1)A customer returned $600 worth of supplies inventory to Stationary Inc which they purchased on account and had not yet paid. Which of the following represents the necessary journal entry Stationary Inc would make for this transaction?

a.

Db. Supplies 600

Cr. Accounts Payable 300

Cr. Cash 300

b.

Db. Supplies 600

Cr. Assets Returned (Equity) 600

c.

Db. Cash 600

Cr. Supplies 300

Cr. Accounts Receivable 300

d.

Db. Supplies 600

Cr. Accounts Receivable 600

2)

Which of the following concepts best describes when accountants should record amortization expense on long-lived assets:

a.

Time-period assumption

b.

Matching objective

c.

Recognition criteria for revenue

d.

Cost principle

3)

California Melons Ltd provided you with the following listing of year end adjusted balances:

Sales Revenue $230,000

Income Tax Expense $22,000

Rent Expense $100,000

Insurance Expense $71,000

Cost of Goods Sold $100,000

Interest Income $21,000

Gain on Disposal of Land $73,000

Interest Expense $31,000

Given the above information, operating income (loss) is equal to:

4)

Learning Library Inc pays its full-time librarian $5,000 every Friday for working a Monday to Friday work week. For the year 2020, the companys year-end falls on a Tuesday. What adjusting entry would need to be made related to accrued salaries?

a.

credit to salary payable for $5,000

b.

credit to salary expense for $2,000

c.

debit to salary payable for $3,000

d.

debit to salary expense for $2,000