Purchased computers for $20,000 from Data Equipment on account.
increase in assets, increase in liabilities
Paid $3,000 cash for May rent on storage space.
Decrease in assets, decrease in stockholders' equity
Received $15,000 cash from customers for contracts billed in April.
Increase in assets, decrease in assets
Performed computer services for Ryan Construction Company for $2,700 cash.
Increase in assets, increase in stockholders' equity
Paid Midland Power Co. $11,000 cash for energy usage in May.
Decrease in assets, decrease in stockholders' equity
Stockholders invested an additional $32,000 in the business.
Increasse in assets, increase in stockholders' equity
Paid Data Equipment for the computers purchased in (1) above.
Decrease in assets, decrease in liabilities
Incurred advertising expense for May of $840 on account.
Increase in liabilities, decrease in stockholders' equity
Interpretation of reported information involves each of the following except
-limitations of reported data
-meaning of reported data
-uses of reported data
-all of the above
all of the above
Centro-matic Company began the year with stockholders' equity of $30,000. During the year, Centro-matic issued additional shares of stock in exchange for cash of $42,000, recorded expenses of $120,000, and paid dividends of $8,000. If Centro-matic's endin
168,00
Mofro's Computer Repair Shop started the year with total assets of $300,000 and total liabilities of $200,000. During the year, the business recorded $500,000 in computer repair revenues, $300,000 in expenses, and Mofro paid dividends of $50,000. Mofro's
...
Collection of a $1,000 Accounts Receivable
-increases an asset $1,000; decreases an asset $1,000.
-decreases an asset $1,000; decreases a liability $1,000.
-increases an asset $1,000; decreases a liability $1,000.(NOT THIS ONE)
-decreases a liability $1,0
...
The basic accounting equation cannot be restated as
-Stockholders' Equity + Liabilities = Assets. (NOT THIS ONE)
-Assets - Stockholders' Equity = Liabilities.
-Assets + Liabilities = Stockholders' Equity.
-Assets - Liabilities = Stockholders' Equity.
-Assets + Liabilities = Stockholders' Equity.
The common characteristic possessed by all assets is
future economic benefit
When assets are distributed to the owners of a corporation, these distributions are termed
-dividends
The primary accounting standard-setting body in the united states is the
Financial Accounting Standards board
Generally accepted accounting principles are
standards that indicate how to report economic events
ethnics are the standards of conduct by which one's actions are judged as
-right or wrong
-honest or dishonest
-fair or unfair
-all of the these answers are correct
all of these answers are correct
Which of the following rules is incorrect?
-Debits decrease liability accounts.
-Credits decrease the dividends account.
-Debits increase the common stock account.
-Credits increase revenue accounts. (NOT THIS ONE)
Debits increase the common stock account.
A compound journal entry involves
three or more accounts
When two accounts are required in one journal entry, the entry is referred to as a
simple entry
The name given to entering transaction data in the journal is
journalizing
The chart of accounts is a
listing of the accounts and the account numbers which identify their location in the ledger.
The procedure of transferring journal entries to the ledger accounts is called
posting
Beethoven Company provided consulting services and billed the client $3,100. As a result of this event,
assets and stocholders' equity both increase by 3,100
Electrelene Company showed the following balances at the end of its first year:
Cash
$4,000
Prepaid insurance
9,000
Accounts receivable
5,000
Accounts payable
4,000
Notes payable
6,000
Common stock
2,000
Dividends
1,000
Revenues
32,000
Expenses
25,000
Wha
44,000
Chik Chik Company showed the following balances at the end of its first year:
Cash
$8,000
Prepaid insurance
9,400
Accounts receivable
7,000
Accounts payable
5,600
Notes payable
8,400
Common stock
2,800
Dividends
1,400
Revenues
44,000
Expenses
35,000
What
60,800
A trial balance will not balance if
a journal entry is only partially posted
Adjusting entries can be classified as
accruals and deferrals
Ultramega Company collected $19,600 in May of 2015 for 4 months of service which would take place from October of 2015 through January of 2016. The revenue reported from this transaction during 2015 would be
14,700
If a company fails to make an adjusting entry to record supplies expense, then
expense will be understated
If a business has received cash in advance of services performed and credits a liability account, the adjusting entry needed after the services are performed will be
-debit Unearned Service Revenue and credit Cash.
