Using the following information, prepare the journal entries to:
Each check should be identified by its
a. AAB number.
b. MBA number.
c. CPA number.
d. ABA number.
Jillian Diaz receives a regular salary of $1,500 a month and is entitled to overtime pay
at the rate of one and one-half times the regular hourly rate for any time worked in
excess of 40 hours per week. Diaz’s overtime pay rate is
a. $6.92.
b. $12.98.
c. $276.92.
d. $1,800.
Cameron Tiller 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. Tiller’s
regular rate is $12 per hour. During the week ended March 15, he worked 9 hours each
day from Monday through Friday, 6 hours on Saturday, and 4 hours on Sunday. Tiller’s
total regular earnings for the week ended March 15 are
a. $110.
b. $216.
c. $480.
d. $430.
The balance sheet
a. is a list of all accounts showing the title and balance of each account.
b. is used as an aid in preparing the trial balance and income statement.
c. is for a period of time.
d. shows that assets equal liabilities plus owner’s equity.
For EVERY transaction, the accountant enters the
a. year, month, and day.
b. month and day.
c. day.
d. year and day.
When a single-check for payroll is prepared and deposited into a special payroll bank
account, which of the following entries is made to record the deposit?
a. debit Wages and Salaries Expense; credit Cash
b. debit Payroll Cash; credit Cash
c. debit Cash; credit Payroll Expense
d. debit Cash; credit Wages and Salaries Expense
Form W-4 is a(n)
a. Social Security application form.
b. Employer’s Quarterly Federal Tax Return.
c. Employee’s Withholding Allowance Certificate.
d. Wage and Tax Statement.
The body of the income statement consists of an itemized list of
a. assets and liabilities.
b. assets and owner’s equity.
c. cash and revenues.
d. revenues and expenses.
On a bank reconciliation, deposits that were not entered by the bank before the bank
statement was prepared are known as
a. NSF deposits.
b. restrictive deposits.
c. deposits in transit.
d. unrecorded deposits.
The person who reviews the operating and accounting control procedures adopted by
management to make sure the controls are adequate may be referred to as a(n)
a. bookkeeper.
b. accountant.
c. information processor.
d. internal auditor.
Kristin Holden started her own consulting business in July, 20–. During the first month,
the following transactions occurred:
a. Owner invested $12,000 cash in the business.
b. Purchased office equipment for $7,500 cash.
c. Purchased computer equipment costing $11,500 on account.
d. Paid $1,100 office rent for the month.
e. Received $1,700 cash from a client for services rendered.
f. Paid water bill for the month, $170.
g. Paid $2,400 on account for computer equipment purchased in transaction (c).
h. Paid the electric bill for the month, $200.
Required:
The payroll register for the week ended May 28 for J & D United indicates gross
earnings of $4,000 and total deductions of $1,200. The total of all the credit entries for
the payroll for the week ending May 28 would be
a. $1,200.
b. $2,800.
c. $4,000.
d. $5,200.
The act that requires most employers to withhold certain amounts from employees’
earnings for contributions to the Social Security and Medicare programs is called the
a. Federal Unemployment Tax Act.
b. Federal Withholding Tax Act.
c. State Unemployment Tax Act.
d. Federal Insurance Contributions Act.
The payment of a telephone bill for the month would include
a. debiting Capital and crediting Accounts Payable.
b. debiting Cash and crediting Telephone Expense.
c. debiting Telephone Expense and crediting Accounts Payable.
d. debiting Telephone Expense and crediting Cash.
The total assets amount to $24,000 and the total liabilities amount to $18,000. The
amount of the owner’s equity is
a. $16,000.
b. $42,000.
c. $18,000.
d. $6,000.
Journalizing does NOT include
a. debiting account(s) that are affected.
b. crediting account(s) that are affected.
c. posting the debits and credits to the accounts.
d. entering the date.
Which step is taken at the end of the accounting period?
a. analyze source documents
b. post to the general ledger accounts
c. prepare a trial balance
d. prepare a post-closing trial balance
The normal balance of a capital account
a. can be either a debit or a credit balance.
b. is a debit balance.
c. is a credit balance.
d. is called a footing.
Denise Cruz receives a regular salary of $900 a month and is entitled to overtime pay at
the rate of one and one-half times the regular hourly rate for any time worked in excess
of 40 hours per week. Cruz’s overtime rate of pay is
a. $5.63.
b. $7.79.
c. $8.44.
d. $22.50.
The posting reference, amount, and description are the three items of information about
each transaction that should be entered in the ledger accounts.
(Appendix) The set of procedures designed to ensure proper accounting for transactions
is known as ____________________.
The payroll register replaces the general journal in most businesses.
Generally accepted accounting principles are procedures and guidelines to be followed
in the accounting/reporting process.
The purchase of a supply of markers for three months should be recorded as an increase
in revenue and a decrease in cash.
Outstanding checks are checks issued that have not yet been presented to the bank for
payment.
The Income Statement columns of a work sheet include all revenue and expense
accounts.
A fiscal year is always the same as the calendar year.
A trial balance is a list of all accounts showing the title and balance of each account.