A $24 credit to Sales was posted as a $240 credit By what amount is the Sales account in error Multiple Choice $240 understated $216 overstated $24 understated $240 overstated $216 understated Matthew Martin, the owner of Innovation Consulting, started the business by investing $51,000 cash Identify the general journal entry below that Innovation Consulting will make to record the transaction Multiple Choice Cash 51,000 M Martin, Capital 51,000 Accounts Receivable 51,000 Cash 51,000 Investments 51,000 M Martin, Capital 51,000 M Martin, Capital 51,000 Cash 51,000 Cash 51,000 Note Payable 51,000 An annual reporting period consisting of any twelve consecutive months is known as Multiple Choice Natural business year Seasonal year Calendar year Interim financial period Fiscal year On July 1, a company paid the $1,800 premium on a one year insurance policy with benefits beginning on that date What will be the insurance expense on the annual income statement for the first year ended December 31 Multiple Choice $1,800 $450 $750 $900 $1,350 Jose Consulting paid $940 cash for utilities for the current month Determine the general journal entry that Jose Consulting will make to record this transaction Multiple Choice Cash 940 Utilities Expense 940 Utilities Expense 940 Accounts Payable 940 Cash 940 Accounts Payable 940 Utilities Expense 940 Cash 940 Prepaid Utilities 940 Accounts Payable 940 A company made no adjusting entry for accrued and unpaid employee salaries of $7,900 on December 31 Which of the following statements is true Multiple Choice It will have no effect on income It will understate expenses and overstate net income by $7,900 It will understate net income by $7,900 It will understate assets by $7,900 It will overstate assets and liabilities by $7,900 Sanborn Company has 10 employees, who earn a total of $3,800 in salaries each working day They are paid on Monday for the five day workweek ending on the previous Friday Assume that year ended December 31, is a Wednesday and all employees will be paid salaries for five full days on the following Monday The adjusting entry needed on December 31 is Multiple Choice Debit Salaries Expense, $19,000 credit Salaries Payable, $19,000 Debit Salaries Expense, $11,400 credit Cash, $11,400 Debit Salaries Expense, $7,600 credit Salaries Payable, $7,600 Debit Salaries Expense, $11,400 credit Salaries Payable, $11,400 Debit Salaries Payable, $11,400 credit Salaries Expense, $11,400 A company had no office supplies available at the beginning of the year During the year, the company purchased $420 worth of office supplies On December 31, $150 worth of office supplies remained How much should the company report as office supplies expense for the year Multiple Choice $250 $420 $570 $270 $150

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A $24 credit to Sales was posted as a $240 credit. By what amount is the Sales account in error? Multiple Choice $240 understated. $216

A $24 credit to Sales was posted as a $240 credit. By what amount is the Sales account in error?

Multiple Choice

$240 understated.
$216 overstated.
$24 understated.
$240 overstated.
$216 understated.

Matthew Martin, the owner of Innovation Consulting, started the business by investing $51,000 cash. Identify the general journal entry below that Innovation Consulting will make to record the transaction.

Multiple Choice

Cash 51,000

M. Martin, Capital 51,000
Accounts Receivable 51,000

Cash 51,000
Investments 51,000

M. Martin, Capital 51,000
M. Martin, Capital 51,000

Cash 51,000
Cash 51,000

Note Payable 51,000

An annual reporting period consisting of any twelve consecutive months is known as:

Multiple Choice

Natural business year.
Seasonal year.
Calendar year.
Interim financial period.
Fiscal year.

On July 1, a company paid the $1,800 premium on a one-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the first year ended December 31?

Multiple Choice

$1,800.
$450.
$750.
$900.
$1,350.

Jose Consulting paid $940 cash for utilities for the current month. Determine the general journal entry that Jose Consulting will make to record this transaction.

Multiple Choice

Cash 940

Utilities Expense 940
Utilities Expense 940

Accounts Payable 940
Cash 940

Accounts Payable 940
Utilities Expense 940

Cash 940
Prepaid Utilities 940

Accounts Payable 940

A company made no adjusting entry for accrued and unpaid employee salaries of $7,900 on December 31. Which of the following statements is true?

Multiple Choice

It will have no effect on income.
It will understate expenses and overstate net income by $7,900.
It will understate net income by $7,900.
It will understate assets by $7,900.
It will overstate assets and liabilities by $7,900.

Sanborn Company has 10 employees, who earn a total of $3,800 in salaries each working day. They are paid on Monday for the five-day workweek ending on the previous Friday. Assume that year ended December 31, is a Wednesday and all employees will be paid salaries for five full days on the following Monday. The adjusting entry needed on December 31 is:

Multiple Choice

Debit Salaries Expense, $19,000; credit Salaries Payable, $19,000.
Debit Salaries Expense, $11,400; credit Cash, $11,400.
Debit Salaries Expense, $7,600; credit Salaries Payable, $7,600.
Debit Salaries Expense, $11,400; credit Salaries Payable, $11,400.
Debit Salaries Payable, $11,400; credit Salaries Expense, $11,400.

A company had no office supplies available at the beginning of the year. During the year, the company purchased $420 worth of office supplies. On December 31, $150 worth of office supplies remained. How much should the company report as office supplies expense for the year?

Multiple Choice