On July 1, Omega, Inc. paid rent of $15,000 for a small equipment storage area from July 1 until December 31. Provide the adjusting journal entry on July 31. (Ignore explanation). Assume the deferred expense is initially recorded as an asset. What will be an ideal response ANSWER Rent Expense 2,500 Prepaid Rent 2,500 .Rent […]
Date: September 2nd, 2020
Viva, Inc. bought machine X for $18,000 two years ago. The machine had no residual value and had an estimated useful life of 10 years. If the company uses the straight-line depreciation method, calculate the current book value of the machine. A) $14,400 B) $3,600 C) $19,800 D) $18,000 ANSWER A .Book value of machine […]
Date: September 2nd, 2020
To which of the following accounts should the balance in the Income Summary account be closed? A) Dividends B) Net Income C) Retained Earnings D) Service Revenue ANSWER C
Date: September 2nd, 2020
Under which of the following inventory costing methods is the ending inventory based on the costs of the most recent purchases? A) specific identification B) weighted-average C) last-in, first-out D) first-in, first-out ANSWER D
Date: September 2nd, 2020
If the total debits equal the total credits on the trial balance, the individual account balances will be error free. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
A journal entry for a $50 payment for rent expense was posted as a debit to Salaries Expense and a credit to Cash. Which of the following statements correctly states the effect of the error on the trial balance? A) The sum of the credits will equal the sum of the debits. B) The sum […]
Date: September 2nd, 2020
Ursula Tax Planning Service has the following plant assets: Communications equipment: Cost, $7,120 with useful life of eight years; Furniture: Cost, $22,800 with useful life of 12 years; and Computer: Cost, $12,000 with useful life of four years (Assume residual value of all the assets is zero.) Ursula’s monthly depreciation expense calculated using the straight-line […]
Date: September 2nd, 2020
Ariel Tax Planning Service has the following plant assets: Communications equipment: Cost, $8,640 with useful life of 8 years; Furniture: Cost, $18,000 with useful life of 12 years; and Computer: Cost, $13,440 with useful life of 4 years Assume the residual value of all the assets is zero and the straight-line method is used. Ariel’s […]
Date: September 2nd, 2020
A company purchased inventory for $4,000 from a vendor on account, FOB shipping point, with terms of 3/15, n/30. The company paid $100 cash for freight in. The entry to record payment of invoice within 3 days by the purchaser would include ________ (Assume a perpetual inventory system.) A) a debit to Accounts Payable for […]
Date: September 2nd, 2020
Under the Sarbanes-Oxley Act, accounting firms are allowed to audit a public company and provide certain consulting services for the same client. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
