Jenni s Music Store borrowed $12,000 from the bank signing a 9 , 3 month note on September 1 Principal and interest are payable to the bank on December 1 If the company prepares monthly financial statements, the adjusting entry that the company should make for interest on September 30, would be 1) Debit Interest Expense, $1,080 Credit Interest Payable, $1,080 2) Debit Interest Expense, $90 Credit Interest Payable, $90 3) Debit Note Payable, $1,080 Credit Cash, $1,080 4) Debit Cash, $270 Credit Interest Payable, $270 Question 2 (5 points)Save An adjusted trial balance 1) is prepared after the financial statements are completed 2) proves the equality of the total debit balances and total credit balances of ledger accounts after all adjustments have been made 3) is a required financial statement under generally accepted accounting principles 4) cannot be used to prepare financial statements Question 3 (5 points)Save On January 2, 2010, National Credit and Cash purchased a general liability insurance policy for $2,400 for coverage for the calendar year The entire $2,400 was charged to Insurance Expense on January 2, 2010 If the firm prepares monthly financial statements, the proper adjusting entry on January 31, 2010, will be 1) 2) 3) 4) Question 4 (5 points)Save Expenses paid and recorded as assets before they are used are called 1) accrued expenses 2) interim expenses 3) prepaid expenses 4) unearned expenses Question 5 (5 points)Save CHS Company purchased a truck from JLS Corp by issuing a 6 month, 8 note payable for $60,000 on November 1 On December 31, the accrued expense adjusting entry is 1) No entry is required 2) 3) 4) Question 6 (5 points)Save BJ, an employee of Walker Corp , will not receive her paycheck until April 2 Based on services performed from March 15 to March 30, her salary was $900 The adjusting entry for Walker Corp on March 31 is 1) 2) No entry is required 3) 4) Question 7 (5 points)Save If the total debits exceed total credits in the balance sheet columns of the worksheet, owner's equity 1) will increase because net income has occurred 2) will decrease because a net loss has occurred 3) is in error because a mistake has occurred 4) will not be affected Question 8 (5 points)Save The income statement and balance sheet columns of Reed Company's worksheet reflect the following totals The net income (or loss) for the period is 1) $48,000 income 2) $10,000 income 3) $10,000 loss 4) not determinable Question 9 (5 points)Save The income statement and balance sheet columns of Reed Company's worksheet reflect the following totals To enter the net income (or loss) for the period into the above worksheet requires an entry to the 1) income statement debit column and the balance sheet credit column 2) income statement credit column and the balance sheet debit column 3) income statement debit column and the income statement credit column 4) balance sheet debit column and the balance sheet credit column Question 10 (5 points)Save Closing entries are necessary for 1) permanent accounts only 2) temporary accounts only 3) both permanent and temporary accounts 4) permanent or real accounts only Question 11 (5 points)Save Each of the following accounts is closed to Income Summary except 1) Expenses 2) Owner's Drawing 3) Revenues 4) All of these are closed to Income Summary Question 12 (5 points)Save Balance sheet accounts are considered to be 1) temporary owner's equity accounts 2) permanent accounts 3) capital accounts 4) nominal accounts Question 13 (5 points)Save The post closing trial balance contains only 1) income statement accounts 2) balance sheet accounts 3) balance sheet and income statement accounts 4) income statement, balance sheet, and owner's equity statement accounts Question 14 (5 points)Save The use of reversing entries 1) is a required step in the accounting cycle 2) changes the amounts reported in the financial statements 3) simplifies the recording of subsequent transactions 4) is required for all adjusting entries Question 15 (5 points)Save Before distributing any remaining cash to partners in a partnership liquidation, it is necessary to do each of the following except 1) sell noncash assets for cash 2) recognize a gain or loss on realization 3) allocate the gain or loss to the partners based on their capital balances 4) pay partnership liabilities in cash Question 16 (5 points)Save D Dieker purchases a 25 interest for $30,000 when the Reeves, Porter, Kiner partnership has total capital of $270,000 Prior to the admission of Dieker, each partner has a capital balance of $90,000 Each partner relinquishes an equal amount of his capital balance to Dieker The amount to be relinquished by Kiner is 1) $15,000 2) $19,000 3) $22,500 4) $37,500 Question 17 (5 points)Save Finney is admitted to a partnership with a 25 capital interest by a cash investment of $90,000 If total capital of the partnership is $390,000 before admitting Finney, the bonus to Finney is 1) $30,000 2) $15,000 3) $45,000 4) $60,000 Question 18 (5 points)Save A bonus to a new partner 1) is prohibited by GAAP 2) results