Match the items below by entering the appropriate letter in the space.
1> Partnership
2> Liabilities
3> Revenues
4> General ledger
5> Expense recognition principle
6> Unearned service revenue
7> Income summary
8> Intangible assets
9> Freight-out
10> Sales returns and allowances
A> A liability created when cash is received in advance of performing a service for a
customer.
B> Freight costs incurred by the seller.
C> Noncurrent resources that do not have a physical substance.
D> An economic entity which is not a separate legal entity.
E> A contra-revenue account.
F> The matching of efforts (expenses) with accomplishments (revenues).
G> Creditors’ claims on total assets.
H> A temporary account used in closing revenue and expense accounts.
I> Contains all asset, liability, and stockholders’ equity accounts.
J> Gross increases in stockholders’ equity resulting from business activities entered into
for the purpose of earning income.
Answer:
The following information is available for Queen Company, which has an accounting
year-end on December 31, 2015.
1> A truck was purchased on June 1, 2013, for $200,000. It was estimated to have a
$20,000 salvage value after being driven 120,000 miles. During 2015, the truck was
driven 20,000 miles. The units-of-activity method of depreciation used.
2> A building was purchased on January 1, 1988, for $3,000,000. It is estimated to have
a $30,000 salvage value at the end of its 40-year useful life. The straight-line method of
depreciation is being used.
3> Store equipment was purchased on January 1, 2014, for $280,000. It was estimated
that the store equipment would have a $28,000 salvage value at the end of its 5-year
useful life. The double-declining balance method of depreciation is being used.
Instructions
Complete the table shown below by filling in the appropriate amounts.
Answer:
The double-entry system is a logical method for recording transactions and results in
equal debits and credits for each transaction.
Answer:
Instructions: Prepare journal entries to record the following events:
Answer:
The ________________ reports the assets, liabilities, and stockholders’ equity of a
business enterprise at a specific date.
Answer:
When an asset is purchased during the year, it is not necessary to record depreciation
expense in the first year under the declining-balance depreciation method.
Answer:
Four thousand bonds with a face value of $1,000 each, are sold at 105. The entry to
record the issuance is
Answer:
If bonds are issued at a discount, the issuing corporation will pay a principal amount
less than the face amount of the bonds on the maturity date.
Answer: