ACC 291T Entire Course

ACC/291T

PRINCIPLES OF ACCOUNTING II

 
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ACC 291T Week 1 Practice: Connect® Knowledge Check (2019 New)
 

Complete the Week 1 Knowledge Check in Connect®.

Note: You have unlimited attempts available to complete this practice assignment. The highest scored attempt will be recorded.

These assignments have earlier due dates, so plan accordingly.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date

 

Hour Place Clock Shop sold a grandfather clock for $3,750 subject to a 7% sales tax. The entry in the general journal will include a debit to Accounts Receivable for

Multiple Choice

 

 

 

 
 

 

 

$3,625.00.

 

 

 

 
 

 

 

$4,012.50.

 

 

 

 
 

 

 

$3,750.00.

 

 

 

 
 

 

 

$3,487.50.

 

 

 

The amount used by wholesalers to record sales in the general journal is

Multiple Choice

 

 

 

 
 

 

 

the retail price.

 

 

 

 
 

 

 

the list price.

 

 

 

 
 

 

 

the original price.

 

 

 

 
 

 

 

the net price.

 

 

 

Merchandise is sold on credit for $1,600 plus 6 percent sales tax. The journal entry to record the sale will include a debit to Accounts Receivable for

Multiple Choice

 

 

 

 
 

 

 

$1,600.00.

 

 

 

 
 

 

 

$1,696.00.

 

 

 

 
 

 

 

$2,560.00.

 

 

 

 
 

 

 

$1,504.00.

 

 

 

The balance due from an individual customer can be found in:

Multiple Choice

 

 

 

 
 

 

 

the general journal.

 

 

 

 
 

 

 

the Sales account in the general ledger.

 

 

 

 
 

 

 

the accounts receivable subsidiary ledger.

 

 

 

 
 

 

 

the Accounts Receivable account in the general ledger.

 

 

 

The entry to record a return by a credit customer of defective merchandise on which no sales tax was charged includes

Multiple Choice

 

 

 

 
 

 

 

a debit to Sales and a credit to Accounts Receivable.

 

 

 

 
 

 

 

a debit to Accounts Receivable and a credit to Sales Returns and Allowances.

 

 

 

 
 

 

 

a debit to Sales and a credit to Sales Returns and Allowances.

 

 

 

 
 

 

 

a debit to Sales Returns and Allowances and a credit to Accounts Receivable.

 

 

 

On June 12, Music, Inc. sells $4,000 of goods on account to a credit customer with credit terms of 1/10, n/30. If the customer pays on June 20, select the  entry to record the receipt of the customer’s payment:

Multiple Choice

 

 

 

 
 

 

 

 

Cash           3,960

Sales Discounts        40

Accounts Receivable                  4,000

________________________________________

 

 

 


 

 

 

 

Cash           4,000

Accounts Receivable                  4,000

________________________________________

 

 

 

 
 

 

 

 

Cash           4,000

Sales Discounts                    40

Accounts Receivable                  3,960

________________________________________

 

 

 

 
 

 

 

 

Accounts Receivable      3,960

Sales Discounts        40

Cash                       4,000

________________________________________

 

 

 

Which of the following describes the Sales Returns and Allowances account?

Multiple Choice

 

 

 

 
 

 

 

A contra expense account with a normal debit balance.

 

 

 

 
 

 

 

An expense account with a normal debit balance.

 

 

 

 
 

 

 

A revenue account with a normal credit balance.

 

 

 

 
 

 

 

A contra revenue account with a normal debit balance.

 

 

 

Hugh Snow, the buyer, returned merchandise to Farley Co., the seller. The entry on the books of Farley company to record the return of merchandise from Hugh Snow would include a:

Multiple Choice

 

 

 

 
 

 

 

Debit to Account Receivable

 

 

 

 
 

 

 

Debit to Accounts Payable

 

 

 

 
 

 

 

Debit to Sales Returns and Allowances

 

 

 

 
 

 

 

Credit to Sales Returns and Allowances

 

 

 

Merchandise is sold for cash for $1,600 plus 6 percent sales tax. The journal entry to record the sale will include

Multiple Choice

 

 

 

 
 

 

 

a debit to Accounts Receivable for $1,600; a debit to Sales Tax Payable for $96 and a credit to Sales for $1,696.

 

 

 

 
 

 

 

a debit to Cash for $1,600 and a credit to Sales for $1,600.

 

 

 

 
 

 

 

a debit to Cash for $1,696, a credit to Sales Tax Payable for $96 and a credit to Sales for $1,600.

 

 

 

 
 

 

 

a debit to Accounts Receivable for $1,696 and a credit to Sales for $1,696.

 

 

 

Sales Returns and Allowances have the effect of

Multiple Choice

 

 

 

 
 

 

 

increasing expenses.

 

 

 

 
 

 

 

increasing assets.

 

 

 

 
 

 

 

decreasing total revenue.

 

 

 

 
 

 

 

increasing total revenue.

 

 

 

 

Kay Sadia sold merchandise for $7,200 subject to 8% sales tax.  The entry in the general journal to record the sale will include:

Multiple Choice

 

 

 

 
 

 

 

a debit to Sales Tax Payable for $576.00.

 

 

 

 
 

 

 

credit to Sales for $7,200.00.

 

 

 

 
 

 

 

a debit to Accounts Receivable for $7,200.00.

 

 

 

 
 

 

 

a credit to Sales for $7,776.00.

 

 

 

On Deck Sports Memorabilia store sells a Babe Ruth rookie card for $6,400 on account.  If the sales tax on the sale is 8%, the journal entry to record the sale would include:

Multiple Choice

 

 

 

 
 

 

 

a debit to Accounts Receivable for $6,912

 

 

 

 
 

 

 

a credit to Sales for $6,912

 

 

 

 
 

 

 

a debit to Sales for $6,400

 

 

 

 
 

 

 

a debit to Sales Tax Payable for $512

 

 

 

A credit policy that is too tight may result in

Multiple Choice

 

 

 

 
 

 

 

high level of losses at the expense of increases in sales volume.

 

 

 

 
 

 

 

high level of losses at the expense of decreases in sales volume.

 

 

 

 
 

 

 

low level of losses at the expense of decreases in sales volume.

 

 

 

 
 

 

 

low level of losses at the expense of increases in sales volume.

 

 

 

On Deck Sports Memorabilia store sells a Babe Ruth rookie card for $6,400 on account. If the sales tax on the sale is 8%, what is the amount debited to Accounts Receivable.

Multiple Choice

 

 

 

 
 

 

 

$5,888

 

 

 

 
 

 

 

$6,912

 

 

 

 
 

 

 

$6,400

 

 

 

 
 

 

 

$6,512

 

 

 

A schedule of accounts receivable is prepared

Multiple Choice

 

 

 

 
 

 

 

monthly.

 

 

 

 
 

 

 

weekly.

 

 

 

 
 

 

 

daily.

 

 

 

 
 

 

 

yearly.

 

 

 

All of the following are situations that can cause accounts receivable to become uncollectible, except

Multiple Choice

 

 

 

 
 

 

 

unexpected business developments.

 

 

 

 
 

 

 

errors of judgment.

 

 

 

 
 

 

 

efficient business practices.

 

 

 

 
 

 

 

in financial data.

 

 

 

Hugh Snow, the buyer, returned merchandise to Farley Co., the seller.  The entry on the books of Farley company to record the return of merchandise from Hugh Snow would include a:

Multiple Choice

 

 

 

 
 

 

 

debit to Sales Returns and Allowances and a credit to Account Receivable.

 

 

 

 
 

 

 

debit to Sales and a credit to Sales Returns and Allowances.

 

 

 

 
 

 

 

debit to Sales Discounts and a credit to Accounts Receivable.

 

 

 

 
 

 

 

debit to Accounts Payable and a credit to Sales Returns and Allowances.

 

 

 

On June 12, Candy Suppliers sells $5,000 of goods on account to a credit customer with credit terms 1/10, n/30. Assume the sale is not subject to tax. On June 15, the customer returned $500 of the goods due to defect. Assume the customer pays within the discount period, select the  entry to record the receipt of the customer’s payment:

Multiple Choice

 

 

 

 
 

 

 

 

Cash           4,455

Sales Discounts        45

Accounts Receivable                  4,500

________________________________________

 

 

 

 
 

 

 
 

 

 

 

Cash           5,000

Accounts Receivable                  5,000

________________________________________

 

 

 

 
 

 

 

 

Cash           4,950

Sales Discounts        50

Accounts Receivable                  5,000

________________________________________

 

 

 

 
 

 

 

 

Accounts Receivable      4,500

Sales Discounts        50

Cash                       4,550

________________________________________

 

 

 

___________ are required to collect sales tax from customers, make periodic payments to the taxing authority, and pay the taxes due when reports are filed.

Multiple Choice

 

 

 

 
 

 

 

Manufacturers

 

 

 

 
 

 

 

Wholesalers

 

 

 

 
 

 

 

Retailers

 

 

 

 
 

 

 

Distributors

 

 

 

All of the following are examples of the most common types of credit sales, except

Multiple Choice

 

 

 

 
 

 

 

cards issued by credit card companies.

 

 

 

 
 

 

 

business credit cards.

 

 

 

 
 

 

 

closed-account credit cards.

 

 

 

 
 

 

 

bank credit cards.

 

 

 

The Sales account is classified as

Multiple Choice

 

 

 

 
 

 

 

a contra revenue account.

 

 

 

 
 

 

 

an asset account.

 

 

 

 
 

 

 

a revenue account.

 

 

 

 
 

 

 

a liability account.

 

 

 

The entry to record the return of merchandise from a customer on which sales tax was charged includes

Multiple Choice

 

 

 

 
 

 

 

a debit to Sales Tax Payable.

 

 

 

 
 

 

 

a debit to Accounts Receivable.

 

 

 

 
 

 

 

a credit to Sales Tax Payable.

 

 

 

 
 

 

 

a credit to Sales Returns and Allowances.

 

 

 

If a firm had sales of $84,000 during a period and sales returns and allowances of $6,000, its net sales were

Multiple Choice

 

 

 

 
 

 

 

$6,000.

 

 

 

 
 

 

 

$90,000.

 

 

 

 
 

 

 

$84,000.

 

 

 

 
 

 

 

$78,000.

 

 

 

 

A retailer recorded the following in June: cash sales $2,000; credit sales, $9,000; sales returns and allowances, $1,000. Assuming the sales tax rate is 8 percent, the entry to record the sales tax payment includes a debit to Sales Tax Payable for

Multiple Choice

 

 

 

 
 

 

 

$720.

 

 

 

 
 

 

 

$880.

 

 

 

 
 

 

 

$640.

 

 

 

 
 

 

 

$800.

 

 

 

 

A credit policy that is too lenient may result in

Multiple Choice

 

 

 

 
 

 

 

increased sales volume accompanied by a high level of losses.

 

 

 

 
 

 

 

decreased sales volume accompanied by a low level of losses.

 

 

 

 
 

 

 

increased sales volume accompanied by a low level of losses.

 

 

 

 
 

 

 

decreased sales volume accompanied by a high level of losses.

 

 

 

On October 12, Equipment Inc. sells $53,000 worth of equipment on account to a credit customer with credit terms of 1/10, n/30. Assume the sale is not subject to tax. Select the  entry to record the sale on Oct 12.

Multiple Choice

 

 

 

 
 

 

 

 

Sales           53,000

Sales Discounts                    530

Accounts Receivable                  52,470

________________________________________

 

 

 

 
 

 

 

 

Accounts Receivable      53,000

Sales Discounts                    530

Sales                       52,470

________________________________________

 

 

 

 
 

 

 

 

Accounts Receivable      53,000

 

Sales                       53,000

________________________________________

 

 

 


 

 

 

 

Cash           53,000

Sales                       53,000

________________________________________

 

 

 

A wholesale business sells goods with a list price of $800 and a trade discount of 36 percent. The net sales price is

Multiple Choice

 

 

 

 
 

 

 

$1,088.00.

 

 

 

 
 

 

 

$512.00.

 

 

 

 
 

 

 

$288.00.

 

 

 

 
 

 

 

$800.00.

 

 

 

The Sales Returns and Allowances account is reported

Multiple Choice

 

 

 

 
 

 

 

on the income statement as an addition to Sales.

 

 

 

 
 

 

 

on the balance sheet as a deduction from Capital.

 

 

 

 
 

 

 

on the income statement as a deduction from Sales.

 

 

 

 
 

 

 

on the balance sheet as a deduction from Accounts Receivable.

 

 

 

Which of the following is a common example of the distribution channel?

Multiple Choice

 

 

 

 
 

 

 

Customer sells to Wholesaler who sells to Retailer who sells to Wholesaler

 

 

 

 
 

 

 

Manufacturer sells to Wholesaler who sells to Retailer who sells to Customer

 

 

 

 
 

 

 

Manufacturer sells to Customer who sells to Wholesaler who sells to Retailer

 

 

 

 
 

 

 

Manufacturer sells to Retailer who sells to Wholesaler who sells to Customer

 

 

 

Which of the following is not one of the three basic types of businesses?

Multiple Choice

 

 

 

 
 

 

 

Service

 

 

 

 
 

 

 

Manufacturing

 

 

 

 
 

 

 

International

 

 

 

 
 

 

 

Merchandising

 

 

The Sales Returns and Allowances account is classified as

Which of the following describes the Sales Tax Payable account?

 

Which of the following describes the Sales Returns and Allowances account?

The amount of the trade discount taken by the customer is:

Kay Sadia sold merchandise for $7,200 subject to a 8% sales tax. The entry in the general journal will include a debit to Accounts Receivable for:

 

Kay Sadia sold merchandise for $7,200 subject to 8% sales tax.  The entry in the general journal to record the sale will include:

 

 

 

 

ACC 291T Week 1 Apply: Connect® Exercise (2019 New)
 

Review the Knowledge Check in preparation for this assignment.

