Exam 4: The Bookkeeping Process and Transaction Analysis

The balance in the Wages Payable account was $25,000 at the beginning of the month.Wages accrued during the month totaled $54,000.Wages paid during the month were $63,000.

In the buyer's records, the purchase of merchandise on account would:

The accountant at WooSah! USA made an adjusting entry at the end of February to accrue interest on a note receivable from a customer.The effect of this entry is to:

When a firm purchases supplies for use in its business, and the cost of the supplies purchased is recorded as an asset, the following adjustment to recognize the cost of supplies used will probably be required:

The balance in the Wages Payable account increased from $13,000 at the beginning of the month to $20,000 at the end of the month.Wages accrued during the month totaled $82,000.

Alpha Bot Industries has 30 employees who work Monday through Friday each week; each employee earns $150 per day and is paid every Friday.The end of the accounting period is on a Tuesday.How much wages expense should the firm accrue at the end of the period?

A credit entry will:

A debit entry will:

Unquiet Hands, Inc.borrowed $30,000 on October 1, 2019 at 6% interest with both principal and interest due on September 30, 2020.Which of the following journal entries should Unquiet Hands, Inc.use to record the payment of interest on September 30, 2020?

A debit entry will:

At the beginning of the current fiscal year, the balance sheet of Mondrop Co.showed liabilities of $760,000.During the year liabilities increased by $20,000, assets increased by $110,000, and paid-in capital increased by $40,000 to $330,000.Dividends declared and paid during the year were $120,000.At the end of the year, stockholders' equity totaled $804,000.Calculate net income or loss for the year.

A chart of accounts:

A journal:

At the beginning of the current fiscal year, Mindspin Lab's balance sheet showed assets of $1,350,000 and liabilities of $1,050,000.During the year, liabilities decreased by $70,000.Net Income for the year was $350,000, and net assets at the end of the year were $386,000.There were no changes in paid-in capital during the year. Calculate the dividends, if any, declared during the year. Calculate the total assets at the end of the year.

Which of the following is not one of the 5 questions of transaction analysis?

Using the column headings provided below, show the effect, if any, of the transaction entry or adjusting entry on the appropriate balance sheet category or on the income statement by entering the account name, amount, and indicating whether it is an addition (+)or subtraction (?).Column headings reflect the expanded balance sheet equation; items that affect net income should not be shown as affecting stockholders' equity. 1.During the month, the board of directors declared a cash dividend of $2,400, payable next month. 2.Employees were paid $3,800 in wages for their work during the first three weeks of the month. 3.Employee wages of $1,200 for the last week of the month have not been recorded. 4.Merchandise that cost $1,800 was sold for $2,700.Of this amount, $2,000 was received in cash and the balance is expected to be received within 30 days. 5.A contract was signed with a local radio station for a $200 advertisement; the ad was aired during this month but will not be paid for until next month. 6.Store equipment was purchased at a cash price of $600.The original list price of the equipment was $800, but a discount was received. 7.Received $360 of interest revenue for the current month. 8.Accrued $620 of interest expense at the end of the month. Transaction Adjustment Assets Liabilities Stackholders' Equity Net Income 1. 2. 3. 4. 5. 6. 7. 8.

To accrue $7,100 of employee salaries for the last week of February, the employer's journal entry is:

Sales on account during the month totaled $78,000.Cash collections of accounts receivable during the month totaled $72,000.The balance in the Accounts Receivable account at the end of the month was $31,000.No accounts receivable were written off as uncollectible during the month.The balance in the Accounts Receivable account at the beginning of the month was:

A credit entry will:

An adjusting journal entry recording an accrual: