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Appendix D December Adjusting Journal Entry Record The Unrealized
Appendix D – Investments 119. On February 12, Addison, Inc. purchased 6,000 shares of Lucas Company at $22 per share plus a $240 brokerage fee. This purchase represents less than 20% ownership of the Lucas Company. On August 22, Lucas […]
Appendix D Most companies invest excess cash in bonds as investments
Appendix D – Investments 1. Most companies invest excess cash in bonds as investments in order to profit long-term from the growth of the investment. a. True b. False ANSWER: False DIFFICULTY: Bloom’s: Remembering Easy ACCREDITING STANDARDS: ACCT.ACBSP.APC.21 – Corporate […]
Appendix D The method used to account for investments in common stock
Appendix D – Investments DIFFICULTY: Easy Bloom’s: Remembering ACCREDITING STANDARDS: ACCT.ACBSP.APC.21 – Corporate Investments Accounting ACCT.AICPA.FN.03 – Measurement ACCT.AICPA.FN.04 – Reporting BUSPROG: Analytic 69. For accounting purposes, the method used to account for investments in common stock is determined by […]
Chapter 1 A corporation is a business that is legally separate
Chapter 1 – Introduction to Accounting and Business 1. A corporation is a business that is legally separate and distinct from its owners. a. True b. False ANSWER: True DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: FNMN.WARD.17.01-01 – LO: 01–01 ACCREDITING […]
Chapter 1 Bright Futures Company for The Month Ended August
Chapter 1 – Introduction to Accounting and Business ANSWER: Rocky’s Day Spa Balance Sheet December 31 Assets Cash $13,980 Accounts receivable 8,490 Spa supplies 9,230 Computers 2,130 Spa furniture & equipment 56,000 Total assets $89,830 Liabilities Accounts payable $ 4,375 […]
Chapter 1 Match The Following Items The Financial
Chapter 1 – Introduction to Accounting and Business DIFFICULTY: Easy Bloom’s: Applying LEARNING OBJECTIVES: FNMN.WARD.17.01-02 – LO: 01–02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 – GAAP ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic 129. Donner Company is selling a piece of land adjacent to its […]
Chapter 1 Which of the following is not a characteristic of a corporation
Chapter 1 – Introduction to Accounting and Business DIFFICULTY: Moderate Bloom’s: Applying LEARNING OBJECTIVES: FNMN.WARD.17.01-02 – LO: 01–02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 – GAAP ACCT.ACBSP.APC.13 – Long–term Assets Reporting ACCT.AICPA.BB.01 – Industry ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic 71. Select the type […]
Chapter 10 Receiving payment prior to delivering goods or services
Chapter 10 – Liabilities: Current, Installment Notes, and Contingencies 1. Receiving payment prior to delivering goods or services causes a current liability to be incurred. a. True b. False ANSWER: True DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: FNMN.WARD.17.10-01 – LO: […]
Chapter 10 The amount of federal income taxes withheld from an employee’s
Chapter 10 – Liabilities: Current, Installment Notes, and Contingencies 69. The amount of federal income taxes withheld from an employee’s gross pay is recorded as a(n) a. payroll expense b. contra account c. asset d. liability ANSWER: d DIFFICULTY: Easy […]
Chapter 10 The payroll register of Seaside Architecture Company
Chapter 10 – Liabilities: Current, Installment Notes, and Contingencies 152. The payroll register of Seaside Architecture Company indicates $870 of social security and $217 of Medicare tax withheld on total salaries of $14,500 for the period. Assume earnings subject to […]
Chapter 10 The Young Company has the following assets
Chapter 10 – Liabilities: Current, Installment Notes, and Contingencies 122. The Young Company has the following assets and liabilities: ASSETS Cash $35,000 Accounts receivable 15,000 Inventory 30,000 Equipment 50,000 LIABILITIES Current portion of long-term debt 10,000 Accounts payable 2,000 Long-term […]
Chapter 11 A bond is simply a form of an interest-bearing note
Chapter 11 – Liabilities: Bonds Payable 1. A bond is simply a form of an interest-bearing note. a. True b. False ANSWER: True DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: FNMN.WARD.17.11-01 – LO: 11–01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.22 – Long–Term Liabilities Reporting […]