Complete the Week 1 Exercise in Connect®.

Note: You have only one attempt available to complete this assignment.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date

 

 
 

 

 
 

On Deck Sports Memorabilia store sells a Babe Ruth rookie card for $3,700 on account. If the sales tax on the sale is 8%, what is the amount debited to Accounts Receivable.

Multiple Choice

$3,404

$3,996

$3,700

$3,692

 

 

Hour Place Clock Shop sold a grandfather clock for $2,100 subject to a 7% sales tax. The entry in the general journal will include a credit to Sales for

Multiple Choice

$2,100.00.

$1,911.00.

$2,289.00.

$2,091.00.

 

 

Main Street Distributors, a wholesale firm, made sales using the following list prices and trade discounts. What amount should be recorded for each sale?

List price of $3,600 and trade discounts of 30 percent and 20 percent.

List price of $4,300 and trade discounts of 30 percent and 20 percent.

List price of $2,650 and trade discounts of 20 percent and 10 percent.

 

 

Merchandise is sold on credit for $580 plus 5 percent sales tax. The journal entry to record the sale will include a debit to Accounts Receivable for

Multiple Choice

$580.00.

$585.80.

$582.90.

$609.00.

 

 

Record the following transactions of Lisa’s Fashion Boutique in a general journal. Lisa’s Fashion Boutique operates in a state with 8% sales tax. (Round your intermediate calculations and final answers to 2 decimal places):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DATE
TRANSACTIONS
2019
 
Feb.
2
Sold merchandise for cash totaling $3,000 to customers using bank credit cards. Record the 2 percent discount on credit card sales at time of sale.
 
15
Sold merchandise totaling $2,600 to customers using American Express.
 
20
Received amount due from American Express, less their 3 percent discount, for sales made by customers using American Express on February 15.
 

 

 

 

 

The following transactions took place at Five Flags Amusement Park during May. Five Flags Amusement Park must charge 8 percent sales tax on all sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DATE
TRANSACTIONS
2019
 
May
1
Sold merchandise on account to Bill Gomez; issued Sales Slip 1015 for $1,450 plus 8 percent sales tax, terms n/30.
 
15
Recorded cash sales, $3,700 plus 8 percent sales tax.
 
31
Received payment on account due from Bill Gomez for the sale on May 1.
 

 

 

 

Vicente Company made sales using the following list prices and trade discounts. What amount should be recorded for each sale?

List price of $510 and trade discount of 20 percent.

List price of $610 and trade discount of 40 percent.

List price of $190 and trade discount of 30 percent.

 

 

 

A wholesale business sells goods with a list price of $860 and a trade discount of 25 percent. The net sales price is

Multiple Choice

$215.00.

$645.00.

$860.00.

$885.00.

 

 

 

 

Kay Sadia sold merchandise for $8,250 subject to a 8% sales tax. The entry in the general journal will include a debit to Accounts Receivable for:

Multiple Choice

$8,910.00.

$7,755.00.

$8,250.00.

$8,244.00.

 

 

 

Post the entries in the general journal below to the Accounts Receivable account in the general ledger and to the appropriate accounts in the accounts receivable ledger for Calderone Company.

Assume the following account balances at January 1, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Accounts Receivable (control account)
$
8,400
 
Accounts Receivable—John Gibrone
 
5,200
 
Accounts Receivable—Jim Garcia
 
2,140
 
Accounts Receivable—June Lin
 
1,060
 
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GENERAL JOURNAL
 
DATE
DESCRIPTION
POST. 

REF.
 
DEBIT
 
CREDIT
 
2019
 
 
 
 
 
 
 
 
 
 
 
Jan.
 8
Cash
 
 
 
520
 
 
 
 
 
 
 
 
Accounts Receivable/John Gibrone
 
 
 
 
 
 
 
520
 
 
 
 
Received partial payment on
 
 
 
 
 
 
 
 
 
 
 
 
account from John Gibrone
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
20
Sales Returns and Allowances
 
 
 
100
 
 
 
 
 
 
 
 
Sales Tax Payable
 
 
 
8
 
 
 
 
 
 
 
 
Accounts Receivable/Jim Garcia
 
 
 
 
 
 
 
108
 
 
 
 
Accept return of defective
 
 
 
 
 
 
 
 
 
 
 
 
merchandise, Credit
 
 
 
 
 
 
 
 
 
 
 
 
Memorandum 121; original sale
 
 
 
 
 
 
 
 
 
 
 
 
made on Sales Slip 11102 of
 
 
 
 
 
 
 
 
 
 
 
 
December 27, 2018
 
 
 
 
 
 
 
 
 
 
 
 

 

Prepare a schedule of accounts receivable for Calderone Company at January 31, 2019.

Should the total of your accounts receivable schedule agree with the balance of the Accounts Receivable account in the general ledger at January 31, 2019?

 

 

 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

If Lacy’s Department Store charges 8 percent sales tax, the amount of sales tax collected on a $525 sale would be
 

 

Multiple Choice
 

 


 

 

$4.20.
 

 


 

 

$420.00.
 

 


 

 

$42.00.
 

 


 

 

$567.00.
 

 

 
 

 

 
 

 

 
 

 

___________ are required to collect sales tax from customers, make periodic payments to the taxing authority, and pay the taxes due when reports are filed.
 

 

Multiple Choice
 

 


 

 

Wholesalers
 

 


 

 

Retailers
 

 


 

 

Manufacturers
 

 


 

 

Distributors
 

 

 
 

 

 
 

 

 
 

 

The Sales Returns and Allowances account is classified as
 

 

Multiple Choice
 

 


 

 

an asset account.
 

 


 

 

a contra asset account.
 

 


 

 

a contra revenue account.
 

 


 

 

a revenue account.
 

 

 
 

 

 
 

 

 
 

 

The amount used by wholesalers to record sales in the general journal is
 

 

Multiple Choice
 

 


 

 

the retail price.
 

 


 

 

the net price.
 

 


 

 

the list price.
 

 


 

 

the original price.
 

 

 
 

 

 
 

 

 
 

 

Which of the following describes the Sales Tax Payable account?
 

 

Multiple Choice
 

 


 

 

A liability account with a normal credit balance.
 

 


 

 

A liability account with a normal debit balance.
 

 


 

 

A revenue account with a normal credit balance.
 

 


 

 

An asset account with a normal debit balance.
 

 

 
 

 

 
 

 

 
 

 

Which of the following describes the Sales Returns and Allowances account?
 

 

Multiple Choice
 

 


 

 

A revenue account with a normal credit balance.
 

 


 

 

An expense account with a normal debit balance.
 

 


 

 

A contra expense account with a normal debit balance.
 

 


 

 

A contra revenue account with a normal debit balance.
 

 

 
 

 

 
 

 

 
 

 

The amount of the trade discount taken by the customer is:
 

 

Multiple Choice
 

 


 

 

recorded as an expense.
 

 


 

 

recorded as a revenue.
 

 


 

 

recorded as a liability.
 

 


 

 

not recorded directly as sales are recorded net of trade discounts.
 

 

 
 

 

 
 

 

 
 

 

Kay Sadia sold merchandise for $7,200 subject to a 8% sales tax. The entry in the general journal will include a debit to Accounts Receivable for:
 

 

Multiple Choice
 

 


 

 

$6,624.00.
 

 


 

 

$7,200.00.
 

 


 

 

$7,776.00.
 

 


 

 

$12,960.00.
 

 

 
 

 

 
 

 

 
 

 

Modern Candy, a wholesaler, sold a crate of candy for $360.00 on account to a customer with credit terms of 1/10, n/30. If the customer pays within the discount period, what would be the total amount credited to the sales account?
 

 

Multiple Choice
 

 


 

 

 
 

 

$360.00
 

 


 

 

$356.40
 

 


 

 

$363.60
 

 


 

 

$324.00
 

 

 
 

 

 
 

 

 
 

 

Kay Sadia sold merchandise for $7,200 subject to 8% sales tax.  The entry in the general journal to record the sale will include:
 

 

Multiple Choice
 

 


 

 

a debit to Sales Tax Payable for $576.00.
 

 


 

 

credit to Sales for $7,200.00.
 

 


 

 

a credit to Sales for $7,776.00.
 

 


 

 

a debit to Accounts Receivable for $7,200.00.
 

 

 
 

 

 
 

 

 

ACC 291T Week 2 Practice: Connect® Knowledge Check (2019 New)
 

Complete the Week 2 Knowledge Check in Connect®.

Note: You have unlimited attempts available to complete this practice assignment. The highest scored attempt will be recorded.

These assignments have earlier due dates, so plan accordingly.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.

 

Assuming a periodic inventory system is used, freight charges on merchandise purchases should be debited to:

Multiple Choice

 

 

 

 
 

 

 

the creditor’s account in the subsidiary ledger.

 

 

 

 
 

 

 

the Freight In account.

 

 

 

 
 

 

 

the Purchases account.

 

 

 

 
 

 

 

the Accounts Payable account.

 

 

 

Which of the following statements is ?

Multiple Choice

 

 

 

 
 

 

 

Purchases Discounts is a contra expense account with a normal credit balance.

 

 

 

 
 

 

 

Purchases Discounts is a revenue account with a normal credit balance.

 

 

 

 
 

 

 

Purchases Discounts is an asset account with a normal credit balance.

 

 

 

 
 

 

 

Purchases Discounts is an expense account with a normal debit balance.

 

 

 

Which of the following statements is ?

Multiple Choice

 

 

 

 
 

 

 

The person who ordered the goods should also authorize payment.

 

 

 

 
 

 

 

Purchase requisitions do not need to be printed on pre-numbered forms.

 

 

 

 
 

 

 

Calculations on an invoice are assumed to be  if computer generated.

 

 

 

 
 

 

 

Purchases should be made only after receiving proper written authorization.

 

 

 

 

On Oct 1, Jerry’s Lighting purchased merchandise with a list price of $5,000 with credit terms of 1/10, n/30. On Oct 3, Jerry’s returns $500 of the merchandise. Assuming a periodic inventory system is used and Jerry’s pays the remaining amount owed on the purchase within the discount period, Jerry’s journal entry to record the payment, would include:

Multiple Choice

 

 

 

 
 

 

 

a debit to Accounts Receivable for $4,500.

 

 

 

 
 

 

 

a debit to Purchase Discounts for $45.

 

 

 

 
 

 

 

a debit to Accounts Payable for $4,500.

 

 

 

 
 

 

 

a debit to Merchandise Inventory for $45.

 

 

 

When a payment is due is determined by the invoice date and the:

Multiple Choice

 

 

 

 
 

 

 

transportation schedule.

 

 

 

 
 

 

 

accounting cycle.

 

 

 

 
 

 

 

credit terms.

 

 

 

 
 

 

 

delivery date.

 

 

 

Which of the following statements is ?

Multiple Choice

 

 

 

 
 

 

 

The credit terms, 2/10, n/30, allow the customer to take a 2 percent discount if payment is made within 10 days of the invoice, otherwise payment is due in full in 30 days.

 

 

 

 

 
 

 

 

The Purchases account is reported as an asset on the balance sheet.

 

 

 

 
 

 

 

The purchase requisition is the form sent to a supplier to order goods.

 

 

 

 
 

 

 

To the customer, a supplier’s invoice is a sales invoice.

 

 

 

The Purchases account is:

Multiple Choice

 

 

 

 
 

 

 

a subsidiary account.

 

 

 

 
 

 

 

a liability account.

 

 

 

 
 

 

 

a temporary account.

 

 

 

 
 

 

 

a permanent account.

 

 

 

Postings to the accounts payable ledger should be made:

Multiple Choice

 

 

 

 
 

 

 

daily.

 

 

 

 
 

 

 

monthly.

 

 

 

 
 

 

 

at the end of the fiscal period.

 

 

 

 
 

 

 

weekly.

 

 

 

Tune Tones Instrument Tuning Company owes Ma

ndy Lynn’s Music Studio $6,854 as of November 1. During November, Tune Tones purchased merchandise from Mandy Lynn totaling $9,548 and made payments on account to Mandy Lynn in the amount of $7,250. The amount Tune Tones owes Mandy Lynn on November 30 is:

Multiple Choice

 

 

 

 
 

 

 

$4,556.

 

 

 

 
 

 

 

$9,152.

 

 

 

 
 

 

 

$9,548.

 

 

 

 
 

 

 

$6,854.

 

 

 

 

The total of the balances in the creditors’ accounts should agree with the balance of:

Multiple Choice

 

 

 

 
 

 

 

the Sales account in the general ledger.

 

 

 

 
 

 

 

the Purchases account in the general ledger.

 

 

 

 
 

 

 

the Accounts Receivable account in the general ledger.

 

 

 

 
 

 

 

the Accounts Payable account in the general ledger.

 

 

 

 

On Sept. 1, Jerry’s Lighting purchased merchandise with a list price of $7,600 with credit terms of 1/10, n/30. On Sept. 3, Jerry’s returns $900 of the merchandise. If payment is made within the discount period, the total amount paid by Jerry’s Lighting is:

Multiple Choice

 

 

 

 
 

 

 

7,600.

 

 

 

 
 

 

 

6,633.

 

 

 

 
 

 

 

6,700.

 

 

 

 
 

 

 

7,524.

 

 

 

 

The objective of internal control of purchases is to:

Multiple Choice

 

 

 

 
 

 

 

create more organized invoices.

 

 

 

 
 

 

 

create a disciplined work environment.

 

 

 

 
 

 

 

make the sales process more complex.

 

 

 

 
 

 

 

create written proof that purchases and payments are authorized.

 

 

 

 

Purchases is a temporary _______ account.

Multiple Choice

 

 

 

 
 

 

 

liability

 

 

 

 
 

 

 

expense

 

 

 

 
 

 

 

revenue

 

 

 

 
 

 

 

asset

 

 

 

 

Which of the following accounts has a normal debit balance?

