1. On March 1 we purchased $6,000 of merchandise on account from Annex Co., terms FOB shipping point, 1/10, n/30.

a. Merchandise Inventory 5,940 Accounts Payable 5,940 b. Merchandise Inventory 6,000 Accounts Payable 6,000

c. Cost of Merchandise Sold 6,000 Accounts Payable 6,000

d. Cost of Merchandise Sold 5,940 Accounts Payable 5,940

e. None of the above

2. On March 3 we paid freight charges of $500 on merchandise purchased from Annex Co. on March 1.

a. Merchandise Inventory 500 Cash 500 b. Delivery Expense 500 Cash 500

c. Freight-Out 500 Cash 500

d. Cost of Merchandise Sold 500 Cash 500 e. None of the above

3. On March 4 we returned $1,300 of merchandise purchased on March 1 from Annex Co.

a. Accounts Payable 1,287 Merchandise Inventory 1,287

b. Accounts Payable 1,300 Merchandise Inventory 1,300

c. Accounts Payable 1,300 Cost of Merchandise Sold 1,300 d. Accounts Payable 1,287 Cost of Merchandise Sold 1,287

e. None of the above ACC101

4. On March 10 we paid Annex Co. on account for the purchase of March 1, less the return of March 4 and discount.

a. Accounts Payable 4,700 Cash 4,700

b. Accounts Payable 4,640 Cash 4,640

c. Accounts Payable 4,700 Merchandise Inventory 47 Cash 4,653

d. Accounts Payable 4,700 Sales Discount 47 Cash 4,653

e. None of the above

5. On March 11 we sold merchandise for cash, $4,350. The cost of the merchandise sold was $1,750.

a. Cash 4,350 Cost of Merchandise Sold 1,750 Gross Profit 2,600

b. Cash 4,350 Sales 4,350 Cost of Merchandise Sold 1,750 Gross Profit 1,750

c. Cash 4,350 Sales 4,350 Cost of Merchandise Sold 1,750 Merchandise Inventory 1,750

d. Cash 4,350 Sales 4,350 Merchandise Inventory 1,750 Cost of Merchandise Sold 1,750

e. None of the above

a. Accounts Receivable 2,800 Cost of Merchandise Sold 1,125 Gross Profit 1,675

b. Accounts Receivable 2,800 Sales 2,800 Cost of Merchandise Sold 1,125 Gross Profit 1,125

c. Accounts Receivable 2,800 Sales 2,800 Cost of Merchandise Sold 1,125 Merchandise Inventory 1,125

d. Accounts Receivable 2,744 Sales 2,744 Cost of Merchandise Sold 1,125 Merchandise Inventory 1,125

e. None of the above

7. On March 13 we paid $200 for freight charges on the March 12 sale.

a. Merchandise Inventory 200 Cash 200 b. Delivery Expense 200 Cash 200

c. Cost of Merchandise Sold 200 Cash 200 d. Freight-In 200 Cash 200 e. None of the above

8. On March 20 we received cash on account from the sale of March 12 to C.F. Howell Co., less discount.

a. Cash 2,744 Sales Discount 56 Accounts Receivable 2,800

b. Cash 2,744 Accounts Receivable 2,744

c. Cash 2,800 Sales Discount 56 Accounts Receivable 2,744 d. Cash 2,744 Sales Discount 56 Merchandise Inventory 2,800

e. None of the above ACC101

II. For questions 9 to 13 select the journal entry that is appropriate to record the year-end adjusting entries for Twain, Inc., a company with a fiscal year ending on December 31. 9. The Supplies account had a balance of $1,950 on December 31 and a physical count of the actual supplies on hand on that date was $250.

a. Supplies 1,700 Supplies Expense 1,700

b. Supplies Expense 1,700 Supplies 1,700

c. Supplies Expense 250 Supplies 250 d. Supplies 250 Supplies Expense 250

e. Supplies Expense 1,950 Supplies 1,950

10. The Unearned Rent account had a balance of $6,000 on December 31, and the actual amount of rent unearned on that date was $1,000.

a. Unearned Rent 5,000 Rent Income 5,000

b. Unearned Rent 1,000 Rent Income 1,000

c. Rent Income 5,000 Unearned Rent 5,000

d. Rent Income 1,000 Unearned Rent 1,000

e. Unearned Rent 6,000 Rent Income 6,000

11. The Equipment and Accumulated Depreciation accounts had balances of $90,100 and $65,300 on December 31, and the depreciation of equipment for the year amounted to $5,000.

a. Depreciation Expense 24,800 Accumulated Depreciation 24,800

b. Depreciation Expense 60,300 Accumulated Depreciation 60,300

c. Depreciation Expense 5,000 Accumulated Depreciation 5,000

d. Depreciation Expense 65,300 Accumulated Depreciation 65,300

e. Depreciation Expense 5,000 Equipment 5,000

12. The Wages Expense account had a balance of $63,000 on December 31 and accrued unpaid wages on that date amounted to $3,000.

a. Wages Expense 3,000 Cash 3,000

b. Wages Expense 60,000 Wages Payable 60,000

c. Wages Expense 63,000 Wages Payable 63,000

d. Wages Expense 3,000 Wages Payable 3,000

e. Wages Expense 66,000 Wages Payable 66,000

13. The Merchandise Inventory account had a balance of $45,000 on December 31, but a physical inventory taken on that date indicated that $44,400 was actually on hand.

a. Merchandise Inventory 600 Cost of Goods Sold 600

b. Cost of Goods Sold 600 Merchandise Inventory 600

c. Merchandise Inventory 600 Sales 600

d. Sales 600 Merchandise Inventory 600

e. Sales Returns and Allowances 600 Merchandise Inventory