Question 1

The Interest Receivable account for February showed transactions totaling $17,000 and an adjustment of $22,400.

Accepted Answer

A)  The transactions probably resulted from accruing interest income earned. 
B)  The transactions were probably entered on the credit side of the account. 
C)  The adjustment was probably for cash receipts of interest receivable accrued in prior months. 
D) The balance in the interest receivable account decreased $5,400. 
A)  The transactions probably resulted from accruing interest income earned. 
B)  The transactions were probably entered on the credit side of the account. 
C)  The adjustment was probably for cash receipts of interest receivable accrued in prior months. 
D) The balance in the interest receivable account decreased $5,400.

Question 2

To accrue $3,200 of employee salaries for the last week of February, the employer's journal entry is:

Accepted Answer

A) 
  
B) 
  
C) 
  
D)   
A) 
  
B) 
  
C) 
  
D)

Question 3

A journal entry recording an accrual:

Accepted Answer

A)  results in a better matching of revenues and expenses. 
B)  will involve a debit or credit to cash. 
C)  will affect balance sheet accounts only. 
D) will most likely include a debit to a liability account. 
A)  results in a better matching of revenues and expenses. 
B)  will involve a debit or credit to cash. 
C)  will affect balance sheet accounts only. 
D) will most likely include a debit to a liability account.

Question 4

An engineering consultant provided $300 of services to a client; the client paid $50 when the bill was submitted and will pay the balance within a week. The consultant will record this transaction by:

Accepted Answer

A) 
  
B) 
  
C) 
  
D)   
A) 
  
B) 
  
C) 
  
D)

Question 5

A newspaper ad submitted and published this week, with the agreement to get paid for it next week would, in the newspaper's records:

Accepted Answer

A)  increase assets and increase revenues. 
B)  increase assets and decrease liabilities. 
C)  increase assets and increase expenses. 
D) have no effect on total assets. 
A)  increase assets and increase revenues. 
B)  increase assets and decrease liabilities. 
C)  increase assets and increase expenses. 
D) have no effect on total assets.

Question 6

The effect of an adjustment on the financial statements is usually to:

Accepted Answer

A)  make the balance sheet balance. 
B)  increase net income. 
C)  increase the accuracy of both the balance sheet and income statement. 
D) match revenues and assets. 
A)  make the balance sheet balance. 
B)  increase net income. 
C)  increase the accuracy of both the balance sheet and income statement. 
D) match revenues and assets.

Question 7

A debit entry will:

Accepted Answer

A)  always decrease the account balance. 
B)  always increase the account balance. 
C)  increase the balance of a revenue account. 
D) increase the balance of an expense account. 
A)  always decrease the account balance. 
B)  always increase the account balance. 
C)  increase the balance of a revenue account. 
D) increase the balance of an expense account.

Question 8

A journal:

Accepted Answer

A)  is where transactions are initially recorded. 
B)  is where transactions are posted to after they are initially recorded. 
C)  serves as an index to the ledger. 
D) is the same as a source document, such as an invoice from a supplier or a copy of a credit purchase made by a customer. 
A)  is where transactions are initially recorded. 
B)  is where transactions are posted to after they are initially recorded. 
C)  serves as an index to the ledger. 
D) is the same as a source document, such as an invoice from a supplier or a copy of a credit purchase made by a customer.

Question 9

Martin & Associates borrowed $15,000 on April 1, 2016 at 8% interest with both principal and interest due on March 31, 2017.Which of the following journal entries should the firm use to record the payment of interest on March 31, 2017?

Accepted Answer

A) 
  
B) 
  
C) 
  
D)   
A) 
  
B) 
  
C) 
  
D)

Question 10

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 income for the current month.(8.) Accrued $620 of interest expense at the end of the month.

Accepted Answer

The answer of Using the column headings provided below, show...

Question 11

Martin & Associates borrowed $15,000 on April 1, 2016 at 8% interest with both principal and interest due on March 31, 2017.How much should be in the firm's interest payable account at December 31, 2016?