Multiple Choice

 

 

 

 
 

 

 

Accounts Payable

 

 

 

 
 

 

 

Sales

 

 

 

 
 

 

 

Purchases

 

 

 

 
 

 

 

Purchase Returns

 

 

 

 

If a business pays $1,100 on account to a creditor, the effect of the payment is a decrease to cash and a:

Multiple Choice

 

 

 

 
 

 

 

increase of capital.

 

 

 

 
 

 

 

decrease to accounts payable.

 

 

 

 
 

 

 

decrease to accounts receivable.

 

 

 

 
 

 

 

decrease to Fees Income.

 

 

 

 

On April 5, Fair Coffee, Inc. purchased merchandise with a list price of $1,000 and credit terms 2/10, n/30. On April 6, Fair Coffee returns $200 of the merchandise. Assuming Fair Coffee uses a perpetual inventory system, their journal entry on April 5, to record the purchase, would include:

Multiple Choice

 

 

 

 
 

 

 

a debit to Accounts Payable for $1,000.

 

 

 

 
 

 

 

a debit to Merchandise Inventory for $1,000.

 

 

 

 
 

 

 

a credit to Merchandise Inventory for $16.

 

 

 

 
 

 

 

a debit to Purchases for $1,000.

 

 

 

When merchandise is ordered, the purchasing department issues a form called:

Multiple Choice

 

 

 

 
 

 

 

a purchase requisition.

 

 

 

 
 

 

 

a sale invoice.

 

 

 

 
 

 

 

a purchase invoice.

 

 

 

 
 

 

 

a purchase order.

 

 

 

The total of the individual creditor accounts in the subsidiary ledger must ________ the balance of the Accounts Payable control account.

Multiple Choice

 

 

 

 
 

 

 

be subtracted from

 

 

 

 
 

 

 

be greater than

 

 

 

 
 

 

 

be equal to

 

 

 

 
 

 

 

be less than

 

 

 

 

Assuming a periodic inventory system is used, the journal entry to record the purchase of merchandise on account for $2,750 with freight of $125 prepaid and added to the invoice is:

Multiple Choice

 

 

 

 
 

 

 

debit Purchases $2,750; credit Accounts Payable $2,750.

 

 

 

 
 

 

 

debit Accounts Payable $2,875, credit Freight in $125; credit Purchases $2,750.

 

 

 

 
 

 

 

debit Accounts Receivable $2,875; credit Sales $2,875.

 

 

 

 
 

 

 

debit Purchases $2,750, debit Freight In $125; credit Accounts Payable $2,875.

 

 

 

 

 

The source document for recording a purchase of merchandise on credit is:

Multiple Choice

 

 

 

 
 

 

 

the purchase invoice.

 

 

 

 
 

 

 

the purchase order.

 

 

 

 
 

 

 

the purchase requisition.

 

 

 

 
 

 

 

the receiving report.

 

 

 

On April 5, Fair Coffee, Inc. purchased merchandise with a list price of $1,000 and credit terms 2/10, n/30. On April 6, Fair Coffee returns $200 of the merchandise. Assuming Fair Coffee uses a perpetual inventory system, the journal entry on April 6, to record the return, would be:

 

DEBIT       CREDIT

 

 

 

A) Accounts Payable      200
 

 

 

Cash                       200

 

 

 

 

B) Accounts Payable      200
 

 

 

Purchase Returns and Allowances                   200

 

 

 

 

C) Purchase Returns and Allowances      200
 

 

 

Accounts Payable                       200

 

 

 

 

D) Accounts Payable      200
 

 

 

Merchandise Inventory                      200

________________________________________

Multiple Choice

 

 

 

 
 

 

 

Option B.

 

 

 

 
 

 

 

Option D.

 

 

 

 
 

 

 

Option A.

 

 

 

 
 

 

 

Option C.

 

 

 

 

On Jan. 3, Gourmet Cakes sold $15,000 of merchandise, on account with terms 2/10, n/30, to Jerry Hines. Assuming that the original cost of the merchandise to Gourmet Cakes was $4,000 and the perpetualinventory system is used, the journal entry on Jan. 3, to record the sale, would be:

 

DEBIT       CREDIT

 

 

 

A) Sales      15,000
 

 

 

Accounts Receivable/J.Hines                    15,000

 

 

 

 

B) Accounts Receivable/J.Hines      15,000
 

 

 

Sales                       15,000

Cost of Goods Sold        4,000

Merchandise Inventory                      4,000

 

 

 

 

C) Accounts Payable/J.Hines 15,000
 

 

 

Sales                       15,000

Merchandise Inventory          4,000

Cost of Goods Sold                    4,000

 

 

 

 

D) Accounts Receivable/J.Hines      15,000
 

 

 

Sales                       11,000

Cost of Goods Sold                    4,000

________________________________________

Multiple Choice

 

 

 

 
 

 

 

Option C.

 

 

 

 
 

 

 

Option D.

 

 

 

 
 

 

 

Option A.

 

 

 

 
 

 

 

Option B.

 

 

 

During March a firm purchased $22,650 of merchandise and paid freight charges of $1,720. If the net delivered cost of purchases for the March is $21,900, what is the total purchase returns for March?

Multiple Choice

 

 

 

 
 

 

 

$970

 

 

 

 
 

 

 

$3,440

 

 

 

 
 

 

 

$0

 

 

 

 
 

 

 

$2,470

 

 

 

 

 

The amount of the purchases for a period is presented in:

Multiple Choice

 

 

 

 
 

 

 

the Revenue section of the income statement.

 

 

 

 
 

 

 

the Liabilities section of the balance sheet.

 

 

 

 
 

 

 

the Operating Expenses section of the income statement.

 

 

 

 
 

 

 

the Cost of Goods Sold section of the income statement.

 

 

 

 

Assuming a periodic inventory system, the journal entry to record the purchase on account of $900 of merchandise with freight of $65 prepaid and added to the invoice is:

Multiple Choice

 

 

 

 
 

 

 

debit Purchases $965; credit Accounts Payable $965.

 

 

 

 
 

 

 

debit Accounts Payable $965, debit Freight in $65; credit Purchases $900.

 

 

 

 
 

 

 

debit Purchases $900, debit Freight in $65; credit Accounts Payable $965.

 

 

 

 
 

 

 

debit Accounts Receivable $965; credit Sales $965.

 

 

 

 

Assuming a periodic inventory system is used, the entry to record a purchase of merchandise on credit includes:

Multiple Choice

 

 

 

 
 

 

 

a debit to Accounts Payable and a credit to Purchases.

 

 

 

 
 

 

 

a debit to Purchases and a credit to Accounts Receivable.

 

 

 

 
 

 

 

a credit to Purchases and a credit to Accounts Payable.

 

 

 

 
 

 

 

a debit to Purchases and a credit to Accounts Payable.

 

 

 

On Sept. 1, Jerry’s Lighting purchased merchandise with a list price of $12,500 with credit terms of 3/5, n/60. On Sept. 3, Jerry’s returns $1,300 of the merchandise. If payment is made within the discount period, the total amount paid by Jerry’s Lighting is:

Multiple Choice

 

 

 

 
 

 

 

11,200.

 

 

 

 
 

 

 

12,125.

 

 

 

 
 

 

 

10,864.

 

 

 

 
 

 

 

10,640.

 

 

 

 

Assuming a periodic inventory system is used, identify the statement below that is ?

Multiple Choice

 

 

 

 
 

 

 

Freight charges that are listed on the invoice received from a supplier are not part of the total credit to Accounts Payable to record the credit purchase.

 

 

 

 
 

 

 

Another name that may be used for the Freight In account is “Transportation In.”

 

 

 

 
 

 

 

Freight In is subtracted from Purchases to arrive at delivered cost of purchases.

 

 

 

 
 

 

 

None of these statements are .

 

 

 

Freight – In is a(n) _________ account.

Multiple Choice

 

 

 

 
 

 

 

revenue

 

 

 

 
 

 

 

liability

 

 

 

 
 

 

 

expense

 

 

 

 
 

 

 

asset

 

 

 

 

On April 5, Fair Coffee, Inc. purchased merchandise with a list price of $1,000 and credit terms 2/10, n/30. On April 6, Fair Coffee returns $200 of the merchandise. Assuming Fair Coffee uses a perpetual inventory system, the journal entry on April 13, to record the payment of the amount owed, would be:

 

DEBIT       CREDIT

 

 

 

A) Accounts Payable      1,000
 

 

 

Cash                       1,000

 

 

 

 

B) Accounts Reveivable 1,000
 

 

 

Sales Discounts                    16

Cash                       984

 

 

 

 

C) Accounts Payable      800
 

 

 

Merchandise Inventory                      16

Cash                       784

 

 

 

 

D) Accounts Payable      800
 

 

 

Purchase Discounts                     16

Cash                       784

________________________________________

Multiple Choice

 

 

 

 
 

 

 

Option D.

 

 

 

 
 

 

 

Option A.

 

 

 

 
 

 

 

Option B.

 

 

 

 
 

 

 

Option C.

 

 

 
 

 

 

ACC 291T Week 2 Apply: Connect® Exercise (2019 New)
 

Review the Knowledge Check in preparation for this assignment.

Complete the Week 2 Exercise in Connect®.

Note: You have only one attempt available to complete this assignment.

 

 
 

1.

 

 

Bushard Company (buyer) and Schmidt, Inc. (seller) engaged in the following transactions during February 2019:

Bushard Company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DATE
 
TRANSACTIONS
 
2019
 
 
 
Feb.
10
 
Purchased merchandise for $5,900 from Schmidt, Inc., Invoice 1980, terms 2/10, n/30.
 
13
 
Received Credit Memorandum 230 from Schmidt, Inc., for damaged merchandise totaling $290 that was returned; the goods were purchased on Invoice 1980, dated February 10.
 
19
 
Paid amount due to Schmidt, Inc., for Invoice 1980 of February 10, less the return of February 13 and less the cash discount, Check 2010.
 
 
 
 
 
 

 

Schmidt, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DATE
 
TRANSACTIONS
2019
 
 
Feb.
10
 
Sold merchandise for $5,900 on account to Bushard Company, Invoice 1980, terms 2/10, n/30. The cost of merchandise sold was $3,450.
 
13
 
Issued Credit Memorandum 230 to Bushard Company for damaged merchandise totaling $290 that was returned; the goods were purchased on Invoice 1980, dated February 10. The cost of the returned goods was $210.
 
19
 
Received payment from Bushard Company for Invoice 1980 of February 10, less the return of February 13 and less the cash discount, Check 2010.
 

 

Both companies use the perpetual inventory system. Journalize the transactions above in a general journal for both Bushard Company and Schmidt, Inc. (Round final answers to the nearest whole dollar value.)

 

 

2.

 

Record the following transactions of J. Min Designs in a general journal. The company uses the perpetual inventory system.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DATE
 
TRANSACTIONS
2019
 
 
April
1
 
Purchased merchandise on credit from O’Rourke Fabricators, Invoice 885, $3,150, terms 1/10, n/30; freight of $35 prepaid by O’Rourke Fabricators and added to the invoice (total invoice amount, $3,185).
 
9
 
Paid amount due to O’Rourke Fabricators for the purchase of April 1, less the 2 percent discount, Check 457.
 
15
 
Purchased merchandise on credit from Kroll Company, Invoice 145, $1,400, terms 1/10, n/30; freight of $90 prepaid by Kroll and added to the invoice.
 
17
 
Returned damaged merchandise purchased on April 15 from Kroll Company; received Credit Memorandum 332 for $65.
 
24
 
Paid the amount due to Kroll Company for the purchase of April 15, less the return on April 17, taking the 1 percent discount, Check 470.
 

 

 

3.

 

Record the following transactions of Fronke’s Fashions in a general journal:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DATE
 
TRANSACTIONS
2019
 
 
April
1
 
Purchased merchandise for cash, $1,270.
 
2
 
Returned merchandise for cash purchased on April 1; received a cash refund of $114.
 
4
 
Purchased merchandise on credit from Breit Distributors, Invoice 125, $667, terms n/30; freight of $42. prepaid by Breit Distributors and added to the invoice.
 
7
 
Returned damaged merchandise purchased on April 4 from Breit Distributors; received Credit Memorandum 202 for $49.
 
30
 
Paid the amount due to Breit Distributors for the purchase of April 4, less
 

 

4

 

 

During the year, a firm purchased $257,100 of merchandise and paid freight charges of $41,810. If the total purchases returns and allowances were $16,240 and purchase discounts were $8,700 for the year, what is the net delivered cost of purchases?

 

5

 

Record the following transactions of J. Min Designs in a general journal:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DATE
 
TRANSACTIONS
2019
 
 
April
1
 
Purchased merchandise on credit from O’Rourke Fabricators, Invoice 885, $3,000, terms 3/10, n/30; freight of $90 prepaid by O’Rourke Fabricators and added to the invoice (total invoice amount, $3,090).
 
9
 
Paid amount due to O’Rourke Fabricators for the purchase of April 1, less the 3 percent discount, Check 457.
 
15
 
Purchased merchandise on credit from Kroll Company, Invoice 145, $1,750, terms 3/10, n/30; freight of $125 prepaid by Kroll and added to the invoice.
 
17
 
Returned damaged merchandise purchased on April 15 from Kroll Company; received Credit Memorandum 332 for $50.
 
24
 
Paid the amount due to Kroll Company for the purchase of April 15, less the return on April 17, taking the 3 percent discount, Check 470.
 

 

 

6.

 

 

On April 1, Moloney Meat Distributors sold merchandise on account to Fronke’s Franks for $3,620 on Invoice 1001, terms 2/10, n/30. The cost of merchandise sold was $2,240. Payment was received in full from Fronke’s Franks, less discount, on April 10.

Record the transactions for Moloney Meat Distributors on April 1 and April 10. The company uses the perpetual inventory system. (Round final answers to the nearest whole dollar value.)

