Question
1. Which of these transactions would produce $10,000 of revenue in December? (check all that apply) BOC Realty leases space to a tenant for December
1. Which of these transactions would produce $10,000 of revenue in December? (check all that apply)
BOC Realty leases space to a tenant for December and the tenant pays the $10,000 rent in cash in December.
BOC Realty leases space to a tenant for December and sends a bill for the $10,000 rent to be paid in January.
BOC Bank is owed $10,000 of interest on a loan for December and receives the payment in January.
BOC Bank receives a check for $10,000 in December for November's interest amount.
BOC Realty leases space to a tenant for December and January. The tenant pre-paid the $20,000 rent for the two months in November.
2. Which of these transactions would produce $10,000 of expenses in December? (check all that apply)
BOC pays $10,000 in cash dividends in December.
BOC pays its auditor $12,000 in December for all of the work the auditor performed during the year.
BOC hires a new COO in December to start work in January. The COO will be paid $10,000 per month.
BOC pays its advertising agency $10,000 in December for ads that ran in December.
BOC receives a $10,000 invoice from its lawyers for services performed in December. The bill is due in January.
3. Which journal entry reflects the following transaction?:
BOC receives $2,000 cash from a customer, of which $1,000 was for goods delivered now and $1,000 was a deposit on custom goods that will be delivered next month.
Dr. Cash 2,000
Cr. Inventory 2,000
Dr. Cash 2,000
Cr. Revenue 1,000
Cr. Advances from Customers 1,000
Dr. Cash 2,000
Cr. Revenue 2,000
Dr. Revenue 2,000
Cr. Cash 2,000
Dr. Cash 2,000
Cr. Advances from Customers 2,000
4. Which journal entry(s) reflects the following transaction?:
BOC received $5,000 of cash from a customer who took delivery of goods that originally cost BOC $4,000 to acquire.
Dr. Cash 5,000
Cr. Revenue 5,000
Dr. Cost of Goods Sold 4,000
Cr. Inventory 4,000
Dr. Cash 5,000
Cr. Inventory 4,000
Cr. Revenue 1,000
Dr. Cash 5,000
Cr. Inventory 5,000
Dr. Cash 5,000
Cr. Revenue 5,000
Dr. Accounts Payable 4,000
Cr. Inventory 4,000
Dr. Cash 5,000
Cr. Revenue 5,000
5. How much annual depreciation expense would be recognized for a truck that originally cost $30,000 and has an estimated useful life of 5 years with a $5,000 salvage value?
$6,000
$3,333
$5,000
$7,000
$10,000
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