Chapter 11 Balance Bonds Payable Redemption Value Of rationale bonds
Chapter 11 – Liabilities: Bonds Payable LEARNING OBJECTIVES: FNMN.WARD.17.11-02 – LO: 11–02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.22 – Long–Term Liabilities Reporting ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic 73. Dylan Corporation issues for cash $2,000,000 of 8%, 15-year bonds, interest payable annually, at a […]
Chapter 11 When the market rate of interest was 12%, Halprin Corporation
Chapter 11 – Liabilities: Bonds Payable 116. When the market rate of interest was 12%, Halprin Corporation issued $1,000,000, 11%, 10-year bonds that pay interest annually. The selling price of this bond issue was a. $321,970 b. $1,000,000 c. $943,494 […]
Chapter 12 A corporation has 50,000 shares of $28 par stock outstanding
Chapter 12 – Corporations: Organization, Stock Transactions, and Dividends 129. A corporation has 50,000 shares of $28 par stock outstanding that has a current market value of $150 per share. If the corporation issues a 4-for-1 stock split, the market […]
Chapter 12 The following account balances appear on the balance sheet
Chapter 12 – Corporations: Organization, Stock Transactions, and Dividends © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 188. Sabas Company has 40,000 shares of $100 […]
Chapter 12 The stock has a stated value of $10 per share
Chapter 12 – Corporations: Organization, Stock Transactions, and Dividends 74. Nebraska Inc. issues 3,000 shares of common stock for $45,000. The stock has a stated value of $10 per share. The journal entry to record the stock issuance would include […]
Chapter 12 Twenty percent of all businesses in the United States
Chapter 12 – Corporations: Organization, Stock Transactions, and Dividends 1. Twenty percent of all businesses in the United States are corporations, and they account for 80% of the total business dollars generated. a. True b. False ANSWER: False DIFFICULTY: Easy […]
Chapter 13 Identify whether it would be disclosed as an operating
Chapter 13 – Statement of Cash Flows LEARNING OBJECTIVES: FNMN.WARD.17.13-APP2 – LO: 13–APP2 ACCREDITING STANDARDS: ACCT.ACBSP.APC.24 – Statement of Cash Flows ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic 121. Income tax expense was $175,000 for the year. Income tax payable was $30,000 […]
Chapter 13 Prepare the cash flows from operating activities section
Chapter 13 – Statement of Cash Flows 171. The comparative balance sheets of Posner Company, for Years 1 and 2 ended December 31, appear below in condensed form: Year 2 Year 1 Cash $ 53,000 $ 50,000 Accounts receivable (net) […]
Chapter 13 The Net Income Reported The Income Statement
Chapter 13 – Statement of Cash Flows 72. Depreciation on factory equipment would be reported in the statement of cash flows prepared by the indirect method in a. the cash flows from financing activities section b. the cash flows from […]
Chapter 13 The statement of cash flows is not one of the basic financial
Chapter 13 – Statement of Cash Flows 1. The statement of cash flows is not one of the basic financial statements. a. True b. False ANSWER: False DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: FNMN.WARD.17.13-01 – LO: 13–01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.24 […]
Chapter 14 Although sales increased during the current year
Chapter 14 – Financial Statement Analysis LEARNING OBJECTIVES: FNMN.WARD.17.14-03 – LO: 14–03 ACCREDITING STANDARDS: ACCT.ACBSP.APC.23 – Financial Statement Analysis ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic 175. A company reports the following: Sales $720,000 Average accounts receivable (net) 45,000 Determine the (a) […]
Chapter 14 Comparative financial statements are designed to compare
Chapter 14 – Financial Statement Analysis 1. Comparative financial statements are designed to compare the financial statements of two or more corporations. a. True b. False ANSWER: False DIFFICULTY: Bloom’s: Remembering Easy LEARNING OBJECTIVES: FNMN.WARD.17.14-02 – LO: 14–02 ACCREDITING STANDARDS: […]
Chapter 14 Corporate annual reports typically do not contain
Chapter 14 – Financial Statement Analysis 121. The following information pertains to Newman Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Assets Cash and short-term investments $ […]