 

7.

 

 

Tsang Corporation operates in a state with no sales tax. The company uses the perpetual inventory system.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DATE
 
TRANSACTIONS
2019
 
 
June
5
 
Sold merchandise on account to Benson Company; issued Sales Slip 1200 for $1,005, terms n/30. The cost of the merchandise sold was $701.
 
15
 
Recorded cash sales, $2,000. The cost of merchandise sold was $1,418.
 
30
 
Received payment on account due from Benson Company for the sale on June 5.
 

 

 

8.

 

 

Bushard Company (buyer) and Schmidt, Inc. (seller) engaged in the following transactions during February 2019:

Bushard Company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DATE
 
TRANSACTIONS
2019
 
 
Feb.
10
 
Purchased merchandise for $1,600 from Schmidt, Inc., Invoice 1980, terms 3/10, n/30.
 
13
 
Received Credit Memorandum 230 from Schmidt, Inc., for damaged merchandise totaling $300 that was returned; the goods were purchased on Invoice 1980, dated February 10.
 
19
 
Paid amount due to Schmidt, Inc., for Invoice 1980 of February 10, less the return of February 13 and less the cash discount, Check 2010.
 

 

Schmidt, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DATE
 
TRANSACTIONS
2019
 
 
Feb.
10
 
Sold merchandise for $1,600 on account to Bushard Company, Invoice 1980, terms 3/10, n/30.
 
13
 
Issued Credit Memorandum 230 to Bushard Company for damaged merchandise totaling $300 that was returned; the goods were purchased on Invoice 1980, dated February 10.
 
19
 
Received payment from Bushard Company for Invoice 1980 of February 10, less the return of February 13 and less the cash discount, Check 2010.
 

 

Journalize the transactions above in a general journal for both Bushard Company and Schmidt, Inc.

 

 

 
 

 

 
 

 

 
 

 

ACC 291T Week 3 Practice: Connect® Knowledge Check (2019 New)
 

Complete the Week 3 Knowledge Check in Connect®.

Note: You have unlimited attempts available to complete this practice assignment. The highest scored attempt will be recorded.

These assignments have earlier due dates, so plan accordingly.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.

 

 
 

 

The bank statement did not show a check for $630 that was written and recorded by the company during the month. The journal entry needed for this reconciling item includes:
 

 

Multiple Choice
 

 


 

 

a credit to Accounts Payable.
 

 


 

 

no journal entry is required for the reconciling item.
 

 


 

 

a debit to cash.
 

 


 

 

a credit to Cash.
 

 

 
 

 

 
 

 

 
 

 

Included with its bank statement a firm may receive a credit memorandum, which could indicate
 

 

Multiple Choice
 

 


 

 

a fee for printing new business checks.
 

 


 

 

a bank service charge deducted from the firm’s account balance.
 

 


 

 

an addition to the firm’s account balance because the bank collected the amount due on a promissory note from a customer of the firm.
 

 


 

 

the bank’s return of a dishonored (NSF) check that was issued by a credit customer of the firm.
 

 

 
 

 

 
 

 

 
 

 

A firm appropriately wrote a check for $78 but entered the amount as payment of $87 in its records. On a bank reconciliation statement this error would be shown as
 

 

Multiple Choice
 

 


 

 

a deduction of $9 from the book balance.
 

 


 

 

an addition of $9 to the book balance.
 

 


 

 

a deduction of $9 from the bank statement balance.
 

 


 

 

an addition of $9 to the bank statement balance.
 

 

 
 

 

 
 

 

 
 

 

Which of the following is not a reason why the book balance of cash may not agree with the balance on the bank statement?
 

 

Multiple Choice
 

 


 

 

Outstanding checks
 

 


 

 

End of the month
 

 

 
 

 


 

 

Service charges and other deductions
 

 


 

 

Deposit in transit
 

 

 
 

 

 
 

 

 
 

 

The bank statement did not show a deposit of $850 that had been recorded by the firm. The journal entry needed for this reconciling item includes:
 

 

Multiple Choice
 

 


 

 

a credit to Accounts Receivable.
 

 


 

 

a credit to Cash.
 

 


 

 

no journal entry is required for the reconciling item.
 

 


 

 

a debit to cash.
 

 

 
 

 

 
 

 

 
 

 

The bank statement showed an NSF check from a customer, which the company listed as a reconciling item on the bank reconciliation statement. The journal entry needed for this reconciling item includes:
 

 

Multiple Choice
 

 


 

 

a debit to NSF Expense.
 

 


 

 

a debit to cash.
 

 


 

 

a credit to Cash.
 

 


 

 

a credit to Accounts Receivable.
 

 

 
 

 

 
 

 

 
 

 

To arrive at an accurate balance on a bank reconciliation statement, a service charge should be
 

 

Multiple Choice
 

 


 

 

added to the bank statement balance.
 

 


 

 

deducted from the book balance.
 

 


 

 

deducted from the bank statement balance.
 

 


 

 

added to the book balance.
 

 

 
 

 

 
 

 

 
 

 

On March 30, a firm’s bank reconciliation statement shows a book balance of $31,640, an NSF check of $800, and a service charge of $40. The journal entry on March 30 to record these items would be:
 

 

 
 

 

            DEBIT  CREDIT
 

 

(A)  Accounts Receivable 800
 

 

      Bank Fees Expense    40
 

 

      Cash           840
 

 

(B)  Cash      840
 

 

      Bank Fees Expense         40
 

 

      NSF Expense           800
 

 

(C)  Miscellaneous Expenses    840
 

 

      Cash           840
 

 

(D)  Cash      840
 

 

      Accounts Receivable      800
 

 

      Bank Fees Expense         40
 

 

________________________________________
 

 

Multiple Choice
 

 


 

 

Option A.
 

 


 

 

Option B.
 

 


 

 

Option D.
 

 


 

 

Option C.
 

 

 
 

 

 
 

 

 
 

 

On April 1, Java Brewers created a petty cash fund starting with $100. On April 30, there was only $5 remaining in the petty cash box. The custodian of the fund presented vouchers to the company accountant for Supplies of $55 and Delivery Expenses of $40. The journal entry on April 30, to replenish the fund, would be:
 

 

 
 

 

            DEBIT  CREDIT
 

 

(A)  Petty Cash    95
 

 

      Cash           95
 

 

(B)  Cash      95
 

 

      Petty Cash         95
 

 

(C)  Delivery Expenses     40
 

 

      Supplies 55
 

 

      Petty Cash         95
 

 

(D)  Delivery Expenses     40
 

 

      Supplies 55
 

 

      Cash           95
 

 

________________________________________
 

 

rev: 11_01_2017_QC_CS-107838, 11_06_2017_QC_CS-108303
 

 

Multiple Choice
 

 


 

 

Option A.
 

 


 

 

Option D.
 

 


 

 

Option C.
 

 


 

 

Option B.
 

 

 
 

 

 
 

 

 
 

 

A check issued for $890 to pay a vendor on account was recorded in the firm’s records as $980; the canceled check was properly listed on the bank statement at $890. To arrive at an accurate balance on a bank reconciliation statement, the error should be
 

 

Multiple Choice
 

 


 

 

deducted from the bank statement balance.
 

 


 

 

added to the bank statement balance.
 

 


 

 

added to the book balance.
 

 


 

 

deducted from the book balance.
 

 

 
 

 

 
 

 

 
 

 

A check issued for $890 to pay a vendor on account was recorded in the firm’s records as $980; the canceled check was properly listed on the bank statement at $890. The journal entry for this reconciling item would include:
 

 

Multiple Choice
 

 


 

 

a debit to Accounts Payable for $90.
 

 


 

 

a debit to cash for $90.
 

 


 

 

a debit to Cash for $890.
 

 


 

 

a credit to Accounts Payable for $890.
 

 

 
 

 

 
 

 

 
 

 

During the month a company paid $54.75 for office supplies and $63.22 for miscellaneous expenses from the petty cash fund. The entry to replenish the petty cash fund at the end of the month would include
 

 

Multiple Choice
 

 


 

 

a debit to Cash for $117.97.
 

 


 

 

a credit to Office Supplies for $54.75.
 

 


 

 

a debit to Petty Cash for $117.97.
 

 


 

 

a credit to Cash for $117.97.
 

 

 
 

 

 
 

 

On August 3, Marley’s Sporting Goods accepted a six-month promissory note from J.J. Brown, who owed $490 on account. (J. J. had needed more time to pay his balance.) The promissory note had a 10 percent interest rate. The journal entry on August 3 to record the transaction would be:
 

 

 
 

 

 
 

 

            DEBIT  CREDIT
 

 

(A)  Notes Receivable       490
 

 

      Accounts Receivable      490
 

 

(B)  Cash      490
 

 

      Notes Receivable            490
 

 

(C)  Cash      490
 

 

      Accounts Receivable      490
 

 

(D)  Accounts Receivable 490
 

 

      Notes Receivable            490
 

 

________________________________________
 

 

Multiple Choice
 

 


 

 

Option B.
 

 


 

 

Option D.
 

 


 

 

Option C.
 

 


 

 

Option A.
 

 

 
 

 

 
 

 

 
 

 

Which of the following would not be shown as an adjustment to the book balance on a bank reconciliation statement?
 

 

Multiple Choice
 

 


 

 

Bank service charges
 

 


 

 

Deposits in transit
 

 


 

 

NSF checks
 

 


 

 

A charge for printing new checks
 

 

 
 

 

 
 

 

 
 

 

 
 

 

The bank statement showed a non-interest bearing note receivable from a customer that was collected by the bank, which the company listed as a reconciling item on the bank reconciliation statement. The journal entry needed for this reconciling item includes:
 

 

Multiple Choice
 

 


 

 

a debit to Accounts Receivable.
 

 


 

 

a credit to Cash.
 

 


 

 

a credit to Interest Income.
 

 


 

 

a debit to cash.
 

 

 
 

 

 
 

 

 
 

 

Which of the following statements is ?
 

 

Multiple Choice
 

 


 

 

An endorsement is a written authorization that transfers ownership of a check.
 

 


 

 

A check is a written order signed by an authorized person, the drawee.
 

 


 

 

Most businesses make one monthly deposit of cash receipts in order to maintain better control over their cash.
 

 


 

 

If a check is negotiable, it means that ownership cannot be transferred.
 

 

 
 

 

 
 

 

 
 

 

George’s Grocers keeps a $100 change fund in its cash register. The cash sales per the cash register tape on January 30 were $405. The cash count was $502. Identify the  journal entry below to record the sales and cash overage (or shortage) for January 30.
 

 

 
 

 

 
 

 

            DEBIT  CREDIT
 

 

(A)  Cash      402
 

 

      Cash Short or Over    3
 

 

      Sales           405
 

 

(B)  Cash      502
 

 

      Sales           502
 

 

(C)  Sales      505
 

 

      Cash Short or Over         3
 

 

      Cash           502
 

 

(D)  Cash      405
 

 

      Sales           405
 

 

________________________________________
 

 

Multiple Choice
 

 


 

 

Option D.
 

 


 

 

Option A.
 

 


 

 

Option B.
 

 


 

 

Option C.
 

 

 
 

 

 
 

 

 
 

 

If a check written by a firm is not canceled by the bank and returned with the month’s bank statement, the firm should
 

 

Multiple Choice
 

 


 

 

consider this check as outstanding when preparing the bank reconciliation.
 

 


 

 

adjust the balance in the firm’s checkbook to reflect the data that appears in the bank’s records.
 

 


 

 

immediately notify the bank requesting that it  its records.
 

 


 

 

make no adjustment when preparing the bank reconciliation.
 

 

 
 

 

 
 

 

 
 

 

The journal entry to record the collection of the amount due on an interest-bearing promissory note from a customer would debit Cash, credit Notes Receivable, and
 

 

Multiple Choice
 

 


 

 

debit Interest Income.
 

 


 

 

credit Interest Expense.
 

 


 

 

credit Interest Income.
 

 


 

 

debit Interest Expense.
 

 

 
 

 

 
 

 

 
 

 

To arrive at an accurate balance on a bank reconciliation statement, deposits in transit should be
 

 

Multiple Choice
 

 


 

 

deducted from the book balance.
 

 


 

 

deducted from the bank statement balance.
 

 


 

 

added to the bank statement balance.
 

 


 

 

added to the book balance.
 

 

 
 

 

 
 

 

 
 

 

Most businesses use the petty cash fund to pay for
 

 

Multiple Choice
 

 


 

 

merchandise purchases.
 

 


 

 

small expenditures.
 

 


 

 

internal expenses.
 

 


 

 

accounts payable.
 

 

 
 

 

 
 

 

 
 

 

Identify the items below that would all appear as an addition or subtraction from the Book Balance side of a bank reconciliation statement.
 

 

Multiple Choice
 

 


 

 

Deposits in transit, bank service charges.
 

 


 

 

Outstanding checks, customer NSF check.
 

 


 

 

Bank service charges, customer NSF check.
 

 


 

 

Outstanding checks, deposits in transit.
 

 

 
 

 

 
 

 

 
 

 

Of the four categories listed in a bank reconciliation, which one(s) require a journal entry(ies) in the firm’s records?
 

 

Multiple Choice
 

 


 

 

Bank Statement Balance Deductions and Book Balance of Cash Deductions
 

 


 

 

Bank Statement Balance Additions and Book Balance of Cash Additions
 

 


 

 

Book Balance of Cash Additions and Book Balance of Cash Deductions
 

 


 

 

Bank Statement Balance Additions and Bank Statement Balance Deductions
 

 

 
 

 

 
 

 

To arrive at an accurate balance on a bank reconciliation statement, a credit memorandum from the bank for the collection of a note and interest should be
 

 

Multiple Choice
 

 


 

 

deducted from the bank statement balance.
 

 


 

 

added to the bank statement balance.
 

 


 

 

deducted from the book balance.
 

 


 

 

added to the book balance.
 

