ACCT 211 Quiz 1 Accounting in Business Assignments and Adjusting Accounts solutions complete answers

ACCT 211 Quiz 1 Accounting in Business Assignments and Adjusting Accounts solutions complete answers 

 

If equity is $399,000 and liabilities are $184,000, then assets equal:

 

If Dallas Company billed a client for $20,000 of consulting work completed, the accounts receivable asset increases by $20,000 and:

 

Lito Company had cash inflows from operating activities of $29,000; cash outflows from investing activities of $24,000, and cash outflows from financing activities of $14,000. Calculate the net increase or decrease in cash.

 

A company opened on January 1 of the current year. During January, the following transactions occurred and were recorded in the company’s books:

The company received $14,500 cash for services provided.
The company paid $3,100 cash for an insurance policy covering the next 24 months.
The company received $6,700 cash for services provided.
The company purchased $7,200 of office equipment on credit.
The company provided $3,750 of services to customers on account.
The company paid cash of $2,500 for monthly rent.
The company paid $4,100 on the office equipment purchased in transaction #5 above.
Paid $375 cash for January utilities.
Based on this information, the balance in the cash account at the end of January would be:

 

During the month of February, Rubio Services had cash receipts of $8,200 and cash payments of $10,000. The February 28 cash balance was $3,200. What was the February 1 beginning cash balance?

 

Jennings Company has total assets of $447 million. Its total liabilities are $121.5 million. Its equity is $325.5 million. Calculate the debt ratio. (Round your answer to 1 decimal place.)

 

GreenLawn Company provides landscaping services to clients. On May 1, a customer paid GreenLawn $64,000 for 6-months services in advance. GreenLawn’s general journal entry to record this transaction will include a:

 

Alicia Tax Services paid $640 to settle an account payable. Which of the following general journal entries will Alicia Tax Services make to record this transaction?

 

On January 1 of the current year, Jimmy’s Sandwich Company reported total equity of $125,000. During the current year, total revenues were $100,000, while total expenses were $109,500. No other changes in equity occurred during the year. The change in total equity during the year was:

 

Adriana Graphic Design receives $2,050 from a client billed in a previous month for services provided. Which of the following general journal entries will Adriana Graphic Design make to record this transaction?

 

Jennings Company has total assets of $435 million. Its total liabilities are $115.5 million. Its equity is $319.5 million. Calculate the debt ratio. (Round your answer to 1 decimal place.)

 

At year-end, a trial balance showed total credits exceeding total debits by $5,150. This difference could have been caused by:

 

A company had the following accounts and balances at December 31:

Account
Debit
Credit
Cash
$ 11,500
 
Accounts Receivable
2,300
 
Prepaid Insurance
3,000
 
Supplies
1,300
 
Accounts Payable
 
$ 5,750
Total Equity
 
5,800
Service Revenue
 
8,500
Salaries Expense
650
 
Utilities Expense
1,300
 
Totals
$ 20,050
$ 20,050
Using the information in the table, calculate the company's reported net income for the period.

 

The following transactions occurred during July:

Received $900 cash for services provided to a customer during July.
Collected $2,200 cash for services previously completed in June.
Received $750 from a customer in partial payment of his account receivable which arose from sales in June.
Provided services to a customer on credit, $375.
Borrowed $6,000 from the bank by signing a promissory note.
Received $1,250 cash from a customer for services to be performed next year.
What was the amount of revenue for July?

 

The collection of all accounts and their balances is called a(n):

 

Which of the following statements about the debt ratio is false?

 

Identify the account below that is classified as a liability in a company’s chart of accounts:

 

The credit purchase of a new oven for $4,700 was posted to Kitchen Equipment as a $4,700 debit and to Accounts Payable as a $4,700 debit. What effect would this error have on the trial balance?

 

Which of the following is not classified as a liability?

 

Billington Corporation borrows $80,000 cash from U.S. Bank. How does this transaction affect the accounting equation?

