A company changes its inventory costing method each period in order to maximize net income. This is a violation of the consistency principle. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
The following transactions for the month of March have been journalized and posted to the proper accounts. Mar. 1 The business received $7,000 cash and issued common stock to stockholders. Mar. 2 Paid the first month’s rent of $500. Mar 3 Purchased equipment by paying $2,000 cash and executing a note payable for $6,000. Mar. […]
Date: September 2nd, 2020
The following transactions for March have been journalized and posted to the proper accounts. Mar. 1 The business received $8,000 cash and issued common stock to stockholders. Mar. 2 Paid the first month’s rent of $600. Mar 3 Purchased equipment by paying $1,000 cash and executing a note payable for $4,000. Mar. 4 Purchased office […]
Date: September 2nd, 2020
Under the perpetual inventory system, when a purchaser makes payment within the discount period, the amount of discount will be credited to the Merchandise Inventory account. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
On January 1, Ogden, Inc. had $1,500 of supplies on hand. During January, Ogden purchased $5,500 worth of new supplies. At the end of the month, a count revealed $700 worth of supplies remaining on the shelves The adjusting entry needed will include a debit to Supplies Expense of $6,300. The supplies were initially recorded […]
Date: September 2nd, 2020
Which of the following entries would be made to record the purchase of inventory on account, if a company uses the perpetual inventory system? A) a debit to Purchases and a credit to Accounts Payable B) a debit to Accounts Payable and a credit to Purchases C) a debit to Merchandise Inventory and a credit […]
Date: September 2nd, 2020
In which of the columns of a worksheet would a net loss be found? A) in the balance sheet credit column and the income statement debit column B) in the balance sheet debit column and the income statement credit column C) in the unadjusted trial balance credit column, the adjusted trial balance credit column, and […]
Date: September 2nd, 2020
A company using the perpetual inventory system purchased merchandise on account for $5,000. Give the journal entry to record this transaction. What will be an ideal response ANSWER Merchandise Inventory 5,000 Accounts Payable 5,000
Date: September 2nd, 2020
The sum of all the depreciation expenses recorded to date for a depreciable asset is called residual value. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
For each transaction, identify which account is debited and which account is credited. Use proper account titles Transaction Debit Credit Received a bill for utilities to be paid next month Performed services on account Paid cash for a 12-month insurance policy, coverage starting next month Paid rent for the current month Borrowed cash from the […]
Date: September 2nd, 2020
