Mason Painting Services has a weekly payroll of $24,000. December 31 falls on Wednesday and Mason will pay its employees the following Monday (January 5 ) for the previous full week Assume that Mason has a five-day workweek and has an unadjusted balance in Salaries Expense of $770,000. What amount should be debited to Salaries […]
Property, plant, and equipment are categorized as ________. A) current assets B) plant assets C) long-term investments D) short-term investments ANSWER B
Which of the following would be considered a long-term asset? A) Accounts Payable B) Land C) Cash D) Common Stock ANSWER B
The balances of select accounts of Sandra, Inc as of December 31, 2016 are given below: Debit Credit Building $140,000 Cash 8,000 Office Supplies 1,100 Furniture 5,000 Prepaid Insurance 450 Accumulated Depreciation—Furniture $3,000 Land 32,000 Accumulated Depreciation—Building 4,700 Accounts Receivable 2,300 The insurance has been prepaid until June 30, 2017. Determine the amount of total […]
Beetles, Inc. recorded the following journal entry on March 2, 2016. Cash 4,500 Unearned Revenue 4,500 From the journal entry above, identify the transaction on March 2, 2016. A) Beetles purchased goods worth $4,500 and signed a one-year note for the same. B) Beetles sold goods for $4,500 cash. C) Beetles received $4,500 for services […]
A business renders services to a customer for $26,000 on account. Which of the following accounts is credited? A) Cash B) Accounts Receivable C) Service Revenue D) Accounts Payable ANSWER C
An adjusting entry that debits Accounts Receivable is an example of a(n) ________. A) deferred expense B) accrued revenue C) accrued expense D) deferred revenue ANSWER B
The employees of Sinclair Services, Inc. worked the last two weeks of December. They received their paychecks on January 2. Which of the following accounts should appear on the balance sheet as of December 31? A) Accounts Payable B) Salaries Payable C) Salaries Expense D) Prepaid Expense ANSWER B
Revenue that has been earned but not yet collected in cash is called a(n) ________. A) accrued revenue B) deferred expense C) deferred revenue D) accrued expense ANSWER A
A balance sheet that lists the assets above the liabilities and stockholders’ equity sections is a(n) ________ balance sheet. A) report form B) unclassified form C) account form D) audited form ANSWER A
