Question 1

Use BVD's adjusted trial balance to prepare BVD's balance sheet for the current year-end.

Accepted Answer

The answer of Use BVD's adjusted trial balance to prepare...

Question 2

In preparing its adjusting entries at the end of this year, Filiberto Company neglected to adjust the Unearned Service Fees account for the amount of such fees earned during the year.
This error

Accepted Answer

A)  Understates this year's net income and retained earnings at year-end and overstates liabilities at year-end 
B)  Overstates this year's net income and retained earnings at year-end and understates liabilities at year-end 
C)  Understates this year's net income and understates both retained earnings and liabilities at year-end 
D)  Overstates this year's net income and overstates both retained earnings and liabilities at year-end 
E)  None of the above 
A)  Understates this year's net income and retained earnings at year-end and overstates liabilities at year-end 
B)  Overstates this year's net income and retained earnings at year-end and understates liabilities at year-end 
C)  Understates this year's net income and understates both retained earnings and liabilities at year-end 
D)  Overstates this year's net income and overstates both retained earnings and liabilities at year-end 
E)  None of the above A

Question 3

As of December 31, 2019, the Balance Sheet of Sparkling Products, Inc. contains the following items (in random order):
  Determine the amount of Equipment.

Accepted Answer

A)  $ 21,000 
B)  $ 34,000 
C)  $ 21,750 
D)  $172,500 
A)  $ 21,000 
B)  $ 34,000 
C)  $ 21,750 
D)  $172,500 B

Question 4

Regardless of the business activity recorded, the left side of an account is the debit side and the right side is the credit side.

Accepted Answer

A) True 
 B)False

Question 5

Assume December 31 is a Wednesday. Wages are paid every Friday, and the weekly payroll (for five days) amounts to $3,000.
To record the correct amount of expense for December, the firm makes the following entry on December 31:

Accepted Answer

A)  Wages Payable 3,000
Wages Expense 3,000 
B)  Wages Payable 1,800
Wages Expense 1,800 
C)  Wages Expense 1,680
Wages Payable 1,680 
D)  Wages Expense 1,800
Wages Payable 1,800 
E)  None of the above 
A)  Wages Payable 3,000
Wages Expense 3,000 
B)  Wages Payable 1,800
Wages Expense 1,800 
C)  Wages Expense 1,680
Wages Payable 1,680 
D)  Wages Expense 1,800
Wages Payable 1,800 
E)  None of the above

Question 6

The Cash T-account has a beginning balance of $26,000. During the year, $122,000 was debited and $120,500 was credited to the account.
What is the ending balance of cash?

Accepted Answer

A)  ($2,500) 
B)  $27,500 
C)  $18,500 
D)  Cannot be determined from the information given 
A)  ($2,500) 
B)  $27,500 
C)  $18,500 
D)  Cannot be determined from the information given

Question 7

Which of the following accounting cycle steps occurs only at the end of the accounting year?

Accepted Answer

A)  Analyze transactions from source documents 
B)  Prepare financial statements 
C)  Prepare a post-closing trial balance 
D)  Record transactions in journals 
E)  None of the above 
A)  Analyze transactions from source documents 
B)  Prepare financial statements 
C)  Prepare a post-closing trial balance 
D)  Record transactions in journals 
E)  None of the above

Question 8

Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first)
-Paid rent for the current month

Accepted Answer

A)  Debit an asset 
B)  Credit an asset 
C)  Debit a liability 
D)  Credit a liability 
E)  Debit common stock
F) Credit common stock
G) Debit dividends
H) Credit dividends
I) Debit revenue
J) Credit revenue
K) Debit expense
L) Credit expense 
A)  Debit an asset 
B)  Credit an asset 
C)  Debit a liability 
D)  Credit a liability 
E)  Debit common stock
F) Credit common stock
G) Debit dividends
H) Credit dividends
I) Debit revenue
J) Credit revenue
K) Debit expense
L) Credit expense

Question 9

One reason for preparing a trial balance is to make sure that all of the period's transactions have been recorded.

