On December 31, 2016, interest of $1,500 has accrued on a bank note. This interest payment is due on January 20, 2017. If no adjusting entry is made on December 31, 2016, indicate the effect on assets, liabilities, equity, and net income Understated, Overstated, No Effect Assets Liabilities Equity Net Income What will be an […]
Date: September 2nd, 2020
The normal balances of Sales, Sales Discounts, and Sales Returns and Allowances are ________. A) debit, credit, and credit, respectively B) debit, debit, and credit, respectively C) credit, debit, and debit, respectively D) credit, credit, and debit, respectively ANSWER C
Date: September 2nd, 2020
On December 31, 2016, $2,500 of salaries have been earned but not yet paid to employees. If the business failed to make an adjusting entry on December 31, 2016, indicate the effect on assets, liabilities, equity, and net income Understated, Overstated, No Effect Assets Liabilities Equity Net Income What will be an ideal response ANSWER […]
Date: September 2nd, 2020
Lewis, Inc had the following balances and transactions during 2016: Beginning Merchandise Inventory 150 units at $80 March 10 Sold 50 units June 10 Purchased 300 units at $82 October 30 Sold 130 units What would be reported as Cost of Goods Sold on the income statement for the year ending December 31, 2016 if […]
Date: September 2nd, 2020
Under the weighted-average method for inventory costing, the cost per unit is determined by ________. A) dividing the cost of goods available for sale by the number of units available B) dividing the cost of goods available for sale by the number of units in beginning inventory C) multiplying the number of units purchased with […]
Date: September 2nd, 2020
A merchandiser sold merchandise inventory on account. The journal entry to record sales allowances in the books of the merchandiser, using the perpetual inventory system would be: A) Sales Returns and Allowances XX Accounts Receivable XX B) Merchandise Inventory XX Sales Revenue XX C) Cost of Goods Sold XX Sales Returns and Allowances XX D) […]
Date: September 2nd, 2020
On October 1, 2016, Smith Service Company paid $5,000 in rent for the next five months, beginning with October 2016. On that date, Smith debited Prepaid Rent and credited Cash If Smith fails to make an adjusting entry on December 31, 2016, indicate the effect on assets, liabilities, equity, and net income. Understated, Overstated, No […]
Date: September 2nd, 2020
During December 2016, Carroll Service Company performed $1,500 of services, but as of December 31, 2016, Carroll has not yet billed the clients If Carroll fails to make an adjusting entry on December 31, 2016, indicate the effect on assets, liabilities, equity, and net income. Understated, Overstated, No Effect Assets Liabilities Equity Net Income What […]
Date: September 2nd, 2020
Under a perpetual inventory system, merchandise returned by a customer to the seller is recorded as a ________ in the books of seller. A) sales return B) sales allowance C) sales discount D) purchase return ANSWER A
Date: September 2nd, 2020
A list of the accounts and their balances at the end of the period, after journalizing and posting the closing entries, is called ________. A) chart of accounts B) adjusted trial balance C) post-closing trial balance D) pre-closing balance sheet ANSWER C
Date: September 2nd, 2020
