PENG AKT 2020 CH 4 12 SOAL

The types of common current assets :

(1) Prepaid expenses (insurance and supplies),

(2) Inventories,

(3) Receivables (notes receivable, accounts receivable, and interest receivable), (4) Short-term investments (such as short-term government securities), (5) Cash.

(6) Share capital-ordinary

State the correct type of common current assets….

• a. (1), (2), (3), (4), and (5)

• b. (1), (2), (3), (4), and (6)

• c. (1), (2), (3), (5), and (6)

• d. (1), (3), (4), (5), and (6)

At Raymond Company SA, the following errors were discovered after the transactions had been journalized and posted. The purchase of store supplies on account for €2,100 was recorded as a debit to Supplies €1,850 and a credit to Accounts Payable €1,850. Prepare the correcting entries.

• a. Accounts Payable 1,850

  Supplies1,850

• b. Accounts Payable 2,100

  Supplies2,100

• c. Accounts Payable 250

  Supplies 250

• d. Supplies 250

  Accounts Payable 250

 In a worksheet, net loss is entered in the following columns:

• a. Income statement (Dr) and Statement of financial position (Dr)

• b. Income statement (Cr) and Statement of financial position (Dr) 

• c. Income statement (Dr)and Statement of financial position (Cr)

• d. Income statement (Cr) and Statement of financial position (Cr)

Cash of £2,550 received at the time the service was performed was journalized and posted as  a debit to Cash £2,250 and a credit to Unearned service revenue £2,250. Assuming the  incorrect entry is not reversed, the correcting entry is:

• a. Cash £300 (Dr), Unearned service revenue £2,250 (Dr), and Service revenue £2,550 (Cr)

• b. Cash £2,550 (Dr) and Service revenue £2,550 (Cr)

• c. Cash £250 (Dr), Unearned service revenue £2,250 (Dr), and Service revenue £2,550 (Cr)

• d. Unearned service revenue £2,550 (Dr), and Service revenue £2,550 (Cr) 

  
  

show which accounts are entered into the statement of financial position :

1) equipment

2) utilities expense

3) dividend

4) unearned service revenue

5) accumulated depreciation- equipment

• A. 1, 3, 5

• B. 1, 2, 4

• C. 3, 4, 5

• D. 1, 4, 5

on January 1, 2020, erins capital had a balance of $186.000 during the year, erin made an

additional investment of $ 40.000 and made $ 25.000 devidend . on December 31, 2020,

erin employment service reported a net income of $18.750 . What is erins final capital?

• A. $ 219.750

• B. $ 269.750

• C. 233.000

• D. 233.750.

What should we do before enter adjustment data on the worksheet?

• a) Enter adjusted balances 

• b) Compute net income (loss) 

• c) Total the statement of financial position columns 

• d) Insert a trial balance on the worksheet

 If a company’s expense are $145,000 and its revenue are $195,000, net income that should be  included in the worksheet is?

• a) $50,000 in the income statement debit column and the statement of financial position  credit column.  

• b) $340,000 in the income statement debit column and the statement of financial position credit  column

• c) $50,000 in the statement of financial position debit column and the income statement credit  column 
  

• d) $340,000 in the statement of financial position debit column and the income statement credit  column

The proper order of the following steps in the accounting cycle is:

• A. Prepare unadjusted trial balance, journalize transactions, post to ledger accounts, journalize and post adjusting entries.

• B. Journalize transactions, prepare unadjusted trial balance, post to ledger accounts, journalize and post adjusting entries.

• C. Journalize transactions, post to ledger accounts, prepare unadjusted trial balance, journalize and post adjusting entries.

• D. Prepare unadjusted trial balance, journalize and post adjusting entries, journalize transactions, post to ledger accounts

On December 31, Frank Voris Company Ltd. correctly made an adjusting entrytorecognize €2.000 of accrued salaries payable. On January 8 of the next year, total salaries of €3.400 were paid. Assuming the correct reversing entry was made onJanuary 1, the entry on January 8 will result in a credit to Cash €3.400 andthefollowing debit(s): 

• A. Salaries and Wages Payable €1.400 and Salaries and Wages Expense €2.000.

• B. Salaries and Wages Payable €2.000 and Salaries and Wages Expense €1.400.

• C. Salaries and Wages Expense €3.400. 

• D. Salaries and Wages Payable €3.400.