ANSWER ALL QUESTIONS

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Closing entries may involve posting a debit to the: Accumulated Depreciation account moodi Common Stock account. Interest Payable account Depreciation Expense account. None of the above. All the following accounts normally have credit balances except: Fees Revenue Dividends Accumulated Depreciation Unearned Revenue None of the above Fran Company Retained Earnings increased by $10,000 during 2012. Net income for 2012 was $15,000 and the ending balance in Cash was $4,000. Dividends declared and paid during 2012 were: $10,000. $6,000. $11,000. me $5,000 None of the above. The accountant for the Shirley Company made an adjusting entry to record depreciation for the current year twice by mistake. The effect of this error would be: An overstatement of net income and an understatement of assets. An overstatement of assets offset by an understatement of owner's equity. An understatement of assets, net income, and owner's equity. An overstatement of assets and of net income, and an understatement of owner's equity. None of the above. The O'Neil Theater offered books of theater tickets to its patrons at $30 per book. Each book contained a certain number of tickets to future performances. During the current period 1,000 books were sold for $30,000, and this amount was credited to a temporary account. At the end of the period it was determined that $17,000 worth of book tickets had been used by customers attending performances. The appropriate adjusting entry at the end of the period would be: Debit Ticket Revenue $13,000 and credit Unearned Ticket Revenue $13,000. V Debit Ticket Revenue $17,000 and credit Unearned Ticket Revenue $17,000. Debit Unearned Ticket Revenue $13,000 and credit Ticket Revenue $13,000. Debit Unearned Ticket Revenue $17,000 and credit Ticket Revenue $17,000. None of the above. Of the following adjusting entries, which one results in a decrease in liabilities and the recognition of a revenue at the end of an accounting period? The entry to record revenue earned but not yet collected or recorded. The entry to record earned portion of rent previously received in advance from a tenant and initially recorded as a liability. The entry to write off a portion of unexpired insurance initially recorded as an asset. The entry to record interest accrued on a note payable. None of the above. Use the following information to answer the next two questions On December 31, 2012, Bernadino Corporation made an adjusting entry to recognize unearned revenue now earned. Originally, the revenue was recorded in a real account when cash was received. 7 The journal entry on December 31, 2012 would include a debit to which type of account? Liability Owners' Equity Revenue Expense Asset The journal entry on December 31, 2012, would include a credit to which type of account? A. Liability Owners' Equity Revenue D. Expense E Asset The CPA firm auditing YU Company found that net income had been overstated. Which of the following errors could be the cause? Failure to record collection of an account receivable balance at the end of the period. Failure to record payment of an account payable on the last day of the year. Failure to make an adjusting entry to record revenue which had been earned but not yet billed to customers Failure to make an entry to record purchase of land for cash on the last day of the year. None of the above.CITOT . "^ployees are owed $400 for services since the last payday in June, to be paid the first week of July . No adjustment was made for this item . As a result of the` June net income is understated . Liabilities at June 30 are overstated . Owner's equity at June 30 is overstated . Assets at June 30 are overstated . 11 None of the above . I'll December 1 , 2012, the stockholders of Cape Corporation invested an additional $8010, 0.00 in the Corporation and received additional shares of common stock, The effect on the accounting equation would include :` CAL B . Liabilities increased* Retained Earnings increased D . Owners_ equity decreased Assets decreased .` None of the above Use the following data for the next } questions Diane Company reports these adjusted account balances at December 31 , 2012 after closing entries have been completed . Accounts Payable $ 75, 000 Land 90, 000 Equipment 10. 000 Cash 30. 0010 Accounts Receivable 10. 00.0 Buildings 1 10. 000 Common Stock 170. 000 Retained Earnings 75, 0.00 Unearned Revenue 20, 000 On January 3, 2013, Diane Company collected $25, 000 of its accounts receivable and sold $30, 000 of additional shares of common stock No other transactions occurred in the first week of January 2013 .` 12. In a trial balance prepared at December 3 1 , 2012, the total of the debit column is : CAL $340, 0 0 0- B . $250, 000 C . $70. 