Chapter 14 Income statement information for Sadie Company is below
Chapter 14 – Financial Statement Analysis 73. Income statement information for Sadie Company is below: Sales $175,000 Cost of goods sold 115,000 Gross profit $ 60,000 Using vertical analysis of the income statement for Sadie Company, determine the gross profit […]
Chapter 2 Consuming goods and services in the process of generating
Chapter 2 – Analyzing Transactions 1. Accounts are records of increases and decreases in individual accounting equation elements. a. True b. False ANSWER: True DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: FNMN.WARD.17.02-01 – LO: 02–01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 – Purpose ACCT.ACBSP.APC.02 […]
Chapter 2 Provide The Journal Entry For This Transaction oct
Chapter 2 – Analyzing Transactions Present your answers in the following form: Account Debited Account Credited Transaction Type Effect Type Effect ANSWER: Account Debited Account Credited Transaction Type Effect Type Effect (1) asset + equity + (2) asset + liability […]
Chapter 2 The bookkeeper for Brockton Industries prepared
Chapter 2 – Analyzing Transactions ANSWER: Date Description Post. Ref. Debit Credit Jan. 1 Cash 14,000 Common Stock 14,000 2 Cash 9,500 Revenues 9,500 3 Accounts Receivable 4,200 Revenues 4,200 4 Advertising Expense 700 Cash 700 5 Cash 2,500 Accounts […]
Chapter 2 The increases in stockholders’ equity attributable to selling
Chapter 2 – Analyzing Transactions 76. The increases in stockholders’ equity attributable to selling services or products to customers are called a. assets b. liabilities c. revenues d. expenses ANSWER: c DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: FNMN.WARD.17.02-01 – LO: […]
Chapter 2 Verify That The Total The Debit Column
Chapter 2 – Analyzing Transactions DIFFICULTY: Moderate Bloom’s: Remembering LEARNING OBJECTIVES: FNMN.WARD.17.02-02 – LO: 02–02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 – Recording Transactions ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic 135. May 24 Land 105,000 Cash 105,000 Purchased land for business. What effects does […]
Chapter 3 Even though GAAP requires the accrual basis of accounting
Chapter 3 – The Adjusting Process 1. Even though GAAP requires the accrual basis of accounting, some businesses prefer using the cash basis of accounting. a. True b. False ANSWER: True DIFFICULTY: Moderate Bloom’s: Remembering LEARNING OBJECTIVES: FNMN.WARD.17.03-01 – LO: […]
Chapter 3 Listed Below Are Accounts Use For
Chapter 3 – The Adjusting Process DIFFICULTY: Bloom’s: Remembering Challenging LEARNING OBJECTIVES: FNMN.WARD.17.03-05 – LO: 03–05 ACCREDITING STANDARDS: ACCT.ACBSP.APC.07 – Adjusting Entries ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic 126. The adjusting entry to adjust supplies was omitted at the end of […]
Chapter 3 Safe Motorcycling Monthly received a check for $72
Chapter 3 – The Adjusting Process 166. On January 2, Safe Motorcycling Monthly received a check for $72 from a subscriber for a 12-month subscription. The January issue was mailed on January 15. Prepare the necessary entries for the month […]
Chapter 3 Which of the following is an example of accrued revenue
Chapter 3 – The Adjusting Process 71. Which of the following is an example of accrued revenue? a. snow removal services that have been paid for three months in advance b. snow removal services that have been provided but have […]
Chapter 4 Closing entries are journalized and posted to the ledger
Chapter 4 – Completing the Accounting Cycle ANSWER: Journal Date Description Post. Ref. Debit Credit Dec. 31 Fees Earned 59,500 Income Summary 59,500 31 Income Summary 29,500 Wages Expense 19,000 Rent Expense 7,000 Depreciation Expense 3,500 31 Income Summary 30,000 […]
Chapter 4 Cross-referencing is useful in assuring that the debits
Chapter 4 – Completing the Accounting Cycle 1. Cross-referencing is useful in assuring that the debits and credits are in balance. a. True b. False ANSWER: False DIFFICULTY: Moderate Bloom’s: Remembering LEARNING OBJECTIVES: FNMN.WARD.17.04-01 – LO: 04–01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.05 […]
Chapter 4 Indicate whether each of the following would be reported
