1. Which journal entry reflects the adjusting entry needed on December 31?:
Last year, BOC purchased software for $10,000. The expected life of the software is 2 years and it has no expected salvage value. Now, it is December 31, the end of the fiscal year. No other entries were recorded for this software during the year.
a. Dr. Software Amortization Expense 5,000
Cr. Software Revenue 5,000
b. No entry needed.
c. Dr. Software Amortization Expense 5,000
Cr. Software 5,000
d. Dr. Software Amortization Expense 5,000
Cr. Cash 5,000
e. Dr. Software Amortization Expense 5,000
Cr. PP&E 5,000
2. Which journal entry reflects the adjusting entry needed on December 31?:
In September, BOC received an order for $500,000 of products that will be delivered and billed in January. Now, it is December 31, the end of the fiscal year, and no prior entry has been recorded for this order.
a. Dr. Advances from Customers 500,000
Cr Revenue 500,000
b. No entry needed.
c. Dr. Order Backlog 500,000
Cr Revenue 500,000
d. Dr. Accounts Receivable 500,000
Cr Revenue 500,000
e. Dr. Accounts Receivable 500,000
Cr Unearned Revenue 500,000
3. Which item would not appear on the Income Statement?
a. SG&A Expense
b. Operating Income
c. Gross Profit
d. Pre-tax Income
e. Dividends
4. Which of the following are temporary accounts? (check all that apply)
a. Dividends Payable
b. Income Tax
c. Expense Retained Earnings
d. Cost of Goods Sold
e. Sales Revenue