Tracy, Inc.
Tracy, Inc. adjusts its books each month but closes its books at the end of the year. The
trial balance at July 31 before adjustments is as follows:
Refer to the trial balance for Tracy, Inc.According to contracts, $4,810 of Unearned
Service Revenue has been earned in July. Which of the following is the correct amount
of Service Revenue to be reported in the July income statement?
a. $20,410
b. $11,700
c. $21,320
d. $16,510
From the list of accounts below, determine whether the account would be a nominal
account or a real account.
a. nominal account
b. real account
Office Equipment
All issued stock is outstanding.
a. True
b. False
The accounting for leases is an excellent example of the differences in how U.S. and
IFRS accounting standards are applied.
a. True
b. False
What happens to the accounting equation when the adjustment for depreciation expense
for the accounting period is recorded?
a. Assets decrease and stockholders’ equity decreases.
b. Assets increase and stockholders’ equity increases.
c. Assets decrease and liabilities decrease.
d. Liabilities increase and stockholders’ equity decreases.
Provided below is a list of important users of accounting information.Below the list are
descriptions of a major need of each of the various users. Fill in the blank with the one
user group that is most likely to have the need described to the right of the blank. Some
user groups may be used more than once or not at all.
a. Capital stock
b. Asset
c. Owners’ equity
d. Time period
e. Dividends
f. Economic entity concept
g. Expense
h. Retained earnings
i. Cost principle
j. Creditor
k. Liability
l. Revenue
m. Going concern
n. Monetary unit
o. Corporation
The principle or rule that specifies the amount recorded for an asset upon acquisition.
An accountant describes the effects of an economic event on an entity by recording the
transaction and reporting the amount on the financial statements. What is this called?
a. Measurement
b. Recognition
c. Disclosure
d. Matching
The treasurer for Rahm Corp. was preparing a bank reconciliation as of September 30,
2014. The following items were identified: Rahm’s book balance $32,800
Deposits in transit 4,300
Outstanding checks 2,200
Interest earned on checking account 100
Customer’s NSF check returned by the bank 400
Rahm Corp.’s adjusted cash balance at September 30, 2014 is a. $34,600b. $34,900c.
$32,500d. $32,800
Select the best answer from the list below to complete statements 131-141 that follow.
The document that specifies how much the owners will invest, what their salaries will
be, and how profits will be shared in a partnership is known as a.
Country Club Center sells season memberships for $200 each. During January of 2015,
60 season memberships were sold. As of March 31, 2015, only $3,000 of season
membership fees had been collected from customers. The season runs for 4 months
starting May 15, 2015. Which one of the following is an amount reported on the
financial statements for the period ending March 31, 2015?
a. Unearned membership revenue of $3,000
b. Unearned membership revenue of $9,000
c. Accounts receivable of $3,000
d. Membership revenue of $9,000
Return on sales ratio
a. Market price per share
b. Net sales
c. Gross profit
d. Average total assets
e. Interest expense, net of tax
f. Net income
g. Total liabilities
h. Total assets
Walton Corporation shows the following in the stockholders’ equity section of its
balance sheet: The stated value of its common stock is $0.50 and the total balance in the
common stock account is $37,500. Also noted is that 5,000 shares are currently
designated as treasury stock. The number of shares outstanding is
a. 80,000.
b. 75,000.
c. 72,500.
d. 70,000.
Wyoming Real Estate purchased a building for $600,000 in 2002. At the end of 2014,
when it had a book value of $450,000, it was appraised for $1,000,000. A potential
buyer offered $900,000. Wyoming rejected the offer. What amount should is recorded
on Wyoming’s records at the end of 2014 in the account called Buildings?
a. $1,000,000
b. $900,000
c. $600,000
d. $450,000
An accounting system must be computerized in order to ensure the company has proper
internal control.
a. True
b. False
Canyon Corporation
The accountant for the Canyon Corporation prepared the following list from the
company’s accounting records for the year ended December 31, 2014:
Read the information for Canyon Corporation. Determine the following amounts for
Canyon Corporation. A) Total assets at the end of 2014 B) Total liabilities at the end of
2014 C) Total equity at the end of 2014
Explain how the costs associated with operating assets are reported on the balance
sheet.
Explain the two primary legal systems used around the world and what these
differences have to do with accounting standards.
Dickinson Inc. has the following debt outstanding on December 31, 2015:
On this date, Dickinson retired the entire bond issue by paying cash of $610,000.
REQUIRED:
1> Prepare the journal entry to record the bond retirement.
2> Describe how the bond retirement would be reported on the statement of cash flows
assuming that Dickinson uses the indirect method.
When a bank deducts the interest on a note in advance, the note has been.
Digital Forces
Selected data from the financial statements for Digital Forces is presented below.
Refer to the financial statement information for Digital Forces. What portion of every
dollar is available to cover operating costs and to contribute to profits for 2015?
Theof a single sum represents the value today of a single amount to be received or paid
at a future time.