Supplies originally cost $500, but only $150 worth of supplies were used this period.
The adjusting entry would be
a. debit Supplies Expense, $150; credit Supplies, $150.
b. debit Supplies Expense, $350; credit Supplies, $350.
c. debit Supplies, $150; credit Supplies Expense, $150.
d. debit Supplies, $350; credit Supplies Expense, $350.
Sandra Wilson is paid one and one-half times the regular hourly rate for all hours
worked in excess of 40 hours per week and double time for work on Sunday. Wilson’s
regular rate is $10 per hour. During the week ended July 3, she worked 9 hours each
day from Monday through Friday, 6 hours on Saturday, and 4 hours on Sunday.
Wilson’s overtime earnings for the week ended July 3 are
a. $110.
b. $245.
c. $320.
d. $430.
Match the terms with the definitions.
a. book of original entry
b. chart of accounts
c. compound entry
d. correcting entry
e. cross-reference
f. four-column account
g. general ledger
h. journal
i. journalizing
j. posting
k. ruling method
l. slide error
m. source document
n. transposition error
o. trial balance 1>Occurs when debit or credit amounts move a digit or two to the left or
right when entered.
2>A list of all accounts (account titles) used by a business.
3>Entering the transactions in a journal.
4>A day-by-day listing of the transactions of a business.
5>An entry requiring more than one debit and/or one credit.
6>Contains columns for the debit or credit transactions and columns for the debit or
credit running balance. In addition, there are columns for the date, description of the
item, and posting reference.
7>Almost any document that provides information about a business transaction.
8>A complete set of all the accounts used by a business.
9>Another name for a journal because it is here that the first formal accounting record
of a transaction is made.
10>The process of copying the debits and credits from the journal to the ledger
accounts.
11>The link provided by the information in the Posting Reference columns of the
journal and ledger.
12>Drawing a single line through the incorrect account title or amount and writing the
correct information directly above the line.
13>Occurs when two digits are reversed.
14>Used to prove the equality of the debits and credits in the ledger accounts.
15>An entry to change an incorrect entry that has been journalized and posted to the
wrong account.
Match the terms with the definitions.
a. Electronic Federal Tax Payment System (EFTPS)
b. employer FICA taxes
c. Employer Identification Number (EIN)
d. Form W-2
e. Form W-3
f. Form 940
g. Form 941
h. FUTA (Federal Unemployment Tax Act) tax
i. merit-rating system
j. self-employment income
k. self-employment tax
l. SUTA (state unemployment tax) tax
m. workers’ compensation insurance
1>Transmittal of Wage and Tax Statements
2>Taxes levied on employers at the same rates and on the same earnings bases as the
employee FICA taxes.
3>A number that identifies the employer on all payroll forms and reports filed with the
IRS.
4>A tax levied on employers to raise funds to administer the federal/state
unemployment compensation program.
5>Provides insurance for employees who suffer a job-related illness or injury.
6>A contribution to the FICA program.
7>Employee’s Wage and Tax Statement
8>The net income of a trade or business run by an individual.
9>A system to encourage employers to provide regular employment to workers.
10>Employer’s Quarterly Federal Tax Return
11>A tax levied on employers to raise funds to pay unemployment benefits.
12>An electronic funds transfer system for making federal tax deposits.
13>Employer’s Annual Federal Unemployment Tax Return
The standard T account includes all of the following EXCEPT
a. a credit side.
b. a debit side.
c. a title.
d. the current date.
Liability, owner’s capital, and revenue accounts normally have
a. debit balances.
b. large balances.
c. negative balances.
d. credit balances.
An internal auditor can achieve professional recognition in internal auditing by
receiving which of the following certificates?
a. GAAP
b. CIA
c. CMA
d. CLU
The cost of an asset that is subject to depreciation is called
a. salvage value.
b. depreciable cost.
c. revenue.
d. trade-in value.
The date on which an employer must pay Social Security and Medicare taxes is
a. January 1 of each year.
b. December 31 of each year.
c. June 30 of each year.
d. dependent on the amount of the taxes.
After the closing entries are journalized and posted, which of the following accounts
would NOT have a balance?
a. Cash
b. Office Equipment
c. Notes Payable
d. Delivery Fees
A chronological record of financial transactions expressed as debits and credits to
accounts is provided by the
a. ledger.
b. journal.
c. balance sheet.
d. trial balance.
If the person who is named as payee on a check transfers the right to receive the money
by signing his/her name on the back of the check, the signature is called a
a. restrictive endorsement.
b. dishonored endorsement.
c. regular endorsement.
d. blank endorsement.
Prepare general journal entries to record the following transactions. Omit the
explanations after each entry.
In the columns below, insert the entry that would be made for each transaction under
each accounting basis, using appropriate debit and credit account titles.
____________________ are checks that have been issued during the period, but have
not been presented to the bank for payment before the bank statement is prepared.
Compensation expressed in terms of hours, weeks, or units produced for skilled or
unskilled labor is usually referred to as salary.
Ryan Honeycutt is opening a new dental practice. Journalize the following transactions
in a combination journal. Use the modified cash basis. Total, rule, and prove the
journal.
The Fair Labor Standards Act requires employees to pay double the regular hourly rate
for the time worked on Saturday.