Accepted Answer

A) True 
 B)False

Question 10

Assume December 31 is a Monday. Wages are paid every Friday, and the weekly payroll (for five days) amounts to $6,000.
To record the correct amount of expense for December, the firm makes the following entry on December 31:

Accepted Answer

A)  Wages Expense 1,200
Wages Payable 1,200 
B)  Wages Payable 1,200
Wages Expense 1,200 
C)  Wages Expense 6.000
Wages Payable 6,000 
D)  Wages Expense 4,800
Wages Payable 4,800 
E)  None of the above 
A)  Wages Expense 1,200
Wages Payable 1,200 
B)  Wages Payable 1,200
Wages Expense 1,200 
C)  Wages Expense 6.000
Wages Payable 6,000 
D)  Wages Expense 4,800
Wages Payable 4,800 
E)  None of the above

Question 11

A customer received and then paid a $9,000 utility bill from Maryland Power Company. The journal entry by Maryland Power Company to record receipt of the payment would include:

Accepted Answer

A)  A credit to Accounts Payable 
B)  A credit to Accounts Receivable 
C)  A credit to Utilities Revenue 
D)  A debit to Accounts Receivable 
A)  A credit to Accounts Payable 
B)  A credit to Accounts Receivable 
C)  A credit to Utilities Revenue 
D)  A debit to Accounts Receivable

Question 12

Listed below are several accounts of Moyer Catering, Inc. Indicate with an X in the proper column whether (1) the account is permanent or temporary, (2) which side of the account increases are recorded on, and (3) which side of the account represents a normal balance.

Accepted Answer

The answer of Listed below are several accounts of Moyer...

Question 13

Which of the following accounts normally has a credit balance?

Accepted Answer

A)  Accounts Receivable 
B)  Dividends 
C)  Notes Payable 
D)  Rent Expense 
E)  None of the above 
A)  Accounts Receivable 
B)  Dividends 
C)  Notes Payable 
D)  Rent Expense 
E)  None of the above

Question 14

Benson Company calculates it has earned (but not yet collected or recorded) interest of $525 at December 31 on outstanding notes receivable.
How should Benson record this on December 31?

Accepted Answer

A)  Interest Receivable 525
Interest Payable 525 
B)  Interest Receivable 525
Interest Income 525 
C)  Interest Payable 525
Interest Income 525 
D)  Interest Income 525
Interest Receivable 525 
E)  None of the above 
A)  Interest Receivable 525
Interest Payable 525 
B)  Interest Receivable 525
Interest Income 525 
C)  Interest Payable 525
Interest Income 525 
D)  Interest Income 525
Interest Receivable 525 
E)  None of the above

Question 15

Kobe Company provided consulting service to a client on January 1, and billed them for $15,000. On February 1, the client made cash payment of $8,000 and signed a note for $7,000 to settle the account.
What is Kobe Company's journal entry on February 1?

Accepted Answer

A)  Cash 8,000
Accounts Receivable 7,000
Notes Receivable 15,000 
B)  Accounts Payable 15,000
Notes Payable 7,000
Cash 8,000 
C)  Cash 8,000
Notes Receivable 7,000
Consulting Revenue 15,000 
D)  Cash 8,000
Notes Receivable 7,000
Accounts Receivable 15,000 
A)  Cash 8,000
Accounts Receivable 7,000
Notes Receivable 15,000 
B)  Accounts Payable 15,000
Notes Payable 7,000
Cash 8,000 
C)  Cash 8,000
Notes Receivable 7,000
Consulting Revenue 15,000 
D)  Cash 8,000
Notes Receivable 7,000
Accounts Receivable 15,000

Question 16

P. Disco received $2,400 from a tenant on December 1 for three months' rent of an office. This rent was for December, January, and February.
If Disco debited Cash and credited Unearned Rental Income for $2,400 on December 1, what necessary adjustment would be made on December 31?