Chapter 4 – Completing the Accounting Cycle 170. Indicate whether each of the following would be reported in the financial statements as a (a) current asset, (b) property, plant, and equipment, (c) current liability, (d) revenue, or (e) expense: (1) […]
Chapter 4 The Balances For The Accounts Listed
Chapter 4 – Completing the Accounting Cycle DIFFICULTY: Moderate Bloom’s: Remembering LEARNING OBJECTIVES: FNMN.WARD.17.04-04 – LO: 04–04 ACCREDITING STANDARDS: ACCT.ACBSP.APC.05 – Accounting Cycle ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic 126. Of the following steps of the accounting cycle, which step should […]
Chapter 4 The income statement is prepared from
Chapter 4 – Completing the Accounting Cycle 77. Unearned Fees appear on the a. balance sheet in the current assets section b. balance sheet as a current liability c. balance sheet in the stockholders’ equity section d. income statement as […]
Chapter 5 Abbey Co. sold merchandise to Gomez Co. on account
Chapter 5 – Accounting for Merchandising Businesses 133. Abbey Co. sold merchandise to Gomez Co. on account, $35,000, terms 2/15, net 45. The cost of the goods sold was $24,500. Abbey Co. issued a credit memo for $3,600 for merchandise […]
Chapter 5 Calculate the gross profit for Jonas Company based
Chapter 5 – Accounting for Merchandising Businesses 200. Calculate the gross profit for Jonas Company based on the following data: Sales $764,000 Selling expenses 52,500 Cost of goods sold 538,000 ANSWER: Sales, $764,000 – Cost of goods sold, $538,000 = […]
Chapter 5 Journalize the entries for the seller and the buyer
Chapter 5 – Accounting for Merchandising Businesses ANSWER: (a) Accounts Receivable 4,116 Sales 4,116 Cost of Goods Sold 2,300 Inventory 2,300 (b) Delivery Expense 85 Cash 85 (c) Sales 735 Accounts Receivable 735 Inventory 425 Cost of Goods Sold 425 […]
Chapter 5 The most important differences between a service business
Chapter 5 – Accounting for Merchandising Businesses 1. The most important differences between a service business and a retail business are reflected in their operating cycles and financial statements. a. True b. False ANSWER: True DIFFICULTY: Easy Bloom’s: Remembering LEARNING […]
Chapter 5 The Selling Price The Merchandise 6000 And
Chapter 5 – Accounting for Merchandising Businesses 75. The inventory system employing accounting records that continuously disclose the amount of inventory is called a. retail b. periodic c. physical d. perpetual ANSWER: d DIFFICULTY: Bloom’s: Remembering Easy LEARNING OBJECTIVES: FNMN.WARD.17.05-02 […]
Chapter 6 A business using the retail method of inventory costing determines
Chapter 6 – Inventories DIFFICULTY: Challenging Bloom’s: Applying LEARNING OBJECTIVES: FNMN.WARD.17.06-APP – LO: 06-APP ACCREDITING STANDARDS: ACCT.ACBSP.APC.17 – Inventories Reporting ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic 154. A business using the retail method of inventory costing determines that inventory at retail […]
Chapter 6 If a company values inventory at the lower of cost or market
Chapter 6 – Inventories 122. If a company values inventory at the lower of cost or market, which of the following is the value of inventory on the balance sheet? Apply the lower-of-cost-or-market method to inventory as a whole. Item […]
Chapter 6 Merchandise sold FOB shipping point on December 31 was picked
Chapter 6 – Inventories 4. LIFO periodic: Ending inventory: 500 @ $25.00 = $12,500.00 275 @ $24.00 = 6,600.00 Ending inventory $19,100.00 Cost of goods sold: Total goods available $56,412.50 Less ending inventory 19,100.00 Cost of goods sold $37,312.50 Gross […]
Chapter 6 One of the two internal control procedures over inventory
Chapter 6 – Inventories 1. One of the two internal control procedures over inventory is to properly report inventory on the financial statements. a. True b. False ANSWER: True DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: FNMN.WARD.17.06-01 – LO: 06–01 ACCREDITING […]
Chapter 6 What is the amount of cost of goods sold for the year
Chapter 6 – Inventories DIFFICULTY: Moderate Bloom’s: Applying LEARNING OBJECTIVES: FNMN.WARD.17.06-03 – LO: 06–03 ACCREDITING STANDARDS: ACCT.ACBSP.APC.17 – Inventories Reporting ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic 70. Assuming that the company uses the perpetual inventory system, determine the ending inventory value […]
