1 of25 ABC Company signed a one year $48,000 note payable at 8 interest on May 1, 2014 If ABC only adjusts their accounts once a year at year end, how much interest expense was accrued on December 31, 2014 $1,280 $3,840 $2,560 $3,200 Question 2 of25 A company purchased 100 units for $30 each on January 31 It purchased 150 units for $25 on February 28 It sold 150 units for $50 each from March 1 through December 31 If the company uses the weighted average inventory costing method, calculate the amount of Cost of Goods Sold on the income statement for the year ending December 31 (Assume the company uses the perpetual inventory system ) $6,750 $4,050 $3,000 $3,750 Question 3 of25 A company purchased 100 units for $20 each on January 31 It purchased 100 units for $30 on February 28 It sold a total of 150 units for $45 each from March 1 through December 31 What is the amount of ending inventory on December 31 if the company uses the first in, first out (FIFO) inventory costing method (Assume that the company uses a perpetual inventory system ) $1,500 $1,250 $1,000 $2,250 Question 4 of25 A business purchased $3,500 of office supplies for cash Which of the following sets of ledger accounts reflect the posting of this transaction Question 5 of25 A company purchased 100 units for $30 each on January 31 It purchased 150 units for $25 on February 28 It sold 150 units for $50 each from March 1 through December 31 If the company uses the first in, first out inventory costing method, what is the amount of Cost of Goods Sold on the income statement for the year ending December 31 (Assume that the company uses a perpetual inventory system ) $3,000 $4,000 $4,250 $6,750 Question 6 of25 On November 1, 2015, Wrenns Martch sold merchandise for $10,000, FOB destination, with payment terms of 3 10, n 40 Sales returns on this sale amounted to $3,000 Wrenns received payment for the balance on November 10, 2015 The cost of goods sold was $3,600 Calculate the amount of gross profit from the transaction $1,800 $3,190 $1,320 $6,790 Question 7 of25 Swan Song's adjusted trial balance as of December 31, 2014 is given below Debit Credit Cash $12,000 Accounts Receivable 9,000 Prepaid Rent 6,000 Prepaid Insurance 2,300 Office Supplies 3,200 Building 52,200 Accumulated DepreciationBuilding $11,500 Equipment 35,000 Accumulated DepreciationEquipment 7,000 Land 30,000 Accounts Payable 6,550 Salaries Payable 4,000 Interest Payable 2,240 Mortgage Payable (long term) 51,200 R Lee, Capital (deficit) 5,590 R Lee, Withdrawals 20,000 Service Revenue 190,000 Salaries Expense 38,000 Insurance Expense 5,000 Rent Expense 12,000 Utilities Expense 15,000 Advertising Expense 9,000 Depreciation ExpenseBuilding 10,000 Depreciation ExpenseEquipment 7,000 Offic e Supplies Expense 1,200 Total $272,490 $272,490 Compute the current ratio 2 07 1 83 1 64 2 54 Question 8 of25 The following contains information from the records of the Wellborn Engineers and Architects Wellborn Engineers and Arhitects Selected Financial Information December 31, 2015 Current Assets $74,000 Current Liabilities 44,000 Long term Assets 95,000 Long term Liabilities 60,000 Total Revenues 50,000 Total Expenses 30,000 Which of the following statements is an accurate interpretation of the current ratio of Wellborn Engineers and Architects The company has $2 32 of current assets for every $1 00 of liabilities The company has $1 68 of current assets for every $1 00 of current liabilities The company has $1 58 of current assets for every $1 00 of liabilities The company has $0 59 of current assets for every $1 00 of current liabilities Question 9 of25 Classic Artists' Services has hired a maintenance man to maintain a building they use for instruction He will begin work on February 1 and work through till May 31 Classic Artists' will pay the maintenance man $4,000 at the end of May It accrues Maintenance Expense at the end of every month What is the balance in the Accounts Payable account for amounts owed to the maintenance man at the end of March Debit balance of $4,000 Credit balance of $2,000 Debit balance of $2,000 Credit balance of $4,000 Question 10 of25 Which of the following journal entries would be recorded if a business renders service and receives cash of $900 from the customer Service revenue 900 Cash 900 Service revenue 900 Accounts payable 900 Cash 900 Service revenue 900 Service revenue 900 Accounts receivable 900 Question 11 of25 Ace Inc had the following transactions in June Sold goods for $4,000 on account received cash on account, $5,000 paid $800 for repair expense paid $2,000 to a supplier that it owed from the previous month What is the combined effect on Cash of the June transactions $2,200 increase $2,200 decrease $5,000 increase $2,800 decrease Question 12 of25 Which of the following journal entries would be recorded if a business purchased $800 of office supplies on account Accounts payable 800 Office Supplies 800 Office Supplies 800 Accounts payable 800 Office Supplies 800 Cash 800 Cash 800 Office Supplies 800 Question 13 of25 The following is the adjusted trial balance for Tuttle Photography Accounts Debit Credit Cash $20,000 Accounts Receivable 30,000 Prepaid Insurance 7,500 Office Supplies 3,200 Building 150,000 Accumulated DepreciationBuilding $12,000 Equipment 75,000 Accumulated DepreciationEquipment 8,500 