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Question: Need help on accounting questions. These are 10 multiple choice questions, each with 5 different ...

Need help on accounting questions. These are 10 multiple choice questions, each with 5 different options: A, B, C, D, E. And if possible, a quick explantion for each.

Question 1:

The following information was taken from the 2011 income statement of Ultimate Sales: Pretax income, $12,000; Total operating expenses (not including income taxes), $21,000; Sales revenue, $120,000; Beginning inventory, $11,000; and Purchases, $90,000. Compute the amount of the ending inventory for the company:

A: None of the above

B: $12,000

C: $87,000

D: $16,000

E: $14,000

Question 2:

Choose whether chart of accounts would most likely be part of:

A: A mental accounting system

B: None of the others alternatives are correct

C: A manual accounting system

D: A computerized accounting system

E: All accounting systems

Question 3:

Choose whether preparation of the financial statements would most likely be part of:

A: A mental accounting system

B: All accounting systems

C: A computerized accounting system

D: None of the others alternatives are correct

E: A manual accounting system

Question 4:

Indicate which journal entry must be recorded for the following economic event on the exact day of the event: January 4th. Completed the purchase of an exquisite wood box fitted to carry and maintain intact the quality of tea leaves for $3,000. The box, which will be paid in full on January 5th 2017, will be used during 5 full years with no resale value at the end.

A: Dr Equipment $3,000 and Cr Equipment Payable $3,000 (non current liability)

B: Dr Equipment $3,000 and Cr Equipment Payable $3,000 (current liability)

C: None of the others alternatives are correct

D: Dr Equipment Expense $3,000 and Cr. Accounts Payable $3,000 (non current liability)

E: Dr Equipment Expense $3,000 and Cr. Accounts Payable $3,000 (current liability)

Question 5:

On September 1, 2015, Richard started a small business called "Ricky Rock Wrestling for Fun". "Ricky Rock" offers a party package designed for active kids, teen and adults that want to learn and practice wrestling activities for fun by learning how to perform headlocks, leg scissors and other tricks

The following transaction occurred during the first month of operations, please indicate how it should be recorded as a journal entry:

September 2| Purchase in cash costumes of famous wrestlers to wear at parties. The costumes can last 2 years.| $600

A: None of the others journal entries are correct, it is another journal entry

B: The economic event does not need a journal entry

C: Dr. Costumes 600 and Cr. Cash 600

D: Dr. Costumes 600 and Cr. Costumes Payable 600

E: Dr. Parties Supplies Expense 600 and Cr. Cash 600

Question 6:

On September 1, 2015, Richard started a small business called "Ricky Rock Wrestling for Fun". "Ricky Rock" offers a party package designed for active kids, teen and adults that want to learn and practice wrestling activities for fun by learning how to perform headlocks, leg scissors and other tricks.

The following transaction occurred during the first month of operations, please indicate how it should be recorded as a journal entry:

September 30| Richard pays to his parents a rent for using the car during September for business purposes and to go and come back from the gym.| $200

A: The economic event does not need a journal entry

B: Dr. Transportation Expense 200 and Cr. Transportation Payable 200

C: None of the others journal entries are correct, it is another journal entry

D: Dr. Transportation Expense 200 and Cr. Cash 200

E: Dr. Prepaid Transportation 200 and Cr. Cash 200

Question 7:

Indicate which journal entry must be recorded for the following economic event on the exact day of the event: January 15th. Hired a carpenter to improve the look of her exquisite wood box (this will not change the value or the useful life of the box). The work is completed and Johanna paid $300 on January 20th and promised to pay the rest ($700) on February 20th.

A: Dr Equipment Expense and Cr. Cash $300 Cr. Accounts Payable $700

B: None of the others alternatives are correct

C: Dr Equipment $1,000 Cr .Cash $300 Cr Equipment Payable $700

D: Dr Equipment Expense and Cr. Accounts Payable $1,000

E: Dr Equipment $1,000 Cr Equipment Payable $1,000

On September 1, 2015, Richard started a small business called "Ricky Rock Wrestling for Fun". "Ricky Rock" offers a party package designed for active kids, teen and adults that want to learn and practice wrestling activities for fun by learning how to perform headlocks, leg scissors and other tricks.

Question 8:

The following transaction occurred during the first month of operations, please indicate how it should be recorded as a journal entry:

September 24| Telephone bill for $150 was received for the month of September - payment due October 5th| $150

A: The economic event does not need a journal entry

B: Dr. Prepaid Phone 150 and Cr. Cash 150

C: Dr. Prepaid Phone 150 and Cr. Phone Expense 150

D: None of the others journal entries are correct, it is another journal entry

E: Dr. Prepaid Phone 150 and Cr. Phone Payable 150