1. What is the purpose of the unearned revenue account? Include in your discussion a description of the account, normal balance of the account and give an example of a journal entry using this account.

2. On the balance sheet, explain how assets are listed and give examples to support the response.

3. Show how the following journal entries would be made by showing the journal entry using proper formatting for a manual journal entry. Lucky Squirrel Co. received $900 from Jay Polk, customer in payment of their accounts.

4. When merchandise is sold, the revenue is reported as sales and its cost is recognized as an __________________.

5. What inventory method results in the highest net income during periods of falling prices? Explain why in your own words.

6. Which method is described here? Records bad debt expense only when an account is determined to be worthless. Explain how this method would be easier for an accountant.

7. Assume that Smith Company account written off on May 1st is later collected on September 30th, the journal entry to reinstate the receivable would include a

8. I own a trucking business. What would be the best method to record depreciation for my company and explain why?

9. Finish this statement: If a contingent liability is probable and the amount of the liability can be reasonably estimated, it is _______________________.

10. The bookkeeper is finishing the bank reconciliation. How should the bookkeeper handle the following item on a bank reconciliation and from a recordkeeping standpoint? Check #5686 on Grant Hayes account was an NSF.