 

Which of the following is not true regarding ethics:

 

A company purchased a truck. The seller asked for $22,000, but the company paid only $20,000 after negotiation. The owner of the company believes he got a great deal, and the truck is really worth $30,000. What amount should the company record on its financial statements for the truck?

 

Adjusting entries:

 

The recurring steps performed each reporting period in preparing financial statements, starting with analyzing and recording transactions in the journal and continuing through preparing the post-closing trial balance, is referred to as the:

 

Which of the following is the usual final step in the accounting cycle?

 

Which of the following is a permanent account?

 

The Retained earnings account has a credit balance of $31,450 before closing entries are made. If total revenues for the period are $97,700, total expenses are $72,100, and dividends are $16,650, what is the ending balance in the Retained earnings account after all closing entries are made?

 

For the year ended December 31, a company had services revenue of $198,000 and wages expense of $118,800. Dividends of $39,600 were paid during the year. Which of the following entries could not be a closing entry?

 

For the year ended December 31, a company has revenues of $321,000 and expenses of $198,000. The company paid $51,600 in dividends during the year. The balance in the Retained earnings account before closing is $85,000. Which of the following entries would be used to close the dividends account?

 

On January 1, a company purchased new furniture at a cost of $26,000. The furniture is estimated to have a useful life of 5 years and a salvage value of $3,200. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the furniture for the first year ended December 31?

 

Question 
Alicia Tax Services paid $630 to settle an account payable. Which of the following general journal entries will Alicia Tax Services make to record this transaction?
 

Question 
Jose Consulting paid $820 cash for utilities for the current month. Determine the general journal entry that Jose Consulting will make to record this transaction.
 

Question 
Green Cleaning purchased $590 of office supplies on credit. The company’s policy is to initially record prepaid and unearned items in balance sheet accounts. Which of the following general journal entries will Green Cleaning make to record this transaction?
 

Question 
On January 1 of the current year, Jimmy's Sandwich Company reported total stockholders’ equity of $132,500. During the current year, total revenues were $115,000 while total expenses were $104,500. Also, during the current year the company paid $39,000 in dividends. No other changes in equity occurred during the year. The change in total equity during the year was:
 

Question 
GreenLawn Co. provides landscaping services to clients. On May 1, a customer paid GreenLawn $84,000 for 6-months services in advance. GreenLawn’s general journal entry to record this transaction will include a:
 

Question 
Jennings Co. has total assets of $461.0 million. Its total liabilities are $128.5 million. Its equity is $332 million. Calculate the debt ratio. (Round your answer to 1 decimal place.)
 

Question 
Centurion Co. had the following accounts and balances at December 31:
 

Using the information in the table, calculate the company's reported net income for the period.

 

Question 
Use the information in the adjusted trial balance presented below to calculate the current ratio for Wicked Wicker Company:
 

Question 
Use the information in the adjusted trial balance presented below to calculate current assets for Wicked Wicker Company:
 

Question 
Prior to recording adjusting entries, the Office Supplies account had a $390 debit balance. A physical count of the supplies showed $97 of unused supplies available. The required adjusting entry is:
 

Question 
Castillo Services paid K. Castillo, the sole shareholder of Castillo Services, $6,700 in dividends during the current year. The entry to close the dividends account at the end of the year is:
 

Question 
A company's ledger accounts and their end-of-period balances before closing entries are posted are shown below. What amount will be posted to Retained earnings in the process of closing the Income Summary account? (Assume all accounts have normal balances.)
 

Question 
Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act (or Dodd-Frank). Which of the following are two of the important provisions of Dodd-Frank?
 

Question 
The revenue recognition principle: 
 

Question 
Charlie's Chocolates' had stock issuances of $90,000 and dividends of $40,000. The company has revenues of $123,000 and expenses of $84,000. Calculate its net income.
 

Question 
Chase Company rents space to a tenant for $2,200 per month. The tenant currently owes rent for November and December. The tenant has agreed to pay the November, December, and January rents in full on January 15 and has agreed not to fall behind again. The adjusting entry needed on December 31 is:
 

Question 1
Use the following information for Meeker Corp. to determine the amount of equity to report.
 
