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LNDN$11010-$ Internat Corporate Reporting $2023/24$ T$1$

LNDN$11010-$ Internat Corporate Reporting $2023/24$ T$1$

$2$ of $42$ of $4$ Items

$29$:$42$

Question $1$

In Gentry Company, land decreased $$360,000$ because of a cash sale for $$360,000,$ the equipment account increased $$80,000$ as a result of a cash purchase, and Bonds Payable increased $$260,000$ from issuance for cash at face value. The net cash provided by investing activities is

Responses

$$260,000.$

$$260,000.$

$$360,000.$

$$360,000.$

$$540,000.$

$$540,000.$

$$280,000.$

$$280,000.$

Question $2$

McDonagal Inc. sold ordinary shares for $2,200,000.$ This transaction will increase

Responses

Cash and increase Retained Earnings by $2,200,000.$

Cash and increase Retained Earnings by $2,200,000.$

Service Revenue and increase Share Capital by $2,200,000.$

Service Revenue and increase Share Capital by $2,200,000.$

Cash and increase Share Capital by $2,200,000.$

Cash and increase Share Capital by $2,200,000.$

Service Revenue and increase Cash by $2,200,000.$

Service Revenue and increase Cash by $2,200,000.$

Question $3$

On June $6,$ Wing Wah Inc. purchased supplies on account for HK$$80,000.$ On June $30,$ the company paid half of the balance due. The June $30$ payment will

Responses

decrease Cash and decrease Accounts Payable by HK$$40,000.$

decrease Cash and decrease Accounts Payable by HK$$40,000.$

increase Cash and decrease Accounts Receivable by HK$$40,000.$

increase Cash and decrease Accounts Receivable by HK$$40,000.$

decrease Cash and increase Supplies Expense by HK$ $80,000.$

decrease Cash and increase Supplies Expense by HK$ $80,000.$

decrease Supplies and increase Supplies Expense by HK$$40,000.$

decrease Supplies and increase Supplies Expense by HK$$40,000.$

Question $4$

Which of the following errors would cause a trial balance not to balance?

$1.$ An error in the addition in the cash account

$2.$ Failure to record a transaction at all

$3.$ Cost of motor vehicle debited to motor expenses. The cash entry was correctly made.

$4.$ Goods taken by the proprietor of a business recorded by debiting purchases and crediting drawing account.

Responses

$3$ and $4$ only

$3$ and $4$ only

$2$ and $3$ only

$2$ and $3$ only

$1$ only

$1$ only

All four items

All four items

Question $5$

At October $1,2017,$ Padilla Industries had an accounts payable balance of $90,000.$ During the month, the company made purchases on account of $75,000$ and made payments on account of $120,000.$ At October $31,2017,$ the accounts payable balance is

Responses

$45,000$

$45,000$

$90,000$

$90,000$

$120,000$

$120,000$

$30,000$

$30,000$

Question $6$

On January $11,2017,$ Britannica Corporation sold ordinary shares to investors for $6,550,000.$ This transaction will increase assets and

Responses

increase equity by $6,550,000.$

increase equity by $6,550,000.$

increase revenues by $6,550,000.$

increase revenues by $6,550,000.$

decrease liabilities by $6,550,000.$

decrease liabilities by $6,550,000.$

decrease equity by $6,550,000.$

decrease equity by $6,550,000.$

Question $7$

As of December $31,2017,$ Lojas Company reported assets of R$$9,250,000,$ liabilities of R$$2,750,000,$ share capital of R$$2,475,000$ and retained earnings of R$$4,025,000.$ Total equity reported on the statement of financial position as of that date is

Responses

R$$4,025000.$

R$$4,025000.$

R$$2,475\mathrm{.}000.$

R$$2,475\mathrm{.}000.$

R$$6,500000.$

R$$6,500000.$

R$$1,550,000.$

R$$1,550,000.$

Question $8$

As of December $31,2017,$ Oxford$-$Welsh Inc. had assets of $9,780,000,$ liabilities of $2,970,000,$ and share capital of $4,230,000.$ Retained earnings as of that date are

Responses

$6,810,000.$

$6,810,000.$

$7,200,000.$

$7,200,000.$

$5,550,000.$

$5,550,000.$

$2,580,000.$

$2,580,000.$

Question $9$

Bush Enterprise purchased a machine for $120,000$ on $1$ October $2023.$ The expected useful life of the machine is four years, with a residual value of $4,000.$ Bush Enterprise uses the straight line method of depreciation and charges depreciation on a monthly basis.

What is the charge for depreciation for the year ended $31$ December $2023?$

Responses

$7,500$

$7,500$

$30,000$

$30,000$

$7,250$

$7,250$

$29,000$

$29,000$

Question $10$

Two types of common errors in bookkeeping are errors of principle and errors of transposition. In the trial balance.

Responses

errors of principle will not be revealed; Errors of transposition will revealed

errors of principle will not be revealed; Errors of transposition will revealed

errors of principle will not be revealed; Errors of transposition will not be revealed

errors of principle will not be revealed; Errors of transposition will not be revealed

errors of principle will be revealed; Errors of transposition will be revealed

errors of principle will be revealed; Errors of transposition will be revealed

errors of principle will be revealed; Errors of transposition will not be revealed

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