Question 1 A check drawn by a Elli Catering Services for $180 in payment of a liability was recorded in the journal as $810. This item would be included on the bank reconciliation as a(n)
Question 1 options:
a) addition to the balance per Elli's records
b) addition to the balance per the bank statement
c) deduction from the balance per the bank statement
d) deduction from the balance per Elli's records
Question 2 Morgana Film Editing LLC's bookkeeper records receipts from cash sales of $9,500 incorrectly in the cash receipts journal as $5,900. This item would be included on the bank reconciliation as a(n)
Question 2 options:
a) deduction from the balance per Morgana's records
b) addition to the balance per bank statement
c) deduction from the balance per bank statement
d) addition to the balance per Morgana's records
Question 3
Allowance for Doubtful Accounts has a credit balance of $800 at the end of the year (before adjustment), and an analysis of accounts in the customers' AR subsidiary ledger of Trang &Company CPA's indicates doubtful accounts of $15,000. Which of the following entries records the proper provision for doubtful accounts?
Question 3 options:
a) debit Uncollectible Accounts Expense, $800; credit Allowance for Doubtful Accounts, $800
b) debit Uncollectible Accounts Expense, $14,200; credit Allowance for Doubtful Accounts, $14,200
c) debit Allowance for Doubtful Accounts, $800; credit Uncollectible Accounts Expense, $800
d) debit Allowance for Doubtful Accounts, $15,800; credit Uncollectible Accounts Expense, $15,800
Question 4
Brielle Mortgage Services has in its Allowance for Doubtful Account a debit balance of $500 at the end of the year (before adjustment), and uncollectible accounts expense is estimated at 3% of net sales. If net sales are $600,000, the amount of the adjusting entry to record the provision for doubtful accounts by Brielle is
Question 4 options:
a) $18,500
b) $17,500
c) $18,000
d) none of the above
Question 5
Brielle Mortgage Services adjusts and closes at the end of the fiscal year resulting in a balance of $450,000 in their Accounts Receivable and Allowance for Doubtful Accounts has a balance of $25,000. What is the net realizable value of the accounts receivable for Brielle?
Question 5 options:
a) $25,000
b) $425,000
c) $450,000
d) $455,000
Question 6
Brielle Mortgage Services has at the beginning of the year, a balance in the Allowance for Doubtful Accounts of a credit of $540. During the year, $350 of previously written-off accounts were reinstated and accounts totaling $410 are written-off as uncollectible. The end of the year balance in the Allowance for Doubtful Accounts for Brielle should be
Question 6 options:
a) $350
b) $410
c) $480
d) $600
Question 7
Chesapeake Foods has a 60-day, 10% note for $8,000, dated April 15,that it has received from a customer on account. The face value of the note is
Question 7 options:
a) $8,600
b) $7,200
c) $8,800
d) $8,000
Question 8
Manglore Sweet Treats has a 90-day, 12% note for $10,000, dated May 1,that it has received from a customer on account. The maturity value of the note is
Question 8 options:
a) $10,000
b) $10,300
c) $450
d) $9,550
Question 9
On November 1, Dr. Jakob Fletcher PA. accepted a 3-month note receivable as payment for services provided to Thao Company. The terms of the note were $8,000 face value and 6% interest. Dr. Fletcher closes his books at December 31 and does not use reversing entries. On February 1, the journal entry to record the collection of the note should include a credit to
Question 9 options:
a) Notes Receivable for $8,120
b) Interest Receivable for $120
c) Interest Revenue for $120
d) Interest Revenue for $40
Question 10
On June 30, 2015, EZ Financing Inc showed the following data on the equity section of their balance sheet:
Stockholders' equity
Common stock, $1 par 190,000 shares authorized,
140,000 shares issued and outstanding $140,000
Paid-in capital in excess of par-Common 260,000
Retained earnings 940,000
Total stockholder's equity $1,340,000
On July 1, 2015, EZ Financing declared and distributed a 5% stock dividend. The market value of the stock at that time was $13 per share. Following this transaction, what would the new balance in Retained Earnings be?
Question 10 options:
a) $916,000
b) $942000
c) $966000
d) $849000
Question 11
Brielle Mortgage Services issued 50,000 shares of common stock in exchange for manufacturing equipment. The equipment has a fair value of $1,000,000. The stock has par value of $0.01 per share. Which of the following is included in the journal entry to record this transaction?
Question 11 options:
debit Cash $5,000
credit Gain on Sale of Common Stock $1,050,000
credit Paid-In Capital in Excess of Par-Common $999,500
credit Common Stock-$0.01 Par Value $1,000,000
Question 12
Shamina Home Designs has the following lots of a particular commodity available for sale during the year
Beginning inventory....... 10 units at $50
First purchase................ 25 units at $53
Second purchase............ 30 units at $54
Third purchase............... 15 units at $60
Shamina 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 inventory at the end of the year according to the first-in, first-out method for Shamina?