Question 2
Arrow's net income of $118 million and average assets of $1,500 million results in a return on assets of 7.87%.
 
Question 3
If a company is considering the purchase of a parcel of land that was acquired by the seller for $101,000, is offered for sale at $182,000, is assessed for tax purposes at $111,000, is recognized by the purchaser as easily being worth $172,000, and is purchased for $169,000, the land should be recorded in the purchaser's books at:
 
Question 4
If a company purchases equipment costing $4,400 on credit, the effect on the accounting equation would be:
 
Question 5
Zippy had cash inflows from operations $78,500; cash outflows from investing activities of $63,000; and cash inflows from financing of $41,000. The net change in cash was:
 
Question 6
Gi Gi's Dance Studio provided $300 of dance instruction and rented out its dance studio to the same client for another $175. The client paid immediately. Identify the general journal entry below that Gi Gi's will make to record the transaction.
 
Question 7
On January 1 of the current year, Jimmy's Sandwich Company reported stockholders’ equity totaling $127,500. During the current year, total revenues were $105,000 while total expenses were $94,500. Also, during the current year paid $29,000 in cash dividends. No other changes in equity occurred during the year. If, on December 31 of the current year, total assets are $205,000, the change in total stockholders’ equity during the year was:
 
Question 8
On April 30, Victor Services had an Accounts Receivable balance of $32,300. During the month of May, total credits to Accounts Receivable were $67,600 from customer payments. The May 31 Accounts Receivable balance was $26,000. What was the amount of credit sales during May?
 
Question 9
A $28 credit to Sales was posted as a $280 credit. By what amount is the Sales account in error?
 
Question 10
On May 31, the Cash account of Bottle's R US had a normal balance of $5,300. During May, the account was debited for a total of $12,500 and credited for a total of $11,800. What was the balance in the Cash account at the beginning of May?
 
Question 11
Gi Gi's Bakery has total assets of $451 million. Its total liabilities are $123 million. Its equity is $328 million. Calculate the debt ratio.
 
Question 12
At year-end, a trial balance showed total credits exceeding total debits by $5,100. This difference could have been caused by:
 
Question 13
At the end of its first month of operations, Michael's Consulting Services reported net income of $32,500. They also had account balances of: Cash, $23,000; Office Supplies, $3,250 and Accounts Receivable $12,500. The sole stockholder’s total investment in exchange for common stock for this first month was $6,250. There were no dividends in the first month.
 
Question 14
A company earned $3,645 in net income for October. Its net sales for October were $13,500. Its profit margin is:
 
Question 15
If a company has current assets of $15,600 and current liabilities of $10,400. Its current ratio is 1.5.
 
Question 16
Use the information in the adjusted trial balance presented below to calculate current assets for Taron Company:
 
Question 17
Sanborn Company has 10 employees, who earn a total of $3,800 in salaries each working day. They are paid on Monday for the five-day workweek ending on the previous Friday. Assume that year ended on December 31 which is a Wednesday and all employees will be paid salaries for five full days on the following Monday. The adjusting entry needed on December 31 is:
 
Question 18
A company pays each of its two office employees each Friday at the rate of $130 per day for a five-day week that begins on Monday. If the monthly accounting period ends on Tuesday and the employees worked on both Monday and Tuesday, the month-end adjusting entry to record the salaries earned but unpaid is:
 
Question 19
The correct adjusting entry for accrued and unpaid employee salaries of $8,200 on December 31 is:
 
Question 20
After preparing and posting the closing entries for revenues and expenses, the income summary account has a debit balance of $30,000. The entry to close the income summary account will be:
 
Question 21
Tiptoe Shoes had annual revenues of $197,000, expenses of $109,700, and dividends of $22,800 during the current year. The retained earnings account before closing had a balance of $309,000. The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is:
 
Question 22
Temporary accounts include all of the following except:
 
Question 23
The following information is available from the adjusted trial balance of the Harris Vacation Rental Agency. After closing entries are posted, what will be the balance in the Retained earnings account?
 
