After posting the journal entries from the journal to the ledger, the accounting equation should be in balance. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
The main expense of a merchandiser is usually ________. A) cost of goods sold B) current assets C) selling and administrative expenses D) production overhead ANSWER A
Date: September 2nd, 2020
G-mart, a small-scale grocer, wants to introduce an inventory system to track its inventory. G-mart does not currently use optical scanning registers and computer systems. The perpetual inventory system is most suitable for its operations. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
A business purchased land for $250,000 cash. Record the transaction in the journal. What will be an ideal response ANSWER Land 250,000 Cash 250,000 Purchased land for cash.
Date: September 2nd, 2020
The Merchandise Inventory account is an asset account that is used only for goods purchased that the business owns and intends to resell to customers. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
At Sea, a cruise industry magazine, collected $480,000 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 basis of accounting Provide the adjusting entry needed on June 30. (Ignore explanation). Assume the magazine […]
Date: September 2nd, 2020
Which of the following accounts would appear in the balance sheet debit column? A) Unearned Revenue B) Accumulated Depreciation C) Service Revenue D) Prepaid Insurance ANSWER D
Date: September 2nd, 2020
A contra account’s normal balance (debit or credit) is the opposite of the normal balance of the related account. 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