Accepted Answer

A)  Unearned Rental Income 800
Rental Income 800 
B)  Rental Income 800
Unearned Rental Income 800 
C)  Unearned Rental income 1,600
Rental Income 1,600 
D)  Rental Income 1,600
Unearned Rental Income 1,600 
E)  None of the above 
A)  Unearned Rental Income 800
Rental Income 800 
B)  Rental Income 800
Unearned Rental Income 800 
C)  Unearned Rental income 1,600
Rental Income 1,600 
D)  Rental Income 1,600
Unearned Rental Income 1,600 
E)  None of the above

Question 17

A trial balance is a list of the account titles in the general ledger with their respective debit and credit balances.

Accepted Answer

A) True 
 B)False

Question 18

Jackson Company purchased a new car for $30,000 by paying $12,000 cash, and trading in an old car with a recorded net cost and market value of $10,000. They also signed a Note for $8,000.
The required journal entry will not:

Accepted Answer

A)  Debit New Car for $30,000 
B)  Debit Notes Payable for $8,000 
C)  Credit Old Car for $10,000 
D)  Credit Notes Payable for $8,000 
A)  Debit New Car for $30,000 
B)  Debit Notes Payable for $8,000 
C)  Credit Old Car for $10,000 
D)  Credit Notes Payable for $8,000

Question 19

Use the T-account below, to answer the following questions.
   
Required
A) What journal entry is most likely represented by $2,400,200 in the T-account? What business event caused this?
B) What journal entry is most likely represented by the $1,506,500 in the T-account? What business event caused this?
C) What is the balance of Accounts Receivable on December 31?

Accepted Answer

The answer of Use the T-account below, to answer the...

Question 20

A trial balance:

Accepted Answer

A)  Must balance when it is first prepared 
B)  Will balance only if there are no errors in the general ledger accounts 
C)  Will balance only if the total debits and total credits in the general ledger are equal 
D)  Both 
B)  and 
C)  
E)  None of the above 
A)  Must balance when it is first prepared 
B)  Will balance only if there are no errors in the general ledger accounts 
C)  Will balance only if the total debits and total credits in the general ledger are equal 
D)  Both 
B)  and 
C)  
E)  None of the above

Use BVD's adjusted trial balance to prepare BVD's balance sheet for the current year-end.

In preparing its adjusting entries at the end of this year, Filiberto Company neglected to adjust the Unearned Service Fees account for the amount of such fees earned during the year. This error

As of December 31, 2019, the Balance Sheet of Sparkling Products, Inc. contains the following items (in random order): Determine the amount of Equipment.

Regardless of the business activity recorded, the left side of an account is the debit side and the right side is the credit side.

Assume December 31 is a Wednesday. Wages are paid every Friday, and the weekly payroll (for five days) amounts to $3,000. To record the correct amount of expense for December, the firm makes the following entry on December 31:

The Cash T-account has a beginning balance of $26,000. During the year, $122,000 was debited and $120,500 was credited to the account. What is the ending balance of cash?

Which of the following accounting cycle steps occurs only at the end of the accounting year?

Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first) -Paid rent for the current month

One reason for preparing a trial balance is to make sure that all of the period's transactions have been recorded.

Assume December 31 is a Monday. Wages are paid every Friday, and the weekly payroll (for five days) amounts to $6,000. To record the correct amount of expense for December, the firm makes the following entry on December 31:

A customer received and then paid a $9,000 utility bill from Maryland Power Company. The journal entry by Maryland Power Company to record receipt of the payment would include:

Listed below are several accounts of Moyer Catering, Inc. Indicate with an X in the proper column whether (1) the account is permanent or temporary, (2) which side of the account increases are recorded on, and (3) which side of the account represents a normal balance.

Which of the following accounts normally has a credit balance?

Benson Company calculates it has earned (but not yet collected or recorded) interest of $525 at December 31 on outstanding notes receivable. How should Benson record this on December 31?

