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External link to Question : 53.Nigel Lighting uses the direct charge-off method of recording bad : 1168989
Accounting

Question : 53.Nigel Lighting uses the direct charge-off method of recording bad : 1168989

    53.Nigel Lighting uses the direct charge-off method of recording bad debts. On September 4, the company concluded that the $300 account balance of Louis Blue should be charged off. The entry to write off Blue’s account will be:    A.      B.      C.      D.            54.Nigel Lighting uses the direct charge-off method of recording bad […]

External link to Question : 55. Samson Corporation buys a foreign currency future contract as a : 1229479
Accounting

Question : 55. Samson Corporation buys a foreign currency future contract as a : 1229479

    55. Samson Corporation buys a foreign currency future contract as a hedging strategy to protect against possible losses from fluctuations in a particular foreign exchange. This strategy suggests that Samson Corporation has:  A. Foreign accounts payable and expects the exchange rate to fall. B. Foreign accounts receivable and expects the exchange rate to rise. C. Foreign accounts payable and expects the exchange rate to rise. D. Foreign accounts […]

External link to Question : 161. ABC Printing Company uses a job order cost system. (a)Indicate the : 1251543
Accounting

Question : 161. ABC Printing Company uses a job order cost system. (a)Indicate the : 1251543

  161. ABC Printing Company uses a job order cost system.  (a)Indicate the source of the data for debiting Work in Process for each of the following: (1)Direct materials requisitioned (2)Direct labor used (b)Indicate the source of the data for crediting Work in Process for jobs completed. (c)Present a list of the three controlling accounts used in the general ledger to record the inventories and, in […]

External link to Question : Multiple Choice Questions 57.Plant assets defined as: A.Tangible assets that have a : 1258959
Accounting

Question : Multiple Choice Questions 57.Plant assets defined as: A.Tangible assets that have a : 1258959

  Multiple Choice Questions  57.Plant assets are defined as:    A.Tangible assets that have a useful life of more than one accounting period and are used in the operation of a business.   B.Current assets.   C.Held for sale.   D.Intangible assets used in the operations of a business that have a useful life of more than one accounting period.   E.Tangible assets used in the […]

External link to Question : 58.When recording a business transaction into the general ledger, certain : 1169350
Accounting

Question : 58.When recording a business transaction into the general ledger, certain : 1169350

  58.When recording a business transaction into the general ledger, certain steps are followed. Identify the statement below that is NOTCORRECT regarding this process.    A. The process of transferring data from the journal to the ledger is called posting. B. All transactions are recorded first in the general journal and then they are transferred to the general ledger. C. All transactions are recorded first in the general ledger […]

External link to Question : 51. Which of the following accounts not closed? A. Accumulated DepreciationB. Depreciation ExpenseC. Interest ExpenseD. Sales 52. : 1197582
Accounting

Question : 51. Which of the following accounts not closed? A. Accumulated DepreciationB. Depreciation ExpenseC. Interest ExpenseD. Sales 52. : 1197582

    51. Which of the following accounts is not closed?  A. Accumulated Depreciation B. Depreciation Expense C. Interest Expense D. Sales   52. Which of the following accounts is not closed?  A. Sales. B. Accounts Receivable. C. Depreciation Expense. D. Purchases.   53. Which of the following accounts is not closed?  A. Capital. B. Depreciation Expense. C. Sales. D. Purchase Discounts.   54. Which of the following groups of accounts will have zero balances after the closing process is completed?  […]

External link to Question : 51. Which of the following a major disadvantage of distance learning? A. The : 1251037
Accounting

Question : 51. Which of the following a major disadvantage of distance learning? A. The : 1251037

    51. Which of the following is a major disadvantage of distance learning?  A. The level of self-discipline required by participants. B. The potential lack of interaction between the trainer and the audience. C. The high cost of equipment. D. The lack of face-to-face interaction. Distance learning is used by geographically dispersed companies to provide information about new products, policies, or procedures as well as skills training and expert […]

External link to Question : 81.Refer to the information above. Employees’ annual “take-home-pay,” totals approximately: A.$672,300. B.$762,300 : 1237426
Accounting

Question : 81.Refer to the information above. Employees’ annual “take-home-pay,” totals approximately: A.$672,300. B.$762,300 : 1237426

    81.Refer to the information above. Employees’ annual “take-home-pay,” totals approximately:    A.$672,300.   B.$762,300.   C.$675,000.   D.$741,150. $900,000 – ($900,000 × .0765) – ($900,000 × .10) = $741,150       82.Refer to the information above. Some of the payroll-related expenses incurred by Stone Corporation are mandated by law, rather than negotiated with employees. During the current year, these mandated amounts increased Stone’s […]

External link to Question : 111. A company’s balance sheet and income statement accounts follow: At December : 1256442
Accounting

Question : 111. A company’s balance sheet and income statement accounts follow: At December : 1256442

    111. A company’s balance sheet and income statement accounts follow: At December 31 2014 2013 2012 Assets       Cash $30,872 $36,086 $37,974 Accounts receivable, net 89,476 63,151 50,632 Merchandise inventory 112,499 83,450 54,467 Prepaid expenses 9,942 9,473 4,219 Plant assets, net 291,143 268,126 244,108 Total assets $533,932 $460,286 $391,400 Liabilities and Equity       Accounts payable $130,290 $76,233 $50,632 Long-term notes […]

External link to Question : 71. Altertech Inc. manufactures a product that contains a circuit : 1256769
Accounting

Question : 71. Altertech Inc. manufactures a product that contains a circuit : 1256769

    71. Altertech Inc. manufactures a product that contains a circuit board. The company has always purchased this circuit board from a supplier for $32 each. Altertech recently upgraded its own manufacturing capabilities and now has enough excess capacity (including trained workers) to begin manufacturing the circuit board instead of buying it. The company prepared the following per unit cost projections of making the […]

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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.    

 

 

 

 

 

 

 

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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By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

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