000 $680, 00.0 None of the above . 13 . In a trial balance prepared at January 4 , 2013 the total of the debit column is :` AL $310, 000 B . $710, 000 $370. 000` $340, 000 None of the above . 14 . On January 4 , 2013 , total liabilities are* $100 , 000 U B . $90, 000 $75, 000 $95, 000\\ None of the above 15 . The-purpose of adjusting entries is to :" Record certain revenue and expenses that are not properly measured in the course of recording daily routine transactions . B . Update the balance in the Cash account . Close all temporary accounts . Update the balance in Common Stock . None of the above . Max Company made several purchases of office supplies totaling $3, 3.10 during its first year of operations and recorded all purchases by debiting the asset* 10 . account Office Supplies . At December 3 1, the amount of unused supplies on hand was determined by count to amount to $1, 460 . The proper adjusting entry would be :` Debit Accounts Payable $3, 310 and credit Office Supplies $3, 310 . Debit Office Supplies $1, 460 and credit Office Supplies Expense $1 , 460 . Debit Office Supplies Expense $1, 850, and credit Office Supplies $1, 850 Debit Office Supplies Expense $1, 460 and credit Office Supplies $1, 460 . None of the above . Interest which has accrued during the accounting period on a note payable to the bank calls for an adjusting entry consisting of : 17 . A debit to Notes Payable and a credit to Interest Payable . B . A debit to an asset and a credit to a liability .\\ 1 debit to Interest Expense and a credit to Interest Payable A debit to Interest Expense and a credit to Cash .` None of the above .Use the following information to answer the next 'S questions The following balances were taken from the ADJUSTED TRIAL, BALANCE of Gus Corp . for the Fiscal year ending December 31 , 2012\\ 20. 0.0 0 Cash 10:0 0 Prepaid Rent 32.000 Accounts Receivable 3.000 Accumulated Depreciation - Equipment* 1. 000 Equipment* 2.000 Interest Payable\\ 5. 50.0 Accounts Payable 6, 000 Common Stock 1, 000 Wages Payable 33. 500 Dividends\\ 50. 0.00 Retained Earnings 3.000 Notes Payable , Due 5/ 1/2016 1, 0:00 Service Revenue 22, 500 Rent Expense 17. 000 Interest Expense 2.000 Depreciation Expense =. { - - Equipment Wages Expense 3, 500 Unearned Service Revenue 18. The Adjusted Trial Balance has a total debit balance of : B . $ 124, 50.0 C . $ 112, 00.0 D . $ 125, 500 E . $ 107, 500 None of the above 19. The TOTAL , OWNERS' EQUITY at the end of the year would be : A $ 40.000 B . $ 65, 000 $ 51 , 500 $ 64. 000 None of the above 20 The TOTAL LIABILITIES at the end of the year would be :" $ 28. 500 $ 30. 500 $ 25, 500 $ 22, 50 None of the above 21 . The TOTAL ASSETS at the end of the year would be :` $ 92, 500 B . $ 94. 500 $ 93. 500 JA'` $ 98, 000 None of the above the next two questions are based on the following information ."\\ At the end of Its first year of operations , after adjustments were properly recorded , Tolland Inc . had the following adjusted account balances Prepaid Rent 3, 000 Accumulated Depreciation - Trucks 5, 000 Insurance Expense L.OOO Interest Expense 1, 000 39. 00.0 Supplies Expense 8. 000 Accounts Receivable 11, 000 Unearned Revenue* 1. 000 Accounts Payable Service Revenue 161. 000 Prepaid Insurance 2,000 Trucks 60, 000 Wages Expense 98, 000 Wages Payable 6,000 Depreciation Expense 6, 000 Dividends ( declared & paid by Tolland ) 3. 000 Common Stock 51, 0.0.0 Cash Interest Revenue 2.000 5, 000 Each of these accounts has the normal debit or credit balance . In preparing the closing entries , the DEBIT to the Income Summary account to close expenses will be :` 62 . A $ 114, 000 B . $ 1 10, 000 $ 1 17, 000 D. $ 120, 000 E. None of the above After all the necessary closing entries are made , the post- closing trial balance of Tolland , Inc . would have a CREDIT balance of $ 109, 000 $ 238, 00 0 $ 66, 000 $ 1 15 , 000 None of the abovewould be :` the accountant for the William Company forgot to make an adjusting entry to record revenue earned but not yet billed to customers . The effect of this error B . An overstatement of net income and an understatement of assets . An understatement of assets , net income , and owner's equity . An overstatement of liabilities offset by an understatement of owner's equity . E . An overstatement of assets and of net income offset by an understatement of owner's equity . None of the above . Dave Corporation , which maintains its accounts on the basis of a Fiscal year ending June 30 , began the management of an office building on June 1 for an agreed monthly fee of $400 . The first cash receipt was due on July 5 . The adjusting entry required at June 30 would be :` B . A $400 debit to Unearned Rental Commissions and a $400 credit to Rental Commissions Earned . A debit to Cash for $400 and a credit to Rental Commissions Earned . D` A debit to Cash for $400 and a credit to a liability for $400 .