On the first day of January, Harris, Inc. borrowed $2,000 on a one-year note payable bearing interest at 7% per year. The note specifies that principal and interest must be paid in full at the end of the one-year period On June 30, the adjusted trial balance will show Interest Payable of ________. A) $70 […]
Date: September 2nd, 2020
Which of the following is included in the internal control procedure—documents? A) Mandatory vacations will improve internal control. B) Separate the custody of assets from accounting. C) The invoices and orders must be pre-numbered. D) A company should purchase a fireproof vault to protect legal documents. ANSWER C
Date: September 2nd, 2020
The following is the adjusted trial balance as of December 31, 2016 of Aims Photography: Account Debit Credit Cash $1,700 Accounts Receivable 8,500 Supplies 100 Equipment 7,500 Accumulated Depreciation—Equipment $2,000 Accounts Payable 1 What will be an ideal response ANSWER Income Summary 27,900 Salaries Expense 24,000 Supplies Expense 2,300 Depreciation Expense—Equipment 1,600
Date: September 2nd, 2020
Which of the following illustrates the internal control procedure—separation of duties? A) Cashiers must not have access to accounting records. B) External auditors will monitor internal controls. C) Electronic devices must be installed to reduce theft. D) The invoices and other documents must be pre-numbered. ANSWER A
Date: September 2nd, 2020
Paramount Event Planning Services collects fees from its customers in advance. On January 1, 2017, the balance of its Unearned Revenue account was $3,000 (CR). During January and February, the company collected $4,000 and $600 as advance fees During the two-month period, it performed services of $5,500 related to the deferred revenue. What is the […]
Date: September 2nd, 2020
Salaries are $6,500 per week for five working days and are paid weekly at the end of the day Fridays. The end of the month falls on a Thursday. The accountant for Dayton, Inc. made the appropriate accrual adjustment and posted it to the ledger The balance of Salaries Payable, as shown on the adjusted […]
Date: September 2nd, 2020
James Service Company earned revenues of $100,000 and incurred expenses of $107,000. Prepare the entry to close the Income Summary account. What will be an ideal response ANSWER Retained Earnings 7,000 Income Summary 7,000
Date: September 2nd, 2020
Emerald, Inc., earned revenues of $69,000 and incurred expenses of $74,000. No dividends were declared. Which of the following statements is correct? A) The entry to close Income Summary is the same regardless of a net income or a net loss. B) Retained Earnings will be debited for $5,000 and Income Summary will be credited […]
Date: September 2nd, 2020
A company sold merchandise for $1,000 on account with terms of 2/15, n/30. The company uses a perpetual inventory system. Defective merchandise of $200 was returned two days later If the payment was received after 30 days, the journal entry to record the cash receipt will include ________. A) a debit to Cash for $980 […]
Date: September 2nd, 2020
The Sales Discounts account is a contra account to the ________ account. A) Purchases B) Sales Revenue C) Merchandise Inventory D) Sales Returns and Allowances ANSWER B
Date: September 2nd, 2020
