90.2K

Verified Solution

Link Copied!

Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. )Which of the following accounts is not included in the asset section of the balance sheet? A) Supplies B) Land. C) Services revenue. D) Accounts receivable. E) Cash. 2) Which of the following combinations results does not result in the same amount of net income reported on the income statement? A) Total revenues of $80,000 and total expenses of S60,000. B) Total revenues of $70,000 and total expenses of $60,000. C) Total revenues of $170,000 and total expenses of $150,000. D) Total revenues of $60,000 and total expenses of $40,000. E) Total revenues of $40,000 and total expenses of $20,000. 2) 3) Determine the net income of a company for which the following information is available for the month of July. 3) 180,000 10,000 20,000 400,000 S Employee salaries expense Interest expense Rent expense Consulting revenue A) $610,000. B) $230,000. C) $400,000. D) $210,000. E) $190,000. 4) If a company is considering the purchase of a parcel of land that was seller for $85,000, is offered for sale at $150,000, is assessed for tax purposes at $95,000, is recognized by the purchaser as easily being worth $140,000, and is purchased for $137,000, the land should be recorded in the purchaser's books at: A) $137,000. B) $95,000. C) $140,000. D) $150,000. E) $138,500 acquired by the 5) If the assets of a business increased $89,000 during a period of time and its liabilities increased $67,000 during the same period, equity in the business must have: A) Increased $89,000. B) Decreased S156,000. C) Increased S156,000. D) Decreased $22,000. E) Increased $22,000. 5) 6) 6) Paul's Landscaping paid $500 on account for supplies purchased in the prior month. Which of the following general journal entries will Paul's Landscaping make to record this transaction? A) Debit Office supplies, $500; credit Cash, $500. B) Debit Cash, $500; credit Ofice supplies, $500. C) Debit Accounts payable, $500; credit Cash, $500. D) Debit Office E) Debit Office supplies, $500; credit Accounts payable, $500. plies expense, $500; credit Cash, $500. 7) 7) J. Brown Consulting paid $2,500 cash for a 5-month insurance policy which begins on December 1. Given the choices below, determine the general journal entry that J. Brown Consulting will make to record the cash payment. Assume the company's policy is to initially record prepaid and unearned items in balance sheet accounts. A) Insurance Expense 2,500 2,500 Prepaid Insurance B) 2,500 Cash 2,500 Prepaid Insurance 2,500 Prepaid Insurance 2,500 Cash D) 2,500 2,500 Insurance Expense Cash 2,500 E) 2,500 Cash Insurance Expense 8) Joel Consulting received $3,000 from a customer for services provided. Joel's general journal entry to record this transaction will be A) Debit Cash, credit Accounts Payable. B) Debit Cash, credit Accounts Receivable. C) Debit Accounts Pavable, credit Services Revenue. D) Debit Cash, credit Services Revenue. E) Debit Services Revenue, credit Accounts Receivable. 8) 9) Prior to recording adjusting entries, the Office Supplies account hada $359 debit balance. A physical count of the supplies showed $105 of unused supplies available. The required adjusting entry is: A) Debit Office Supplies $254 and credit Office Supplies Expense $254. B) Debit Office Supplies Expense $254 and credit Office Supplies $254. C) Debit Office Supplies Expense $105 and credit Office Supplies $105. D) Debit Office Supplies $105 and credit Office Supplies Expense $105. E) Debit Office Supplies $105 and credit Supplies Expense $254. 9) 10) The periodic expense created by allocating the cost of plant and equipment to the periods in which they are used, representing the expense of using the assets, is called: A) A contra account. B) An accrued account. 10) C) Depreciation expense. D) Accumulated depreciation. E) The expense recognition (matching) principle. 11) Flagg records adjusting entries at its December 31 year-end. At December 31, employees had earned $12,000 of unpaid and unrecorded salaries. The next payday is January 3, at which time $30,000 will be paid. Prepare the journal entry on January 3 to record payment assuming the adjusting and reversing entries were made on December 31 and January 1. A) Debit Salaries expense $18,000; credit Cash $18,000. B) Debit Salaries expense S12,000; debit Salaries payable $18,000; credit Cash $30,000. 11) C) Debit Salaries expense $30,000; credit Cash $30,000. D) Debit Salaries expense $18,000, debit Salaries payable $12,000; credit Cash $30,000. E) Debit Salaries payable $30,000; credit Cash $30,000. 12) 12) Unearned revenues are generally: A) Revenues that have been earned but not yet collected in cash. B) Increases to common stock C) Recorded as an asset in the accounting records. D) Revenues that have been earned and received in cash. E) Liabilities created when a customer pays in advance for products or services before the revenue is earned. 16) Gi Gi's Dance Studio provided $150 of dance instruction and rented out its dance studio to the same client for another $100, The client paid immediately. Identify the general journal entry below that Gi Gi's will make to record the transaction. 16) Cash Rental Revenue 250 100 Instruction Revenue 150 B) Rental Revenue 100 Instruction Revenue 150 Cash 250 250 Accounts Payable 100 Rental Revenue 150 Instruction Revenue D) 250 Accounts Receivable 100 Rental Revenue 150 Instruction Revenue 250 E) 100 Unearned Revenue 150 Rental Revenue Instruction Revenue 17 17) A $130 credit to Supplies the accounts under- or overstated as a result of this error? A) Supplies, understated $130; Fees Earned, overstated $130. B) Supplies, overstated $130; Fees Earned, overstated $130 C) Supplies, understated $260; Fees Earned, overstated $130. D) Supplies, overstated $130; Fees Earned, understated $130. E) Supplies, overstated $260; Fees Earned, understated $130 was credited to Fees Earned by mistake. By what amounts are 18) On April 1, Griffith Publishing Company received $1,548 from Santa Fe, Inc. for 36-month subscriptions to several different magazines. The subscriptions started immediately. What is the amount of revenue that should be recorded by Griffith Publishing Company for the second year of the subscription assuming the company uses a calendar-year reporting period? A) $0. 18) E) $387 C) $516 B) $430 D) S129. 19) What is the proper adjusting entry at December 31, the end of the accounting period, if the balance in the prepaid insurance account is $7,750 before adjustment, and the unexpired amount per analysis of policies is, $3,250? A) Debit Insurance Expense, $7,750; credit Prepaid Insurance, $7,750. B) Debit Insurance Expense, $4,500; credit Prepaid Insurance,, $4,500. C) Debit Insurance Expense, $3,250; credit Prepaid Insurance, $3,250 D) Debit Cash, $7,750; Credit Prepaid Insurance, $7,750. E) Debit Prepaid Insurance, $4,500; credit Insurance Expense, $4,500. 19) 20) On April 1, Griffith Publishing Company received $1,548 from Santa Fe, Inc. for 36-month subscriptions to several different magazines. The company credited Unearned Fees for the amount received and the subscriptions started immediately. Assuming adjustments are only made at year-end, What is the adjusting entry that should be recorded by Griffith Publishing Company on December 31 of the first year? A) debit Unearned Fees, $129; credit Fees Earned, $129. B) debit Unearned Fees, $1,548; credit Fees Earned, $1,548. C) debit Unearned Fees, $1,161; credit Fees Earned, $1,161. D) debit Unearned Fees, $516; credit Fees Earned, $516. E) debit Unearned Fees, $387; credit Fees Earned, $387. 20)

Answer & Explanation Solved by verified expert

See Answer