Mcq's and answers

    
     Question 2
 
The Trial Balance of the Hope, Faith and Charity Company had accounts with the following normal balances:  Cash $5,000, Service Revenue $85,000, Salaries and Wages Payable$4,000, Salaries and Wages Expense $40,000, Rent Expense $10,000, Owner’s Capital $42,000, Owner’s Drawings (Withdraws or Dividends) $15,000, Equipment $61,000.  The total in the Trial Balance debit column should be:
 
      $131,000.
     $216,000.
     $91,000.
      $116,000.



    
 
    
          
     
    
          
     
     Question 3
 

Webber earned $600 for the last week of September.  He will be paid on October 2.  The adjusting entry for Webber’s employer is:
 
     A. No entry is required.
     B. Debit Salary and Wages Expense; Credit Salaries and Wages Payable.
     C. Debit Salaries and Wages Expense; Credit Cash.
    
    
  D.  Debit Salaries and Wages Payable; Credit Cash.


    
 
    
          
     
    
          
     
     Question 4
 
In the unadjusted trial balance of its worksheet for the year ended December 31, 2016, Gellatin Corporation reported equipment of $120,000.  The year-end adjusting entries require an adjustment of $12,000 for depreciation expense for the equipment.  After the adjustment, the following adjusted amount should be reported.

 
     A. A debit of $12,000 for Equipment in the balance sheet column.
     B. A credit of $12,000 for Deprecation Expense-Equipment for the Income Statement Column.
     C. A debit of $120,000 for Equipment in the balance sheet column.
     D. A debit of $12,000 for Accumulated Depreciation-Equipment in the Balance Sheet Column.




    
 
    
          
     
    
          
     
     Question 5
 
When Wild Bill Hickock Company purchased supplies worth $500, it incorrectly recorded a credit to Supplies for $5,000 and a debit to Cash for $5,000.  Before correcting this error:  
 
     A. Cash is overstated and Supplies is overstated.
     B. Cash is understated and Supplies is understated.
     C. Cash is understated and Supplies is overstated.
     D. Cash is overstated and Supplies is understated.




    
 
    
Question 8
 
The Dividends account

 
     A. must show transactions every accounting period.
     B. is increased with debits and decreased with credits.
     C. is not a proper subdivision of retained earnings.
     D. appears on the income statement along with the expenses of the business.


Question 23
 
Accrued revenues are

 
     A earned and recorded as liabilities before they are received.
     B earned but not yet received or recorded.
     C received and recorded as liabilities before they are earned.
     D earned and already received and recorded.



Problem #1
           Prepare a trial balance.
 

The accounts in the ledger of Talbot Delivery Service contain the following balances on July 31, 2014.
Accounts Receivable    $10,642    Prepaid Insurance    $  1,968
Accounts Payable    8,396    Maintenance and Repairs Expense    961
Cash    ?    Service Revenue    10,610
Equipment    49,360    Dividends    700
Gasoline Expense    758    Common Stock    40,000
Utilities Expense    523    Salaries and Wages Expense    4,428
Notes Payable    26,450    Salaries and Wages Payable    815
          Retained Earnings    4,636


Instructions
Prepare a proper trial balance and fill in the missing amount for Cash.



Problem #2
      
Otis Company accumulates the following adjustment data at December 31.
     
1.      Services provided but not recorded total $1,420.
2.      Supplies of $300 have been used.
3.      Utility expenses of $225 are unpaid.
4.      Unearned service revenue of $260 is recognized for services performed.
5.      Salaries of $800 are unpaid.
6.      Prepaid insurance totaling $380 has expired.

Instructions
For each of the above items indicate the following.      Journalize the adjusting entries.
    




Problem #3
           

The following accounts were taken from the financial statements of Orville Company.
     
________ Interest revenue    
________ Utilities payable    
________ Accounts payable    
________ Supplies    
________ Bonds payable    
________ Trademarks    
________ Common stock    
________ Accumulated depreciation—equipment    
________ Equipment    
________ Salaries and wages expense    
________ Investment in real estate    
________ Unearned rent revenue
Match each of the accounts to its proper balance sheet classification, as shown below. If the item would not appear on a balance sheet, use “NA.”    

     
Current assets (CA)    
Long-term investments (LTI)    
Property, plant, and equipment (PPE)    
Intangible assets (IA)    
Current liabilities (CL)    
Long-term liabilities (LTL)    
Stockholders' equity (SE)    



Problem #4
           


Latina Company had the following adjusted trial balance.
Latina Company
Adjusted Trial Balance
For the Month Ended June 30, 2014
     Adjusted Trial Balance
Account Titles    Debits    Credits
Cash    $ 3,712    
Accounts Receivable    3,904    
Supplies    480    
Accounts Payable         $ 1,556
Unearned Service Revenue         160
Common Stock         4,000
Retained Earnings         1,760
Dividends    600    
Service Revenue         4,300
Salaries and Wages Expense    1,344    
Miscellaneous Expense    180    
Supplies Expense    1,900    
Salaries and Wages Payable         344
     $12,120    $12,120


Instructions
(a)      Prepare a classified balance sheet at June 30, 2014.
Hint: find net income and update retained earnings