accountsguru only
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1. |
The difference between a company's assets and its liabilities, or net assets is:
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2. |
Unearned revenues are:
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3. |
The main purpose of adjusting entries is to:
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4. |
Merchandise inventory:
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5. |
On December 1, Martin Company signed a 90-day, 6% note payable, with a face value of $5,000. What amount of interest expense is accrued at December 31 on the note? A. $0 B. $25 C. $50 D. $75 E. $300
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6. |
Phil Phoenix is paid monthly. For the month of January of the current year, he earned a total of $8,288. The FICA tax for social security is 6.2% and the FICA tax rate for Medicare is 1.45%. The FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The amount of federal income tax withheld from his earnings was $1,375.17. His net pay for the month is: A. $5,190.83 B. $5,844.79 C. $6,278.79 D. $6,566.00 E. $6,792.64
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7. A record that contains all accounts (with total amounts) of a company is the:
A. General ledger
B. General journal
C Special ledger
D Special journal
E. Column balance ledger
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8. |
When originally purchased, a vehicle had an estimated useful life of 8 years. The vehicle cost $23,000 and its estimated salvage value is $1,500. After 4 years of straight-line depreciation, the asset's total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value. The depreciation expense in year 5 equals: A. $5,375.00. B. $2,687.50. C. $5,543.75. D. $10,750.00. E. $2,856.25.
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9. |
The useful life of a plant asset is:
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10. |
Accounts payable::
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roblem # 1 ( 15 points )
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Problem 1 (15 points)
Liberty Accounting Services completed these transactions in February: (2/1) Purchased office supplies on account, $600. (2/3) Completed work for a client on credit, $1,500. (2/10) Paid cash for the office supplies purchased in (a). (2/12) Completed work for a client and received $1,800 cash. (2/18) Received $500 cash for the work described in (b). (2/20) Received $1,200 from a client for accounting services to be performed in March. Prepare journal entries to record the above transactions.
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Problem #2 ( 15 points )
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Neutron uses a periodic inventory system. Prepare general journal entries to record the following transactions for Neutron: |
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GENERAL JOURNAL |
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Page ____________ |
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Date |
Account Titles & Explanations |
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Debit |
Credit |
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Problem # 3 ( 25 Points )
Renton Co. uses special journals to record its transactions. They use the perpetual inventory system. Shown below are the purchasing and cash disbursement transactions for current month of May:
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Problem # 4 ( 10 points )
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Problem #4 (10 points)
At December 31 of the current year, a company reported the following: Total sales for the current year: $780,000 includes $160,000 in cash sales. Accounts receivable balance at Dec. 31, current year: $190,000. Bad debts written off during the current year: $6,800. Balance of Allowance for Doubtful Accounts at January 1, current year: $8,300. Prepare the necessary adjusting entries to record bad debts expense assuming this company's bad debts are estimated to equal: (a) 1.5% of credit sales. (b) 5% of accounts receivable.
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Problem # 5 ( 15 points )
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On December 1, Gates Company signed a $45,000, 90 day 9% note payable to cover a past due account payable.. a. Prepare Gate's journal entry to record the issuance of the note payable. b. Prepare Gate's journal entry to record the accrued interest due at December 31. c. Prepare Gate's journal entry to record the payment of the note on March 1 of the next year. |