On July 1, Alpha, Inc. prepaid rent for a small equipment storage area. Alpha paid $20,000 to rent the area from July 1 through the end of the year. Provide the journal entry needed on July 1 when the payment is made. (Ignore explanation) Assume the deferred expense is initially recorded as an asset. What […]
Date: September 2nd, 2020
Which of the following categories of accounts are temporary accounts that are closed at the end of the year? A) assets, liabilities, and dividends B) revenues, expenses, and dividends C) assets, liabilities, and stockholders’ equity D) revenues, expenses, and stockholders’ equity ANSWER B
Date: September 2nd, 2020
A company purchased inventory for $73,000 from a vendor on account, FOB shipping point, with terms of 4/10, n/30. The company paid the shipper $1,500 cash for freight in. The company paid the vendor nine days after the sale If there was no beginning inventory, the cost of inventory would be ________. (Assume a perpetual […]
Date: September 2nd, 2020
Mosher, Inc had the following balances and transactions during 2017: Beginning Merchandise Inventory as of January 1, 2017 100 units at $82 March 10 Sold 70 units June 10 Purchased 200 units at $85 October 30 Sold 170 units What would be reported for Ending Merchandise Inventory on the balance sheet at December 31, 2017 […]
Date: September 2nd, 2020
The Sarbanes-Oxley Act was passed by the Public Company Accounting Oversight Board. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
Portian Merchandisers has purchased merchandise on account and paid $450 for freight in. Give the journal entry for freight paid. (Assume a perpetual inventory system.) What will be an ideal response ANSWER Merchandise Inventory 450 Cash 450
Date: September 2nd, 2020
Which of the following accounts will be closed by debiting the Income Summary account? A) Retained Earnings B) Service Revenue C) Accounts Receivable D) Salaries Expense ANSWER D
Date: September 2nd, 2020
Which of the following accounts will be closed by crediting the Income Summary account? A) Service Revenue B) Depreciation Expense C) Accounts Payable D) Accumulated Depreciation ANSWER A
Date: September 2nd, 2020
A company purchased 300 units for $30 each on January 31. It purchased 360 units for $36 each on February 28. It sold a total of 460 units for $40 each from March 1 through December 31 What is the amount of ending inventory on December 31 if the company uses the first-in, first-out (FIFO) […]
Date: September 2nd, 2020
Malcom, Inc had the following balances and transactions during 2017: Beginning Merchandise Inventory as of January 1, 2017 150 units at $81 March 10 Sold 60 units June 10 Purchased 270 units at $85 October 30 Sold 210 units What would be reported as Cost of Goods Sold on the income statement for the year […]
Date: September 2nd, 2020