Land 50,000 Accounts Payable 20,000 Salaries Payable 4,000 Unearned service revenue 25,000 Mortgage Payable 100,000 R Tuttle, Capital 21,290 R Tuttle, Withdrawals 25,000 Service Revenue 289,000 Salaries Expense 64,000 Depreciation ExpenseBuilding and Equipment 6,150 Supplies Expense 14,040 Insurance Expense 14,000 Utilities Expense 20,900 Total $479,790 $479,790 After the closing entries, what will the final balance in R Tuttle, Capital be $25,000 $191,200 $21,290 $166,200 Question 14 of25 Education for All sells tickets in advance for their weekly productions and records the proceeds as Unearned Revenue At the end of each month, Education for All makes an adjusting entry to account for the tickets used during the month (ticket revenue ) On March 1, the Unearned Revenue account had a credit balance of $4,000 During March, they sold 300 tickets at $20 each and 250 tickets were used during the month What is the balance in Unearned Revenue at the end of March Credit balance of $5,000 Debit balance of $4,000 Credit balance of $1,000 Debit balance of $5,000 Question 15 of25 A company purchased 100 units for $30 each on January 31 It purchased 150 units for $25 on February 28 It sold a total of 150 units for $50 each from March 1 through December 31 If the company uses the weighted average inventory costing method, calculate the amount of ending inventory on December 31 (Assume that the company uses a perpetual inventory system ) $6,750 $2,700 $4,350 $2,900 Question 16 of25 The balances of select accounts of Sandra Company as at December 31, 2015 are given below Notes Payableshort term $1,200 Salaries Payable 4,000 Notes Payablelong term 25,000 Accounts Payable 3,200 Unearned Revenue 2,000 Interest Payable 2,500 The unearned revenue is the amount of cash received for services to be rendered in January, 2016 What are the total current liabilities shown on the balance sheet $5,700 $10,400 $12,900 $11,700 Question 17 of25 Martin Supply Service received $1,000 cash from a customer which was owed to the business from the previous month What is the effect of the cash receipt on the accounts of the business Accounts Receivable decreases Martin, Capital decreases Cash account increases Accounts receivable decreases Accounts Payable increases Martin, Capital decreases Cash increases Accounts Payable decreases Question 18 of25 Which of the following journal entries would be recorded if Christy Jones started a business and deposited cash of $3,000 into the business's bank account Cash 3,000 Christy Jones, Capital 3,000 Accounts Payable 3,000 Cash 3,000 Christy Jones, Capital 3,000 Cash 3,000 Christy Jones, Capital 3,000 Accounts Payable 3,000 Question 19 of25 Better Buy has six CD players in inventory on December 31 The players were purchased in November for $170 The price lists from suppliers indicate the current replacement cost of a CD player to be $168 What is the effect on gross profit if Better Buy values its ending merchandise inventory using the lower of cost or market rule The gross profit would increase by $2 The gross profit would not be affected The gross profit would decrease by $12 The gross profit would increase by $12 Question 20 of25 Two weeks previously, a business rendered services to one of its customers on account for which the payment was received today Which of the following entries would be recorded if the company uses accrual basis accounting Cash 1,000 Accounts Receivable 1,000 Salary Expense 1,000 Cash 1,000 Cash 1,000 Service Revenue 1,000 Supplies 1,000 Cash 1,000 Question 21 of25 The following information is available for Able Company's Office Supplies account Beginning balance $2,000 Office Supplies expensed $8,000 Ending balance $3,000 From the above information, calculate the amount of office supplies purchased $9,000 $8,000 $2,000 $3,000 Question 22 of25 Lush Lawns earned $1,000 for lawn mowing services rendered The customer promised to pay at a later time Which of the following accounts increased as a result of this transaction Accounts payable Supplies Cash Accounts receivable Question 23 of25 A company purchased inventory for $75,000 from a vendor on account, FOB shipping point, with terms of 3 10, n 30 The company paid the shipper $1,500 cash for freight in The company paid the vendor nine days after the sale If there was no beginning inventory, the cost of inventory would be (assume a perpetual inventory system) $74,250 $76,500 $71,295 $73,500 Question 24 of25 Samson Company had the following balances and transactions during 2014 Beginning Merchandise Inventory 10 units at $95 March 10 Sold 8 units June 10 Purchased 20 units at $100 October 30 Sold 15 units What is the amount of the company's Merchandise Inventory, as disclosed in the December 31, 2014 balance sheet as per the periodic first in, first out (FIFO) costing method $475 $500 $665 $700 Question 25 of25 WAXS D, merchandisers of musical instruments, has provided the following details Mar 5 Inventory purchased $800,000 Mar 8 Freight In 40,000 Mar 13 Purchase returns 60,000 Mar 14 Allowances by vendor 15,000 Mar 20 Payment made to vendor for purchases on March 5 Credit terms are 3 20, n 45, FOB shipping Calculate the net cost of inventory purchased assuming that there are no other inventory related transactions during the month $785,000 $740,000 $725,000 $743,250

