Reference no: EM131139555

Question 1

A check drawn by a Elli Catering Services for $180 in payment of a liability was recorded in the journal as $810This item would be included on the bank reconciliation as a(n)

deduction from the balance per Elli's records
deduction from the balance per the bank statement
addition to the balance per the bank statement
addition to the balance per Elli's records

Question 2

Morgana Film Editing LLC's bookkeeper records receipts from cash sales of $9,500 incorrectly in the cash receipts journal as $5,900This item would be included on the bank reconciliation as a(n)

deduction from the balance per Morgana's records
addition to the balance per bank statement
deduction from the balance per bank statement
addition to the balance per Morgana's records

Question 3

Allowance for Doubtful Accounts has a credit balance of $800 at the end of the year (before adjustment), and an analysis of accounts in the customers' AR subsidiary ledger of Trang&Company CPA's indicates doubtful accounts of $15,000. Which of the following entries records the proper provision for doubtful accounts?

debit Uncollectible Accounts Expense, $800; credit Allowance for Doubtful Accounts, $800
debit Uncollectible Accounts Expense, $14,200; credit Allowance for Doubtful Accounts, $14,200
debit Allowance for Doubtful Accounts, $800; credit Uncollectible Accounts Expense, $800
debit Allowance for Doubtful Accounts, $15,800; credit Uncollectible Accounts Expense, $15,800

Question 4

Brielle Mortgage Services has in its Allowance for Doubtful Account a debit balance of $500 at the end of the year (before adjustment), and uncollectible accounts expense is estimated at 3% of net salesIf net sales are $600,000, the amount of the adjusting entry to record the provision for doubtful accounts by Brielle is

None of the above
$18500
$18000
$17500

Question 5

Brielle Mortgage Services adjusts and closes at the end of the fiscal year resulting in a balance of $450,000 in their Accounts Receivable and Allowance for Doubtful Accounts has a balance of $25,000. What is the net realizable value of the accounts receivable for Brielle?

$25000
$425000
$450000
$455000

Question 6

Chesapeake Foods has a 60-day, 10% note for $8,000, dated April 15,that it has received from a customer on accountThe face value of the note is

8600
$7200
$8800
$8000

Question 7

Manglore Sweet Treats has a 90-day, 12% note for $10,000, dated May 1,that it has received from customer on accountThe maturity value of the note is

$10000
$10300
$300
$9550

Question 8

On November 1, DrJakob Fletcher PAaccepted a 3-month note receivable as payment for services provided to Thao CompanyThe terms of the note were $8,000 face value and 6% interestDrFletcher closes his books at December 31 and does not use reversing entriesOn February 1, the journal entry to record the collection of the note should include a credit to

Notes Receivable for $8,120
Interest Receivable for $120
Interest Revenue for $120
Interest Revenue for $40

Question 9

Shamina Home Designs has inventory data for an item for November are

Nov1 Inventory.........20 units at $20
4 Sold................10 units
10 Purchased.........30 units at $21
17 Sold................20 units
30 Purchased.........10 units at $22

Using the periodic system, costing by the first-in, first-out method, what is the cost of the merchandise sold in November forShamina?

$640
$610
$620
$630

Question 10

Shamina Home Designs has inventory data for an item for November are

Nov1 Inventory....20 units at $20
4 Sold............10 units
10 Purchased...30 units at $21
17 Sold............20 units
30 Purchased...10 units at $22

Using the periodic system, costing by the last-in, first-out method, what is the cost of the merchandise sold in November for Shamina?

$640
$610
$620
$630

Question 11

Shamina Home Designs has the following lots of a particular commodity available for sale during the year

Beginning inventory......10 units at $50
First purchase...............25 units at $53
Second purchase...........30 units at $54
Third purchase..............15 units at $60

$1030
$1140
$1170
$1060

Question 12

Shamina Home Designs has the following lots of a particular commodity available for sale during the year:

Beginning inventory.......10 units at $60
First purchase...............25 units at $63
Second purchase...........30 units at $64
Third purchase..............10 units at $70

Shamina uses the periodic system and there are 20 units of the commodity on hand at the end of the yearWhat is the amount of inventory at the end of the year according to the last-in, first-out method for Shamina?

$1340
$1240
$1220
$1230

Question 13

Shamina Home Designs has the following lots of a particular commodity available for sale during the year:

Beginning inventory......10 units at $61
First purchase...............25 units at $63
Second purchase...........30 units at $64
Third purchase..............15 units at $73

Shamina uses the periodic system and there are 20 units of the commodity on hand at the end of the yearWhat is the amount of the inventory at the end of the year according to the average cost method for Shamina?

$1300
$1236
$1325
$1415

Question 14

If Norman Geological Services estimates the rate of gross profit at 40%, what is the estimated cost of the merchandise inventory on June 30 for Norman, based on the following data?

June 1 Merchandise inventory $ 75,000
June 1-30 Purchases (net) 150,000
June 1-30 Sales (net) 135,000

$54500
$140,000
$81,000
$144,000

Question 15

Zarena Restaurant Group has a fixed asset with a cost of $30,000 and accumulated depreciation of $27,500 is sold for $3,500What is the amount of the gain or loss on disposal of the fixed asset for Zarena?

$1000 loss
$2500 gain
$2500 Loss
$1000 gain

Question 16

Sadie Publishers has a fixed asset with a cost of $42,000 and accumulated depreciation of $38,500 is traded for a similar asset priced at $60,000Assuming a trade-in allowance of $5,000, the cost basis of the new asset for Sadie is

$58500
$58000
$60500
$61500

Question 17

Bharat Equipment with a cost of $80,000, an estimated residual value of $5,000, and an estimated life of 15 years was depreciated by the straight-line method for 5 yearsDue to obsolescence, it was determined that the useful life should be shortened by 5 years and the residual value changed to zeroThe depreciation expense for the current and future years for Bharat is

$10000
5000
$5500
$11000

Question 18

Bombay Tourism Services has a machine with a cost of $65,000 has an estimated residual value of $5,000 and an estimated life of 5 years or 15,000 hoursIt is to be depreciated by the units-of-production methodWhat is the amount of depreciation for the second full year, during which the machine was used 5,000 hours?

$8000
$20000
$12000
$21667

Question 19

Bombay Tourism Services has an equipment with a cost of $160,000 has an estimated residual value of $10,000 and an estimated life of 5 years or 12,000 hoursIt is to be depreciated by the straight-line methodWhat is the amount of depreciation for the first full year, during which the equipment was used 3,300 hours?

$32500
$40000
$30000
$34000

Question 20

Bombay Tourism Services has a machine with a cost of $65,000 has an estimated residual value of $5,000 and an estimated life of 4 years or 18,000 hoursWhat is the amount of depreciation for the second full year, using the declining-balance method at double the straight-line rate?

$32,500
$15000
30,000
$16250.