27)Revenues total $10,200, expenses total $7,300, and the owner's withdrawals account has a balance of $2,600. What is the balance in the income summary account prior to closing net income or net loss?

$2,900 credit

$300 credit

$2,900 debit

$300 debit

Question 28 1 pts

Please refer to the table below.

Sales Returns and Allowances $2,400

Sales Commissions $12,000

Cost of Goods Sold $45,000

Sales Revenue $127,000

Utilities $4,500

Rent $15,000

Sales Discounts $1,500

Salaries $25,000

Gain on sale of equipment $4,000

Freight Out $4,500

Depreciation Expense $3,000

Interest Revenue $300

What is gross profit?

$82,000

$78,100

$79,600

$66,100

Question 29

The credit department within a company should NOT have access to ________.

the accounts receivable subsidiary ledger

the general ledger

customer payments

remittance advices

Question 30

Which column of the worksheet DOES NOT show revenue and expense accounts?

Balance sheet

Adjustments

Trial balance

Income statement

Question 31

To calculate straight-line depreciation, one would have to know all of the following EXCEPT ________.

capitalized cost

the number of units the asset is expected to produce

the asset's residual value

the estimated useful life of the asset

Question 32

Revenues are closed into the ________ account?

income summary

the owner's withdrawals

owner's capital

expenses

Question 33

Determine cash withdrawals for the period if net income is $34,000, beginning owner's equity is $29,000, and ending owner's equity is $55,000.

$18,000

$8,000

$60,000

$5,000

Question 34

Table 4

The following data are for the RoadRunner Corporation, which uses a perpetual inventory system:

Sales revenue $600,000

Freight-in 42,000

Beginning inventory 77,000

Purchase discounts 19,000

Sales returns and allowances 33,000

Operating expenses 77,000

Ending inventory 81,000

Purchases of inventory 415,000

Sales discounts 35,000

Joseph RoadRunner, withdrawals 71,000

Purchase returns and allowances 39,000

Refer to Table 4. After calculating the cost of goods sold at $395,000, gross profit for RoadRunner Company is ____________.

$137,000

$172,000

$205,000

$60,000

Question 35

Griffin Insurance Company sold a policy that begins on October 1, 20X2 and goes through September 30, 20X3. Cash of $1500 was received on September 29, 20X2 and was recorded as unearned revenue. The entry required at year-end to correctly state unearned revenue account would be ________. Assume no monthly adjusting entries were recorded.

Revenue 375.00

Unearned Revenue 375.00

Unearned Revenue 375.00

Revenue 375.00

Unearned Revenue 1500.00

Revenue 1500.00

Cash 1500.00

Revenue 375.00

Unearned Revenue 1125.00

Question 36

For the current year, Hodges Department Store reported the following data_______.

Goods available for sale$1,074,450

December 31, inventory balance85,430

The current replacement cost of inventory on balance sheet data is $91,730. Using the lower-of-cost-

or-market rule, what is cost of goods sold for Hodges Department Store?

$982,720

impossible to determine from the given data

$989,020

$897,290

Question 37

Collecting receivables affects the accounting equation by ________.

decreasing assets and decreasing liabilities

decreasing assets and increasing equity

increasing assets and increasing equity

there is no change in the accounting equation

Question 38

Selina needs to estimate her ending inventory by the gross profit method. Her beginning inventory was $22,531. She had purchases of $53,291 and sales of $50,316. Selina's ending inventory is ________.

