Multiple Choice Question 112 Jawbreaker Company paid $940 on account to a creditor. The transaction was erroneously recorded as a debit to Cash of $490 and a credit to Accounts Receivable, $490. The correcting entry is Accounts Receivable............

Multiple Choice Question 112

Jawbreaker Company paid $940 on account to a creditor. The transaction was erroneously recorded as a debit to Cash of $490 and a credit to Accounts Receivable, $490. The correcting entry is

[removed]

Accounts Receivable...........................................................................		490
	Cash...............................................................................................		490

[removed]

Accounts Payable...............................................................................		940
	Cash...............................................................................................		940

[removed]

Accounts Receivable...........................................................................		490
	Accounts Payable.............................................................................		490

[removed]

Accounts Receivable...........................................................................		490
Accounts Payable...............................................................................		940
	Cash...............................................................................................		1,430

Multiple Choice Question 111

Zen Arcade paid the weekly payroll on January 2 by debiting Salaries and Wages Expense for $47,000. The accountant preparing the payroll entry overlooked the fact that Salaries and Wages Expense of $27,000 had been accrued at year end on December 31. The correcting entry is

[removed]

Salaries and Wages Payable...............................................................................		27,000
	Salaries and Wages Expense.............................................................................		27,000

[removed]

Salaries and Wages Payable...............................................................................		27,000
	Cash...............................................................................................................		27,000

[removed]

Cash................................................................................................................		20,000
	Salaries and Wages Expense.............................................................................		20,000

[removed]

Cash................................................................................................................		27,000
	Salaries and Wages Expense.............................................................................		27,000

Multiple Choice Question 81

The income statement for the year 2014 of Fugazi Co. contains the following information:

Revenues				$70,000
Expenses:
	Salaries and Wages Expense		$45,000
	Rent Expense		12,000
	Advertising Expense		10,000
	Supplies Expense		6,000
	Utilities Expense		2,500
	Insurance Expense		2,000
		Total expenses		77,500
Net income (loss)				($7,500)

The entry to close the expense accounts includes a

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debit to Income Summary for $7,500.

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debit to Income Summary for $77,500.

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credit to Income Summary for $7,500.

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debit to Wages Expense for $2,500.

Multiple Choice Question 122

The following information is for Bright Eyes Auto Supplies:

Bright Eyes Auto Supplies
Balance Sheet
December 31, 2014

Cash				$ 40,000	Accounts Payable				$ 130,000
Prepaid Insurance				80,000	Salaries and Wages Payable				50,000
Accounts Receivable				100,000	Mortgage Payable				150,000
Inventory				140,000		Total Liabilities			330,000
Land Held for Investment				180,000
Land				250,000
Building			$200,000
	Less Accumulated				Owner’s Capital				740,000
		Depreciation	(60,000)	140,000
Trademark				140,000			Total Liabilities and
Total Assets				$1,070,000				Owner’sEquity	$1,070,000

The total dollar amount of assets to be classified as investments is

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$180,000.

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$250,000.

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$0.

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$140,000.

Multiple Choice Question 121

The following information is for Bright Eyes Auto Supplies:

Bright Eyes Auto Supplies
Balance Sheet
December 31, 2014

Cash				$ 40,000	Accounts Payable				$ 130,000
Prepaid Insurance				80,000	Salaries and Wages Payable				50,000
Accounts Receivable				100,000	Mortgage Payable				150,000
Inventory				140,000		Total Liabilities			330,000
Land Held for Investment				180,000
Land				250,000
Building			$200,000
	Less Accumulated				Owner’s Capital				740,000
		Depreciation	(60,000)	140,000
Trademark				140,000			Total Liabilities and
Total Assets				$1,070,000				Owner’sEquity	$1,070,000

The total dollar amount of assets to be classified as property, plant, and equipment is

[removed]

$630,000.

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$450,000.

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$390,000.

[removed]

$570,000.

Multiple Choice Question 94

Which account listed below would be double ruled in the ledger as part of the closing process?

[removed]

Accumulated Depreciation—Equipment

[removed]

Cash

[removed]

Owner's Drawings

[removed]

Owner's Capital

Multiple Choice Question 108

If errors occur in the recording process, they

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should be corrected as soon as they are discovered.

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should be corrected as adjustments at the end of the period.

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cannot be corrected until the next accounting period.

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should be corrected when preparing closing entries.

Multiple Choice Question 148

Which statement about long-term investments is not true?

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They are not currently used in the operation of the business.

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They will be held for more than one year.

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They include investments in stock of other companies and land held for future use.

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They can never include cash accounts.

Multiple Choice Question 59

Closing entries are

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journalized in the general journal.

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an optional step in the accounting cycle.

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made to close permanent or real accounts.

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posted to the ledger accounts from the worksheet.

Multiple Choice Question 102

Which of the following steps in the accounting cycle may be performed most frequently?

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Prepare a trial balance.

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Prepare a post-closing trial balance.

[removed]

Journalize closing entries.

[removed]

Post closing entries.

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Multiple Choice Question 112 Jawbreaker Company paid $940 on account to a creditor. The transaction was erroneously recorded as a debit to Cash of $490 and a credit to Accounts Receivable, $490. The correcting entry is Accounts Receivable............

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