Question 1

Which of these transactions would produce $10,000 of revenue in December? (check all that apply)

BOC delivered $10,000 of goods in December to customers that ordered them and have 30 days to pay for them.

BOC collected $10,000 of cash in December from customers who received goods in November.

BOC signed a contract to deliver $10,000 of goods to a customer in January.

BOC delivered $10,000 of goods in December to a customer that paid a $10,000 cash deposit in November.

BOC collected a $10,000 deposit in December for goods it will ship in January.

Question 2

Which of these transactions would produce $10,000 of expenses in December? (check all that apply)

BOC pays its advertising agency $10,000 in December for ads that ran in December.

BOC pays its auditor $12,000 in December for all of the work the auditor performed during the year.

BOC pays $10,000 in cash dividends in December.

BOC receives a $10,000 invoice from its lawyers for services performed in December. The bill is due in January.

BOC hires a new COO in December to start work in January. The COO will be paid $10,000 per month.

Question 3

Which journal entry reflects the following transaction?:

BOC receives a $2,000 cash deposit from a customer for custom goods that will be delivered next year.

Dr. Deposits 2,000

Cr. Future Revenue 2,000

Dr. Cash 2,000

Cr. Revenue 2,000

Dr. Advances from Customers 2,000

Cr. Cash 2,000

Dr. Cash 2,000

Cr. Advances from Customers 2,000

Dr. Cash 2,000

Cr. Inventory 2,000

Question 4

Which journal entry(s) reflects the following transaction?:

BOC received $10,000 of cash from a customer who took delivery of goods that originally cost BOC $8,000 to acquire.

Dr. Cash 10,000

Cr. Revenue 10,000

Dr. Cost of Goods Sold 8,000

Cr. Inventory 8,000

Dr. Cash 10,000

Cr. Revenue 10,000

Dr. Accounts Payable 8,000

Cr. Inventory 8,000

Dr. Cash 10,000

Cr. Inventory 10,000

Dr. Cash 10,000

Cr. Revenue 10,000

Dr. Cash 10,000

Cr. Inventory 8,000

Cr. Revenue 2,000

Question 5

How much quarterly depreciation expense would be recognized for a building that originally cost $100,000 and has an estimated useful life of 10 years with a $20,000 salvage value?

$2,500

$2,000

$8,000

$1,000

$10,000

Question 6

Which journal entry reflects the adjusting entry needed on December 31?:

It is December 31, the end of the fiscal year. During December, employees earned $800,000 in salaries, but paychecks do not get issued until January 2.

No entry is needed.

Dr. Salary Expense 800,000

Cr. Salaries Payable 800,000

Dr. Salary Expense 800,000

Cr. Cash 800,000

Dr. Cash 800,000

Cr. Salaries Payable 800,000

Dr. Salaries Payable 800,000

Cr. Cash 800,000

Question 7

Which journal entry reflects the adjusting entry needed on December 31?:

Last year, BOC purchased a building for $1,000,000. The expected life of the building is 20 years and its expected salvage value is $200,000. Now, it is December 31, the end of the fiscal year. No other entries were recorded for this building during the year.

No entry needed. The building was not purchased this year.

Dr. Depreciation Expense 50,000

Cr. Building 50,000

Dr. Depreciation Expense 50,000

Cr. Accumulated Depreciation 50,000

Dr. Depreciation Expense 40,000

Cr. Building 40,000

Dr. Depreciation Expense 40,000

Cr. Accumulated Depreciation 40,000

Question 8

Which journal entry reflects the adjusting entry needed on December 31?:

In November, BOC received a $5,000 cash deposit from a customer for custom-build goods that will be delivered in January (BOC recorded an entry for this $5,000 in November). Now, it is December 31, the end of the fiscal year.

Dr. Unearned Revenue 5,000

Cr. Inventory 5,000

No entry needed.

Dr. Cash 5,000

Cr. Revenue 5,000

Dr. Advances from Customers 5,000

Cr. Revenue 5,000

Dr. Unearned Revenue 5,000

Cr. Revenue 5,000

Question 9

Which item would not appear on the Income Statement?

Dividends

Operating Income

Pre-tax Income

Gross Profit

SG&A Expense

Question 10

Which of the following are permanent accounts? (check all that apply)

Cost of Goods Sold

Unearned Revenue

Common Stock

Revenue

Retained Earnings