Accounting help 1/4
Sanur.
part3-of-4.docxRefer to the transactions 0-Z in the fin.docx
Sales of $272,000 were earned from prior period cash advances from customers.
Which of the following is the correct combination of debit(s) and credit(s) to record that transaction?
Answer
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A. |
dr. Advances from Customers $272,000 cr. Sales Revenue $272,000 |
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B. |
dr. Cash $272,000 cr. Advances from Customers $272,000 |
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C. |
dr. Accounts Receivable $272,000 cr. Sales Revenue $272,000 |
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D. |
dr. Cash $272,000 cr. Sales Revenue $272,000 |
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E. |
dr. Sales Revenue $272,000 cr. Advances from Customers $272,000 |
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At the end of the year, the market value of the short-term investments was $157,000.
Which of the following is the correct combination of debit(s) and credit(s) to record that transaction?
Answer
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A. |
dr. Decline in Short-Term Investments $157,000 cr. Allowance for Decline in ST Investments $157,000 |
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B. |
dr. Decline in Short-Term Investments $157,000 cr. Short-Term Investments $157,000 |
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C. |
dr. Short-Term Investments $157,000 dr. Decline in ST Investments $23,000 cr. Short-Term Investments $180,000 |
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D. |
dr. Decline in Short-Term Investments $23,000 cr. Allowance for Decline in ST Investments $23,000 |
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E. |
dr. Decline in Short-Term Investments $23,000 cr. Short-Term Investments $23,000 |
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A total of $3,000 in office supplies remained on hand at the end of the time.
Which of the following is the correct combination of debit(s) and credit(s) to record that transaction?
Answer
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A. |
dr. Supplies Expense $3,000 cr. Office Supplies $3,000 |
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B. |
dr. Office Supplies $38,000 cr. Supplies Expense $38,000 |
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C. |
dr. Office Supplies $3,000 cr. Supplies Expense $3,000 |
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D. |
dr. Supplies Expense $38,000 cr. Office Supplies $38,000 |
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E. |
dr. Office Supplies Expense $38,000 dr. Office Supplies $ 3,000 cr. Office Supplies $41,000 |
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Company A’s policy is to write off all intangible assets over 3 years using straight-line amortization. 2013 is the second year for amortizing licenses.
Which of the following is the correct combination of debit(s) and credit(s) to record that transaction?
Answer
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A. |
dr. Licenses (net) $90,000 dr. License Expense $90,000 cr. Licenses (net) $180,000 |
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B. |
dr. License Expense $60,000 cr. Licenses (net) $60,000 |
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C. |
dr. Licenses (net) $90,000 cr. License Expense $90,000 |
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D. |
dr. License Expense $90,000 cr. Licenses (net) $90,000 |
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E. |
dr. Licenses (net) $60,000 cr. License Expense $60,000 |
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At the end of the year, it was determined that $513,000 of inventory remained on hand.
Which of the following is the correct combination of debit(s) and credit(s) to record that transaction?
Answer
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A. |
dr. Inventory $513,000 dr. Cost of Goods Sold (COGS) $549,000 cr. Inventory $1,062,000 |
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B. |
dr. Inventory $513,000 cr. Cost of Goods Sold (COGS) $513,000 |
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C. |
dr. Cost of Goods Sold (COGS) $549,000 cr. Inventory $549,000 |
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D. |
dr. Cost of Goods Sold (COGS) $513,000 cr. Inventory $513,000 |
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E. |
dr. Inventory $549,000 cr. Cost of Goods Sold (COGS) $549,000 |
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At the end of the year, it was determined that the carrying value of goodwill had declined by $28,000.
Which of the following is the correct combination of debit(s) and credit(s) to record that transaction?
Answer
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A. |
dr. Goodwill Impairment $254,000 cr. Goodwill $254,000 |
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B. |
dr. Goodwill Impairment $28,000 cr. Goodwill $28,000 |
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C. |
dr. Goodwill $254,000 dr. Goodwill Impairment $ 28,000 cr. Goodwill $282,000 |
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D. |
dr. Goodwill $28,000 cr. Goodwill Impairment $28,000 |
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E. |
dr. Goodwill $254,000 cr. Goodwill Impairment $254,000 |
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Old equipment, which had orginally cost $147,000 and was fully depreciated, was scrapped on the first day of business of the year.
Which of the following is the correct combination of debit(s) and credit(s) to record that transaction?
