This is for wizard kim, accounting questions

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Which type of account is an Allowance for Doubtful Accounts?

A. Asset
B. Contra-asset
C. Revenue
D. Contra-revenue

An account never used in a service business is

A. Consulting Fees-Revenue.
B. Interest Payable.
C. Merchandise Inventory.
D. Accumulated Depreciation–Equipment.

The beginning Merchandise Inventory account appears in the _______ on the worksheet.

A. adjustment column
B. trial balance and the balance sheet columns
C. trial balance and adjustment columns
D. All of the above

Which of these is true about the normal balance of an income summary?

A. The balance is debit.
B. The balance is credit.
C. The account doesn’t have a normal balance.
D. It depends on which financial statement it appears.

Indy Sport and Hobby’s Allowance for Doubtful Accounts had an unadjusted credit balance of $400. The manager estimates that $900 of the Accounts Receivable is uncollectible. Using the balance sheet approach, the year-end adjusting entry for Bad-Debts Expense includes a

A. credit to the Bad-Debt Expense account for $500.
B. debit to the Bad-Debts Expense account for $900.
C. credit to the Bad-Debts Expense account for $1,300.
D. debit to the Bad-Debts Expense account for $500.

Which method uses an aging of Accounts Receivable to calculate the Bad-Debts Expense?

A. Income statement approach
B. Balance sheet approach
C. Aging the Accounts Receivable
D. Direct write-off

Gross Accounts Receivable is $12,000. Allowance for Doubtful Accounts has a credit balance of $600. Net sales for the year are $100,000. In the past, 2% of sales had proved uncollectible, and an aging of the receivables indicates $1,900 as uncollectible. What would be the adjusted balance of the Allowance account under the balance sheet approach?

A. $2,000
B. $1,400
C. $2,500
D. $1,900

Gross Accounts Receivable is $10,000. Allowance for Doubtful Accounts has a credit balance of $200. Net sales for the year are $150,000. In the past, 2% of sales had proved uncollectible, and an aging of the receivables indicates $1,200 is doubtful. Under the income statement approach, the Bad-Debts Expense for the year is

A. $1,000.
B. $3,000.
C. $2,800.
D. $1,200.

Net realizable value can be defined as the

A. Gross Accounts Receivable.
B. Current Bad Debts Expense.
C. amount of Accounts Receivable you don’t expect to collect.
D. Gross Accounts Receivable minus the Allowance for Doubtful Accounts.

The physical count of inventory was incorrect; it overstated the ending inventory. This would cause the

A. cost of goods sold to be overstated.
B. cost of goods sold to be understated.
C. gross profit to be understated.
D. net income to be understated.

Gross Accounts Receivable is $10,000. Allowance for Doubtful Accounts has a credit balance of $200. Net sales for the year are $150,000. In the past, 2% of sales had proved uncollectible. What would be the adjusted balance of the Allowance account under the income statement approach?

A. $3,200
B. $2,800
C. $1,400
D. $3,000

When completing a worksheet, the

A. ending inventory amount appears in the income statement debit column.
B. beginning inventory amount appears in the adjustment credit column.
C. ending inventory amount appears in the unadjusted trial balance debit column of the worksheet.
D. beginning inventory amount appears in the balance sheet debit column of the worksheet.

The goods a company has available to sell to customers are called

A. supplies.
B. sales.
C. cost of goods sold.
D. merchandise inventory.

Empire has a credit balance of $750 in its Allowance for Doubtful Accounts. The balance in the Accounts Receivable account is $80,500, with $2,415 estimated to be uncollectible after aging the accounts. Under the balance sheet approach, the debit to Bad-Debt Expense will be

A. $2,415.
B. $3,165.
C. $1,665.
D. $750.

The Allowance for Doubtful Accounts is adjusted

A. at the end of each accounting period.
B. each time a customer’s debt is satisfied.
C. within one year of granting credit to a customer.
D. each time a customer is granted credit.

Harry’s Hardware estimates that approximately $1.75 out of every $100 of credit sales proves to be uncollectible. Barber calculates Bad-Debts Expense using the

A. income statement approach.
B. direct write-off method.
C. balance sheet approach.
D. aging the Accounts Receivable approach.

Which inventory appears in the balance sheet column of the worksheet?

A. Ending inventory
B. Beginning inventory
C. Combination of beginning and ending inventories
D. None of the above

Cost of goods sold equals

A. beginning inventory + net purchases + freight-in + ending inventory.
B. beginning inventory – net purchases – freight-in + ending inventory.
C. beginning inventory + net purchases + freight-in – ending inventory.
D. beginning inventory – net purchases + freight-in + ending inventory.

Beginning inventory was $4,000, purchases totaled $22,000, and sales were $20,000. What is the ending inventory?

A. $2,000
B. $4,000
C. $6,000
D. $8,000

Beginning and ending inventories for Webster’s Books are $9,000 and $6,000, respectively. The debit amounts (not including Income Summary) in the income statement columns of the worksheet total $14,000, and the credit amounts (not including Income Summary) total $15,500. The firm has a

A. net income of $1,500.
B. net loss of $1,500.
C. net loss of $3,000.
D. net income of $3,000.

If preferred dividends are limited to the stated rate of dividend, the preferred stock is

A. noncumulative.
B. cumulative.
C. participating.
D. nonparticipating.

The entry to record MidIowa.net’s selling 800 shares of $6.00 par value common stock at $8.00 would be which of the following?

