Magnolia Tree Service has a weekly payroll of $50,000. December 31, 2016 falls on Thursday and Magnolia will pay its employees the following Monday (January 4, 2017 ) for the previous full week Assume that Anthony has a five-day workweek and has an unadjusted balance in Salaries Expense of $845,000. Prepare the December 31, 2016 […]
Jupiter, Inc. signed a one-year $44,000 note payable at 8% interest on May 1, 2016. If Jupiter, Inc. only adjusts its accounts once a year at year-end, how much interest expense was accrued on December 31, 2016? A) $1,173 B) $3,520 C) $2,347 D) $2,933 ANSWER C .Interest Expense from May to December,
Patents, copyrights, and trademarks are examples of ________. A) short-term investments B) fixed assets C) long-term investments D) intangible assets ANSWER D
The first step in the journalizing and posting process is to ________. A) post the journal entry to the ledger B) identify the accounts involved and the account type C) decide whether each account increases or decreases D) record the transaction in the journal ANSWER B
A business hired a repair service to overhaul its plumbing system. The repair service began work on September 15 and completed it on October 15. The business agreed to pay the service $4,000 when the work was completed As of September 30, the work was 50% complete, and the business made an adjusting entry to […]
Which of the following is the order of steps to journalize an entry? A) Identify the accounts and the account type ↑ Decide whether each account increases or decreases, then apply the rules of debits and credits ↑ Record the transaction B) Identify the accounts and the account type ↑ Record the transaction ↑ Decide […]
Melville Services has a weekly payroll of $50,000. December 31, 2016 falls on Thursday and Melville will pay its employees the following Monday (January 4, 2017 ) for the previous full week Assume that Melville has a five-day workweek and has an unadjusted balance in Salaries Expense of $845,000. Prepare the January 4, 2017 journal […]
Salaries Payable, Interest Payable, and Unearned Revenue are examples of ________. A) short-term investments B) fixed assets C) current liabilities D) long-term liabilities ANSWER C
Which of the following is a measure of how quickly an item can be converted to cash? A) Debt ratio B) Current ratio C) Liquidity D) Accounting cycle ANSWER C
Which of the following is the final step in the journalizing and posting process? A) Posting the accounts to the ledger. B) Identifying each account affected and its type. C) Determining whether the accounting equation is in balance. D) Determining whether each account has increased or decreased. ANSWER C
