1) the jacquers, a semi-professional baseball team, prepare financial statements on a
monthly basis. their season begins in april, but in march the team engaged in the
following transactions:
(a)paid $90,000 to lawrence city as advance rent for use of lawrence city stadium for
the six-month period april 1 through september 30.
(b)collected $500,000 cash from sales of season tickets for the team’s 20 home games.
this amount was credited to unearned ticket revenue.
(c) during the month of april, the jacquers played four home games and five road
games.
instructions:
prepare the adjusting entries required at april 30 for the transactions above.
2) which one of the following items is not generally used in preparing a statement of
cash flows?
a.adjusted trial balance
b.comparative balance sheets
c.current income statement
d.additional information
3) which of the following is an asset?
a.mortgage payable
b.investments
c.common stock
d.retained earnings
4) ottos tune-up shop follows the revenue recognition principle. otto services a car on
august 31. the customer picks up the vehicle on september 1 and mails the payment to
otto on september 5. otto receives the check in the mail on september 6. when should
otto show that the revenue was earned?
a.august 31
b.august 1
c.september 5
d.september 6
5) stockholders equity
a.is usually equal to cash on hand
b.is equal to liabilities and retained earnings
c.includes retained earnings and common stock
d.is shown on the income statement
6) the retailer considers visa and mastercard sales as
a.cash sales
b.promissory sales
c.credit sales
d.contingent sales
7) a company purchased land for $210,000 cash. real estate brokers’ commission was
$15,000 and $21,000 was spent for demolishing an old building on the land before
construction of a new building could start. under the cost principle, the cost of land
would be recorded at
a.$231,000
b.$210,000
c.$225,000
d.$246,000
8) use the following data to determine the total dollar amount of assets to be classified
as current assets.
a.$220,000
b.$150,000
c.$300,000
d.$180,000
9) the board of directors of bosco company declared a cash dividend on november 15,
2012, to be paid on december 15, 2012, to stockholders owning the stock on november
30, 2012. given these facts, the date of november 30, 2012, is referred to as the
a.declaration date
b.record date
c.payment date
d.ex-dividend date
10) selling the bonds at a premium has the effect of
a.causing the total cost of borrowing to be higher than the bond interest paid
b.causing the total cost of borrowing to be lower than the bond interest paid
c.raising the effective interest rate above the state interest rate
d.increasing the amount of cash paid for interest each 6 months
11) shannon company issued $750,000, 8%, 10-year bonds on december 31, 2011, for
$720,000. interest is payable annually on december 3 shannon uses the straight-line
method to amortize bond premium or discount.
instructions
prepare the journal entries to record the following events.
(a)the issuance of the bonds.
(b)the payment of interest and the discount amortization on december 31, 2012.
(c)the redemption of the bonds at maturity, assuming interest for the last interest period
has been paid and recorded.
12) cash from investing becomes positive and cash from financing becomes more
negative during the
a.introductory phase
b.growth phase
c.maturity phase
d.decline phase
13) which of the following is not a current liability on december 31, 2012?
a.a note payable due december 31, 2013
b.an accounts payable due january 31, 2013
c.a lawsuit judgment to be decided on january 10, 2013
d.accrued salaries payable from 2012
14) use the following data to determine the total dollar amount of assets to be classified
as property, plant, and equipment.
a.$315,000
b.$245,000
c.$165,000
d.$195,000
15) skypress company collected $5,600 in may of 2010 for 4 months of service which
would take place from october of 2010 through january of 2011. the revenue reported
from this transaction during 2010 would be:
a.$0
b.$4,200
c.$5,600
d.$1,400
16) the ability of a business to pay obligations that are expected to become due within
the next year or operating cycle is
a.leverage
b.liquidity
c.profitability
d.wealth
17) mitchell, inc. has the following income statement (in millions):
using vertical analysis, what percentage is assigned to net sales?
a.150%
b.cant be computed
c.60%
d.100%