Multiple Choice Question 87 A petty cash fund of $160 is replenished when the fund contains $7 in cash and receipts for $150. The entry to replenish the fund would O credit Miscellaneous Revenue for $3. O debit Miscellaneous Expense for $3. O credit Cash Over and Short for $3. O debit Cash Over and Short for $3. Multiple Choice Question 110 In preparing its bank reconciliation for the month of April 2020, Sunland, Inc. has available the following information. Balance per bank statement, 4/30/20 NSF check returned with 4/30/20 bank statement Deposits in transit, 4/30/20 Outstanding checks, 4/30/20 Bank service charges for April $78000 900 10100 10700 50 What should be the adjusted cash balance at April 30, 2020? $77400. $76500 $77420. $77050 Multiple Choice Question 57 Swifty sells softball equipment. On November 14, they shipped $2910 worth of softball uniforms to Bonita Middle School, terms 2/10, n/30. On November 21, they received an order from Vista High School for $1590 worth of custom printed bats to be produced in December. On November 30, Bonita Middle School returned $260 of defective merchandise. Swifty has received no payments from either school as of month end. What amount will be recognized as net accounts receivable on the balance sheet as of November 30? $2650 $4500 $2910 $4240 Multiple Choice Question 84 Swifty Company uses the percentage of sales method for recording bad debts expense. For the year, cash sales are $605000 and credit sales are $2660000. Management estimates that 4% is the sales percentage to use. What adjusting entry will Swifty Company make to record the bad debts expense? 106400 Bad Debt Expense Accounts Receivable 106400 O 24200 Bad Debt Expense Allowance for Doubtful Accounts 24200 24200 Bad Debt Expense Accounts Receivable 24200 106400 Bad Debt Expense Allowance for Doubtful Accounts 106400 Multiple Choice Question 88 An aging of a company's accounts receivable indicates that $4970 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $950 credit balance, the adjustment to record bad debts for the period will require a 0 credit to Allowance for Doubtful Accounts for $4970. cm O debit to Bad Debt Expense for $4970. O debit to Allowance for Doubtful Accounts for $4020. O debit to Bad Debt Expense for $4020. Multiple Choice Question 86 Equipment was purchased for $309000. Freight charges amounted to $14100 and there was a cost of $39500 for building a foundation and installing the equipment. It is estimated that the equipment will have a $59900 salvage value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be $72520. $60540. $49820. $51080. Multiple Choice Question 91 A company purchased factory equipment for $700000. It is estimated that the equipment will have a $66000 salvage value at the end of its estimated 5-year useful life. If the company uses the double-declining-balance method of depreciation, the amount of annual depreciation recorded for the second year after purchase would be O $120960. $280000. $168000. $253600. O Multiple Choice Question 91 A company purchased factory equipment for $700000. It is estimated that the equipment will have a $66000 salvage value at the end of its estimated 5-year useful life. If the company uses the double-declining-balance method of depreciation, the amount of annual depreciation recorded for the second year after purchase would be O $120960. $280000. $168000. $253600. O Multiple Choice Question 94 A factory machine was purchased for $376000 on January 1, 2021. It was estimated that it would have a $72000 salvage value at the end of its 5-year useful life. It was also estimated that the machine would be run 32000 hours in the 5 years. The company ran the machine for 4200 actual hours in 2021. If the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2021 would be O $49350. O $79800 $72000. $39900. Multiple Choice Question 94 A factory machine was purchased for $376000 on January 1, 2021. It was estimated that it would have a $72000 salvage value at the end of its 5-year useful life. It was also estimated that the machine would be run 32000 hours in the 5 years. The company ran the machine for 4200 actual hours in 2021. If the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2021 would be O $49350. O $79800 $72000. $39900. Multiple Choice Question 90 A cash register tape shows cash sales of $3420 and sales taxes of $190. The journal entry to record this information is Cash 3610 Sales Tax Revenue 190 Sales Revenue 3420 O Cash 3610 Sales Revenue 3610 3610 Cash Sales Revenue Sales Taxes Payable 3420 190 Cash Sales Tax Expense Sales Revenue 3420 190 3610 Multiple Choice Question 94 Coronado Foodie Company typically sells subscriptions on an annual basis, and publishes six times a year. The magazine sells 100000 subscriptions in January at $15 each. What entry is made in January to record the sale of the subscriptions? 1500000 1500000 Subscriptions Receivable Subscription Revenue Subscriptions Receivable Unearned Subscription Revenue O 250000 250000 Prepaid Subscriptions Cash 1500000 1500000 Cash 1500000 Unearned Subscription Revenue 1500000 Multiple Choice Question 94 Coronado Foodie Company typically sells subscriptions on an annual basis, and publishes six times a year. The magazine sells 100000 subscriptions in January at $15 each. What entry is made in January to record the sale of the subscriptions? 1500000 1500000 Subscriptions Receivable Subscription Revenue Subscriptions Receivable Unearned Subscription Revenue O 250000 250000 Prepaid Subscriptions Cash 1500000 1500000 Cash 1500000 Unearned Subscription Revenue 1500000 Multiple Choice Question 101 Vaughn Navigation began operations in 2020 and provides a one year warranty on the products it sells. They estimate that 19500 of the 400000 units sold in 2020 will be returned for repairs and that these repairs will cost $6 per unit. The cost of repairing 15600 units presented for service in 2020 was $93600. Vaughn should report O no warranty obligation on December 31, 2020, since this is only a contingent liability. O warranty expense of $93600 for 2020. O warranty liability of $117000 on December 31, 2020. O warranty expense of $23400 for 2020. Multiple Choice Question 93 Jon Winek started the year with a capital balance of $134800. During the year, his share of partnership net income was $119500 and he withdrew $23100 from the partnership for personal use. He made an additional capital contribution of $38300 during the year. The amount of Jon Winek's capital balance that will be reported on the year-end balance sheet will be $231200. O $269500. $119500. $292600. Multiple Choice Question 94 The Partners' Capital Statement for TSB Company reported the following information in total: Capital, January 1 Additional investment Drawings Net income $250000 79000 156000 200000 The partnership has three partners: Toub, Sauls, and Birch with ending capital balances in a ratio 40:20:40. What are the respective ending balances of the three partners? O Toub, $149200: Sauls, $74600; Birch, $149200. Toub, $180000; Sauls, $90000; Birch, $180000. O Toub, $162400; Sauls, $81200; Birch, $162400. O Toub, $274000; Sauls, $137000; Birch, $274000. Multiple Choice Question 102 Partners Ana, Beth, and Cathy have capital account balances of $84000 each. The income and loss ratio is 5:2:3, respectively. In the process of liquidating the partnership, noncash assets with a book value of $65400 are sold for $29100. The balance of Beth's Capital account after the sale is $66708. $92730. $76740. O $64380. Multiple Choice Question 70 Concord's Market recorded the following events involving a recent purchase of merchandise: Received goods for $47000, terms 1/10, n/30. Returned $900 of the shipment for credit. Paid $300 freight on the shipment. Paid the invoice within the discount period. As a result of these events, the company's inventory increased by $45939. increased by $46400. increased by $45935. o increased by $45639. Multiple Choice Question 78 An adjusting entry affects a balance sheet account and an income statement account. O affects two income statement accounts. O is always a compound entry. affects two balance sheet accounts. Multiple Choice Question 82 Adjusting entries are O made whenever management desires to change an account balance. made to balance sheet accounts only. usually required before financial statements are prepared. not necessary if the accounting system is operating properly