Mcq's and answers

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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