when the new partner's capital credit is less than his or her investment of assets in the firm 3) may occur when recorded book values are lower than market values 4) results when the new partner's capital credit is greater than his or her investment of assets in the firm Question 19 (5 points)Save Mary, Jim, and Mike have partnership capital account balances of $225,000, $450,000 and $105,000, respectively The income sharing ratio is Mary, 50 Jim, 40 and Mike, 10 Mary desires to withdraw from the partnership and it is agreed that partnership assets of $195,000 will be used to pay Mary for her partnership interest The balances of Jim's and Mike's Capital accounts after Mary's withdrawal would be 1) Jim, $450,000 Mike, $105,000 2) Jim, $474,000 Mike, $111,000 3) Jim, $426,000 Mike, $99,000 4) Jim, $435,000 Mike, $90,000 Question 20 (5 points)Save If a partner with a capital deficiency is unable to pay the amount owed to the partnership, the deficiency is allocated to the partners with credit balances 1) equally 2) on the basis of their income ratios 3) on the basis of their capital balances 4) on the basis of their original investments Jenni's Music Store borrowed $12,000 from the bank signing a 9 , 3month note on September 1 Principal and interest are payable to the bank on December 1 If the company prepares monthly financial statements, the adjusting entry that the company should make for interest on September 30, would be 1) Debit Interest Expense, $1,080 Credit Interest Payable, $1,080 2) Debit Interest Expense, $90 Credit Interest Payable, $90 3) Debit Note Payable, $1,080 Credit Cash, $1,080 4) Debit Cash, $270 Credit Interest Payable, $270 Question 2 (5 points) Save An adjusted trial balance 1) is prepared after the financial statements are completed 2) proves the equality of the total debit balances and total credit balances of ledger accounts after all adjustments have been made 3) is a required financial statement under generally accepted accounting principles 4) cannot be used to prepare financial statements Question 3 (5 points) Save On January 2, 2010, National Credit and Cash purchased a general liability insurance policy for $2,400 for coverage for the calendar year The entire $2,400 was charged to Insurance Expense on January 2, 2010 If the firm prepares monthly financial statements, the proper adjusting entry on January 31, 2010, will be 1) 2) 3) 4) Question 4 (5 points) Save Expenses paid and recorded as assets before they are used are called 1) accrued expenses 2) interim expenses 3) prepaid expenses 4) unearned expenses Question 5 (5 points) Save CHS Company purchased a truck from JLS Corp by issuing a 6 month, 8 note payable for $60,000 on November 1 On December 31, the accrued expense adjusting entry is 1) No entry is required 2) 3) 4) Question 6 (5 points) Save BJ, an employee of Walker Corp , will not receive her paycheck until April 2 Based on services performed from March 15 to March 30, her salary was $900 The adjusting entry for Walker Corp on March 31 is 1) 2) No entry is required 3) 4) Question 7 (5 points) Save If the total debits exceed total credits in the balance sheet columns of the worksheet, owner's equity 1) will increase because net income has occurred 2) will decrease because a net loss has occurred 3) is in error because a mistake has occurred 4) will not be affected Question 8 (5 points) Save The income statement and balance sheet columns of Reed Company's worksheet reflect the following totals The net income (or loss) for the period is 1) $48,000 income 2) $10,000 income 3) $10,000 loss 4) not determinable Question 9 (5 points) Save The income statement and balance sheet columns of Reed Company's worksheet reflect the following totals To enter the net income (or loss) for the period into the above worksheet requires an entry to the 1) income statement debit column and the balance sheet credit column 2) income statement credit column and the balance sheet debit column 3) income statement debit column and the income statement credit column 4) balance sheet debit column and the balance sheet credit column Question 10 (5 points) Closing entries are necessary for 1) permanent accounts only 2) temporary accounts only 3) both permanent and temporary accounts 4) permanent or real accounts only Question 11 (5 points) Each of the following accounts is closed to Income Summary except 1) Expenses 2) Owner's Drawing 3) Revenues 4) Save All of these are closed to Income Summary Question 12 Balance sheet accounts are considered to be 1) temporary owner's equity accounts (5 points) Save Save 2) permanent accounts 3) capital accounts 4) nominal accounts Question 13 (5 points) Save The postclosing trial balance contains only 1) income statement accounts 2) balance sheet accounts 3) balance sheet and income statement accounts 4) income statement, balance sheet, and owner's equity statement accounts Question 14 (5 points) Save The use of reversing entries 1) is a required step in the accounting cycle 2) changes the amounts reported in the financial statements 3) simplifies