Week 7 Final Exam Northeastern University ACC 1001 21378Financial Accounting

1.

The bottling equipment at O’Brien Brewery depreciates $18,000 per year.  What is the monthly adjusting entry?

2.

On March 1, O’Brien Brewery had $1,150 of supplies available.  In April an additional $625 of supplies were purchased.  At May 31, an inventory of supplies showed $450 of supplies remained.  What is the adjusting entry on May 31?

3.

In October, Dr. Noonan performed $8,000 of services for clients.  The clients have not been billed yet.  What adjusting entry is needed?

4.

Employees at O’Brien Investments worked the week ending October 31.  They will be paid in November.  Salaries amounted to $150,000.  What is the October 31 adjusting entry?

5.

O’Brien Capital loaned money to a client that will pay $1,200 interest at the end of 1 year.  What is the adjusting entry O’Brien Capital makes each month to account for the interest that was earned but not received?

6.

On April 1, DWO Consulting received $24,000 in advance for services to be performed over the next 6 months. What is the adjusting entry on June 30^th?

7.

On July 1, O’Brien Sports paid $8,000 to McKeon Realty for 4 months rent beginning July 1. If financial statements are prepared on August 31, what adjusting entry does O’Brien Sports need to make?

8.

Corbin’s Café received a bill from the electric company for electricity used.  The bill is for $325 and has not been paid yet.  What adjusting entry would Corbin’s Café make?

9.

The building at BrantCo. depreciates $25,000 per year. What is the quarterly adjusting entry?

10.

Question 10

1. The following accounts were extracted from the trial balance of J. O’Brien Real Estate at May 31, 2014.  Please journalize the closing entries.

   Retained Earnings                                       10,000

Prepare the closing entries

What is the updated Retained Earnings amount?

11.

repare the necessary journal entries for O’Brien Sports to record the following purchase transactions:

1. February 13, purchased $88,000 of merchandise from Callaway Golf.  Terms of the deal were 2/10, N/30, FOB Destination.  UPS shipping cost was $200.

1. February 16, returned $14,000 of damaged merchandise to Callaway for credit.

1. February 22, paid Callaway for the merchandise purchased on February 13.

12.

repare the necessary journal entries for O’Brien Sports to record the following sales transactions:

1.      March 13, sold 100 drivers to Heavy Hitters Driving Range at $75 each. Each driver cost O’Brien Sports $22.  Terms of the deal were 2/10, N/30.     

2.      March14, Heavy Hitters retuned15 drivers for a full refund. 

3.      March 17, Heavy Hitters wanted to return an additional 5 drivers but decided to keep them when O’Brien Sports granted them a $10 per driver allowance on those 5 drivers. 

4.      March 23, Received payment from Heavy Hitters for drivers sold on March13.

13.

Question 13

Apply the FIFO method

What is the value of the ending inventory? 

What is the cost of goods sold?

14.

Question 14

Apply the LIFO method

What is the value of the ending inventory? 

What is the cost of goods sold

15.

Question 15

1.  
2. Apply the Average Cost method
3.  
4. What is the value of the ending inventory? 
5.  
6.  
7. What is the cost of goods sold?

16.

uestion 16

1. Given the following information, prepare the November 30, 2014 bank reconciliation for O’Brien Real Estate.
• Balance per bank statement $1,182
• Bank service charge $15 
• Balance per ledger, $1,421
• Deposits in transit $933
• Book error $9
• Outstanding checks $700

17.

A company implements internal controls to improve the chances that employee will function according to the plans and standard operating procedures developed by the management team.

Question 18

1. Requiring employees to take vacations is an example of a good internal accounting control feature.

[removed]True

[removed]False

1 points  

Question 19

1. Good internal accounting control requires that the person handling cash should also make any related journal entries so that responsibility for cash can be assigned to one person.

[removed]True

[removed]False

1 points  

Question 20

1. At the end of an accounting period, the “cash balance per bank statement” on that date is usually the proper cash amount to show on the balance sheet.

[removed]True

[removed]False

1 points  

Question 21

1. Outstanding checks are checks a company has written and recorded as cash disbursements that have not yet been presented to the bank for payment.

[removed]True

[removed]False

1 points  

Question 22

1. It is efficient, less costly, and a good internal accounting control procedure to pay small bills each day with cash available from daily cash receipts.

[removed]True

[removed]False

1 points  

Question 23

1. Journal entries are required for all adjustments to the “cash balance per bank statement” in a bank reconciliation.

[removed]True

[removed]False

1 points  

Question 24

1. Good internal accounting control over cash includes depositing all cash receipts in the bank each day.

[removed]True

[removed]False

1 points  

Question 25

1. Disbursements from a petty cash fund should be made with checks that are prenumbered.

[removed]True

[removed]False

1 points  

Question 26

1. The most effective tool for external parties to monitor a company’s cash is the income statement.

[removed]True

[removed]False

1 points  

Question 27

1. An operational audit is an examination of a company’s annual financial statements by a firm of independent certified public accountants.

[removed]True

[removed]False

1 points  

Question 28

1. 1.      What is the EXPANDED accounting equation?

1 points  

Question 29

1. 1.      Any Prepaid would appear on which statement?

1 points  

Question 30

1. 1.      What is the normal balance of any liability?

1 points  

Question 31

1. 1.      Unearned Revenue would appear on which statement?

1 points  

Question 32

1. What is the normal balance of Cash

1 points  

Question 33

1. What statement would Dividends appear on?

1 points  

Question 34

1. Any expense would appear on which statement?

1 points  

Question 35

1. Assets appear on which statement?

1 points  

Question 36

1. Common Stock would appear on which statement?

1 points  

Question 37

1. 1.      What is the normal balance of notes payable?

1 points  

Question 38

1. 1.      What is the normal balance of Prepaid Insurance

1 points  

Question 39

1. What does 2/10, N/30 mean?

1 points  

Question 40

1. 1.      Name the 3 statements we studied.

1 points  

Question 41

1. 1.      SalesDiscounts would appear on which statement?