$25,506

$19,556

$75,822

$30,760

Question 39

Crime Prevention Company received payment from Bobby Rentfrow for his monthly alarm monitoring service. Instead of applying the payment to Bobby Rentfrow's account, the payment was erroneously applied to Matt Rentfrow's account. This error will cause ________.

income to be overstated

accounts receivable to be overstated

cash to be understated

the accounts receivable subsidiary ledger to be incorrect

Question 40

The double-declining-balance method will provide the greatest tax advantage during the first year of an asset's life because it yields the ________ compared to the use of other depreciation methods.

highest gross profit

lowest net income

lowest operating expenses

highest net income

27)Revenues total $10,200, expenses total $7,300, and the owner's withdrawals account has a balance of $2,600. What is the balance in the income summary account prior to closing net income or net loss? $2,900 credit $300 credit $2,900 debit $300 debit Question 28 1 pts Please refer to the table below. Sales Returns and Allowances Sales Commissions Cost of Goods Sold Sales Revenue Utilities Rent Sales Discounts Salaries Gain on sale of equipment Freight Out Depreciation Expense Interest Revenue $2,400 $12,000 $45,000 $127,000 $4,500 $15,000 $1,500 $25,000 $4,000 $4,500 $3,000 $300 What is gross profit? $82,000 $78,100 $79,600 $66,100 Question 29 The credit department within a company should NOT have access to ________. the accounts receivable subsidiary ledger the general ledger customer payments remittance advices Question 30 Which column of the worksheet DOES NOT show revenue and expense accounts? Balance sheet Adjustments Trial balance Income statement Question 31 To calculate straight-line depreciation, one would have to know all of the following EXCEPT ________. capitalized cost the number of units the asset is expected to produce the asset's residual value the estimated useful life of the asset Question 32 Revenues are closed into the ________ account? income summary the owner's withdrawals owner's capital expenses Question 33 Determine cash withdrawals for the period if net income is $34,000, beginning owner's equity is $29,000, and ending owner's equity is $55,000. $18,000 $8,000 $60,000 $5,000 Question 34 Table 4 The following data are for the RoadRunner Corporation, which uses a perpetual inventory system: Sales revenue $600,000 Freight-in 42,000 Beginning inventory 77,000 Purchase discounts 19,000 Sales returns and allowances 33,000 Operating expenses 77,000 Ending inventory 81,000 Purchases of inventory Sales discounts Joseph RoadRunner, withdrawals Purchase returns and allowances 415,000 35,000 71,000 39,000 Refer to Table 4. After calculating the cost of goods sold at $395,000, gross profit for RoadRunner Company is ____________. $137,000 $172,000 $205,000 $60,000 Question 35 Griffin Insurance Company sold a policy that begins on October 1, 20X2 and goes through September 30, 20X3. Cash of $1500 was received on September 29, 20X2 and was recorded as unearned revenue. The entry required at year-end to correctly state unearned revenue account would be ________. Assume no monthly adjusting entries were recorded. Revenue 375.00 Unearned Revenue 375.00 Unearned Revenue 375.00 Revenue 375.00 Unearned Revenue 1500.00 Revenue 1500.00 Cash 1500.00 Revenue 375.00 Unearned Revenue 1125.00 Question 36 For the current year, Hodges Department Store reported the following data_______. Goods available for sale $1,074,450 December 31, inventory balance 85,430 The current replacement cost of inventory on balance sheet data is $91,730. Using the lower-of-costor-market rule, what is cost of goods sold for Hodges Department Store? $982,720 impossible to determine from the given data $989,020 $897,290 Question 37 Collecting receivables affects the accounting equation by ________. decreasing assets and decreasing liabilities decreasing assets and increasing equity increasing assets and increasing equity there is no change in the accounting equation Question 38 Selina needs to estimate her ending inventory by the gross profit method. Her beginning inventory was $22,531. She had purchases of $53,291 and sales of $50,316. Selina's ending inventory is ________. $25,506 $19,556 $75,822 $30,760 Question 39 Crime Prevention Company received payment from Bobby Rentfrow for his monthly alarm monitoring service. Instead of applying the payment to Bobby Rentfrow's account, the payment was erroneously applied to Matt Rentfrow's account. This error will cause ________. income to be overstated accounts receivable to be overstated cash to be understated the accounts receivable subsidiary ledger to be incorrect Question 40 The double-declining-balance method will provide the greatest tax advantage during the first year of an asset's life because it yields the ________ compared to the use of other depreciation methods. highest gross profit lowest net income lowest operating expenses highest net income