What is the proper adjusting entry at December 31, the end of the accounting period, if the balance in the prepaid insurance account is $7.750 before adjustment, and the unexpired amount per analysis of policies is, $3,250? O Debit Prepaid Insurance, $4,500: credit Insurance Expense, $4,500 O Debit Insurance Expense. $4.500 credit Prepaid Insurance, $4,500. O Debit Insurance Expense $7.750credit Prepaid Insurance, $7750. Debit Cash, $7,750: Credit Prepaid Insurance, $7750. O Debit Insurance Expense, $3,250, credit Prepaid Insurance, $3,250. Ad 42/2000 O t Type here to search a GARTY A company had net sales of $752,000 and cost of goods sold of $543,000. Its net income was $17.530. The company's gross margin ratio equals: O 34.7% O 24.5% O 27.8% O 35.2% O 18.9% 9:00 PM Type here to search P . Accumulated Depreciation and Service Fees Earned would be sorted to which respective columns in completing a work sheet? O Balance Sheet-Debit and Income Statement-Credit. O Balance Sheet-Debit and Balance Sheet-Credit. O Balance Sheet-Credit and Income Statement-Credit. O Balance Sheet Retained Earnings-Debit and Income Statement-Debit. O Income Statement-Debit and Income Statement-Credit. Type here to search Assuming unearned revenues are originally recorded in balance sheet accounts, the adjusting entry to record earning of unearned revenue is: O Decrease a liability, increase revenue. O Increase an expense; decrease an asset. O Increase an expense; decrease a liability. O Increase an expense; increase a liability O Increase an asset; increase revenue. 911 Type here to search A company had a gross profit of $300,000 based on sales of $400,000. Its cost of goods sold equals $700,000. O True O False Kype here to search delete backspace A company's current assets are $17,980, its quick assets are $11,420 and its current liabilities are $12,190. Its quick ratio equals: 1.57. 0.94 O O 1.48 O 2.40 01.07. Type here to search 789 PO.. On October 1, Goodwell Company rented warehouse space to a tenant for $2,500 per month and received $12,500 for five months' rent in advance on that date. The collection was credited to the Unearned Rent account. The company's annual accounting period ends on December 31. The Unearned Rent account balance at the end of December, after adjustment, should be: O $12,500. O $10,000 O $5,000 O $7,500 O $2,500 Type here to search The acid-test ratio is defined as current assets divided by current liabilities. O True O False Type here to search Which of the following is classified as current assets? O Land. O Patent O Office supplies. O Office equipment. O Unearned revenue. Type here to search Juniper Company, Inc. uses a perpetual inventory system. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30. On August 11, it returned $1,500 worth of merchandise. On August 16, it paid the full amount due. The correct journal entry to record the purchase on August 7 is: O Debit Merchandise Inventory $9,750; credit Accounts Payable $9.750. O Debit Merchandise Inventory $9,750; credit Cash $9750. O Debit Accounts Payable $9.750, credit Merchandise Inventory $9.750 O Debit Merchandise Inventory $9.750; credit Sales Returns $1,500, credit Cash $8,250. O Debit Accounts Payable $8,250: debit Purchase Returns $1.500, credit Merchandise Inventory $9,750. 912 Type here to search A company recorded 2 days of scored ones of $1400 for e ebruary Therary 31 and February jumaltese mployees on 0 131 Type here to search A company records the following Journal entry debit Cash $1470. debit Sales Discounts $30 and credit Accounts Receivable $1,500. This means that a customer has taken what percentage cash discount for early payment? O 2% O 15% O 1% O 10% A 42020 Type here to search + osvane ie Offering sales discounts on credit sales can benefit a seller by decreasing the delay in recelving cash and reducing future collections efforts. O True O False A 4 OM $ S Type here to watch A credit memorandum from a seller informs a buyer of the seller's credit to its Accounts Payable account arising from a sales return or allowance. O True O False Type here to search Purchase allowances refer to merchandise a buyer acquires but then returns to the seller. O True O False Type here to search O i Da On March 12, Klein Company, Inc. sold merchandise in the amount of $7,800 to Babson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. Klein uses the perpetual inventory system. On March 15, Babson returns some of the merchandise. The selling price of the merchandise is $600 and the cost of the merchandise returned is $350. Babson pays the invoice on March 20, and takes the appropriate discount. The amount that klein receives from Babson on March 20 is: O $7,644. O $7.056 O $7,044. O $7.200 O $7.800. Type here to search Revenue accounts are temporary accounts that should begin each accounting period with zero balances. O True O False Type here to search Tara Westmont, the stockholder of Tiptoe Shoes, Inc., had annual revenues of $185,000, expenses of $103,700, The company paid $18,000 cash in dividends to the owner (sole stockholder). The retained earnings account before closing hac a balance of $297,000. The entry to close the income Summary account at the end of the year, after revenue and expense accounts have been closed, is: O Debit Retained Earnings $297,000, credit Income Summary $297.000 O Debit Retained Earnings $63,300; credit Income Summary $63,300 O Debit Income Summary $63,300, credit Retained Earnings $63,300 O Debit Retained Earnings $81.300: credit Income Summary $81,300 O Debit Income Summary $81,300 credit Retained Earnings $81,300 Type here to search Tara Westmont, the stockholder of Tiptoe Shoes, Inc., had annual revenues of $185,000, expenses of $103,700, and the company paid $18,000 cash in dividends to the owner (sole stockholder). The retained earnings account before closing had a balance of $297,000. The ending retained earnings balance after closing is: O $63,300 O $81,300 O $378,300 O $360,300 O $185,000 Type here to search Using the following year-end information for Bauman, LLC, calculate the current ratio and acid-test ratio: Cash Short-term investments Accounts receivable Inventory Prepaid expenses Accounts payable Other current payables $48,000 12,000 45,000 225,000 12,500 86,500 22,000 03.16 and 1.21 O 3.04 and 1.21 O 3.16 and.97 03.01 and 1.21 O 1.09 and 4.77 Type here to search 14. Cash sales shorten the operating cycle for a merchandiser credit sales lengthen operating cycles. O True False Type here to search Prior to recording adjusting entries, the Office Supplies account had a $359 debit balance. A physical count of the supplies showed $105 of unused supplies available. The required adjusting entry is: O Debit Office Supplies $105 and credit Office Supplies Expense $105. O Debit Office Supplies Expense $254 and credit Office Supplies $254. O Debit Office Supplies Expense $105 and credit Office Supplies $105. O Debit Office Supplies $254 and credit Office Supplies Expense $254. O Debit Office Supplies $105 and credit Supplies Expense $254. @ 4 15 Type here to search A company purchases merchandise with a catalog price of $20,000. The company receives a 35% trade discount from the seller. The seller also offers credit terms of 2/10,n/30. Assuming no returns were made and that payment was made within the discount period, what is the net cost of the merchandise? $12,740. O O $6,860. $13,000. $13,720 $19,600 O Type here to search A debit to Sales Returns and Allowances and a credit to Accounts Receivable: O Recognizes that a customer returned merchandise and/or received an allowance. O Reflects an increase in amount due from a customer. O Requires a debit memorandum to recognize the customer's return. O Reflects a decrease in amount due to a supplier. O Is recorded when a customer takes a discount. Type here to search