the recording of subsequent transactions 4) is required for all adjusting entries Question 15 (5 points) Save Before distributing any remaining cash to partners in a partnership liquidation, it is necessary to do each of the following except 1) sell noncash assets for cash 2) recognize a gain or loss on realization 3) allocate the gain or loss to the partners based on their capital balances 4) pay partnership liabilities in cash Question 16 (5 points) Save D Dieker purchases a 25 interest for $30,000 when the Reeves, Porter, Kiner partnership has total capital of $270,000 Prior to the admission of Dieker, each partner has a capital balance of $90,000 Each partner relinquishes an equal amount of his capital balance to Dieker The amount to be relinquished by Kiner is 1) $15,000 2) $19,000 3) $22,500 4) $37,500 Question 17 (5 points) Save Finney is admitted to a partnership with a 25 capital interest by a cash investment of $90,000 If total capital of the partnership is $390,000 before admitting Finney, the bonus to Finney is 1) $30,000 2) $15,000 3) $45,000 4) $60,000 Question 18 (5 points) A bonus to a new partner Save 1) is prohibited by GAAP 2) results when the new partner's capital credit is less than his or her investment of assets in the firm 3) may occur when recorded book values are lower than market values 4) results when the new partner's capital credit is greater than his or her investment of assets in the firm Question 19 (5 points) Save Mary, Jim, and Mike have partnership capital account balances of $225,000, $450,000 and $105,000, respectively The income sharing ratio is Mary, 50 Jim, 40 and Mike, 10 Mary desires to withdraw from the partnership and it is agreed that partnership assets of $195,000 will be used to pay Mary for her partnership interest The balances of Jim's and Mike's Capital accounts after Mary's withdrawal would be 1) Jim, $450,000 Mike, $105,000 2) Jim, $474,000 Mike, $111,000 3) Jim, $426,000 Mike, $99,000 4) Jim, $435,000 Mike, $90,000 Question 20 (5 points) Save If a partner with a capital deficiency is unable to pay the amount owed to the partnership, the deficiency is allocated to the partners with credit balances 1) equally 2) on the basis of their income ratios 3) on the basis of their capital balances on the basis of their original 4) investments

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Jenni?s Music Store borrowed $12,000 from the bank signing a 9%, 3-month note on September 1. Principal and interest are payable to the bank on

Jenni?s Music Store borrowed $12,000 from the bank signing a 9%, 3-month note on September 1. Principal and interest are payable to the bank on December 1. If the company prepares monthly financial statements, the adjusting entry that the company should make for interest on September 30, would be 1) Debit Interest Expense, $1,080; Credit Interest Payable, $1,080. 2) Debit Interest Expense, $90; Credit Interest Payable, $90. 3) Debit Note Payable, $1,080; Credit Cash, $1,080. 4) Debit Cash, $270; Credit Interest Payable, $270. Question 2 (5 points)Save An adjusted trial balance 1) is prepared after the financial statements are completed. 2) proves the equality of the total debit balances and total credit balances of ledger accounts after all adjustments have been made. 3) is a required financial statement under generally accepted accounting principles. 4) cannot be used to prepare financial statements. Question 3 (5 points)Save On January 2, 2010, National Credit and Cash purchased a general liability insurance policy for $2,400 for coverage for the calendar year. The entire $2,400 was charged to Insurance Expense on January 2, 2010. If the firm prepares monthly financial statements, the proper adjusting entry on January 31, 2010, will be: 1) 2) 3) 4) Question 4 (5 points)Save Expenses paid and recorded as assets before they are used are called 1) accrued expenses. 2) interim expenses. 3) prepaid expenses. 4) unearned expenses. Question 5 (5 points)Save CHS Company purchased a truck from JLS Corp. by issuing a 6-month, 8% note payable for $60,000 on November 1. On December 31, the accrued expense adjusting entry is 1) No entry is required. 2) 3) 4) Question 6 (5 points)Save BJ, an employee of Walker Corp., will not receive her paycheck until April 2. Based on services performed from March 15 to March 30, her salary was $900. The adjusting entry for Walker Corp. on March 31 is 1) 2) No entry is required. 3) 4) Question 7 (5 points)Save If the total debits exceed total credits in the balance sheet columns of the worksheet, owner's equity 1) will increase because net income has occurred. 2) will decrease because a net loss has occurred. 3) is in error because a mistake has occurred. 4) will not be affected. Question 8 (5 points)Save The income statement and balance sheet columns of Reed Company's worksheet reflect the following totals: The net income (or loss) for the period is 1) $48,000 income. 2) $10,000 income. 