Exam 1 Review

Front

What journal entry is required when a company issues common stock in exchange for cash?

Back

Debit Cash, Credit Common Stock

Front

At the end of the current period, Jackson Jams reports dividends of $500, expenses of $8,000, and net income of $2,000. What is Jackson's revenue?

Back

$10,000

Front

Hope College purchases equipment to assist with constructing a new business building. How would Hope classify this transaction in a statement of cash flows?

Back

Investing

Front

Rodgers Renovation purchases supplies for cash that will be used over the next few weeks. What will be the effects on the accounting equation if Rodgers DOES NOT make the adjusting entry for supplies used?

Back

Assets will be overstated and stockholders' equity will be overstated

Front

What journal entry is required when a company completes services and receives cash?

Back

Debit Cash, Credit Revenue

Front

Templeton Technology receives a bank statement that includes a service fee of $15. This reconciling item would require a(n)

Back

decrease to the company's cash balance

Front

Which of the following reconciling items would require an adjusting journal entry to cash?
EFTs,
Deposits outstanding,
Checks outstanding,
Bank errors

Back

EFTs

Front

To prevent improper use of a company's resources, only certain employees are allowed to carry out certain business activities. This is an example of

Back

proper authorization.

Front

Deferred revenue appears on the

Back

balance sheet

Front

During the first month of operations, Choy Corp pays $500 cash for a TV commercial that airs during the month. What journal entry should Choy make to record this transaction?

Back

Debit Advertising Expense $500
Credit Cash $500