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1 of25 ABC Company signed a one-year $48,000 note payable at 8% interest on May 1, 2014. If ABC only adjusts their accounts once a

1 of25

ABC Company signed a one-year $48,000 note payable at 8% interest on May 1, 2014. If ABC only adjusts their accounts once a year at year end, how much interest expense was accrued on December 31, 2014?

$1,280

$3,840

$2,560

$3,200

Question

2 of25

A company purchased 100 units for $30 each on January 31. It purchased 150 units for $25 on February 28. It sold 150 units for $50 each from March 1 through December 31. If the company uses the weighted-average inventory costing method, calculate the amount of Cost of Goods Sold on the income statement for the year ending December 31. (Assume the company uses the perpetual inventory system.)

$6,750

$4,050

$3,000

$3,750

Question

3 of25

A company purchased 100 units for $20 each on January 31. It purchased 100 units for $30 on February 28. It sold a total of 150 units for $45 each from March 1 through December 31. What is the amount of ending inventory on December 31 if the company uses the first-in, first-out (FIFO) inventory costing method? (Assume that the company uses a perpetual inventory system.)

$1,500

$1,250

$1,000

$2,250

Question

4 of25

A business purchased $3,500 of office supplies for cash. Which of the following sets of ledger accounts reflect the posting of this transaction

Question

5 of25

A company purchased 100 units for $30 each on January 31. It purchased 150 units for $25 on February 28. It sold 150 units for $50 each from March 1 through December 31. If the company uses the first-in, first-out inventory costing method, what is the amount of Cost of Goods Sold on the income statement for the year ending December 31? (Assume that the company uses a perpetual inventory system.)

$3,000

$4,000

$4,250

$6,750

Question

6 of25

On November 1, 2015, Wrenns Martch sold merchandise for $10,000, FOB destination, with payment terms of 3/10, n/40. Sales returns on this sale amounted to $3,000. Wrenns received payment for the balance on November 10, 2015. The cost of goods sold was $3,600. Calculate the amount of gross profit from the transaction.

