ACCOUNTING QUESTIONS.?
ACCOUNTING QUESTIONS.?
Any help would be appreciated. Thanks in advance (:
In which section of the financial statements would Paid-In Capital from Sale of Treasury Stock be reported?
1. other income on income statement
2. stockholders' equity on balance sheet
3. other expense on income statement
4. intangible asset on balance sheet
Which of the following is true?
1. If using the units-of-production method, it is possible to depreciate more than the depreciable cost.
2. If using the straight line method, the amount of depreciation expense during the first year is higher than that of the double-declining-balance.
3. If using the double-declining-balance the total amount of depreciation expense during the life of the asset will be the highest.
4. Regardless of the depreciation method, the amount of total depreciation expense during the life of the asset will be the same.
Allowance for Doubtful Accounts has a credit balance of $1,500 at the end of the year (before adjustment), and an analysis of customers' accounts indicates doubtful accounts of $17,900. Which of the following entries records the proper provision for doubtful accounts?
1. debit Allowance for Doubtful Accounts, $16,400; credit Uncollectible Accounts Expense, $16,400
2. debit Allowance for Doubtful Accounts, $19,400; credit Uncollectible Accounts Expense, $19,400
3. debit Uncollectible Accounts Expense, $19,400; credit Allowance for Doubtful Accounts, $19,400
4. debit Uncollectible Accounts Expense, $16,400; credit Allowance for Doubtful Accounts, $16,400
Which of the following is not an internal control activity for cash?
1. All cash receipts should be recorded promptly.
2. The functions of record keeping and maintaining custody of cash should be combined.
3. Surprise audits of cash on hand should be made occasionally.
4. The number of persons who have access to cash should be limited.
The following lots of a particular commodity were available for sale during the year:
Beginning inventory5 units at $61
First purchase15 units at $63
Second purchase10 units at $74
Third purchase10 units at $77
The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year. What is the amount of the inventory at the end of the year according to the average cost method?
1. $1,510
2. $1,220
3. $1,380
4. $1,375
A retailer purchases merchandise with a catalog list price of $15,000. The retailer receives a 30% trade discount and credit terms of 2/10, n/30. What amount should the retailer debit to the Merchandise Inventory account?
1. $4,500
2. $10,290
3. $10,500
4. $14,700
What effect will this adjustment have on the accounting records?
Unearned Revenue
3,300 (CREDIT)
Fees earned
3,300 (DEBIT)
1. All are true.
2. Increase revenues reported for the period
3. Increase net income
4. Decrease liabilities
Joshua Scott invests $65,000 into his new business. How would the journal entry for this transaction be entered in the journal?
1. Joshua Scott, Capital 65,000
Cash 65,000
Invested cash in business
2. Cash 65,000
Joshua Scott, Capital 65,000
Invested cash in business
3. Cash 65,000
Joshua Scott, Capital 65,000
Invested cash in business
4. Joshua Scott, Capital 65,000
Cash 65,000
Invested cash in business
Answers:
JKRB: In which section of the financial statements would Paid-In Capital from Sale of Treasury Stock be reported? 2. stockholders' equity on balance sheet Which of the following is true? 1. If using the units-of-production method, it is possible to depreciate more than the depreciable cost. False. You cannot depreciate an asset below its depreciable cost. 2. If using the straight line method, the amount of depreciation expense during the first year is higher than that of the double-declining-balance. False. Double-declining will be higher. 3. If using the double-declining-balance the total amount of depreciation expense during the life of the asset will be the highest. False. Over the life of the asset, all forms of depreciation will yield the same result. 4. Regardless of the depreciation method, the amount of total depreciation expense during the life of the asset will be the same. True. Allowance for Doubtful Accounts has a credit balance of $1,500 at the end of the year (before adjustment), and an analysis of customers' accounts indicates doubtful accounts of $17,900. Which of the following entries records the proper provision for doubtful accounts? 17,900 - 1,500 = 16,400 4. debit Uncollectible Accounts Expense, $16,400; credit Allowance for Doubtful Accounts, $16,400 Which of the following is not an internal control activity for cash? 1. All cash receipts should be recorded promptly. True 2. The functions of record keeping and maintaining custody of cash should be combined. False. They should remain separate. 3. Surprise audits of cash on hand should be made occasionally. True 4. The number of persons who have access to cash should be limited. True The following lots of a particular commodity were available for sale during the year: Beginning inventory 5 units at $61 First purchase 15 units at $63 Second purchase 10 units at $74 Third purchase 10 units at $77 The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year. What is the amount of the inventory at the end of the year according to the average cost method? {(5 x 61) + (15 x 63) + (10 x 74) + (10 x 77)] / 40 = $69 per unit 69 x 20 = 3. $1,380 A retailer purchases merchandise with a catalog list price of $15,000. The retailer receives a 30% trade discount and credit terms of 2/10, n/30. What amount should the retailer debit to the Merchandise Inventory account? Trade discounts represent a discount of the purchase price and should not be entered into the records of the buyer or the seller. So the amount entered would be the amount paid for the merchandise. 15,000 x 70% = 3. $10,500 What effect will this adjustment have on the accounting records? Unearned Revenue 3,300 (CREDIT) Fees earned 3,300 (DEBIT) In order for any of the answers to be true, you must have these entries backwards. Fees Earned should be the credit and Unearned Revenue should be the debit. Debits decrease Liabilities, and credits increase revenues and therefore net income. 1. All are true. True 2. Increase revenues reported for the period True 3. Increase net income True 4. Decrease liabilities True Joshua Scott invests $65,000 into his new business. How would the journal entry for this transaction be entered in the journal? I don't know what you did, but 1 and 4, and 2 and 3 are the same. It should be Dr Cash 65,000 Cr Joshua Scott, Capital 65,000 Invested cash in business 2. Cash 65,000 Joshua Scott, Capital 65,000 Invested cash in business 3. Cash 65,000 Joshua Scott, Capital 65,000 Invested cash in business
2011-05-10 18:54:54