing an X in either the yes or no column. Would the error cause the trial balance to be out of balance? 

ErrorYesNo

1.

2.

3.

4.

5.

Would the error cause the trial balance to be out of balance?    

 

 

 

202.The balances for the accounts of Milo's Management Co., Inc. for the year ended December 31 are shown below. Each account shown had a normal balance. 

Accounts payable$6,500Wages expense36,000

Accounts receivable7,000Rent expense6,000

Cash?

Office supplies1,200

Building125,000

Supplies expense21,500Land50,000

Common stock118,700Unearned management fees4,000

Management revenue175,000 Dividends48,000

Calculate the correct balance for Cash and prepare a trial balance.    

 

 

203.At year-end, Henry Laundry Service, Inc. noted the following errors in its trial balance: 1. It understated the total debits to the Cash account by $500 when computing the account balance. 2. A credit sale for $311 was recorded as a credit to the revenue account, but the offsetting debit was not posted. 3. A cash payment to a creditor for $2,600 was never recorded. 4. The $680 balance of the Prepaid Insurance account was listed in the credit column of the trial balance. 5. A $24,900 van purchase was recorded as a $24,090 debit to Equipment and a $24,090 credit to Notes Payable. 6. A purchase of office supplies for $150 was recorded as a debit to Office Equipment. The offsetting credit entry was correct. 7. An additional investment of $4,000 by Del Henry was recorded as a debit to Common Stock and as a credit to Cash. 8. The cash payment of the $510 utility bill for December was recorded (but not paid) twice. 9. The revenue account balance of $79,817 was listed on the trial balance as $97,817. 10. A $1,000 cash withdrawal by the stockholder was recorded as a $100 debit to Dividends and $100 credit to cash. Using the form below, indicate whether each error would cause the trial balance to be out of balance, the amount of any imbalance, and whether a correcting journal entry is required. 

Would the errorcause the trialbalance to be outof balance?Amount ofImbalanceCorrectingJournal EntryRequired

ErrorYesNoYesNo

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

  

 

 

 

204.The following trial balance is prepared from the general ledger of HG's Auto Maintenance, Inc. 

HG’S AUTO MAINTENANCE, Inc.Trial BalanceOctober 31

DebitCredit

Cash$1,975

Accounts receivable2,800

Supplies500

Shop equipment13,000

Office equipment6,600

Accounts payable $4,510

Common stock 22,000

Dividends4,200

Repair fees earned 11,875

Supplies expense    8,600

Totals$37,675$38,385

Because the trial balance did not balance, you decided to examine the accounting records. You found that the following errors had been made: 1. A purchase of supplies on account for $245 was posted as a debit to Supplies and as a debit to Accounts Payable. 2. An investment of $500 cash by the owner was debited to Common Stock and credited to Cash. 3. In computing the balance of the Accounts Receivable account, a debit of $600 was omitted from the computation. 4. One debit of $300 to the Dividends account was posted as a credit. 5. Office equipment purchased for $800 was posted to the Shop Equipment account. 6. One entire entry was not posted to the general ledger. The transaction involved the receipt of $125 cash for repair services performed for cash. Prepare a corrected trial balance for the HG's Auto Maintenance, Inc. as of October 31.    

 

 

 

 

 

 

 

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