$1,800

$3,190

$1,320

$6,790

Question

7 of25

Swan Song's adjusted trial balance as of December 31, 2014 is given below:

	Debit	Credit
Cash	$12,000
Accounts Receivable	9,000
Prepaid Rent	6,000
Prepaid Insurance	2,300
Office Supplies	3,200
Building	52,200
Accumulated DepreciationBuilding		$11,500
Equipment	35,000
Accumulated DepreciationEquipment		7,000
Land	30,000
Accounts Payable		6,550
Salaries Payable		4,000
Interest Payable		2,240
Mortgage Payable (long term)		51,200
R. Lee, Capital (deficit)	5,590
R. Lee, Withdrawals	20,000
Service Revenue		190,000
Salaries Expense	38,000
Insurance Expense	5,000
Rent Expense	12,000
Utilities Expense	15,000
Advertising Expense	9,000
Depreciation ExpenseBuilding	10,000
Depreciation ExpenseEquipment	7,000
OfficeSupplies Expense	1,200
Total	$272,490	$272,490

Compute the current ratio.

2.07

1.83

1.64

2.54

Question

8 of25

The following contains information from the records of the Wellborn Engineers and Architects.

Wellborn Engineers and Arhitects

Selected Financial Information

December 31, 2015

Current Assets	$74,000
Current Liabilities	44,000
Long-term Assets	95,000
Long-term Liabilities	60,000
Total Revenues	50,000
Total Expenses	30,000

Which of the following statements is an accurate interpretation of the current ratio of Wellborn Engineers and Architects?

The company has $2.32 of current assets for every $1.00 of liabilities.

The company has $1.68 of current assets for every $1.00 of current liabilities.

The company has $1.58 of current assets for every $1.00 of liabilities.

The company has $0.59 of current assets for every $1.00 of current liabilities.

Question

9 of25

Classic Artists' Services has hired a maintenance man to maintain a building they use for instruction. He will begin work on February 1 and work through till May 31. Classic Artists' will pay the maintenance man $4,000 at the end of May. It accrues Maintenance Expense at the end of every month. What is the balance in the Accounts Payable account for amounts owed to the maintenance man at the end of March?

Debit balance of $4,000

Credit balance of $2,000

Debit balance of $2,000

Credit balance of $4,000

Question

10 of25

Which of the following journal entries would be recorded if a business renders service and receives cash of $900 from the customer?

Service revenue	900
Cash		900

Service revenue	900
Accounts payable		900

Cash	900
Service revenue		900

Service revenue	900
Accounts receivable		900

Question

11 of25

Ace Inc. had the following transactions in June: Sold goods for $4,000 on account; received cash on account, $5,000; paid $800 for repair expense; paid $2,000 to a supplier that it owed from the previous month. What is the combined effect on Cash of the June transactions?

$2,200 increase

$2,200 decrease

$5,000 increase

$2,800 decrease

Question

12 of25

Which of the following journal entries would be recorded if a business purchased $800 of office supplies on account?

Accounts payable	800
Office Supplies		800

Office Supplies	800
Accounts payable		800

Office Supplies	800
Cash		800

Cash	800
Office Supplies		800

Question

13 of25

The following is the adjusted trial balance for Tuttle Photography.

Accounts	Debit	Credit
Cash	$20,000
Accounts Receivable	30,000
Prepaid Insurance	7,500
Office Supplies	3,200
Building	150,000
Accumulated DepreciationBuilding		$12,000
Equipment	75,000
Accumulated DepreciationEquipment		8,500
Land	50,000
Accounts Payable		20,000
Salaries Payable		4,000
Unearned service revenue		25,000
Mortgage Payable		100,000
R. Tuttle, Capital		21,290
R. Tuttle, Withdrawals	25,000
Service Revenue		289,000
Salaries Expense	64,000
Depreciation ExpenseBuilding and Equipment	6,150
Supplies Expense	14,040
Insurance Expense	14,000
Utilities Expense	20,900
Total	$479,790	$479,790

After the closing entries, what will the final balance in R. Tuttle, Capital be?

$25,000

$191,200

$21,290

$166,200

Question

14 of25

Education for All sells tickets in advance for their weekly productions and records the proceeds as Unearned Revenue. At the end of each month, Education for All makes an adjusting entry to account for the tickets used during the month (ticket revenue.) On March 1, the Unearned Revenue account had a credit balance of $4,000. During March, they sold 300 tickets at $20 each and 250 tickets were used during the month. What is the balance in Unearned Revenue at the end of March?

