121.Zen Arcade paid the weekly payroll on January 2 by debiting Salaries and Wages Expense for $47,000. The accountant preparing the payroll entry overlooked the fact that Salaries and Wages Expense of $27,000 had been accrued at year end on December 31. The correcting entry is

a.Salaries and Wages Payable........................27,000

Cash.........................................27,000

b.Cash...........................................20,000

Salaries and Wages Expense................................20,000

c.Salaries and Wages Payable........................27,000

Salaries and Wages Expense................................27,000

d.Cash...........................................27,000

Salaries and Wages Expense................................27,000

122.Jawbreaker Company paid $640 on account to a creditor. The transaction was erroneously recorded as a debit to Cash of $460 and a credit to Accounts Receivable, $460. The correcting entry is

a.Accounts Payable.................................640

Cash.........................................640

b.Accounts Receivable..............................460

Cash.........................................460

c.Accounts Receivable..............................460

Accounts Payable.........................................460

d.Accounts Receivable..............................460

Accounts Payable.........................................640

Cash.........................................1,100

123.A lawyer collected $720 of legal fees in advance. He erroneously debited Cash for $270 and credited Accounts Receivable for $270. The correcting entry is

a.Cash..............................................270

Accounts Receivable.......................................450

Unearned Service Revenue..................................720

b.Cash..............................................720

Service Revenue.........................................720

c.Cash..............................................450

Accounts Receivable.......................................270

Unearned Service Revenue..................................720

d.Cash..............................................450

Accounts Receivable.......................................450

124.On May 25, Yellow House Company received a $650 check from Grizzly Bean for services to be performed in the future. The bookkeeper for Yellow House Company incorrectly debited Cash for $650 and credited Accounts Receivable for $650. The amounts have been posted to the ledger. To correct this entry, the bookkeeper should:

a.debit Cash $650 and credit Unearned Service Revenue $650.

b.debit Accounts Receivable $650 and credit Service Revenue $650.

c.debit Accounts Receivable $650 and credit Cash $650.

d.debit Accounts Receivable $650 and credit Unearned Service Revenue $650.

125.On March 8, Black Candy Company bought supplies on account from the Arcade Fire Company for $880. Black Candy Company incorrectly debited Equipment for $800 and credited Accounts Payable for $800. The entries have been posted to the ledger. the correcting entry should be:

a.Supplies...........................................880

Accounts Payable..........................................880

b.Supplies...........................................880

Accounts Payable..........................................800

Equipment............................................80

c.Supplies...........................................880

Equipment............................................880

d.Supplies...........................................880

Equipment............................................800

Accounts Payable..........................................80

126.The following information is for Sunny Day Real Estate:

Sunny Day Real Estate

Balance Sheet

December 31, 2013

Cash$ 25,000Accounts Payable$ 60,000

Prepaid Insurance30,000Salaries and Wages Payable15,000

Accounts Receivable50,000Mortgage Payable 85,000

Inventory70,000Total Liabilities$160,000

Land Held for Investment85,000

Land120,000

Building$100,000Common Sock$120,000

Less AccumulatedRetained Earnings 250,000 370,000

Depreciation(20,000)80,000

Trademark 70,000Total Liabilities and

Total Assets$530,000Stockholders' Equity$530,000

The total dollar amount of assets to be classified as current assets is

a.$105,000.

b.$175,000.

c.$190,000.

d.$260,000.

127.The following information is for Sunny Day Real Estate:

Sunny Day Real Estate

Balance Sheet

December 31, 2013

Cash$ 25,000Accounts Payable$ 60,000

Prepaid Insurance30,000Salaries and Wages Payable15,000

Accounts Receivable50,000Mortgage Payable 85,000

Inventory70,000Total Liabilities$160,000

Land Held for Investment85,000

Land120,000

Building$100,000Common Sock$120,000

Less AccumulatedRetained Earnings 250,000 370,000

Depreciation(20,000)80,000

Trademark 70,000Total Liabilities and

Total Assets$530,000Stockholders' Equity$530,000

The total dollar amount of assets to be classified as property, plant, and equipment is

a.$200,000.

b.$220,000.

c.$285,000.

d.$305,000.

128.The following information is for Sunny Day Real Estate:

Sunny Day Real Estate

Balance Sheet

December 31, 2013

Cash$ 25,000Accounts Payable$ 60,000

Prepaid Insurance30,000Salaries and Wages Payable15,000

Accounts Receivable50,000Mortgage Payable 85,000

Inventory70,000Total Liabilities$160,000

Land Held for Investment85,000

Land120,000

Building$100,000Common Sock$120,000

Less AccumulatedRetained Earnings 250,000 370,000

Depreciation(20,000)80,000

Trademark 70,000Total Liabilities and

Total Assets$530,000Stockholders' Equity$530,000

The total dollar amount of assets to be classified as investments is

a.$0.

b.$70,000.

c.$85,000.

d.$155,000.

129.The following information is for Sunny Day Real Estate:

Sunny Day Real Estate

Balance Sheet

December 31, 2013

Cash$ 25,000Accounts Payable$ 60,000

Prepaid Insurance30,000Salaries and Wages Payable15,000

Accounts Receivable50,000Mortgage Payable 85,000

Inventory70,000Total Liabilities$160,000

Land Held for Investment85,000

Land120,000

Building$100,000Common Sock$120,000

Less AccumulatedRetained Earnings 250,000 370,000

Depreciation(20,000)80,000

Trademark 70,000Total Liabilities and

Total Assets$530,000Stockholders' Equity$530,000

The total dollar amount of liabilities to be classified as current liabilities is

a.$15,000.

b.$60,000.

c.$75,000.

d.$160,000.

130.The following information is for Bright Eyes Auto Supplies:

Bright Eyes Auto Supplies

Balance Sheet

December 31, 2013

Cash$ 20,000Accounts Payable$ 65,000

Prepaid Insurance40,000Salaries and Wages Payable25,000

Accounts Receivable50,000Mortgage Payable 75,000

Inventory70,000Total Liabilities$165,000

Land Held for Investment90,000

Land125,000

Building$100,000Common Sock$120,000

Less AccumulatedRetained Earnings 250,000 370,000

Depreciation(30,000)70,000

Trademark 70,000Total Liabilities and

Total Assets$535,000Stockholders' Equity$535,000