 

 
 

 

 
 

 

 
 

 

A check issued for $785 to pay a vendor on account was recorded in the firm’s records as $758; the canceled check was properly listed on the bank statement at $785. The journal entry for this reconciling item would include:
 

 

Multiple Choice
 

 


 

 

a debit to cash for $785.
 

 


 

 

a debit to Accounts Payable for $758.
 

 


 

 

a credit to Accounts Payable for $27.
 

 


 

 

a credit to Cash for $27.
 

 

 
 

 

 
 

 

 
 

 

Which of the following statements is not ?
 

 

Multiple Choice
 

 


 

 

The petty cash account balance is usually listed separately from the Cash account on the Balance Sheet.
 

 


 

 

In a well managed business, most bills are paid by cash.
 

 


 

 

In accounting, the term “cash” includes checks, money orders, and funds on deposit in a bank as well as currency and coins.
 

 


 

 

The cash register proof is used to enter the cash sales and sales tax in the journal.
 

 

 
 

 

 
 

 

 
 

 

To arrive at an accurate balance on a bank reconciliation statement, a debit memorandum for a customer check marked NSF should be
 

 

Multiple Choice
 

 


 

 

added to the book balance.
 

 


 

 

deducted from the bank statement balance.
 

 


 

 

deducted from the book balance.
 

 


 

 

added to the bank statement balance.
 

 

 
 

 

 
 

 

 
 

 

A check issued for $1,980 to pay a vendor on account was recorded in the firm’s records as $1,890; the canceled check was properly listed on the bank statement at $1,980. To arrive at an accurate balance on a bank reconciliation statement, the error should be
 

 

Multiple Choice
 

 


 

 

added to the book balance.
 

 


 

 

added to the bank statement balance.
 

 


 

 

deducted from the bank statement balance.
 

 


 

 

deducted from the book balance.
 

 

 
 

 

 
 

 

 
 

 

 
 

 

To arrive at an accurate balance on a bank reconciliation statement, outstanding checks should be
 

 

Multiple Choice
 

 


 

 

added to the bank statement balance.
 

 


 

 

deducted from the book balance.
 

 


 

 

added to the book balance.
 

 


 

 

deducted from the bank statement balance.
 

 

 
 

 

 
 

 

 
 

 

The entry to replenish a petty cash fund typically includes
 

 

Multiple Choice
 

 


 

 

debits to various asset and expense accounts and a credit to Cash.
 

 


 

 

debits to various expense accounts and a credit to Petty Cash Fund.
 

 


 

 

a debit to Cash and a credit to Petty Cash.
 

 


 

 

a debit to Petty Cash Fund and a credit to Cash.
 

 

 
 

 

 
 

 

 
 

 

ACC 291T Week 3 Apply: Connect® Exercise (2019 New)
 

Review the Knowledge Check in preparation for this assignment.

Complete the Week 3 Exercise in Connect®.

Note: You have only one attempt available to complete this assignment.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date

 

 
 

Di Stefano Office Supply Company received a bank statement showing a balance of $67,905 as of March 31, 2019. The firm’s records showed a book balance of $69,475 on March 31. The difference between the two balances was caused by the following items.

 

 

 

 

A debit memorandum for $48, which covers the bank’s collection fee for the note (item 6).
 

 

A deposit in transit of $3,600.
 

 

A check for $246 issued by another firm that was mistakenly charged to Di Stefano’s account.
 

 

A debit memorandum for an NSF check of $6,125 issued by Wozniak Construction Company, a credit customer.
 

 

Outstanding checks: Check 3782 for $2,100; Check 3840 for $149.
 

 

A credit memorandum for a $6,200 noninterest-bearing note receivable that the bank collected for the firm.
 

 

 

Prepare a bank reconciliation statement for the firm as of March 31. Prepare the necessary journal entries for March 31, 2019 from the statement.

 

 

 

A firm’s bank reconciliation statement shows a book balance of $15,760, an NSF check of $370, and a service charge of $17. Its adjusted book balance is

Multiple Choice

$16,147.

$15,407.

$15,373.

$16,113.

 

 

On March 31, 2019, Home Decorating Pavilion received a bank statement showing a balance of $9,680. The balance in the firm’s checkbook and Cash account on the same date was $9,958. The difference between the two balances is caused by the items listed below.

 

 

 

 

A $2,805 deposit made on March 30 does not appear on the bank statement.
 

 

Check 358 for $450 issued on March 29 and Check 359 for $1,580 issued on March 30 have not yet been paid by the bank.
 

 

A credit memorandum shows that the bank has collected a $1,300 note receivable and interest of $130 for the firm.
 

 

A service charge of $18 appears on the bank statement.
 

 

A debit memorandum shows an NSF check for $490. (The check was issued by Dane Jaris, a credit customer.)
 

 

The firm’s records indicate that Check 341 of March 1 was issued for $700 to pay the month’s rent. However, the canceled check and the listing on the bank statement show that the actual amount of the check was $600.
 

 

The bank made an error by deducting a check for $525 issued by another business from the balance of Home Decorating Pavilion’s account.
 

 

 

 

Required:

 

 

 

Prepare a bank reconciliation statement for the firm as of March 31, 2019.
 

 

Record entries for any items on the bank reconciliation statement that must be journalized.
 

 

 

 

 

 

 

 

On January 2, The Public Legal Clinic issued Check 2108 for $400 to establish a petty cash fund. Indicate how this transaction would be recorded in a general journal.

 

 

 

On January 2, Jasmine’s Beauty Supplies Inc. issued Check 3100 for $300 to establish a petty cash fund. On January 31, Check 3159 was issued to replenish the petty cash fund. An analysis of payments from the fund showed these totals: Supplies, $52; Delivery Expense, $93; and Miscellaneous Expense, $28.

Indicate how these transactions would be recorded in a general journal.

 

 

 

 

 

Northwest Gift Shop, a retail business, started business on April 29, 2019. It keeps a $300 change fund in its cash register. The cash receipts for the period from April 29 to April 30, 2019, are shown below.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DATE
TRANSACTIONS
April
29
Cash sales per the cash register tape, $1,516.
 
 
Cash count, $1,807.
 
30
Cash sales per the cash register tape, $1,423.
 
 
Cash count, $1,725.
 

Record the cash receipts on April 29 and April 30, 2019, in a general journal.

 

 

 

 

 

Read the following transactions.

Lourdes LLC. keeps a $100 change fund in its cash register. At the end of the day, cash sales per the register tape were $2,650. The cash count was $3,000.

Calculate the amount over or short.

 

 

 

 

 

Read each of the following transactions.

 

 

 

A) The cash sales per a register tape were $565. The cash count is $545.
 

 

B) The cash sales per a register tape were $8,000. The cash count is $7,650.
 

 

 

 

Prepare the general journal entries to record the above transactions.

 

 

 

 

 

 

After returning from a three-day business trip, the accountant for Southeast Sales, Johanna Estrada, checked bank activity in the company’s checking account online. The activity for the last three days follows.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Checking
Account #123456-987
 
 
Date
Type
Description
Additions
Payments
Balance
09/24/2019
Loan Payment
Online Transfer to CM XXXX
 
 
 
$
3,900.00
 
$
16,075.06
 
09/24/2019
Deposit
DEPOSIT ID NUMBER 8888
$
2,309.60
 
 
 
 
$
19,975.06
 
09/23/2019
Check
CHECK #1554 (view)
 
 
 
$
3,900.00
 
$
17,665.46
 
09/23/2019
Bill Payment
Online Payment
 
 
 
$
40.05
 
$
21,565.46
 
09/22/2019
Check
CHECK #1553 (view)
 
 
 
$
280.00
 
$
21,605.51
 
09/22/2019
Check
CHECK #1551 (view)
 
 
 
$
1,790.00
 
$
21,885.51
 
09/22/2019
ACH Credit
Edwards UK AP PAYMENT
$
9,300.00
 
 
 
 
$
23,675.51
 
09/22/2019
ATM
ATM WITHDRAWAL
 
 
 
$
280.00
 
$
14,375.51
 
 
 

 

After matching these transactions to the company’s Cash account in the general ledger, Johanna noted the following unrecorded transactions:

 

 

 

The ATM withdrawal on 9/22/2019 was for personal use by the owner, Robert Savage.
 

 

The ACH credit on 9/22/2019 was an electronic funds payment received on account from Edwards UK, a credit customer located in Great Britain.
 

 

The bill payment made 9/23/2019 was to Waste Control Trash Services (utilities).
 

 

The loan payment on 9/24/2019 was an automatic debit by Central Motors for the company’s monthly payment on a loan for its automobiles. The loan does not bear interest.
 

 

 

 

Prepare the journal entries in a general journal to record the four transactions above. (Round your answers to 2 decimal places.)

 

 

 

 

 

Florence Company received a bank statement showing a balance of $12,700 on November 30, 2019. During the bank reconciliation process, Florence’s accountant noted the following bank errors:

 

 

 

 

A check for $150 issued by Florentine, Inc., was mistakenly charged to Florence Company’s account.
 

 

Check 2782 was written for $100 but was paid by the bank as $1,100.
 

 

Check 2920 for $84 was paid by the bank twice.
 

 

A deposit for $670 on November 22 was credited by the bank for $760.
 

 

 

 

Assuming outstanding checks total $2,050, prepare the adjusted bank balance section of the November 30, 2019, bank reconciliation.

 

 

 

 

 

 
 

 

 
 

 

ACC 291T Week 4 Practice: Connect® Knowledge Check (2019 New)
 

Complete the Week 4 Knowledge Check in Connect®.

Note: You have unlimited attempts available to complete this practice assignment. The highest scored attempt will be recorded.

These assignments have earlier due dates, so plan accordingly.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.

 

 
 

 

Rose Bush Nursery purchased a delivery truck for $40,000. The truck is expected to have a useful life of 5 years and a residual value of $2,800. The company uses the straight-line method of depreciation. If the truck was purchased on June 1, 2019, what is the amount of depreciation expense for the truck for the year ended December 31, 2019?
 

 

Multiple Choice
 

 


 

 

$2,800
 

 


 

 

$3,100
 

 


 

 

$7,440
 

 


 

 

$4,340
 

 

 
 

 

 
 

 

 
 

 

The ending merchandise inventory is recorded on the worksheet in the
 

 

Multiple Choice
 

 


 

 

Income Statement Debit column only.
 

 


 

 

Income Statement Credit column only.
 

 


 

 

Income Statement Credit and the Balance Sheet Debit columns.
 

 


 

 

Balance Sheet Debit column only.
 

 

 
 

 

 
 

 

 
 

 

After both of the entries for the inventory adjustment have been posted, the debit in the Income Summary account represents:
 

 

Multiple Choice
 

 


 

 

Beginning Inventory
 

 


 

 

Net Income
 

 


 

 

Ending Inventory
 

 


 

 

Cost of Goods Sold
 

 

 
 

 

 
 

 

 
 

 

An adjusting entry is usually not required for a revenue item when it is
 

 

Multiple Choice
 

 


 

 

earned, recorded and paid for by the customer in one period.
 

 


 

 

paid for by the customer and recorded in one period but not fully earned until a later period.
 

 


 

 

earned in one period but not paid for by the customer or recorded until a later period.
 

 


 

 

budgeted, paid for, and partially earned in one period but not fully earned until a later period.
 

 

 
 

 

 
 

 

 
 

 

On December 1, 2019, a firm accepted a 6-month, 12 percent note for $10,000 from a customer. The adjusting entry on December 31 to record the interest earned on the note is:
 

 

Multiple Choice
 

 


 

 

a debit to Interest Receivable for $600 and a credit to Interest Income for $600.
 

 


 

 

a debit to Interest Income for $100 and a credit to Interest Receivable for $100.
 

 


 

 

a debit to Interest Receivable for $1,200 and a credit to Interest Income for $1,200.
 

 


 

 

a debit to Interest Receivable for $100 and a credit to Interest Income for $100.
 

 

 
 

 

 
 

 

 
 

 

Which of the following statements is ?
 

 

Multiple Choice
 

 


 

 

On the worksheet, the amount of the ending merchandise inventory is shown in the Income Statement Credit column in the account Income Summary and the Balance Sheet Debit column in the account Merchandise Inventory.
 

 


 

 

All of these statements are .
 

 


 

 

On the worksheet, the totals of the Income Statement columns should equal the totals of the Balance Sheet columns.
 

 


 

 

On the worksheet, if debits exceed credits in the Adjusted Trial Balance section, the difference represents a net loss.
 

 

 
 

 

 
 

 

 
 

 

Allowance for Doubtful Accounts is reported in the
 

 

Multiple Choice
 

 


 

 

Assets section of the balance sheet.
 

 


 

 

Liabilities section of the balance sheet.
 

 


 

 

Cost of Goods Sold section of the income statement.
 

 


 

 

Operating Expenses section of the income statement.
 

 

 
 

 

 
 

 

 
 

 

During the year, Spirit Fun had net credit sales of $800,000. Past experience shows that 1.5 percent of the firm’s net credit sales will be uncollectible. Determine the adjusting entry needed to recognize the estimated expense for these uncollectible accounts.
 

 

Multiple Choice
 

 


 

 

debit Allowance for Doubtful Accounts $12,000 and credit Accounts Receivable $12,000.
 

 


 

 

debit Uncollectible Accounts Expense $12,000 and credit Allowance for Doubtful Accounts $12,000.
 

 


 

 

debit Uncollectible Accounts Expense $12,000 and credit Accounts Receivable $12,000.
 

 


 

 

debit Uncollectible Accounts Expense $120,000 and credit Allowance for Doubtful Accounts $120,000.
 

 

 
 

 

 
 

 

 
 

 

On January 2, 2019, a firm purchased equipment for $10,000. Depreciation expense for the year ending December 31, 2019, given the straight-line method, a 5-year useful life, and a salvage value of $1,200, is
 

 

Multiple Choice
 

 


 

 

$1,760.
 