Credit balance of $5,000

Debit balance of $4,000

Credit balance of $1,000

Debit balance of $5,000

Question

15 of25

A company purchased 100 units for $30 each on January 31. It purchased 150 units for $25 on February 28. It sold a total of 150 units for $50 each from March 1 through December 31. If the company uses the weighted-average inventory costing method, calculate the amount of ending inventory on December 31. (Assume that the company uses a perpetual inventory system.)

$6,750

$2,700

$4,350

$2,900

Question

16 of25

The balances of select accounts of Sandra Company as at December 31, 2015 are given below:

Notes Payableshort term	$1,200
Salaries Payable	4,000
Notes Payablelong term	25,000
Accounts Payable	3,200
Unearned Revenue	2,000
Interest Payable	2,500

The unearned revenue is the amount of cash received for services to be rendered in January, 2016. What are the total current liabilities shown on the balance sheet?

$5,700

$10,400

$12,900

$11,700

Question

17 of25

Martin Supply Service received $1,000 cash from a customer which was owed to the business from the previous month. What is the effect of the cash receipt on the accounts of the business?

Accounts Receivable decreases; Martin, Capital decreases.

Cash account increases; Accounts receivable decreases.

Accounts Payable increases; Martin, Capital decreases.

Cash increases; Accounts Payable decreases.

Question

18 of25

Which of the following journal entries would be recorded if Christy Jones started a business and deposited cash of $3,000 into the business's bank account?

Cash	3,000
Christy Jones, Capital		3,000

Accounts Payable	3,000
Cash		3,000

Christy Jones, Capital	3,000
Cash		3,000

Christy Jones, Capital	3,000
Accounts Payable		3,000

Question

19 of25

Better Buy has six CD players in inventory on December 31. The players were purchased in November for $170. The price lists from suppliers indicate the current replacement cost of a CD player to be $168. What is the effect on gross profit if Better Buy values its ending merchandise inventory using the lower-of-cost-or-market rule?

The gross profit would increase by $2.

The gross profit would not be affected.

The gross profit would decrease by $12.

The gross profit would increase by $12.

Question

20 of25

Two weeks previously, a business rendered services to one of its customers on account for which the payment was received today. Which of the following entries would be recorded if the company uses accrual basis accounting?

Cash	1,000
Accounts Receivable		1,000

Salary Expense	1,000
Cash		1,000

Cash	1,000
Service Revenue		1,000

Supplies	1,000
Cash		1,000

Question

21 of25

The following information is available for Able Company's Office Supplies account.

Beginning balance	$2,000
Office Supplies expensed	$8,000
Ending balance	$3,000

From the above information, calculate the amount of office supplies purchased.

$9,000

$8,000

$2,000

$3,000

Question

22 of25

Lush Lawns earned $1,000 for lawn mowing services rendered. The customer promised to pay at a later time. Which of the following accounts increased as a result of this transaction?

Accounts payable

Supplies

Cash

Accounts receivable

Question

23 of25

A company purchased inventory for $75,000 from a vendor on account, FOB shipping point, with terms of 3/10, n/30. The company paid the shipper $1,500 cash for freight in. The company paid the vendor nine days after the sale. If there was no beginning inventory, the cost of inventory would be (assume a perpetual inventory system)

$74,250.

$76,500.

$71,295.

$73,500.

Question

24 of25

Samson Company had the following balances and transactions during 2014:

Beginning Merchandise Inventory	10 units at $95
March 10	Sold 8 units
June 10	Purchased 20 units at $100
October 30	Sold 15 units

What is the amount of the company's Merchandise Inventory, as disclosed in the December 31, 2014 balance sheet as per the periodic first-in, first-out (FIFO) costing method?

$475

$500

$665

$700

Question

25 of25

WAXS-D, merchandisers of musical instruments, has provided the following details:

Mar.5	Inventory purchased	$800,000
Mar.8	Freight In	40,000
Mar.13	Purchase returns	60,000
Mar.14	Allowances by vendor	15,000
Mar.20	Payment made to vendor for purchases on March 5	?

Credit terms are: 3/20, n/45, FOB shipping. Calculate the net cost of inventory purchased assuming that there are no other inventory related transactions during the month.

$785,000

$740,000

$725,000

$743,250