The Merchandise Inventory account is an expense account that is used for goods purchased that the business owns and intends to resell to customers, as well as for purchase of office supplies and equipment. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
A purchase discount is the amount offered to the purchaser for delaying the payment to the seller. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
In the case of a deferred expense, the adjusting entry required at the end of a period will consist of a credit to the Prepaid Expense account. Assume the deferred expense was initially recorded as an asset. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Which of the following journal entries would be recorded if Christy Jones, Inc. issued stock and received $3,000? A) Cash 3,000 Common Stock 3,000 B) Accounts Payable 3,000 Cash 3,000 C) Common Stock 3,000 Cash 3,000 D) Common Stock 3,000 Accounts Payable 3,000 ANSWER A
Date: September 2nd, 2020
A business paid salaries of $6,000 in cash. Record the transaction in the journal. What will be an ideal response ANSWER Salaries Expense 6,000 Cash 6,000 Paid salaries.
Date: September 2nd, 2020
Prepaid Rent is an expense account that appears on the income statement. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
A company received $5,000 for 100 one-year subscriptions on July 1. The journal entry to record this cash receipt would include a ________. The company uses a liability account for revenue received in advance. A) credit to Accounts Payable for $5,000 B) debit to Prepaid Expenses for $5,000 C) credit to Unearned Revenue for $5,000 […]
Date: September 2nd, 2020
Net income is entered as the balancing amount on the debit side of the income statement columns and the credit side of the balance sheet columns of the worksheet. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
An invoice is also known as a bill. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Explore, a travel magazine, collected $500,000 in subscription revenue in May. Each subscriber will receive an issue of the magazine for each of the next 12 months, beginning with the June issue. The company uses the accrual method of accounting Provide the journal entry for collection of cash in May. (Ignore explanation). Assume the magazine […]
Date: September 2nd, 2020