-debit Unearned Service Revenue and cred
-debit Unearned Service Revenue and credit Service Revenue
SurferRosa Music Store borrowed $30,000 from the bank signing a 9%, 3-month note on September 1. Principal and interest are payable to the bank on December 1. If the company prepares monthly financial statements, the adjusting entry that the company shoul
Debit Interest Expense, $225; Credit Interest Payable, $225.
A company shows a balance in Salaries and Wages Payable of $38,000 at the end of the month. The next payroll amounting to $48,000 is to be paid in the following month. What will be the journal entry to record the payment of salaries?
-Salaries and Wages E
-Salaries and Wages Expense 48,000
Cash 48,000
Nirvana Corporation issued a one-year, 9%, $400,000 note on April 30, 2015. Interest expense for the year ended December 31, 2015 was
24,000
An adjusted trial balance
proves the equality of the total debit balances and total credit balances of ledger accounts after all adjustments have been made.
The adjusted trial balance is prepared
after adjusting entries have been journalized and posted.
Adjusting entries are prepared from
-the general ledger.
-last year's worksheet.
-source documents. (NOT THIS ONE)
-the adjustments columns of the worksheet.
-last year's worksheet.
The adjustments entered in the adjustments columns of a worksheet are
not journalized until after the financial statements are prepared.
The income statement for the year 2015 of Fugazi Co. contains the following information:
Revenues $70,000
Expenses:
Salaries and Wages Expense $45,000
Rent Expense 12,000
Advertising Expense 10,000
Supplies Expense 6,000
Utilities Expense 2,500
Insurance
debit to Income Summary for $7,500.
The income statement for the year 2015 of Fugazi Co. contains the following information:
Revenues $70,000
Expenses:
Salaries and Wages Expense $45,000
Rent Expense 12,000
Advertising Expense 10,000
Supplies Expense 6,000
Utilities Expense 2,500
Insurance
-$7,500 credit.
The income statement for the month of June, 2015 of Camera Obscura Enterprises contains the following information:
Revenues $7,000
Expenses:
Salaries and Wages Expense $3,000
Rent Expense 1,500
Advertising Expense 800
Supplies Expense 300
Insurance Expens
credit to Income Summary for $1,300.
The income statement for the year 2015 of Fugazi Co. contains the following information:
Revenues $70,000
Expenses:
Salaries and Wages Expense $45,000
Rent Expense 12,000
Advertising Expense 10,000
Supplies Expense 6,000
Utilities Expense 2,500
Insurance
debit to Utilities Expense for $2,500.
The income statement for the month of June, 2015 of Camera Obscura Enterprises contains the following information:
Revenues $7,000
Expenses:
Salries and Wages Expense $3,000
Rent Expense 1,500
Advertising Expense 800
Supplies Expense 300
Insurance Expense
-$35,000.
Zen Arcade paid the weekly payroll on January 2 by debiting Salaries and Wages Expense for $47,000. The accountant preparing the payroll entry overlooked the fact that Salaries and Wages Expense of $27,000 had been accrued at year end on December 31. The
Salaries and Wages Payable 27,000
Salaries and Wages Expense 27,000
The following information is for Bright Eyes Auto Supplies:
Bright Eyes Auto Supplies
Balance Sheet
December 31, 2015
Cash $ 40,000 Accounts Payable $ 130,000
Prepaid Insurance 80,000 Salaries and Wages Payable 50,000
Accounts Receivable 100,000 Mortgage
360,000
Accounts payable $ 18,000
Accounts receivable 11,000
Accumulated depreciation - equipment 28,000
Advertising expense 21,000
Cash 15,000
Common stock 42,000
Dividends 14,000
Depreciation expense 12,000
Equipment 210,000
Insurance expense 3,000
Note payable
...