Chapter 7 Identify Each The Following Reconciling Items
Chapter 7 – Internal Control and Cash DIFFICULTY: Moderate Bloom’s: Analyzing LEARNING OBJECTIVES: FNMN.WARD.17.07-02 – LO: 07–02 FNMN.WARD.17.07-03 – LO: 07–03 ACCREDITING STANDARDS: ACCT.ACBSP.APC.10 – Internal Control ACCT.AICPA.BB.01 – Industry ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic 125. The following procedures were […]
Chapter 7 Identify Each The Following Relating A
Chapter 7 – Internal Control and Cash DIFFICULTY: Challenging Bloom’s: Applying LEARNING OBJECTIVES: FNMN.WARD.17.07-04 – LO: 07–04 ACCREDITING STANDARDS: ACCT.ACBSP.APC.10 – Internal Control ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic 72. A bank statement a. is a credit reference letter written by […]
Chapter 7 Internal Control And Cash 39 After Bank Reconciliation
Chapter 7 – Internal Control and Cash 1. The Sarbanes-Oxley Act applies only to companies whose stock is traded on public exchanges. a. True b. False ANSWER: True DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: FNMN.WARD.17.07-01 – LO: 07–01 ACCREDITING STANDARDS: […]
Chapter 7 The bank statement for Gatlin Co. indicates a balance
Chapter 7 – Internal Control and Cash ANSWER: Cash balance according to bank statement $11,740 Adjustments: Deposits in transit $6,900 Outstanding Check No. 601 (420) Outstanding Check No. 613 (155) Total adjustments 6,325 Adjusted balance $18,065 Cash balance according to […]
Chapter 8 Brown Company Has Credit Balance 2275 Allowance
Chapter 8 – Receivables DIFFICULTY: Moderate Bloom’s: Understanding LEARNING OBJECTIVES: FNMN.WARD.17.08-01 – LO: 08–01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.12 – Receivables Reporting ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic 127. List at least three indicators that a receivable may be uncollectible. ANSWER: Answers may […]
Chapter 8 Journalize the following transactions for Lucite Company
Chapter 8 – Receivables 154. Blackwell Industries received a 120-day, 9% note for $180,000, dated August 10 from a customer on account. Required: (a) Determine the due date of the note. (b) Determine the maturity value of the note. (c) […]
Chapter 8 The Accounts Receivable Turnover Ratio Computed Dividing
Chapter 8 – Receivables 1. Receivables not currently collectible are reported in the investments section of the balance sheet. a. True b. False ANSWER: True DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: FNMN.WARD.17.08-01 – LO: 08–01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.12 – Receivables […]
Chapter 8 When a year-end adjustment is made for estimated uncollectible
Chapter 8 – Receivables 73. Under the allowance method, when a year-end adjustment is made for estimated uncollectible accounts a. liabilities decrease b. net income is unchanged c. total assets are unchanged d. total assets decrease ANSWER: d DIFFICULTY: Moderate […]
Chapter 9 Equipment with a cost of $220,000 has an estimated residual
Chapter 9 – Long-Term Assets: Fixed and Intangible 74. Which of the following are criteria for determining whether to record an asset as a fixed asset? a. must be an investment and long lived b. must be long lived and […]
Chapter 9 Long-lived assets that are intangible in nature
Chapter 9 – Long-Term Assets: Fixed and Intangible 1. Long-lived assets that are intangible in nature, used in the operations of the business, and not held for sale in the ordinary course of business are called fixed assets. a. True […]
Chapter 9 The patent has a useful life of 6 years and a legal
Chapter 9 – Long-Term Assets: Fixed and Intangible DIFFICULTY: Moderate Bloom’s: Applying LEARNING OBJECTIVES: FNMN.WARD.17.09-04 – LO: 09–04 ACCREDITING STANDARDS: ACCT.ACBSP.APC.13 – Long–term Assets Reporting ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic 163. Carter Co. acquired drilling rights for $18,550,000. The oil […]
Chapter 9 What is the cost of the land, based upon the following data
Chapter 9 – Long-Term Assets: Fixed and Intangible 130. What is the cost of the land, based upon the following data? Land purchase price $178,000 Broker’s commission 15,000 Payment for the demolition and removal of existing building 5,000 Cash received […]