Reference no: EM132602431
Question 1) At the end of 20X4, Dallas Company made the following adjusting entry to record $10,000 accrued (unpaid) wages:
Dr Wage expense10,000
Cr Wages payable 10,000
A payroll of $40,000 (including the $10,000 accrued wages) was paid during the first week of January, 20X5. The entry to record the payment of this payroll should include a
a. $40,000 debit to wages expense and a $10,000 debit to wages payable.
b. $10,000 debit to wages expense and a $30,000 debit to wages payable.
c. $50,000 debit to wages expense and a $10,000 debit to wages payable.
d. $30,000 debit to wages expense and a $10,000 debit to wages payable.
Question 2) Which of the following statements is true?
a. Journalizing consists of analyzing and recording transactions in T-accounts.
b. All of these statements are true.
c. By using a work sheet to prepare aadjusting entries you need not post these entries to the ledger accounts.
d. Preparing a post-closing trial balance helps to prove the accuracy of the adjusting and closing procedures.
e. The information on the work sheet can be used in place of preparing financial statements.
Question 3) Which of the following statements is incorrect?
a. Working papers are invaluable tools of the accountant.
b. The work sheet shows the effects of adjustments on the account balances.
c. After the work sheet is completed, the work sheet information is used to prepare the financial statements.
d. The work sheet is an optional step in the accounting cycle.
e. On the work sheet, the accountant sorts the adjusted amounts into columns according to whether the accounts are used in preparing the unadjusted trial balance or the adjusted trial balance.
Question 4) In a periodic inventory system
a. None of these
b. The company records the cost of new merchandise in the permanent Purchases account
c. The inventory value is not based on a physical count
d. The cost of merchandise on hand is determined by relating the quantities on hand to records showing each item's original cost
e. A continuous record of the amount of inventory on hand is maintained