 


 

 

$2,000.
 

 


 

 

$1,800.
 

 


 

 

$1,400.
 

 

 
 

 

 
 

 

 
 

 

Millie’s Bakery employees earn $4,500 a week for a five-day work week and are paid every Friday. If December 31 falls on a Wednesday, calculate the amount that is owed and select the adjusting entry needed to record the owed but unpaid salaries as of December 31.
 

 

Multiple Choice
 

 


 

 

a debit to Salaries Expense for $4,500 and a credit to Salaries Payable for $4,500.
 

 


 

 

a debit to Salaries Expense for $2,700 and a credit to Salaries Payable for $2,700.
 

 


 

 

a debit to Income Summary for $2,700 and a credit to Salaries Payable for $2,700.
 

 


 

 

a debit to Salaries Payable for $900 and a credit to Salaries Expense for $900.
 

 

 
 

 

 
 

 

 
 

 

If an account has a credit balance of $2,200 in the Trial Balance section of a worksheet and there is a credit of $400 in the Adjustments section, the account balance in the Adjusted Trial Balance section of the worksheet is
 

 

Multiple Choice
 

 


 

 

$2,600 credit.
 

 


 

 

$1,800 debit.
 

 


 

 

$2,600 debit.
 

 


 

 

$1,800 credit.
 

 

 
 

 

 
 

 

 
 

 

The trial balance of Marley Motorcycles shows Merchandise Inventory of $80,000. Based on a count taken on December 31, merchandise inventory at the end of the year actually totaled $92,000. The company uses a periodic inventory system. The adjusting entry to record the new merchandise inventory balance would be:
 

 

Multiple Choice
 

 


 

 

a debit to Merchandise Inventory of 80,000 and a credit to Income Summary for $80,000.
 

 


 

 

a debit to Purchases of $92,000 and a credit to Income Summary for $92,000.
 

 


 

 

a debit to Merchandise Inventory of $92,000 and a credit to Income Summary for $92,000.
 

 


 

 

a debit to Merchandise Inventory of $12,000 and a credit to Purchases for $12,000.
 

 

 
 

 

 
 

 

 
 

 

Identify the statement below that is true regarding the Allowance for Doubtful Accounts account.
 

 

Multiple Choice
 

 


 

 

The account has a normal debit balance and is reported on the balance sheet.
 

 


 

 

The account has a normal credit balance and is reported on the balance sheet.
 

 


 

 

The account has a normal debit balance and is reported on the income statement.
 

 


 

 

The account has a normal credit balance and is reported on the income statement.
 

 

 
 

 

 
 

 

 
 

 

Which of the following statements is not ?
 

 

Multiple Choice
 

 


 

 

If a firm records prepaid expense items in an expense account when they pay for them, their adjustment at the end of the period to record the unexpired portion would include a debit to an asset account and a credit to an expense account.
 

 


 

 

Each adjustment for an accrued expense includes a credit to a liability account.
 

 


 

 

The cost less the salvage value equals the depreciable base of a long-term asset.
 

 


 

 

Uncollectible Accounts Expense is a contra asset account.
 

 

 
 

 

 
 

 

 
 

 

With the accrual basis of accounting, revenue from a credit sale is recognized
 

 

Multiple Choice
 

 


 

 

each time a payment on an account balance is received.
 

 


 

 

on the date the account is collected in full.
 

 


 

 

on the date of the sale.
 

 


 

 

either on the date of the sale or when the amount of the sale is collected.
 

 

 
 

 

 
 

 

 
 

 

The net income for an accounting period can be determined using the worksheet by comparing the balances and determining the difference between the balances in the two
 

 

Multiple Choice
 

 


 

 

Balance Sheet and Income Statement Debit columns.
 

 


 

 

Balance Sheet and Income Statement Credit columns.
 

 


 

 

Income Statement or Balance Sheet columns.
 

 


 

 

Income Statement columns only.
 

 

 
 

 

 
 

 

 
 

 

Stan Still Stationery Store’s employees are paid every Friday for a five day work week and are paid a total of $1,625 per day. If December 31, 2019, is on a Tuesday, the amount of the adjusting entry for accrued wages is:
 

 

Multiple Choice
 

 


 

 

$4,875
 

 


 

 

$3,250
 

 


 

 

$8,125
 

 


 

 

$1,625
 

 

 
 

 

 
 

 

 
 

 

Allowance for Doubtful Accounts is
 

 

Multiple Choice
 

 


 

 

added to Accounts Receivable in the Assets section of the balance sheet.
 

 


 

 

listed in the Operating Expenses section of the income statement.
 

 


 

 

deducted from Sales in the Revenue section of the income statement.
 

 


 

 

subtracted from Accounts Receivable in the Asset section of the balance sheet.
 

 

 
 

 

 
 

 

 
 

 

Accrued income is income that has been
 

 

Multiple Choice
 

 


 

 

earned and received.
 

 


 

 

budgeted for the fiscal period.
 

 


 

 

received but not earned.
 

 


 

 

earned but not received.
 

 

 
 

 

 
 

 

 
 

 

If an account has a debit balance of $2,000 in the Trial Balance section of a worksheet and there is a credit of $600 in the Adjustments section, the account balance in the Adjusted Trial Balance section of the worksheet is a
 

 

Multiple Choice
 

 


 

 

$1,400 debit.
 

 


 

 

$1,400 credit.
 

 


 

 

$600 credit.
 

 


 

 

$2,600 debit.
 

 

 
 

 

 
 

 

 
 

 

The net income for an accounting period appears on the worksheet in the
 

 

Multiple Choice
 

 


 

 

Income Statement Credit column only.
 

 


 

 

Income Statement Debit column only.
 

 


 

 

Income Statement Debit and the Balance Sheet Credit columns.
 

 


 

 

Income Statement Credit and the Balance Sheet Debit columns.
 

 

 
 

 

 
 

 

 
 

 

On April 1, 2019, a firm accepted a 6-month, 10 percent note for $1,800 from a customer with an overdue balance. The accrued interest recorded for this note for the year ended June 30, 2019, is
 

 

Multiple Choice
 

 


 

 

$15.
 

 


 

 

$90.
 

 


 

 

$180.
 

 


 

 

$45.
 

 

 
 

 

 
 

 

 
 

 

On June 1, 2019, Mighty Fast Flooring issued a 10-month, 9 percent note for $5,000. The note was recorded in the Notes Payable-Trade account. The adjusting entry on December 31 to record the interest accrued (owed) on the note is:
 

 

Multiple Choice
 

 


 

 

a debit to Interest Expense for $262.50 and a credit to Interest Payable for $262.50.
 

 


 

 

a debit to Interest Expense for $262.50 and a credit to Notes Payable-Trade for $262.50.
 

 


 

 

a debit to Interest Income for $450.00 and a credit to Interest Receivable for $450.00.
 

 


 

 

a debit to Interest Expense for $450.00 and a credit to Interest Payable for $450.00.
 

 

 
 

 

 
 

 

 
 

 

After the two adjusting entries for merchandise inventory for Marley Motorcycles have been entered on the worksheet, the Income Summary account in the Adjusted Trial Balance section has a debit of $65,000 and a credit of $73,000. The amount of merchandise inventory at the beginning of the year is:
 

 

Multiple Choice
 

 


 

 

$138,000.
 

 


 

 

$8,000.
 

 


 

 

$73,000.
 

 


 

 

$65,000.
 

 

 
 

 

 
 

 

 
 

 

The trial balance of Premier Lighting Co. shows Merchandise Inventory of $35,000. Based on a count taken on December 31, merchandise inventory at the end of the year actually totaled $28,000. The adjusting entry torecord the new merchandise inventory balance assuming the company uses the periodic inventory system would be:
 

 

Multiple Choice
 

 


 

 

a debit to Purchases of $35,000 and a credit to Merchandise Inventory for $35,000.
 

 


 

 

a debit to Merchandise Inventory of $28,000 and a credit to Income Summary for $28,000.
 

 


 

 

a debit to Income Summary of $28,000 and a credit to Merchandise Inventory for $28,000.
 

 


 

 

a debit to Income Summary of 35,000 and a credit to Merchandise Inventory for $35,000.
 

 

 
 

 

 
 

 

 
 

 

The trial balance of Premier Lighting Co. shows Merchandise Inventory of $35,000. The company uses the periodic inventory system. Based on a count taken on December 31, merchandise inventory at the end of the year actually totaled $28,000. The adjusting entry to remove the old merchandise inventory balance would be:
 

 

Multiple Choice
 

 


 

 

a debit to Income Summary of $35,000 and a credit to Merchandise Inventory for $35,000.
 

 


 

 

a debit to Merchandise Inventory of $28,000 and a credit to Income Summary for $28,000.
 

 


 

 

a debit to Income Summary of $28,000 and a credit to Merchandise Inventory for $28,000.
 

 


 

 

a debit to Purchases of $35,000 and a credit to Merchandise Inventory for $35,000.
 

 

 
 

 

 
 

 

 
 

 

On August 1, 2019, a firm purchased a 1-year insurance policy for $3,600 and paid the full premium in advance. The insurance expense associated with this policy for the year ending December 31, 2019, is
 

 

Multiple Choice
 

 


 

 

$300.
 

 


 

 

$3,600.
 

 


 

 

$1,800.
 

 


 

 

$1,500.
 

 

 
 

 

 
 

 

 
 

 

On October 1, 2019, Paige Turner Publishing received $5,400 in cash for subscriptions covering one year, recording the entry as a debit to Cash and a credit to Unearned Subscriptions. The  adjusting entry at December 31, 2019, is
 

 

Multiple Choice
 

 


 

 

Debit Unearned Subscriptions $5,400; credit Subscriptions Income $5,400.
 

 


 

 

Debit Unearned Subscriptions $450; credit Subscriptions Income $450.
 

 


 

 

Debit Unearned Subscriptions $1,350; credit Subscriptions Income $1,350.
 

 


 

 

Debit Subscriptions Income $1,350; credit Unearned Subscriptions $1,350.
 

 

 
 

 

 
 

 

 
 

 

On June 1, 2019, a firm purchased a 1-year insurance policy for $2,400 and paid the full premium in advance. The insurance expense associated with this policy for the year ending December 31, 2019, is
 

 

Multiple Choice
 

 


 

 

$2,400.
 

 


 

 

$1,000.
 

 


 

 

$200.
 

 


 

 

$1,400.
 

 

 
 

 

 
 

 

 
 

 

Hugh Morris Company pays weekly wages of $15,000 every Friday for a five day week ending on that day. If the last day of the year is on Tuesday, the adjusting entry to record the accrued wages is:
 

 

Multiple Choice
 

 


 

 

debit Wages Expense $6,000; credit Drawing $6,000
 

 


 

 

debit Wages Expense $6,000; credit Wages Payable $6,000
 

 


 

 

debit Wages Expense $15,000; credit Cash $15,000
 

 


 

 

debit Wages Expense $9,000; credit Wages Payable $9,000
 

 

 
 

 

 
 

 

 
 

 

ACC 291T Week 4 Apply: Connect® Exercise (2019 New)
 

Review the Knowledge Check in preparation for this assignment.

Complete the Week 4 Exercise in Connect®.

Note: You have only one attempt available to complete this assignment.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.

 

 
 

Hugh Morris Company pays weekly wages of $12,000 every Friday for a five day week ending on that day. If the last day of the year is on Tuesday, the adjusting entry to record the accrued wages is:

Multiple Choice

debit Wages Expense $4,800; credit Drawing $4,800

debit Wages Expense $4,800; credit Cash $4,800

debit Wages Expense $7,200; credit Wages Payable $7,200

debit Wages Expense $4,800; credit Wages Payable $4,800

 

 

 

The Supplies account has a trial balance of $3,156. A year-end inventory shows $1,738 worth of supplies left at the end of the year. The correct adjusting entry is:

Multiple Choice

 

debit Supplies $1,418; credit Supplies Expense $1,418

debit Supplies Expense $3,156; credit Supplies $3,156

debit Supplies Expense $1,738; credit Prepaid Supplies $1,738

debit Supplies Expense $1,418; credit Supplies $1,418

 

 

 

 

On June 1, 2019, a firm purchased a 1-year insurance policy for $8,400 and paid the full premium in advance. The insurance expense associated with this policy for the year ending December 31, 2019, is

Multiple Choice

 

$2,800.

$4,900.

$8,400.

$5,600.

 

 

 

On August 1, 2019, a firm purchased a 1-year insurance policy for $8,100 and paid the full premium in advance. The insurance expense associated with this policy for the year ending December 31, 2019, is

Multiple Choice

 

$8,100.

$4,725.

$2,700.

$3,375.

 

 

 

 

If an account has a credit balance of $730 in the Trial Balance section of a worksheet and there is a credit of $260 in the Adjustments section, the account balance in the Adjusted Trial Balance section of the worksheet is

Multiple Choice

 

$470 debit.

$990 debit.

$990 credit.

$470 credit.

 

 

 

 

If an account has a debit balance of $850 in the Trial Balance section of a worksheet and there is a credit of $500 in the Adjustments section, the account balance in the Adjusted Trial Balance section of the worksheet is a

Multiple Choice

 

$350 debit.

$1,350 debit.

$1,350 credit.

$350 credit.

 

 

 

On January 1, 2019, a firm purchased machinery for $27,000. Depreciation expense for the year ending December 31, 2019, given the straight-line method, a 5-year useful life, and a salvage value of $5,000, is

Multiple Choice

 

$4,400.

$5,400.

$5,000.

$4,000.

 

 

 

 

On October 1, 2019, Paige Turner Publishing received $60,000 in cash for subscriptions covering one year, recording the entry as a debit to Cash and a credit to Unearned Subscriptions. The correct adjusting entry at December 31, 2019, is

Multiple Choice

 

Debit Unearned Subscriptions $60,000; credit Subscriptions Income $60,000.

