Appalachian Ski Mountain traded an old snowmobile for a new snowmobile. The original cost of the old snowmobile was $8,000. Accumulated depreciation on the old snowmobile was $6,500. Cash of $8,500 was paid in the trade. The entry to record this transaction is:

debit Vehicles, $10,000, Accumulated Depreciation, $6,500; credit Vehicles, $8,000, Cash, $8,500.

Kaylee's Kinder Care sold an activity van for $6,000. The original cost of the van was $25,000. The van had no salvage value and had accumulated depreciation of $18,000. The entry to record this transaction is:

debit Cash, $6,000, Accumulated Depreciation, $18,000, Loss on Sale of Asset, $1,000; credit Vehicles, $25,000.

Gym America traded a gymnastic beam for a new gymnastic springboard. The original cost of the gymnastic beam was $5,000. Accumulated depreciation on the gymnastic beam was $3,000. Cash of $2,000 was paid in the trade. The entry to record this transaction is:

debit Equipment, $4,000, Accumulated Depreciation, $3,000; credit Equipment, $5,000, Cash, $2,000.

Michael Taxi Service traded an old taxi car for a new taxi van. The original cost of the old taxi car was $15,000. Accumulated depreciation on the old taxi car was $14,000. Cash of $20,000 was paid in the trade. The entry to record this transaction is:

debit Vehicles, $21,000, Accumulated Depreciation, $14,000; credit Vehicles, $15,000, Cash, $20,000.

The appropriate adjusting entry for Accrued Salary Expense is: debit Salaries Expense-Administrative, Salaries Expense-Sales; credit Employee Income Tax Payable, Social Security Tax Payable, Medicare Tax Payable, Salaries Payable.

debit Salaries Expense-Administrative, Salaries Expense-Sales; credit Employee Income Tax Payable, Social Security Tax Payable, Medicare Tax Payable, Salaries Payable.

On December 1, Jordan Company received $3,000 for December, January, and February rent from renters. Jordan Company initially recorded all rent payments received as an unearned rent. The unearned or deferred rent needs an adjusting entry on December 31. The appropriate adjusting entry is:

debit Unearned Rent; credit Rental Income.

Brown Company has a 90-day, 15% note payable for $8,000.00, dated December 12, on which interest has accrued. As of December 31 of the current year, the appropriate adjusting entry to record the accrued interest is:

debit Interest Expense, $63.33; credit Interest Payable, $63.33.

After adjusting entries and closing entries are posted for the fiscal period, the unearned or deferred revenue needs a reversing entry on January 1. Which is the appropriate reversing entry?

debit Unearned Rent; credit Rental Income.

Shaw Company initially recorded the purchase of supplies as an expense. If the ending inventory is $2,050, the adjusting entry is:

debit Supplies-Office, $2,050; credit Supplies Expense-Office, $2,050.

Davis Company has a 60-day, 10% note payable for $4,500.00, dated December 14, on which interest has accrued. On January 1, after adjusting and closing entries have been posted, the appropriate reversing entry is:

debit Interest Payable, $21.25; credit Interest Expense, $21.25.

ACC 2 Unit 2.00 Flashcards

Student preview

25 questions

Show all answers

1.

FLASHCARD QUESTION

Front

Drive 'n Go Motors sells used cars. Inventory is continuously updated as vehicles are purchased and sold. What type of inventory control system does Drive 'n Go use?

Back

perpetual

2.

FLASHCARD QUESTION

Front

In order to reflect a more conservative valuation of ending inventory, which method will Hometown Hardware most likely use? Options: last in, first out, first in, first out, weighted average, lower of cost or market

Back

lower of cost or market

3.

FLASHCARD QUESTION

Front

How will the shipment of oak wood be classified if the company selling it pays for the transportation charges? Options: FOB department store, FOB shipping point, FOB destination, FOB transit

Back

FOB destination

4.

FLASHCARD QUESTION

Front

What is the value of the ending inventory using the weighted average method for Todd's Turbo Repair, given that 400 units remained in ending inventory?

Back

$2,985.71

5.

FLASHCARD QUESTION

Front

What is the Cost of Goods Sold using the LIFO method for Todd's Turbo Repair with 400 units remaining in ending inventory?

Back

$1,000.00

6.

FLASHCARD QUESTION

Front

What is the value of the ending inventory using the FIFO method for Wayne's Well Drilling, given that 700 units remained in ending inventory?

Back

$7,300.00

7.

FLASHCARD QUESTION

Front

Based on the information provided, what is the amount of ending inventory using the lower of cost or market computed under the weighted average method?

Back

$704.25

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