Exam 2: A Review of the Accounting Cycle

Melville Company manufactures electronic components.The company is a calendar-year company.The records of the company show the following information: Melville paid suppliers $122,500 during 2013.What is Melville's cost of goods sold?

Ingle Company paid $12,960 for a four-year insurance policy on September 1 and recorded the $12,960 as a debit to Prepaid Insurance and a credit to Cash.What adjusting entry should Ingle make on December 31,the end of the accounting period?

A company sold 10,000 shares of its own $1 par value common stock for $60,000.The entry to record the sale would include a

Account balances taken from the ledger of Owens Company on December 31,2013,are as follows: Adjustments on December 31,2013,are required as follows:

An accrued expense can be described as an amount

The following balances have been excerpted from Edwards' balance sheets: Edwards Company paid or collected during 2013 the following items: The insurance expense on the income statement for 2013 was

The trial balance and transaction descriptions below are for Coachman Company: Summary transactions for February: What is Coachman's total equity at the end of February?

Which of the following is an item that is reportable in the financial records of an enterprise?

Montague Company reported the following balances: Montague paid suppliers $122,500 during the year.What is Montague's cost of goods sold for the year?

Carlton Company sold equipment for $3,700 that originally cost $22,000.The balance of the Accumulated Depreciation account related to this equipment was $19,000.The entry to record the disposal of this equipment would include a

The following information is available for the Central Company: Determine the amount of cash flow associated with each of the following items:

Iowa Cattle Company uses a periodic inventory system.Iowa purchased cattle from Big D Ranch at a cost of $27,000 on credit.The entry to record the receipt of the cattle would be

Thompson Company sublet a portion of its office space for ten years at an annual rental of $36,000,beginning on May 1.The tenant is required to pay one year's rent in advance,which Thompson recorded as a credit to Rental Income.Thompson reports on a calendar-year basis.The adjustment on December 31 of the first year should be

A trial balance is useful because it indicates that

For a given year,beginning and ending total liabilities were $18,000 and $20,400,respectively.At year-end,owners' equity was $40,200 and total assets were $4,000 larger than at the beginning of the year.If new capital stock issued exceeded dividends by $4,800,net income (loss)for the year was apparently

On December 31 of the current year,Holmgren Company's bookkeeper made an entry debiting Supplies Expense and crediting Supplies on Hand for $12,600.The Supplies on Hand account had a $15,300 debit balance on January 1.The December 31 balance sheet showed Supplies on Hand of $11,400.Only one purchase of supplies was made during the month,on account.The entry for that purchase was

Sky Corporation's salaries expense for 2012 was $136,000.Accrued salaries payable on December 31,2013,was $17,800 and $8,400 on December 31,2012.The cash paid for salaries during 2013 was

The allowance for doubtful accounts is an example of a(n)

Total sales for a year are $40,000,which includes cash sales of $5,000.The beginning and ending balances of accounts receivable are $10,000 and $15,000,respectively.How much cash was received from customers?

Teller Inc.reported an allowance for doubtful accounts of $30,000 (credit)at December 31,2013,before performing an aging of accounts receivable.As a result of the aging,Teller Inc.determined that an estimated $52,000 of the December 31,2013,accounts receivable would prove uncollectible.The adjusting entry required at December 31,2013,would be