Accepted Answer

A)  $900 
B)  $1,200 
C)  $0 
D) $1,000 
A)  $900 
B)  $1,200 
C)  $0 
D) $1,000

Question 12

Wisdom Co. has a note payable to its bank. An adjustment is likely to be required on Wisdom's books at the end of every month that the loan is outstanding to record the:

Accepted Answer

A)  amount of interest paid during the month. 
B)  amount of total interest to be paid when the note is paid off. 
C)  amount of principal payable at the maturity date of the note. 
D) accrued interest expense for the month. 
A)  amount of interest paid during the month. 
B)  amount of total interest to be paid when the note is paid off. 
C)  amount of principal payable at the maturity date of the note. 
D) accrued interest expense for the month.

Question 13

A credit entry will:

Accepted Answer

A)  always decrease the account balance. 
B)  always increase the account balance. 
C)  increase the balance of a revenue account. 
D) increase the balance of an expense account. 
A)  always decrease the account balance. 
B)  always increase the account balance. 
C)  increase the balance of a revenue account. 
D) increase the balance of an expense account.

The Interest Receivable account for February showed transactions totaling $17,000 and an adjustment of $22,400.

To accrue $3,200 of employee salaries for the last week of February, the employer's journal entry is:

A journal entry recording an accrual:

An engineering consultant provided $300 of services to a client; the client paid $50 when the bill was submitted and will pay the balance within a week. The consultant will record this transaction by:

A newspaper ad submitted and published this week, with the agreement to get paid for it next week would, in the newspaper's records:

The effect of an adjustment on the financial statements is usually to:

A debit entry will:

A journal:

Martin & Associates borrowed $15,000 on April 1, 2016 at 8% interest with both principal and interest due on March 31, 2017.Which of the following journal entries should the firm use to record the payment of interest on March 31, 2017?

Martin & Associates borrowed $15,000 on April 1, 2016 at 8% interest with both principal and interest due on March 31, 2017.How much should be in the firm's interest payable account at December 31, 2016?

Wisdom Co. has a note payable to its bank. An adjustment is likely to be required on Wisdom's books at the end of every month that the loan is outstanding to record the:

A credit entry will:

Accounting-Present and Past

Financial Statements and Accounting Conceptsprinciples

Fundamental Interpretations Made From Financial Statement Data

Accounting for and Presentation of Current Assets

Accounting for and Presentation of Property, Plant, and Equipment, and Other Noncurrent Assets

Accounting for and Presentation of Liabilities

Accounting for and Presentation of Stockholders Equity

The Income Statement and the Statement of Cash Flows

Corporate Governance, Notes to the Financial Statements, and Other Disclosures

Financial Statement Analysis

Managerial Accounting and Cost-Volume-Profit Relationships

Cost Accounting and Reporting

Cost Planning

Cost Control

Costs for Decision Making

Filters

Exam 4: The Bookkeeping Process and Transaction Analysis

The Interest Receivable account for February showed transactions totaling $17,000 and an adjustment of $22,400.

To accrue $3,200 of employee salaries for the last week of February, the employer's journal entry is:

A journal entry recording an accrual:

An engineering consultant provided $300 of services to a client; the client paid $50 when the bill was submitted and will pay the balance within a week. The consultant will record this transaction by:

A newspaper ad submitted and published this week, with the agreement to get paid for it next week would, in the newspaper's records:

The effect of an adjustment on the financial statements is usually to:

A debit entry will:

A journal:

Martin & Associates borrowed $15,000 on April 1, 2016 at 8% interest with both principal and interest due on March 31, 2017.Which of the following journal entries should the firm use to record the payment of interest on March 31, 2017?

Martin & Associates borrowed $15,000 on April 1, 2016 at 8% interest with both principal and interest due on March 31, 2017.How much should be in the firm's interest payable account at December 31, 2016?

Wisdom Co. has a note payable to its bank. An adjustment is likely to be required on Wisdom's books at the end of every month that the loan is outstanding to record the:

A credit entry will:

Accounting-Present and Past

Financial Statements and Accounting Conceptsprinciples

Fundamental Interpretations Made From Financial Statement Data

Accounting for and Presentation of Current Assets

Accounting for and Presentation of Property, Plant, and Equipment, and Other Noncurrent Assets

Accounting for and Presentation of Liabilities

Accounting for and Presentation of Stockholders Equity

The Income Statement and the Statement of Cash Flows

Corporate Governance, Notes to the Financial Statements, and Other Disclosures

Financial Statement Analysis

Managerial Accounting and Cost-Volume-Profit Relationships

Cost Accounting and Reporting

Cost Planning

Cost Control

Costs for Decision Making

Filters