Question 24
The total amount of depreciation recorded against an asset over the entire time the asset has been owned:
 
Question 25
On January 1 of the current year, Jimmy’s Sandwich Company reported stockholders’ equity totaling $122,500. During the current year, total revenues were $96,000 while total expenses were $85,500. Also, during the current year paid $20,000 in cash dividends. No other changes in equity occurred during the year. If, on December 31 of the current year, total assets are $196,000, the change in total stockholders’ equity during the year was:
 
Question 26
An account used to record stockholders’ investments in a business is called a(n):
 
Question 27
A simple tool that is widely used in accounting to represent a ledger account and to understand how debits and credits affect an account balance is called a:
 
Question 28
Which of the following accounts is not included in the liability section of the balance sheet?
 
Question 29
If a company purchases equipment costing $4,500 on credit, the effect on the accounting equation would be:
 
Question 30
Ethical behavior requires that:
 

Question 
If the liabilities of a company increased $92,000 during a period of time and equity in the company decreased $28,000 during the same period, what was the effect on the assets?
 
Question 
Speedy has net income of $34,955, and assets at the beginning of the year of $216,000. Assets at the end of the year total $262,000. Compute its return on assets.
 
Question 
A company's balance sheet shows: cash $41,000, accounts receivable $47,000, equipment $84,000, and equity $89,000. What is the amount of liabilities?
 
Question 
Zapper has beginning equity of $277,000, net income of $61,000, dividends of $50,000 and stockholder investments of $16,000. Its ending equity is:
 
Question 
During the month of March, Harley's Computer Services made purchases on account totaling $45,300. Also during the month of March, Harley was paid $10,700 by a customer for services to be provided in the future and paid $37,800 of cash on its accounts payable balance. If the balance in the accounts payable account at the beginning of March was $78,200, what is the balance in accounts payable at the end of March?
 
Question 
At the beginning of January of the current year, Little Mikey's Catering ledger reflected a normal balance of $62,000 for accounts receivable. During January, the company collected $16,800 from customers on account and provided additional services to customers on account totaling $13,500. Additionally, during January one customer paid Mikey $6,000 for services to be provided in the future. At the end of January, the balance in the accounts receivable account should be:
 
Question 
A bookkeeper has debited an asset account for $6,900 and credited a liability account for $3,700. Which of the following would be an incorrect way to complete the recording of this transaction:
 
Question 
Smiles Entertainment had the following accounts and balances at December 31:
 
Using the information in the table, calculate the company's reported net income for the period.
 
Question 
On July 1, a company paid the $5,880 premium on a one-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the first year ended December 31?
 
Question 
On October 1, Goodwell Company rented warehouse space to a tenant for $2,800 per month and received $14,000 for five months’ rent in advance on that date, with the lease beginning immediately. The cash receipt 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:
 
Question 
On January 1, a company purchased a five-year insurance policy for $2,100 with coverage starting immediately. If the purchase was recorded in the Prepaid Insurance account, and the company records adjustments only at year-end, the adjusting entry at the end of the first year is:
 
Question 
Canopy Services paid K. Canopy, the sole shareholder of Canopy Services, $5,100 in dividends during the current year. The entry to close the dividends account at the end of the year is:
 
Question 
The following information is available for the Noir Detective Agency. After closing entries are posted, what will be the balance in the Retained earnings account?
 
Question 
Sanborn Company rents space to a tenant for $2,200 per month. The tenant currently owes rent for November and December. The tenant has agreed to pay the November, December, and January rents in full on January 15 and has agreed not to fall behind again. The adjusting entry needed on December 31 is:
 
Question 
Which of the following accounts could not be classified as a current liability?
 
Question 
While in the process of posting from the journal to the ledger, a company failed to post a $500 debit to the Equipment account. The effect of this error will be that:
 
Question 
The numbering system used in a company's chart of accounts:
 
Question 
A credit entry:
 
Question 
All of the following are true regarding ethics except:
 
Question 
The conceptual framework that the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are attempting to converge and enhance includes the following broad areas to guide standard setting except:
 
Question 
The statement of cash flows reports all of the following except: