Chapter 02 – Double-Entry Accounting
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Page 71
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-04 – LO: 02–04
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.05 – Accounting Cycle
ACCT.ACBSP.APC.09 – Financial Statements
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:26 PM
DATE MODIFIED:
10/16/2017 4:19 PM
166. The purchase of supplies on account was recorded and posted as a debit to Supplies for $500 and a credit to Accounts
Receivable for $500. The correcting entry would include a:
a.
credit to Accounts Receivable for $500
b.
credit to Accounts Receivable for $1,000
c.
credit to Accounts Payable for $500
d.
credit to Accounts Payable for $1,000
ANSWER:
c
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Applying
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-04 – LO: 02–04
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:26 PM
DATE MODIFIED:
10/16/2017 4:19 PM
167. Which of the following is not a useful step in finding errors on the trial balance?
a.
Determine the difference between debits and credits and look for the amount.
b.
Determine the difference between debits and credits and change any account to make the trial balance correct.
c.
Determine the difference between debits and credits, divide the amount by 2, and look for the amount.
d.
Determine the difference between debits and credits, divide the amount by 9, and if it divides evenly, look for
a transposition or slide error.
ANSWER:
b
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-04 – LO: 02–04
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.05 – Accounting Cycle
ACCT.ACBSP.APC.09 – Financial Statements
Chapter 02 – Double-Entry Accounting
Matching
FNMN.WAJO.19.02-04 – LO: 02–04
ANSWER:
b
POINTS:
1
182. Debit or credit posting omitted.
ANSWER:
POINTS:
1
ANSWER:
ANSWER:
a
POINTS:
1
177. Accounts Receivable
ANSWER:
b
POINTS:
1
178. Accounts Payable
ANSWER:
a
POINTS:
1
179. Interest Revenue
ANSWER:
a
POINTS:
1
180. Copyrights
ANSWER:
b
POINTS:
1
Chapter 02 – Double-Entry Accounting
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Page 78
Cash payments during April
$63,000
Cash account balance, April 1
25,500
Cash account balance, April 30
31,750
(b)
Determine the cash received from customers on account during April based on
the following data:
Accounts receivable account balance, April 1
$22,500
Accounts receivable account balance, April 30
15,250
Fees billed to customers during April
45,000
ANSWER:
(a)
$69,250 ($31,750 + $63,000 − $25,500)
(b)
$52,250 ($22,500 + $45,000 − $15,250)
POINTS:
1
DIFFICULTY:
Challenging
Bloom’s: Applying
QUESTION TYPE:
Subjective Short Answer
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-01 – LO: 02–01
ACCREDITING STANDARD
S:
ACCT.ACBSP.APC.02 – GAAP
ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:26 PM
DATE MODIFIED:
10/16/2017 4:19 PM
193. Selected accounts from the ledger of Garrison Company appear below. For each account, indicate the following:
(a) In the first column at the right, indicate the nature of each account, using the
following abbreviations:
Asset – A
Revenue – R
Liability – L
Expense – E
None of the above – N
(b) In the second column, indicate the increase side of each account by inserting
Dr. or Cr.
Account
Type of
Account
Increase Side
(1)
Supplies
_______
________
(2)
Fees Earned
_______
________
(3)
Retained Earnings
_______
________
(4)
Accounts Payable
_______
________
(5)
Salaries Expense
_______
________
(6)
Common Stock
_______
________
(7)
Accounts Receivable
_______
________
(8)
Equipment
_______
________
(9)
Notes Payable
_______
________
ANSWER:
Type of Account
Increase Side
(1)
A
Dr.
Chapter 02 – Double-Entry Accounting
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Page 80
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
+
(3)
asset
+
asset
−
(4)
asset
+
revenue
+
(5)
liability
−
asset
−
(6)
expense
+
asset
−
(7)
asset
+
revenue
+
(8)
equity
+
asset
−
(9)
asset
+
asset
−
POINTS:
1
DIFFICULTY:
Challenging
Bloom’s: Applying
QUESTION TYPE:
Subjective Short Answer
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-01 – LO: 02–01
FNMN.WAJO.19.02-02 – LO: 02–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.02 – GAAP
ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:26 PM
DATE MODIFIED:
10/16/2017 4:19 PM
195. On June 1, the cash account balance was $96,750. During June, cash receipts totaled $305,000 and the June 30
balance was $75,880. Determine the cash payments made during June.
ANSWER:
$75,880 = $96,750 + $305,000 − ?
Cash payments = $325,870
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Applying
QUESTION TYPE:
Subjective Short Answer
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-01 – LO: 02–01
FNMN.WAJO.19.02-03 – LO: 02–03
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.02 – GAAP
ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:26 PM
DATE MODIFIED:
10/16/2017 4:19 PM
196. On January 1, Merry Walker and other stockholders established a catering service. Listed below are accounts to use
for transactions (a) through (d), each identified by a number. Following this list are the transactions that occurred during
the first month of operations. You are to indicate for each transaction the accounts that should be debited and credited by