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
When a company uses the first-in, first-out (FIFO) method, the cost of goods sold correlates to the most recently purchased goods, and the value of ending inventory correlates to the oldest goods in stock. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
The following are the current month’s balances for Adams Marketing Company Accounts Payable $7,000 Revenue 11,000 Cash 3,000 Expenses 1,500 Furniture 14,000 Accounts Receivable 14,000 Common Stock 10,250 Notes Payable 5,500 What is the net income for Adams Marketing for the current month? A) $11,000 B) $9,500 C) $12,500 D) $14,000 ANSWER B .Revenue $11,000 […]
Date: September 2nd, 2020
Balancing errors can be detected by computing the difference between total debits and total credits on the trial balance. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
The total cost spent on inventory that was available to be sold during a period is called the cost of goods sold. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
The specific identification method of inventory costing is recommended when a business deals in unique and high-priced inventory items. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Under which of the following terms will the buyer be required to pay transportation costs? A) FOB destination B) FOB shipping point C) freight out D) freight in ANSWER B
Date: September 2nd, 2020
Hank’s Tax Planning Service started business in January 2016. The company rented an office for $7,000 per month starting from January 1, 2016. On that day, Hank prepaid the rent through June 30 The company makes adjusting entries at the end of each month. What is the balance in the Prepaid Rent account as of […]
Date: September 2nd, 2020
Downs Tax Planning Service bought communications equipment for $9,600 on January 1, 2017. It has an estimated useful life of five years and zero residual value Downs uses the straight-line method to calculate depreciation and records depreciation expense in the books at the end of every month. As of June 30, 2017, the balance in […]
Date: September 2nd, 2020