3) $10,000 loss. 4) not determinable. Question 9 (5 points)Save The income statement and balance sheet columns of Reed Company's worksheet reflect the following totals: To enter the net income (or loss) for the period into the above worksheet requires an entry to the 1) income statement debit column and the balance sheet credit column. 2) income statement credit column and the balance sheet debit column. 3) income statement debit column and the income statement credit column. 4) balance sheet debit column and the balance sheet credit column. Question 10 (5 points)Save Closing entries are necessary for 1) permanent accounts only. 2) temporary accounts only. 3) both permanent and temporary accounts. 4) permanent or real accounts only. Question 11 (5 points)Save Each of the following accounts is closed to Income Summary except 1) Expenses. 2) Owner's Drawing. 3) Revenues. 4) All of these are closed to Income Summary. Question 12 (5 points)Save Balance sheet accounts are considered to be 1) temporary owner's equity accounts. 2) permanent accounts. 3) capital accounts. 4) nominal accounts. Question 13 (5 points)Save The post-closing trial balance contains only 1) income statement accounts. 2) balance sheet accounts. 3) balance sheet and income statement accounts. 4) income statement, balance sheet, and owner's equity statement accounts. Question 14 (5 points)Save The use of reversing entries 1) is a required step in the accounting cycle. 2) changes the amounts reported in the financial statements. 3) simplifies the recording of subsequent transactions. 4) is required for all adjusting entries. Question 15 (5 points)Save Before distributing any remaining cash to partners in a partnership liquidation, it is necessary to do each of the following except 1) sell noncash assets for cash. 2) recognize a gain or loss on realization. 3) allocate the gain or loss to the partners based on their capital balances. 4) pay partnership liabilities in cash. Question 16 (5 points)Save D. Dieker purchases a 25% interest for $30,000 when the Reeves, Porter, Kiner partnership has total capital of $270,000. Prior to the admission of Dieker, each partner has a capital balance of $90,000. Each partner relinquishes an equal amount of his capital balance to Dieker. The amount to be relinquished by Kiner is 1) $15,000. 2) $19,000. 3) $22,500. 4) $37,500. Question 17 (5 points)Save Finney is admitted to a partnership with a 25% capital interest by a cash investment of $90,000. If total capital of the partnership is $390,000 before admitting Finney, the bonus to Finney is 1) $30,000. 2) $15,000. 3) $45,000. 4) $60,000. Question 18 (5 points)Save A bonus to a new partner 1) is prohibited by GAAP. 2) results when the new partner's capital credit is less than his or her investment of assets in the firm. 3) may occur when recorded book values are lower than market values. 4) results when the new partner's capital credit is greater than his or her investment of assets in the firm. Question 19 (5 points)Save Mary, Jim, and Mike have partnership capital account balances of $225,000, $450,000 and $105,000, respectively. The income sharing ratio is Mary, 50%; Jim, 40%; and Mike, 10%. Mary desires to withdraw from the partnership and it is agreed that partnership assets of $195,000 will be used to pay Mary for her partnership interest. The balances of Jim's and Mike's Capital accounts after Mary's withdrawal would be 1) Jim, $450,000; Mike, $105,000. 2) Jim, $474,000; Mike, $111,000. 3) Jim, $426,000; Mike, $99,000. 4) Jim, $435,000; Mike, $90,000. Question 20 (5 points)Save If a partner with a capital deficiency is unable to pay the amount owed to the partnership, the deficiency is allocated to the partners with credit balances 1) equally. 2) on the basis of their income ratios. 3) on the basis of their capital balances. 4) on the basis of their original investments. image text in transcribed

Jenni's Music Store borrowed $12,000 from the bank signing a 9%, 3month note on September 1. Principal and interest are payable to the bank on December 1. If the company prepares monthly financial statements, the adjusting entry that the company should make for interest on September 30, would be 1) Debit Interest Expense, $1,080; Credit Interest Payable, $1,080. 2) Debit Interest Expense, $90; Credit Interest Payable, $90. 3) Debit Note Payable, $1,080; Credit Cash, $1,080. 4) Debit Cash, $270; Credit Interest Payable, $270. Question 2 (5 points) Save An adjusted trial balance 1) is prepared after the financial statements are completed. 2) proves the equality of the total debit balances and total credit balances of ledger accounts after all adjustments have been made. 3) is a required financial statement under generally accepted accounting principles. 4) cannot be used to prepare financial statements. Question 3 (5 points) Save On January 2, 2010, National Credit and Cash purchased a general liability insurance policy for $2,400 for coverage for the calendar year. The entire $2,400 was charged to Insurance Expense on January 2, 2010. If the firm prepares monthly financial statements, the proper adjusting entry on January 31, 2010, will be: 1) 2) 3) 4) Question 4 (5 points) Save Expenses paid and recorded as assets before they are used are called 1) accrued expenses. 