` A debit to Rental Commissions Receivable for $400 and a credit to Rental Commissions Earned None of the above . Use the following to answer the next five questions SAMANTHA , INC . Unadjusted Trial Balance December 31 , 2012 DR CR Cash $ 36. 600 Accounts Receivable* 3. 000 Supplies \\500 Equipment 18.500 Accumulated Depreciation - Equipment Accounts Payable 6.0.00 Retained Earnings 4. 000 Common Stock 37, 700 Fee Revenue 17. 000 Salaries Expense 2, 700 Insurance Expense 500 Rent Expense 4.800 Interest Expense 100 $ 66, 700 $ 66 , 700 26 . At December 31 , 2012 there were $30.0 of supplies on hand . The adjusting entry would include a :` A_ debit to Supplies Expense of $3.00 . B . credit to Supplies Expense of $200 debit to Supplies of $30.0 . credit to Supplies of $2010. None of the above 27. The Equipment was purchased on January 1 , 2011 . It has a useful life of eight years and an estimated salvage value of $2. 500 . The adjusting entry at December 31, 2012 would include a:` debit to Depreciation Expense - Equipment for $4, 000 . B . debit to Accumulated Depreciation - Equipment for $2, 000 C . credit to Depreciation Expense - Equipment for $2, 000 . D . credit to Equipment for $2, 000 . E . none of the above On August 1 , 2012, Samantha paid the landlord $4, 800 for one year's rent in advance . The adjusting entry at December 3 1 , 2012 would include a : 28 credit to Cash B . debit to Rent Payable C . lebit to Rent Expense debit to Prepaid Rent none of the above On October 1 , 2012 , Samantha received $7, 000 in advance for fees to be earned evenly over seven months beginning on that date . When Samantha 29, received the money on October 1 , 2012 , Fee Revenue was credited . The required adjusting journal entry at December 31 , 2012 would include a : credit to Cash credit to Fee Revenue* debit to Unearned Fee Revenue debit to Fee Revenue none of the above Refer to the previous question . The amount of the adjusting journal entry at December 31 , 2012 would be : 30, $ 3, 000 4, 000 1. 000 $ 7. 000 none of the above5,000 8,000 39,000 6,000 30,000 $ 88,750 $ 750 CR 500 500 9,600 2,700 950 12,500 21,000 41,000 $ 88,750 DR On August 1, 2012, MALCOME received $6,000 in advance for fees to be earned evenly over twelve months beginning on that date. The required Unadjusted Trial Balance On May 1, 2012, MALCOME paid the landlord $9,600 for one year's rent in advance. The adjusting entry at December 31, 2012 would include a: December 31, 2012 MALCOME , INC. Cash payments made during the period on loans used to finance the purchase of assets such as buildings and equipment crease in both assets and total owners' equity. This transaction could have been: Cash being set aside each period to provide for the replacement of long-lived assets, such as buildings and equipment. Purchase of office equipment for $12,000, paying $7,000 cash and issuing a note payable for the balance Refer to the previous question. The amount of the adjusting journal entry at December 31, 2012 would be: Investment of $5,000 cash in the business by selling additional shares of common stock Accumulated Depreciation - Equipment At December 31, 2012 there were $400 of supplies on hand. The adjusting entry would include a Systematic allocation of the cost of long-lived assets to expense. Unearned Fee Revenue Accounts Receivable Decline in the market value of an asset during the period. Insurance Expense Supplies Expense Retained Earnings Salaries Expense Interest Expense If $55,000 cash is given in exchange for some office furniture to be used in a business: Common Stock Notes Payable Rent Expense Fee Revenue Equipment Purchase of office equipment of $5,000 cash. adjusting journal entry at December 31, 2012 would include a: credit to Supplies Expense of $400. Cash debit to Supplies Expense of $550 debit to Rent Expense for $6,400 debit to Rent Payable for $6,400 credit to Prepaid Rent for $3,200 credit to Unearned Fee Revenue debit to Unearned Fee Revenue debit to Prepaid Rent for $3,200 Repayment of a $5,000 bank loan. debit to Supplies of $550. credit to Supplies of $400. The owner's equity is increased. Total liabilities are decreased debit to Fee Revenue Total assets are unchanged. none of the above none of the above Total assets are increased. None of the above none of the above Depreciation expense may be described best as the: debit to Cash 3,500 None of the above. None of the above. None of the above! $ 2,500 $ 6,000 $ 2,000 Use the following to answer the next four questions A transaction caused a $5,000 increa onwp moow How? dmoowi dmoow 44. 42. 43. 41