MC Qu. 153 Based on the following information...
Based on the following information, determine the current assets, assuming all accounts have a normal balance?| Cash | $6,914 | Dividends | $3,600 |
| Accounts receivable | 15,333 | Consulting fees earned | 15,318 |
| Office supplies | 2,785 | Rent expense | 3,833 |
| Land | 38,753 | Salaries expense | 6,802 |
| Office equipment | 16,135 | Telephone expense | 720 |
| Accounts payable | 6,623 | Miscellaneous expense | 440 |
| Common stock | 56,090 | Retained Earnings | ? |
| $62,713 | |
| $41,167 | |
| $63,785 | |
 | $79,920 |
| → | $25,032 |
$6,914 + $15,333 + $2,785 = $25,032
MC Qu. 102 On April 30, 2014, a three-year insurance...
|
On
April 30, 2014, a three-year insurance policy was purchased for $19,620
with coverage to begin immediately. What is the amount of insurance
expense that would appear on the company's income statement for the year
ended December 31, 2014?
|
| $545.00 | |
 | $4,360 |
| $15,260 | |
| $6,540 | |
| $19,620 |
$19,620 x 8/36 = $4,360
MC Qu. 112 A company's Office Supplies account shows a beginning...
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A
company's Office Supplies account shows a beginning balance of $980 and
an ending balance of $590. If office supplies expense for the year is
$8,800, what amount of office supplies was purchased during the period?
|
| $8,410 |
| $8,210 | |
| $9,000 | |
| $9,390 | |
| $9,780 |
$980 + Supplies purchased - $8,800 = $590
Supplies purchased - $7,820 = $590
$8,410 = Supplies purchased
Supplies purchased - $7,820 = $590
$8,410 = Supplies purchased
MC Qu. 103 ABC Co. leased a portion of its store to ...
|
ABC
Co. leased a portion of its store to another company for eight months
beginning on October 1, 2014, at a monthly rate of $900. This other
company paid the entire $7,200 cash on October 1, which ABC Co. recorded
as unearned revenue. The journal entry made by ABC Co. at year-end on
December 31, 2014, would include:
|
| A debit to Rent Earned for $2,700. | |
| A debit to Cash for $7,200. | |
| A credit to Rent Earned for $2,700. |
| A credit to Unearned Rent for $2,700. | |
| A debit to Unearned Rent for $4,500. |
$7,200 x 3/8 = $2,700 rent earned
MC Qu. 147 A company had revenue of...
|
A
company had revenue of $552,000, rent expense of $101,000, utility
expense of $10,100, salary expense of $126,500, depreciation expense of
$39,100, advertising expense of $40,300, dividends in the amount of
$184,000, and an ending balance in retained earnings of $403,300. What
is the beginning retained earnings for the period?
|
| $352,300 |
| $368,000 | |
| $251,300 | |
| $317,000 | |
| $235,000 |
552,000 - 317,000 = 235,000
X + 235,000 - 184,000 - 403,300 = $352,300
X + 235,000 - 184,000 - 403,300 = $352,300
MC Qu. 151 Based on the following information, what...
|
Based
on the following information, what would be the ending balance in the
Retained Earnings account, assuming all accounts have a normal balance?
|
| Cash | $6,824 | Dividends | $2,700 |
| Accounts receivable | 14,433 | Consulting fees earned | 14,418 |
| Office supplies | 2,695 | Rent expense | 3,743 |
| Land | 37,853 | Salaries expense | 6,712 |
| Office equipment | 15,235 | Telephone expense | 630 |
| Accounts payable | 6,533 | Miscellaneous expense | 350 |
| Common stock | 55,190 | Retained Earnings | ? |
| $18,017 | |
| $14,135 |
| $14,418 | |
| → | $15,317 |
| $15,034 |
| Total debits: $6,824 + $14,433 + $2,695 + $37,853 + $15,235 + $2,700 + $3,743 + $6,712 + $630 + $350 = $91,175 |
| Given credits: $6,533 + $55,190 + $14,418 = $76,141 |
| Total debits $91,175 - Given credits $76,141 = RE $15,034 missing credit (beginning bal) |
| $15,034 + $14,418 - $3,743 - $6,712 - $630 - $350 - $2,700 = $15,317 (ending bal) |
MC Qu. 150 Based on the following information, what...
|
Based
on the following information, what would be the balance in the Retained
Earnings Account, assuming all accounts have a normal balance?
|
| Cash | $6,954 | Dividends | $4,000 |
| Accounts receivable | 15,733 | Consulting fees earned | 15,718 |
| Office supplies | 2,825 | Rent expense | 3,873 |
| Land | 39,153 | Salaries expense | 6,842 |
| Office equipment | 16,535 | Telephone expense | 760 |
| Accounts payable | 6,663 | Miscellaneous expense | 480 |
| Common stock | 56,490 | Retained Earnings | ? |
| $0 |
| $15,955 | |
| $15,718 | |
| $3,763 | |
| → | $18,284 |
| Total debits: $6,954 + $15,733 + $2,825 + $39,153 + $16,535 + $4,000 + $3,873 + $6,842 + $760 + $480 = $97,155 |
| Given credits: $6,663 + $56,490 + $15,718 = $78,871 |
| Total debits $97,155 - Given credits $78,871 = RE $18,284 missing credit |
MC Qu. 137 The Unadjusted Trial Balance columns of a...
|
The
Unadjusted Trial Balance columns of a company's work sheet show the
balance in the Office Supplies account as $810. The Adjustments columns
show that $455 of these supplies were used during the period. The amount
shown as Office Supplies in the Balance Sheet columns of the work sheet
is:
|
| $355 credit |
| $810 credit | |
| $455 debit | |
| → | $355 debit |
| $810 debit |
$810 - $455 = $355 remaining balance
MC Qu. 88 On June 30, 2014, Apricot Co. paid...
|
On
June 30, 2014, Apricot Co. paid $5,700 cash for management services to
be performed over a two-year period. Apricot follows a policy of
recording all prepaid expenses in asset accounts at the time of cash
payment. On June 30, 2014 Apricot should record:
|
| A credit to a prepaid expense for $5,700. | |
| A credit to an expense for $5,700. | |
| A debit to Cash for $5,700. | |
| A debit to a prepaid expense for $5,700. |
| A debit to an expense for $5,700. |