2) interim expenses. 3) prepaid expenses. 4) unearned expenses. Question 5 (5 points) Save CHS Company purchased a truck from JLS Corp. by issuing a 6-month, 8% note payable for $60,000 on November 1. On December 31, the accrued expense adjusting entry is 1) No entry is required. 2) 3) 4) Question 6 (5 points) Save BJ, an employee of Walker Corp., will not receive her paycheck until April 2. Based on services performed from March 15 to March 30, her salary was $900. The adjusting entry for Walker Corp. on March 31 is 1) 2) No entry is required. 3) 4) Question 7 (5 points) Save If the total debits exceed total credits in the balance sheet columns of the worksheet, owner's equity 1) will increase because net income has occurred. 2) will decrease because a net loss has occurred. 3) is in error because a mistake has occurred. 4) will not be affected. Question 8 (5 points) Save The income statement and balance sheet columns of Reed Company's worksheet reflect the following totals: The net income (or loss) for the period is 1) $48,000 income. 2) $10,000 income. 3) $10,000 loss. 4) not determinable. Question 9 (5 points) Save The income statement and balance sheet columns of Reed Company's worksheet reflect the following totals: To enter the net income (or loss) for the period into the above worksheet requires an entry to the 1) income statement debit column and the balance sheet credit column. 2) income statement credit column and the balance sheet debit column. 3) income statement debit column and the income statement credit column. 4) balance sheet debit column and the balance sheet credit column. Question 10 (5 points) Closing entries are necessary for 1) permanent accounts only. 2) temporary accounts only. 3) both permanent and temporary accounts. 4) permanent or real accounts only. Question 11 (5 points) Each of the following accounts is closed to Income Summary except 1) Expenses. 2) Owner's Drawing. 3) Revenues. 4) Save All of these are closed to Income Summary. Question 12 Balance sheet accounts are considered to be 1) temporary owner's equity accounts. (5 points) Save Save 2) permanent accounts. 3) capital accounts. 4) nominal accounts. Question 13 (5 points) Save The postclosing trial balance contains only 1) income statement accounts. 2) balance sheet accounts. 3) balance sheet and income statement accounts. 4) income statement, balance sheet, and owner's equity statement accounts. Question 14 (5 points) Save The use of reversing entries 1) is a required step in the accounting cycle. 2) changes the amounts reported in the financial statements. 3) simplifies the recording of subsequent transactions. 4) is required for all adjusting entries. Question 15 (5 points) Save Before distributing any remaining cash to partners in a partnership liquidation, it is necessary to do each of the following except 1) sell noncash assets for cash. 2) recognize a gain or loss on realization. 3) allocate the gain or loss to the partners based on their capital balances. 4) pay partnership liabilities in cash. Question 16 (5 points) Save D. Dieker purchases a 25% interest for $30,000 when the Reeves, Porter, Kiner partnership has total capital of $270,000. Prior to the admission of Dieker, each partner has a capital balance of $90,000. Each partner relinquishes an equal amount of his capital balance to Dieker. The amount to be relinquished by Kiner is 1) $15,000. 2) $19,000. 3) $22,500. 4) $37,500. Question 17 (5 points) Save Finney is admitted to a partnership with a 25% capital interest by a cash investment of $90,000. If total capital of the partnership is $390,000 before admitting Finney, the bonus to Finney is 1) $30,000. 2) $15,000. 3) $45,000. 4) $60,000. Question 18 (5 points) A bonus to a new partner Save 1) is prohibited by GAAP. 2) results when the new partner's capital credit is less than his or her investment of assets in the firm. 3) may occur when recorded book values are lower than market values. 4) results when the new partner's capital credit is greater than his or her investment of assets in the firm. Question 19 (5 points) Save Mary, Jim, and Mike have partnership capital account balances of $225,000, $450,000 and $105,000, respectively. The income sharing ratio is Mary, 50%; Jim, 40%; and Mike, 10%. Mary desires to withdraw from the partnership and it is agreed that partnership assets of $195,000 will be used to pay Mary for her partnership interest. The balances of Jim's and Mike's Capital accounts after Mary's withdrawal would be 1) Jim, $450,000; Mike, $105,000. 2) Jim, $474,000; Mike, $111,000. 3) Jim, $426,000; Mike, $99,000. 4) Jim, $435,000; Mike, $90,000. Question 20 (5 points) Save If a partner with a capital deficiency is unable to pay the amount owed to the partnership, the deficiency is allocated to the partners with credit balances 1) equally. 2) on the basis of their income ratios. 3) on the basis of their capital balances. on the basis of their original 4) investments