Answer
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A. |
dr. Property, Plant, & Equipment $147,000 cr. Depr.Expense- PP&E $147,000 |
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B. |
dr. Property, Plant, & Equipment $147,000 cr. Accum.Depr- PP&E $147,000 |
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C. |
dr. Accum.Depr- PP&E $147,000 cr. Property, Plant, & Equipment $147,000 |
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D. |
dr. Equipment $2,389,000 dr. Accum.Depr- PP&E $ 147,000 cr. Equipment $2,536,000 |
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E. |
dr. Depr.Expense- PP&E $147,000 cr. Property, Plant, & Equipment $147,000 |
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Company A acquired all of the assets and liabilities of Company B LLC for $555,000 cash. The assets included equipment valued at $425,000 (this equipment was carried on the books of Company B LLC at $300,000 net), accounts Receivable of $230,000, accounts payable of $250,000, and a demand loan of $52,000. There was no intangible assets.
Which of the following is the correct combination of debit(s) and credit(s) to record that transaction?
Answer
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A. |
dr. Accounts Receivable $230,000 dr. Property, Plant, & Equip. $425,000 dr. Goodwill $202,000 cr. Cash $555,000 cr. Accounts Payable $250,000 cr. Short-Term Loan $ 52,000 |
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B. |
dr. Accounts Payable $250,000 dr. Property, Plant, & Equip. $300,000 dr. Goodwill $287,000 cr. Cash $555,000 cr. Accounts Receivable $230,000 cr. Short-Term Loan $ 52,000
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C. |
dr. Accounts Payable $250,000 dr. Property, Plant, & Equip. $425,000 dr. Goodwill $182,000 cr. Cash $555,000 cr. Accounts Receivable $230,000 cr. Short-Term Loan $ 52,000 |
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D. |
dr. Accounts Receivable $230,000 dr. Property, Plant, & Equip. $300,000 dr. Goodwill $327,000 cr. Cash $555,000 cr. Accounts Payable $250,000 cr. Short-Term Loan $ 52,000 |
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Company A paid salaries to employees of $390,000 in cash.
Which of the following is the correct combination of debit(s) and credit(s) to record that transaction?
Answer
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A. |
dr. Cash $390,000 cr. Salary Expense $210,000 cr. Salaries Payable $180,000 |
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B. |
dr. Salary Expense $210,000 dr. Salaries Payable $180,000 cr. Cash $390,000 |
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C. |
dr. Cash $390,000 cr. Salary Expense $390,000 |
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D. |
dr. Salary Expense $390,000 cr. Cash $390,000 |
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Paid the bank $58,000 cash towards interest payments during the year.
Which of the following is the correct combination of debit(s) and credit(s) to record that transaction?
Answer
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A. |
dr. Interest Expense $21,000 dr. Interest Payable $37,000 cr. Cash $58,000 |
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B. |
dr. Cash $58,000 cr. Interest Expense $21,000 cr. Interest Payable $37,000 |
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C. |
dr. Cash $58,000 cr. Interest Expense $58,000 |
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D. |
dr. Interest Expense $58,000 cr. Cash $58,000 |
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Depreciation on plant, property, and equipment for 2013 was determined to be $123,000.
Which of the following is the correct combination of debit(s) and credit(s) to record that transaction?
Answer
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A. |
dr. Accum.Depr.- PP&E $123,000 cr. Depreciation Exp.- PP&E $123,000 |
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B. |
dr. Depreciation Exp.- PP&E $123,000 cr. Accum.Depr.- PP&E $123,000 |
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C. |
dr. Depreciation Exp.- PP&E $123,000 cr. Property, Plant, & Equipment $123,000 |
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D. |
dr. Property, Plant, & Equipment $123,000 cr. Depreciation Exp.- PP&E $123,000 |
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At the end of the year, the accountant estimated that $22,000 of accounts receivable owed to the firm would not likely be collected.
Which of the following is the correct combination of debit(s) and credit(s) to record that transaction?
Answer
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A. |
dr. Sales Revenues $22,000 cr. Accounts Receivable $22,000 |
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B. |
dr. Bad Debt Expense $22,000 cr. Allowance for Bad Debts $22,000 |
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C. |
dr. Bad Debt Expense $22,000 cr. Accounts Receivable $22,000 |
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D. |
dr. Allowance for Bad Debts $22,000 cr. Bad Debt Expense $22,000 |
