Problems 1-20 have a value of 1. 0 mark per problem Problem 21 has a value of 10 marks-7 marks for accuracy, 3 mar ks for presentation of the Financial Statements 1. Of the following accounts, the one that normally has a credit balance is: A. Cash. B. Office Equipment C. Sales Salaries Payable. D. Ted Neal, Withdrawals. E. Sales Salaries Expense. 2. Withdrawals by the owner are shown on which financial statement(s) ? A. B. C. D. E. Balance Sheet Income Statement Statement of Changes in Owner Equity Both B & C All of the above 4. Tony Gauthier's Moving & Storage has a balance sheet that shows cash s 10,000, accounts receivable S 3,000, office equipment $ 6,000, accounts payable S 4,000, notes payable $ 4,000. What is the amount of owner equity A.$1,000 B. $11,000 C. $12,000 D. $15,000 E. $19,000 4. If a bulldozer is offered for sale at $ 54,000, is assessed for tax purposes at s 20,000, is recognized by its purchasers as easily being worth S 36,000, and is purchased for $ 43,000, the bulldozer should be recorded in the purchaser's books at: A. $20,000 B. $43,000 C. $36,000 D. $45,000 E. $54,000 5. From the following information as of December 31, 1999, determine the owner's equity: Liabilities Cash Office Supplies Buildings Owner Equity $ 8,000 $20,000 $ 12,000 S 15,000 ????22? (Fill in correct answer here: 6. Chantal Campbell opened an art gallery and during a short period as a dealer comp these transactions: (1) (2) Started the gallery, by investing $40,000 in cash and equipment with an $18,000 fair value. Purchased land valued at $25,000 and a small building valued at $110,000; paid $30,000 cash and signed a note payable, agreeing to pay the balance over a period of years. (3) Purchased office supplies on credit, $70. (4) Chantal contributed her personal automobile, which had a $8,900 fair value, for exclusive use in the business. (5) Paid the receptionist's salary, $800. Sold a painting for an artist and collected a $4,500 cash commission on the sale. (6) (7) Paid $650 cash for a magazine advertisement (8) Paid for the supplies purchased in transaction (3). (9) Purchased a new easel for the business, paying $500 cash (10) Completed an art appraisal and billed the client $200. (11) Chantal withdrew $1,200 from the business to pay personal expenses. (12) Received payment in full for the appraisal of transaction (10). What was the total of the debit balances shown in the trial balance prepared after these transactions were posted? A. $167,700. B. $176,600. C. $173,950. D. $152,300. E. Some other amount. 7. Which of the following is a contra account? A. Amortization Expense B. Prepaid Insurance C Accumulated Amortization D. Unearned Revenue E. None of the above A liability created by the receipt of cash from customers in payment for products or services that have not yet been delivered to the customers is: 8. A. Recorded as a debit to an unearned revenue account. B. Recorded as a debit to a prepaid expense account C. Recorded as a credit to an unearned revenue account. D. Recorded as a credit to a prepaid expense account E. Not recorded in the accounting records. 9. A credit entry A. Increases asset and expense accounts; decreases liability, owners equity, and revenue accounts. Is recorded on the right side of a T-account. Decreases asset and expense accounts; increases liability, owner's equity, and revenue accounts Is recorded on the left side of a T-account. Both b and c. B. C. D. E. 10. The book of original entry is the A. General Ledger B. Trial balance. C. General Journal. D. T-account. E. Balance sheet account. 11. The process of copying jounal information to the general ledger is A. B. C. D. E. Double entry accounting Posting Journalizing An external business transaction Adjusting the books 12. Eric's Bar&Grill, (Eric Broadbent, Owner), purchased an automobile that cost s 15,000, made a down payment of $ 4,000, and signed a note payable for the balance. Make the journal entry to record this transaction: Dr. 13. Susan's Pencil Sharpening Service has the following account balances at the end of January 1999: Cash Accounts Receivable $ 59,000 Accounts Payable $27,000 Fees Earned Rent Expense Insurance Expense S 4,600 Salaries Expense $28,000 Supplies Expense $25,000 Susan, Capital 59,600 Susan, Withdrawals 9,000 $ 32,000 $ 93,000 $ 22,000 If all the accounts have normal balances, what is the grand total in the trial balance? Enter amount here_ Andi's Accounting Center did not have any office supplies on hand at January 01, 2000. During the year 2000, Andi purchased $ 800 worth office supplies. On December 31, 2000, S 300 worth of office supplies remained. How much should Andi report as office supplies expense during 2000? 14. A. $ 800 B. $300 C. $ 175 D. $500 E. $125 The premium on a four year insurance policy purchased on May 31, 1999 was $ 14,400. Calculate the amount company's income statement for the year ended December 31, 1999, 15. of insurance expense that should be recorded on the A. 3,600 B. S 14,400 C. 2,100 D. $ 12,000 E. S2,400 Tylex company's balance sheet shows current assets $72,500, capital assets $122,000, current liabilities $46,500, long-term liabilities $84,000. What is value of the owner's capital account? 16. A. 10,000 B. 126,500 C. 64,000 D. 220,000 E. Some other amount 17. A business pays each of its two employees (Mutt&Jeff) each Friday at the rate of $ 100 each per day for a five-day week that begins on Monday. The accounting period ends on Tuesday, November 30, 1999, and both employees worked on both Monday, November 29 and Tuesday, November 30. Make the adjusting entry to accrue for the two days of salaries incurred but unrecorded and unpaid: Dr. 18. The next payday (see above) is on Friday, December 03, and you will actually be paying the two employees for the time worked for the whole week - Monday to Friday inclusive. Both employees worked all days of the week. Journalize the entry to record the December 03 payroll. (Assuming no reversing entries) Dr. Cr. 19. Which of the following statement is true regarding closing entries? A. To close revenue accounts, one should debit the Income Summary account, and B. To close expenses accounts, one should debit the expenses accounts, and credit C. To close Owner's withdrawals account, one should debit the Owner's Capital D. All of the above. credit the revenue accounts. the Income Summary account. account, and credit the Owner's withdrawals account