A company purchased $4,300 worth of merchandise. Transportation costs were an additional $380. The company returned $295 worth of merchandise and then paid the invoice within the 1% cash discount period. The total cost of this merchandise is:

Multiple Choice

• $4,215.00.

• $4,174.00.

• $4,344.95.

• $4,385.00.

• $4,342.00.

An adjusting entry was made on year-end December 31 to accrue salary expense of $1,800. Assuming the company does not prepare reversing entries, which of the following entries would be prepared to record the $4,200 payment of salaries in January of the following year?

Multiple Choice

• Salaries Payable	1,800
  Cash		1,800

• Salaries Payable	4,200
  Cash		4,200

• Salaries Expense	1,800
  Salaries Payable		1,800

• Salaries Payable	1,800
  Salaries Expense	2,400
  Cash		4,200

• Salaries Expense	4,200
  Cash		4,200

During the month of February, Rubio Services had cash receipts of $9,500 and cash disbursements of $12,600. The February 28 cash balance was $5,800. What was the February 1 beginning cash balance?

Multiple Choice

• $0.

• $2,700.

• $14,300.

• $8,900.

• $3,100.

The accounting principle that requires revenue to be recorded when earned is the:

Multiple Choice

• Revenue recognition principle.

• Expense recognition (matching) principle.

• Going-concern assumption.

• Time period assumption.

• Accrual reporting principle.

A company had revenues of $60,000 and expenses of $46,250 for the accounting period. The owner withdrew $6,600 in cash during the same period. Which of the following entries could not be a closing entry?

Multiple Choice

• Debit Income Summary $13,750; credit Owner's, Capital $13,750.

• Debit Income Summary $60,000; credit Revenues $60,000.

• Debit Owner's, Capital $6,600, credit Owner's, Withdrawals $6,600.

• Debit Revenues $60,000; credit Income Summary $60,000.

• Debit Income Summary $46,250, credit Expenses $46,250.

A company's balance sheet shows: cash $50,000, accounts receivable $30,000, office equipment $64,000, and accounts payable $31,000. What is the amount of owner's equity?

Multiple Choice

• $43,000.

• $144,000.

• $113,000.

• $31,000.

• $175,000.

The Unadjusted Trial Balance columns of a work sheet total $90,000. The Adjustments columns contain entries for the following:

1. Office supplies used during the period, $3,200.
2. Expiration of prepaid rent, $1,300.
3. Accrued salaries expense, $1,100.
4. Depreciation expense, $1,400.
5. Accrued service fees receivable, $1,000.

The Adjusted Trial Balance columns total is:

Multiple Choice

• $82,000.

• $90,000.

• $94,500.

• $93,500.

• $98,000.