Debit Unearned Subscriptions $15,000; credit Subscriptions Income $15,000.

Debit Subscriptions Income $15,000; credit Unearned Subscriptions $15,000.

Debit Unearned Subscriptions $5,000; credit Subscriptions Income $5,000.

 

 

 

 

 

On November 1, 2019, a firm accepted a 5-month, 10 percent note for $1,080 from a customer with an overdue balance. The accrued interest recorded for this note for the year ended December 31, 2019, is

Multiple Choice

 

$108.

$36.

$18.

$90.

 

 

 

On April 1, 2019, a firm accepted a 6-month, 10 percent note for $2,820 from a customer with an overdue balance. The accrued interest recorded for this note for the year ended June 30, 2019, is

Multiple Choice

 

$94.

$282.

$235.

$71.

 

 

 

 

 
 

 

 
 

 

ACC 291T Week 5 Practice: Connect® Knowledge Check (2019 New)
 

Complete the Week 5 Knowledge Check in Connect®.

Note: You have unlimited attempts available to complete this practice assignment. The highest scored attempt will be recorded.

These assignments have earlier due dates, so plan accordingly.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.

 

 
 

 

Interest Expense is classified as a(n):
 

 

Multiple Choice
 

 


 

 

Other Income
 

 


 

 

Administrative Expense
 

 


 

 

Other Expense
 

 


 

 

Selling Expense
 

 

 
 

 

 
 

 

 
 

 

Which of the following accounts would be closed at the end of the accounting period?
 

 

Multiple Choice
 

 


 

 

Prepaid Rent
 

 


 

 

Accumulated Depreciation
 

 


 

 

Depreciation Expense
 

 


 

 

Capital
 

 

 
 

 

 
 

 

 
 

 

The Income Summary account, for Wise Tools appears below. Based on the data contained in the account, determine which of the statements below is .
 

 

 
 

 

 
 

 

Income Summary
 

 

12/31 beg inv.      4,000     12/31 ending inv.       9,000
 

 

12/31 expenses    51,000   12/31 revenues    45,000
 

 

Multiple Choice
 

 


 

 

Wise Tools will report a $6,000 net loss for the period ending 12/31
 

 


 

 

Wise Tools will report a $1,000 net loss for the period ending 12/31
 

 


 

 

Wise Tools will report net income of $1,000 for the period ending 12/31
 

 


 

 

Wise Tools will report net income of $6,000 for the period ending 12/31
 

 

 
 

 

 
 

 

 
 

 

The entry to reverse the adjustment for accrued interest income consists of a debit to
 

 

Multiple Choice
 

 


 

 

Interest Income and a credit to Income Summary.
 

 


 

 

Interest Income and a credit to Interest Expense.
 

 


 

 

Interest Income and a credit to Interest Receivable.
 

 


 

 

Interest Receivable and a credit to Interest Income.
 

 

 
 

 

 
 

 

 
 

 

At the end of the year Stan Still Stationery Store had the following balances: Sales $485,000; Sales Discounts $2,540; Sales Returns and Allowances $14,280; Sales Salaries Expense $54,000. The Net Sales for the year are:
 

 

Multiple Choice
 

 


 

 

$468,180
 

 


 

 

$501,820
 

 


 

 

$414,180
 

 


 

 

$447,820
 

 

 
 

 

 
 

 

 
 

 

The beginning capital balance shown on a statement of owner’s equity is $80,000. Net income for the period is $37,000. The owner made no additional investments during the period. The owner’s capital balance at the end of the period is $96,000. The amount the owner withdrew for personal use during the period is
 

 

Multiple Choice
 

 


 

 

$80,000.
 

 


 

 

$37,000.
 

 


 

 

$21,000.
 

 


 

 

$16,000.
 

 

 
 

 

 
 

 

 
 

 

Use the following account balances from the adjusted trial balance columns of Goody Chocolate’s worksheet to answer below question.
 

 

 
 

 

Account       Debit Balance     Credit Balance
 

 

Cash           10,000
 

 

Merchandise Inventory          4,000
 

 

Accounts Payable                             2,200
 

 

A. Goody, Drawing        1,000
 

 

A. Goody, Capital                             6,000
 

 

Sales                             24,000
 

 

Sales Discounts        200
 

 

Purchases          12,000
 

 

Salaries Expense      7,500
 

 

Income Summary            1,500                4,000
 

 

________________________________________
 

 

 
 

 

Using the adjusted trial balance above, select the  closing entry that Goody Chocolate would make to close their revenue accounts (and other temporary income statement accounts with credit balances) at the end of the accounting period.
 

 

Multiple Choice
 

 


 

 

 
 

 

A. Goody, Capital           28,000
 

 

Income Summary                        4,000
 

 

Sales                       24,000
 

 

________________________________________
 

 


 

 

 
 

 

Sales           24,000
 

 

A. Goody, Capital                       24,000
 

 

________________________________________
 

 


 

 

 
 

 

Sales           24,000
 

 

Income Summary                        24,000
 

 

________________________________________
 

 


 

 

 
 

 

Income Summary            24,200
 

 

Sales                       24,000
 

 

Sales Discounts                    200
 

 

________________________________________
 

 

 
 

 

 
 

 

 
 

 

Which of the following accounts will appear on the post-closing trial balance?
 

 

Multiple Choice
 

 


 

 

Payroll Taxes Expense
 

 


 

 

Miscellaneous Income
 

 


 

 

Medicare Tax Payable
 

 


 

 

Sales
 

 

 
 

 

 
 

 

 
 

 

Which of the following accounts will NOT appear on the post-closing trial balance?
 

 

Multiple Choice
 

 


 

 

Prepaid Advertising
 

 


 

 

Wages Payable
 

 


 

 

Equipment
 

 


 

 

Wages Expense
 

 

 
 

 

 
 

 

 
 

 

Which of the following accounts is not closed at the end of the accounting period?
 

 

Multiple Choice
 

 


 

 

Sales
 

 


 

 

Purchases
 

 


 

 

Depreciation Expense
 

 


 

 

Accounts Receivable
 

 

 
 

 

 
 

 

 
 

 

Use the following account balances from the adjusted trial balance columns of Goody Chocolate’s worksheet to answer below question.
 

 

 
 

 

Account       Debit Balance     Credit Balance
 

 

Cash           10,000
 

 

Merchandise Inventory          4,000
 

 

Accounts Payable                             2,200
 

 

A. Goody, Drawing        1,000
 

 

A. Goody, Capital                             6,000
 

 

Sales                             24,000
 

 

Sales Discounts        200
 

 

Purchases          12,000
 

 

Salaries Expense      7,500
 

 

Income Summary            1,500                4,000
 

 

________________________________________
 

 

 
 

 

Using the adjusted trial balance above, select the  closing entry that Goody Chocolate would make to close the expense accounts (and cost of goods sold accounts with debit balances) at the end of the accounting period.
 

 

Multiple Choice
 

 


 

 

 
 

 

Income Summary            2,500
 

 

A. Goody, Capital                       2,500
 

 

________________________________________
 

 


 

 

 
 

 

Purchases          12,000
 

 

Salaries Expense      7,500
 

 

Income Summary                        19,500
 

 

________________________________________
 

 


 

 

 
 

 

Income Summary            19,700
 

 

Sales Discounts                    200
 

 

Purchases                      12,000
 

 

Salaries Expense                  7,500
 

 

________________________________________
 

 


 

 

 
 

 

Income Summary            19,700
 

 

Expense Accounts                       19,700
 

 

________________________________________
 

 

 
 

 

 
 

 

 
 

 

For the current fiscal year, Purchases were $245,000, Purchase Returns and Allowances were $8,600, Purchase Discounts were $2,200 and Freight In was $32,000. If the beginning merchandise inventory was $60,000 and the ending merchandise inventory was $75,000, the Cost of Goods Sold is:
 

 

Multiple Choice
 

 


 

 

$272,800
 

 


 

 

$281,200
 

 


 

 

$251,200
 

 


 

 

$266,200
 

 

 
 

 

 
 

 

 
 

 

The beginning capital balance shown on a statement of owner’s equity is $64,000. Net income for the period is $23,000 and the owner withdrew $30,000 cash from the business and made no additional investments during the period. The owner’s capital balance at the end of the period is
 

 

Multiple Choice
 

 


 

 

$64,000.
 

 


 

 

$57,000.
 

 


 

 

$117,000.
 

 


 

 

$71,000.
 

 

 
 

 

 
 

 

 
 

 

For the current fiscal year, Purchases were $187,000, Purchase Returns and Allowances were $4,200 and Freight In was $10,500. If the beginning merchandise inventory was $98,000 and the ending merchandise inventory was $103,000, the Net Delivered Cost of Purchases is:
 

 

Multiple Choice
 

 


 

 

$187,000
 

 


 

 

$172,300
 

 


 

 

$193,300
 

 


 

 

$201,700
 

 

 
 

 

 
 

 

 
 

 

Which of the following accounts is not closed at the end of the accounting period?
 

 

Multiple Choice
 

 


 

 

Sales
 

 


 

 

Depreciation Expense
 

 


 

 

Interest Expense
 

 


 

 

Accumulated Depreciation
 

 

 
 

 

 
 

 

 
 

 

Which of the following statements is not ?
 

 

Multiple Choice
 

 


 

 

The worksheet is the source of data for the general journal entries required to close the temporary accounts.
 

 


 

 

Closing the Revenue accounts is the first step in the closing process.
 

 


 

 

In the closing process, the balance of the owner’s drawing account is transferred to the debit side of the owner’s capital account.
 

 


 

 

In the closing process, the balance of the Purchases account is transferred to the Merchandise Inventory account.
 

 

 
 

 

 
 

 

 
 

 

Which of the following accounts is not closed at the end of the accounting period?
 

 

Multiple Choice
 

 


 

 

Sales
 

 


 

 

Depreciation Expense
 

 


 

 

Capital
 

 


 

 

Purchase Discounts
 

 

 
 

 

 
 

 

 
 

 

Which of the following would not be classified as a Current Asset:
 

 

Multiple Choice
 

 


 

 

Cash
 

 


 

 

Equipment
 

 


 

 

Accounts Receivable
 

 


 

 

Supplies
 

 

 
 

 

 
 

 

 
 

 

Which of the following is not a selling expense:
 

 

Multiple Choice
 

 


 

 

Delivery Expense
 

 


 

 

Advertising Expense
 

 


 

 

Rent Expense on the office
 

 


 

 

Sales Salaries Expense
 

 

 
 

 

 
 

 

 
 

 

Which of the following statements is ?
 

 

Multiple Choice
 

 


 

 

The term single-step income statement is sometimes used to describe a classified income statement.
 

 


 

 

Salaries of office employees would be grouped with the selling expenses in the Operating Expenses section of the income statement.
 

 


 

 

If a business is to earn a net income, the gross profit on sales must be greater than operating expenses.
 

 


 

 

Sales less Operating Expenses equals Gross Profit.
 

 

 
 

 

 
 

 

 
 

 

The Income Summary account, for Edgar’s Cigars appears below. Based on the data contained in the account, determine which of the statements below is .
 

 

 
 

 

 
 

 

Income Summary
 

 

12/31 beg inv.      7,000     12/31 ending inv.       3,000
 

 

12/31 expenses    25,000   12/31 revenues    36,000
 

 

Multiple Choice
 

 


 

 

Edgar’s Cigars will report net income of $11,000 for the period ending 12/31
 

 


 

 

Edgar’s Cigars will report an $11,000 net loss for the period ending 12/31
 

 


 

 

Edgar’s Cigars will report net income of $7,000 for the period ending 12/31
 

 


 

 

Edgar’s Cigars will report a $7,000 net loss for the period ending 12/31
 

 

 
 

 

 
 

 

 
 

 

Use the following account balances from the adjusted trial balance columns of RB Auto’s worksheet to answer below question.
 

 

 
 

 

Account       Debit Balance     Credit Balance
 

 

Cash           20,500
 

 

Merchandise Inventory          1,000
 

 

Accounts Payable                             2,800
 

 

R. Holloway, Drawing           500
 

 

R. Holloway, Capital                        13,000
 

 

Sales                             15,000
 

 

Purchases          2,000
 

 

Purchase Returns and Allowances                         200
 

 

Rent Expense           3,000
 

 

Salaries Expense      4,000
 

 

________________________________________
 

 

 
 

 

Select the  closing entry that RB Auto would make to close the owner’s withdrawal account at the end of the accounting period.
 

 

Multiple Choice
 

 


 

 

debit R. Holloway, Drawing $500 credit R. Holloway, Capital for $500.
 

 


 

 

debit Income Summary $500 and credit R. Holloway, Drawing for $500.
 

 


 

 

debit R. Holloway, Drawing $500 and credit Income Summary for $500.
 

 


 

 

debit R. Holloway, Capital $500 and credit R. Holloway, Drawing for $500.
 

 

 
 

 

 
 

 

 
 

 

Which of the following statements is not ?
 

 

Multiple Choice
 

 


 

 

Working capital is the difference between total current assets and total current liabilities.
 

 


 

 

The average inventory is calculated by adding the beginning inventory to the ending inventory and dividing the sum by 2.
 

 


 

 

A current ratio of 3.5 to 1 means that a firm has $3.50 in current liabilities for every $1 of current assets.
 

 


 

 

The gross profit percentage is calculated by dividing the gross profit for the year by the net sales for the year.
 

 

 
 

 

 
 

 

 
 

 

In the general journal, reversing entries are dated as of
 

 

Multiple Choice
 

 


 

 

any day during the month of the new fiscal period.
 

 


 

 

the first day of the new fiscal period.
 

 


 

 

the last day of the old fiscal period.
 

 


 

 

any time before the end of the fiscal period.
 

 

 
 

 

 
 

 

 
 

 

The accountant of Randy’s Flooring has closed all of the temporary income statement accounts. The accountant is now ready to close the Income Summary account. The owner of the company is R. Car. Using the Income Summary T-account below, determine the  closing entry the accountant needs to make in order to close the account.
 