Question 12 options:
a) $1,030
b) $1,140
c) $1,170
d) $1,060
Question 13
Shamina Home Designs has the following lots of a particular commodity available for sale during the year:
Beginning inventory........ 10 units at $60
First purchase................ 25 units at $63
Second purchase............ 30 units at $64
Third purchase............... 10 units at $70
Shamina 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 inventory at the end of the year according to the last-in, first-out method for Shamina?
Question 13 options:
a) $1,230
b) $1,220
c) $1,240
d) $1,340
Question 14
Shamina Home Designs has the following lots of a particular commodity available for sale during the year:
Beginning inventory....... 10 units at $61
First purchase................ 25 units at $63
Second purchase............ 30 units at $64
Third purchase............... 15 units at $73
Shamina 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 for Shamina?
Question 14 options:
a) $1,300
b) $1,305
c) $1,415
d) $1,236
Question 15
If merchandise inventory is being valued at cost and the price level is steadily rising, the method of costing that will yield the highest net income is
Question 15 options:
a) periodic
b) LIFO
c) FIFO
d) average
Question 16
If Norman Geological Services estimates the rate of gross profit at 40%, what is the estimated cost of the merchandise inventory on June 30 for Norman, based on the following data?
June 1 Merchandise inventory $ 75,000
June 1-30 Purchases (net) 150,000
June 1-30 Sales (net) 135,000
Question 16 options:
a) $144,000
b) $140,000
c) $ 81,000
d) $ 54,500
Question 17
Venkat Minerals purchased a mining site for $500,000 on July 1, 2005. Venkat expects to mine ore for the next 10 years and anticipates that a total of 100,000 tons will be recovered. The estimated residual value of the property is $80,000. During 2005 Venkat extracted 6,000 tons of ore. The depletion expense for 2005 for Venkat is
Question 17 options:
a) $12,600
b) $42,000
c) $25,200
d) $50,000
Question 18
Zarena Restaurant Group has a fixed asset with a cost of $30,000 and accumulated depreciation of $27,500 is sold for $3,500. What is the amount of the gain or loss on disposal of the fixed asset for Zarena?
Question 18 options:
a) $2,500 loss
b) $1,000 loss
c) $2,500 gain
d) $1,000 gain
Question 19
Sadie Publishers has 10,000 shares of 10%, $100 par noncumulative preferred stock outstanding and 20,000 shares of no-par common stock outstanding. At the end of the current year, the corporation declares a dividend of $120,000. What is the dividend per share for preferred shares and for common shares?
Question 19 options:
a) The dividend per share is $10.00 to preferred shares and $1.00 to common shares.
b) The dividend per share is $6.67 to preferred shares and $1.00 to common shares.
c) The dividend per share is $10.00 to preferred shares and $10 to common shares
d) The dividend per share is $50.00 to preferred shares and $1.00 to common shares.
Question 20
Select the capital expenditure item from the list below:
Question 20 options:
a) cleaning the carpet in the front room
b) tune-up for a company truck
c) replacing an engine in a company car
d) replacing all burned-out light bulbs in the factory
Question 21
Bharat Equipment with a cost of $80,000, an estimated residual value of $5,000, and an estimated life of 15 years was depreciated by the straight-line method for 5 years. Due to obsolescence, it was determined that the useful life should be shortened by 5 years and the residual value changed to zero. The depreciation expense for the current and future years for Bharat is
Question 21 options:
a) $5,500
b) $11,000
c) $10,000
d) $5,000
Question 22
Bombay Tourism Services has a machine with a cost of $65,000 has an estimated residual value of $5,000 and an estimated life of 5 years or 15,000 hours. It is to be depreciated by the units-of-production method. What is the amount of depreciation for the second full year, during which the machine was used 5,000 hours?
Question 22 options:
a) $8,000
b) $20,000
c) $12,000
d) $21,667
Question 23
Bombay Tourism Services has an equipment with a cost of $160,000 has an estimated residual value of $10,000 and an estimated life of 5 years or 12,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,300 hours?
Question 23 options:
a) $30,000
b) $32,500
c) $34,000
d) $40,000
Question 24
Bombay Tourism Services has a machine with a cost of $65,000 has an estimated residual value of $5,000 and an estimated life of 4 years or 18,000 hours. What is the amount of depreciation for the second full year, using the declining-balance method at double the straight-line rate?
Question 24 options:
a) $15,000
b) $30,000
c) $16,250
d) $32,500
Question 25
Montero has a building with an appraisal value of $137,000 and offers it at a price of $142,000 Cruz acquires the property for $30,000 in cash, a 90-day note payable for $40,000, and a mortgage amounting to $60,000. The cost basis recorded in Cruz' accounting records to recognize this purchase is
Question 25 options:
a) $137,000
b) $142,000
c) $130,000
d) $100,000