Kobe Company provided consulting service to a client on January 1, and billed them for $15,000. On February 1, the client made cash payment of $8,000 and signed a note for $7,000 to settle the account. What is Kobe Company's journal entry on February 1?

P. Disco received $2,400 from a tenant on December 1 for three months' rent of an office. This rent was for December, January, and February. If Disco debited Cash and credited Unearned Rental Income for $2,400 on December 1, what necessary adjustment would be made on December 31?

A trial balance is a list of the account titles in the general ledger with their respective debit and credit balances.

Jackson Company purchased a new car for $30,000 by paying $12,000 cash, and trading in an old car with a recorded net cost and market value of $10,000. They also signed a Note for $8,000. The required journal entry will not:

A trial balance:

Financial Accounting and Business Decisions

Processing Accounting Information

Accrual Basis of Accounting

Understanding Accounting Information

Internal Control and Cash

Receivables

Inventory

Property, Plant and Equipment and Intangible Assets

Liabilities

Stockholders Equity

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Appendix B: Accounting for Investments and Consolidated Financial Statements

Appendix C: Accounting and the Time Value of Money

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Exam 13: Appendix A: The Language of Accountants: Debits and Credits

Use BVD's adjusted trial balance to prepare BVD's balance sheet for the current year-end.

In preparing its adjusting entries at the end of this year, Filiberto Company neglected to adjust the Unearned Service Fees account for the amount of such fees earned during the year. This error

As of December 31, 2019, the Balance Sheet of Sparkling Products, Inc. contains the following items (in random order): Determine the amount of Equipment.

Regardless of the business activity recorded, the left side of an account is the debit side and the right side is the credit side.

Assume December 31 is a Wednesday. Wages are paid every Friday, and the weekly payroll (for five days) amounts to $3,000. To record the correct amount of expense for December, the firm makes the following entry on December 31:

The Cash T-account has a beginning balance of $26,000. During the year, $122,000 was debited and $120,500 was credited to the account. What is the ending balance of cash?

Which of the following accounting cycle steps occurs only at the end of the accounting year?

Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first) -Paid rent for the current month

One reason for preparing a trial balance is to make sure that all of the period's transactions have been recorded.

Assume December 31 is a Monday. Wages are paid every Friday, and the weekly payroll (for five days) amounts to $6,000. To record the correct amount of expense for December, the firm makes the following entry on December 31:

A customer received and then paid a $9,000 utility bill from Maryland Power Company. The journal entry by Maryland Power Company to record receipt of the payment would include:

Listed below are several accounts of Moyer Catering, Inc. Indicate with an X in the proper column whether (1) the account is permanent or temporary, (2) which side of the account increases are recorded on, and (3) which side of the account represents a normal balance.

Which of the following accounts normally has a credit balance?

Benson Company calculates it has earned (but not yet collected or recorded) interest of $525 at December 31 on outstanding notes receivable. How should Benson record this on December 31?

Kobe Company provided consulting service to a client on January 1, and billed them for $15,000. On February 1, the client made cash payment of $8,000 and signed a note for $7,000 to settle the account. What is Kobe Company's journal entry on February 1?

P. Disco received $2,400 from a tenant on December 1 for three months' rent of an office. This rent was for December, January, and February. If Disco debited Cash and credited Unearned Rental Income for $2,400 on December 1, what necessary adjustment would be made on December 31?

A trial balance is a list of the account titles in the general ledger with their respective debit and credit balances.

Jackson Company purchased a new car for $30,000 by paying $12,000 cash, and trading in an old car with a recorded net cost and market value of $10,000. They also signed a Note for $8,000. The required journal entry will not:

A trial balance:

Financial Accounting and Business Decisions

Processing Accounting Information

Accrual Basis of Accounting

Understanding Accounting Information

Internal Control and Cash

Receivables

Inventory

Property, Plant and Equipment and Intangible Assets

Liabilities

Stockholders Equity

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Appendix B: Accounting for Investments and Consolidated Financial Statements

Appendix C: Accounting and the Time Value of Money

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