 

 
 

 

Income Summary
 

 

12/31 beg inv.      2,000     12/31 ending inv.       5,000
 

 

12/31 exp.    42,000   12/31 rev.     85,000
 

 

 
 

 

Multiple Choice
 

 


 

 

 
 

 

Income Summary            46,000
 

 

R. Car, Capital                     46,000
 

 

________________________________________
 

 


 

 

 
 

 

R. Car, Capital         90,000
 

 

Income Summary                        90,000
 

 

________________________________________
 

 


 

 

 
 

 

R. Car, Capital         46,000
 

 

Income Summary                        46,000
 

 

________________________________________
 

 


 

 

 
 

 

Income Summary            43,000
 

 

R. Car, Capital                     43,000
 

 

________________________________________
 

 

 
 

 

 
 

 

 
 

 

Which of the following should be classified as a General and Administrative Expense on a Multi-Step Income Statement:
 

 

Multiple Choice
 

 


 

 

Insurance Expense
 

 


 

 

Delivery Expense
 

 


 

 

Sales Salaries Expense
 

 


 

 

Advertising Expense
 

 

 
 

 

 
 

 

 
 

 

Prepaid expenses appear in the
 

 

Multiple Choice
 

 


 

 

Operating Expenses section of the income statement.
 

 


 

 

Other Expenses section of the income statement.
 

 


 

 

Current Liabilities section of the balance sheet.
 

 


 

 

Current Assets section of the balance sheet.
 

 

 
 

 

 
 

 

 
 

 

An income statement that has one total for all revenues and one total for all expenses is known as a
 

 

Multiple Choice
 

 


 

 

classified income statement.
 

 


 

 

single-step income statement.
 

 


 

 

categorized income statement.
 

 


 

 

multiple-step income statement.
 

 

 
 

 

 
 

 

 
 

 

For the current fiscal year, Purchases were $187,000, Purchase Returns and Allowances were $4,200 and Freight In was $10,500. If the beginning merchandise inventory was $98,000 and the ending merchandise inventory was $103,000, the Cost of Goods Sold is:
 

 

Multiple Choice
 

 


 

 

$193,300
 

 


 

 

$167,300
 

 


 

 

$196,700
 

 


 

 

$188,300
 

 

 
 

 

 
 

 

 
 

 

Which of the following groups of accounts will have zero balances after the closing process is completed?
 

 

Multiple Choice
 

 


 

 

Allowance for Doubtful Accounts and Uncollectible Accounts Expense
 

 


 

 

Depreciation Expense and Accumulated Depreciation—Equipment
 

 


 

 

Purchases and Purchases Returns and Allowances
 

 


 

 

Merchandise Inventory and Sales
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

ACC 291T Week 5 Apply: Connect® Exercise (2019 New)
 

 

Review the Knowledge Check in preparation for this assignment.
 

Complete the Week 5 Exercise in Connect®.

Note: You have only one attempt available to complete this assignment.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date

 

 
 

At the end of the year Stan Still Stationery Store had the following balances: Sales $610,000; Sales Discounts $2,560; Sales Returns and Allowances $14,800; Sales Salaries Expense $67,000. The Net Sales for the year are:

Multiple Choice

$607,440

$525,640

$592,640

$595,200

 

 

The worksheet of Bridget’s Office Supplies contains the following revenue, cost, and expense accounts. The merchandise inventory amounted to $58,875 on January 1, 2019, and $51,825 on December 31, 2019. The expense accounts numbered 611 through 617 represent selling expenses, and those numbered 631 through 646 represent general and administrative expenses.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Accounts
 
 
 
 
401
Sales
$
245,800
Cr.
 
451
Sales Returns and Allowances
 
4,260
Dr.
 
491
Miscellaneous Income
 
310
Cr.
 
501
Purchases
 
102,700
Dr.
 
502
Freight In
 
1,885
Dr.
 
503
Purchases Returns and Allowances
 
3,510
Cr.
 
504
Purchases Discounts
 
1,710
Cr.
 
611
Salaries Expense—Sales
 
44,400
Dr.
 
614
Store Supplies Expense
 
2,220
Dr.
 
617
Depreciation Expense—Store Equipment
 
1,420
Dr.
 
631
Rent Expense
 
12,600
Dr.
 
634
Utilities Expense
 
2,910
Dr.
 
637
Salaries Expense—Office
 
20,200
Dr.
 
640
Payroll Taxes Expense
 
5,100
Dr.
 
643
Depreciation Expense—Office Equipment
 
480
Dr.
 
646
Uncollectible Accounts Expense
 
630
Dr.
 
691
Interest Expense
 
560
Dr.
 
 
 

The worksheet of Bridget’s Office Supplies contains the following owner’s equity accounts.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Accounts
 
 
 
 
301
Bridget Swanson, Capital
$
62,860
Cr.
 
302
Bridget Swanson, Drawing
 
40,250
Dr.
 
 
 

Net income for the year $44,915.

The worksheet of Bridget’s Office Supplies contains the following asset and liability accounts. The balance of the Notes Payableaccount consists of notes that are due within a year.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Accounts
 
 
 
 
101
Cash
$
8,805
Dr.
 
107
Change Fund
 
410
Dr.
 
111
Accounts Receivable
 
5,050
Dr.
 
112
Allowance for Doubtful Accounts
 
770
Cr.
 
121
Merchandise Inventory
 
51,825
Dr.
 
131
Store Supplies
 
1,010
Dr.
 
133
Prepaid Interest
 
85
Dr.
 
141
Store Equipment
 
10,300
Dr.
 
142
Accum. Depreciation—Store Equipment
 
1,090
Cr.
 
151
Office Equipment
 
3,220
Dr.
 
152
Accum. Depreciation—Office Equipment
 
410
Cr.
 
201
Notes Payable
 
5,410
Cr.
 
203
Accounts Payable
 
3,635
Cr.
 
216
Interest Payable
 
65
Cr.
 
231
Sales Tax Payable
 
1,800
Cr.
 
 
 

Prepare a balance sheet dated December 31, 2019.

 

 

The worksheet of Bridget’s Office Supplies contains the following revenue, cost, and expense accounts. The merchandise inventory amounted to $58,175 on January 1, 2019, and $51,125 on December 31, 2019. The expense accounts numbered 611 through 617 represent selling expenses, and those numbered 631 through 646 represent general and administrative expenses.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Accounts
 
 
 
 
401
Sales
$
244,400
Cr.
 
451
Sales Returns and Allowances
 
4,190
Dr.
 
491
Miscellaneous Income
 
240
Cr.
 
501
Purchases
 
102,000
Dr.
 
502
Freight In
 
1,815
Dr.
 
503
Purchases Returns and Allowances
 
3,440
Cr.
 
504
Purchases Discounts
 
1,640
Cr.
 
611
Salaries Expense—Sales
 
43,700
Dr.
 
614
Store Supplies Expense
 
2,150
Dr.
 
617
Depreciation Expense—Store Equipment
 
1,350
Dr.
 
631
Rent Expense
 
11,900
Dr.
 
634
Utilities Expense
 
2,840
Dr.
 
637
Salaries Expense—Office
 
19,500
Dr.
 
640
Payroll Taxes Expense
 
4,400
Dr.
 
643
Depreciation Expense—Office Equipment
 
410
Dr.
 
646
Uncollectible Accounts Expense
 
560
Dr.
 
691
Interest Expense
 
420
Dr.
 
 
 

The worksheet of Bridget’s Office Supplies contains the following owner’s equity accounts. No additional investments were made during the period.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Accounts
 
 
 
 
301
Bridget Swanson, Capital
$
62,160
Cr.
 
302
Bridget Swanson, Drawing
 
41,000
Dr.
 
 
 

Net income for the year $47,435.

Prepare a statement of owner’s equity for the year ended December 31, 2019.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 
Debit
 
Credit
 
2019
(Adjustment a)
 
 
 
 
 
 
 
Dec.
31
Uncollectible Accounts Expense
 
4,380.00
 
 
 
 
 
 
 
Allowance for Doubtful Accounts
 
 
 
 
4,380.00
 
 
 
 
To record estimated loss from Uncollectible accounts based on 0.6% of net credit sales, $730,000
 
 
 
 
 
 
 
 
 
(Adjustment b)
 
 
 
 
 
 
 
 
31
Supplies Expense
 
5,200.00
 
 
 
 
 
 
 
Supplies
 
 
 
 
5,200.00
 
 
 
 
To record supplies used during the year
 
 
 
 
 
 
 
 
 
(Adjustment c)
 
 
 
 
 
 
 
 
31
Insurance Expense
 
1,500.00
 
 
 
 
 
 
 
Prepaid Insurance
 
 
 
 
1,500.00
 
 
 
 
To record expired insurance on 1-year $6,000 policy purchased on Oct. 1
 
 
 
 
 
 
 
 
 
(Adjustment d)
 
 
 
 
 
 
 
 
31
Depreciation. Exp.—Store Equipment
 
14,800.00
 
 
 
 
 
 
 
Accum. Depreciation—Store Equip.
 
 
 
 
14,800.00
 
 
 
 
To record depreciation
 
 
 
 
 
 
 
 
 
(Adjustment e)
 
 
 
 
 
 
 
 
31
Salaries Expense—Office
 
3,300.00
 
 
 
 
 
 
 
Salaries Payable
 
 
 
 
3,300.00
 
 
 
 
To record accrued salaries for Dec. 29–31
 
 
 
 
 
 
 
 
 
(Adjustment f)
 
 
 
 
 
 
 
 
31
Payroll Taxes Expense
 
252.45
 
 
 
 
 
 
 
Social Security Tax Payable
 
 
 
 
204.60
 
 
 
 
Medicare Tax Payable
 
 
 
 
47.85
 
 
 
 
To record accrued payroll taxes on accrued salaries: social security, 6.2% × 3,300 = $204.60; Medicare, 1.45% × 3,300 = $47.85
 
 
 
 
 
 
 
 
 
(Adjustment g)
 
 
 
 
 
 
 
 
31
Interest Expense
 
250.00
 
 
 
 
 
 
 
Interest Payable
 
 
 
 
250.00
 
 
 
 
To record accrued interest on a 4-month, 6% trade note payable dated Nov. 1: $25,000 × 0.06 × 2/12 = $250.00
 
 
 
 
 
 
 
 
 
(Adjustment h)
 
 
 
 
 
 
 
 
31
Interest Receivable
 
270.00
 
 
 
 
 
 
 
Interest Income
 
 
 
 
270.00
 
 
 
 
To record interest earned on 6-month, 8% note receivable dated Oct. 1: $9,000 × 0.12 × 3/12 = $270.00
 
 
 
 
 
 
 
 

Examine the above adjusting entries and determine which ones should be reversed. Show the reversing entries that should be recorded in the general journal as of January 1, 2020. (Record the entries in the order given. Round your answers to 2 decimal places.)

 

 

 

A company reported gross profit of $81,000, total operating expenses of $43,500 and interest income of $2,600. What is the income from operations?

Multiple Choice

 

$40,100

$34,900

$32,300

$37,500

 

 

 

 

The worksheet of Bridget’s Office Supplies contains the following revenue, cost, and expense accounts. The merchandise inventory amounted to $59,675 on January 1, 2019, and $52,625 on December 31, 2019. The expense accounts numbered 611 through 617 represent selling expenses, and those numbered 631 through 646 represent general and administrative expenses.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Accounts
 
 
 
 
401
Sales
$
248,200
Cr.
 
451
Sales Returns and Allowances
 
4,340
Dr.
 
491
Miscellaneous Income
 
390
Cr.
 
501
Purchases
 
103,500
Dr.
 
502
Freight In
 
1,965
Dr.
 
503
Purchases Returns and Allowances
 
3,590
Cr.
 
504
Purchases Discounts
 
1,790
Cr.
 
611
Salaries Expense—Sales
 
45,200
Dr.
 
614
Store Supplies Expense
 
2,300
Dr.
 
617
Depreciation Expense—Store Equipment
 
1,500
Dr.
 
631
Rent Expense
 
13,400
Dr.
 
634
Utilities Expense
 
2,990
Dr.
 
637
Salaries Expense—Office
 
21,000
Dr.
 
640
Payroll Taxes Expense
 
5,900
Dr.
 
643
Depreciation Expense—Office Equipment
 
560
Dr.
 
646
Uncollectible Accounts Expense
 
710
Dr.
 
691
Interest Expense
 
720
Dr.
 
 
 

Prepare a classified income statement for this firm for the year ended December 31, 2019.

 

 

 

 

The beginning capital balance shown on a statement of owner’s equity is $81,000. Net income for the period is $31,000. The owner withdrew $39,000 cash from the business and made no additional investments during the period. The owner’s capital balance at the end of the period is

Multiple Choice

 

$73,000.

$112,000.

$151,000.

$89,000.

 

 

For the current fiscal year, Purchases were $290,000, Purchase Returns and Allowances were $8,800, Purchase Discounts were $2,800 and Freight In was $38,000. If the beginning merchandise inventory was $64,500 and the ending merchandise inventory was $84,000, the Cost of Goods Sold is:

Multiple Choice

 

$335,900

$316,400

$296,900

$320,100

 

 

 

The beginning capital balance shown on a statement of owner’s equity is $160,000. Net income for the period is $56,000. The owner withdrew $28,000 cash from the business and made no additional investments during the period. The owner’s capital balance at the end of the period is

Multiple Choice

 

$188,000.

$244,000.

$216,000.

$160,000.

 

 

 

For the current fiscal year, Purchases were $190,000, Purchase Returns and Allowances were $3,400 and Freight In was $13,000. If the beginning merchandise inventory was $130,000 and the ending merchandise inventory was $79,000, the Cost of Goods Sold is:

Multiple Choice

 

$122,600

$250,600

$224,600

$257,400