A. Debit Cash $6,400; credit Common Stock $4,800; credit Paid-In Capital in Excess of Par Value—Common $1,600
B. Debit Cash $4,800; credit Common Stock $4,800
C. Debit Cash $6,400; debit Paid-In Capital in Excess of Par Value—Common $1,600; credit Common Stock $8,000
D. None of the above

ABC sells 400 shares of its $23 par common stock for $27. The entry would entail credit(s) to

A. Cash for $9,200.
B. Paid-In Capital in Excess of Par—Common for $800 and Common Stock for $10,800.
C. Paid-In Capital in Excess of Par—Common for $1,600 and Common Stock for $9,200.
D. Common Stock for $10,800.

Dolly’s Best issued 200 shares of its $10 common stock in exchange for used packaging equipment with a fair market value of $2,400. The entry to record the acquisition of the equipment would include a

A. debit to Equipment for $2,000.
B. debit to Paid-In Capital in Excess of Par for $400.
C. credit to Common Stock for $2,400.
D. debit to Equipment for $2,400.

Characteristics of a corporation include

A. stockholders having unlimited liability.
B. direct management by the stockholders.
C. stockholders having limited liability.
D. stockholders choosing a board of directors.

Rhubarb Corporation’s outstanding stock is 100 shares of $100, 11% cumulative nonparticipating preferred stock, and 2,000 shares of $12 par value common stock. Rhubarb paid $1,600 cash dividends during the year. Common stockholders received

A. $0.
B. $500.
C. $2,500.
D. $1,100.

A major disadvantage of a corporation is the

A. difficulty in transferring ownership.
B. limited life.
C. difficulty in raising capital.
D. double taxation of the corporation’s income and of dividends paid to shareholders.

When stock is exchanged for noncash assets,

A. debit the asset for prior book value and credit Common Stock for cash received.
B. debit assets for market value and credit Common Stock for par value; if needed, credit Paid-In Capital in Excess of Par.
C. debit assets for market value and credit Common Stock for market value.
D. debit assets for par value and credit Common Stock for par value.

Antiques.com’s outstanding stock is 75 shares of $60, 8% cumulative nonparticipating preferred stock, and 2,000 shares of $10 par value common stock. Antiques paid $2,400 cash dividends during the year. Common stockholders received

A. $2,400.
B. $360.
C. $2,040.
D. $0.

The Logan Company issued 140 shares of its $12 par value stock for $14 per share. The entry to record the receipt of cash and issuance of the stock would include a

A. debit to Cash for $1,680 and a credit to Common Stock for $1,680.
B. debit to Cash for $1,960.
C. credit to Common Stock for $1,960.
D. debit to Discount on Common Stock for $280.

Custer.com’s outstanding stock is 100 shares of $100, 6% cumulative nonparticipating preferred stock, and 1,000 shares of $10 par value common stock. Custer paid $2,000 cash dividends, including one-year dividends in arrears to preferred stockholders. Common stockholders received

A. $0.
B. $800.
C. $1,818.
D. $600.

The entry to record selling 300 shares of no-par common stock with a stated value of $60 for $70 would be which of the following?

A. Debit Cash $21,000; credit Common Stock $21,000
B. Debit Cash $18,000; credit Common Stock $18,000
C. Debit Cash $21,000; credit Common Stock $18,000; debit Paid-In Capital in Excess of Par Value—Common $3,000
D. Debit Cash $21,000; credit Common Stock $18,000; credit Paid-In Capital in Excess of Stated Value—Common $3,000

Alpha Corporation has 1,500 shares of $40 par, 7% cumulative preferred stock, and 2,200 shares of $10 par common stock. Alpha paid $10,000 in cash dividends, including one-year dividends in arrears to preferred stockholders. Common stockholders received

A. $0.
B. $220.
C. $1,600.
D. $5,800.

Which of the following would normally not appear in the Stockholders’ Equity section of the balance sheet?

A. Cash
B. Paid-In Capital
C. Common Stock
D. Preferred Stock

If only one type of stock is issued, it’s

A. no-par preferred stock.
B. preferred stock.
C. legal capital.
D. common stock.

The ownership of a corporation consists of the

A. governing body.
B. officers of the corporation.
C. stockholders.
D. board of directors.

The entry to record selling 150 shares of no-par common stock with a stated value of $30 for $40 would be which of the following?

A. Debit Common Stock $6,000; credit Cash $6,000
B. Debit Cash $6,000; credit Common Stock $6,000
C. Debit Cash $6,000; credit Common Stock $4,500; credit Paid-In Capital in Excess of Stated Value—Common $1,500
D. Debit Cash $6,000; credit Common Stock $4,500; credit Paid-In Capital in Excess of Par Value—Common $1,500

Washington Corporation issued 4,000 shares of its $20 par value common stock for $23 per share. The entry to record the issuance would include a

A. debit to Cash for $80,000.
B. credit to Common Stock for $12,000.
C. credit to Common Stock for $80,000.
D. debit to Paid-In Capital in Excess of Par Value for $12,000.

The Harvester Corporation issued 40 shares of $20 par value stock to its accountant. The shares are in full payment for her $900 fee for helping to set up the new company. The entry to record the issuance of the stock would include a

A. credit to Common Stock for $900.
B. debit to Common Stock for $900.
C. credit to Common Stock for $800.
D. debit to Common Stock for $800.

The major parts of the Stockholders’ Equity section of the balance sheet are

A. Paid-In Capital and Retained Earnings.
B. Stock and Retained Earnings.
C. Stock, Paid-In Capital, and Retained Earnings.
D. Authorized Stock and Preferred Stock.