Accounting Chapters 18-20 Part 2

At the end of the year, Utz Milk Transport has calculated its federal income tax amount for the year to be $7,000. Utz Milk Transport has already made federal income tax payments in the amount of $4,000. How is the adjusting entry for Federal Income Tax Expense recorded on a multicolumn trial balance worksheet?

• In the adjustments column, debit Federal Income Tax Expense, $11,000; credit Federal Income Tax Payable, $11,000.

• In the adjustments column, debit Federal Income Tax Expense, $3,000; credit Federal Income Tax Payable, $3,000.

• In the adjustments column, debit Federal Income Tax Expense, $7,000; credit Federal Income Tax Payable, $7,000.

• In the adjustments column, debit Federal Income Tax Expense, $4,000; credit Federal Income Tax Payable, $4,000.

Trash Haulers of America has income of $8,500.
The company has the following expenses:
Advertising Expense - $1,200,
Insurance Expense - $950,
Rent Expense - $1,000,
Supplies Expense - $450,
Utilities Expense - $375.
What is the component percentage for Rent Expense?

• 4.4%

• 5.3%

• 11.8%

• 11.1%

The figure contains a partial worksheet. The correct closing entry for the Advertising Expense account is to:

• debit Advertising Expense, $450.00; credit Income Summary, $450.00.

• debit Advertising Expense, $450.00; credit Amos Maxwell, Capital, $450.00.

• debit Income Summary, $450.00; credit Advertising Expense, $450.00.

• debit Amos Maxwell, Capital, $450.00; credit Advertising Expense, $450.00.

The Merchandise Inventory account has a balance of $1,100. At the end of the month, a physical count of the inventory items shows $900 is on hand. The adjusting entry to inventory recorded on a multicolumn trial balance worksheet is:

• debit Income Summary, $200; credit Merchandise Inventory, $200.

• debit Merchandise Inventory, $200; credit Income Summary, $200.

• debit Income Summary, $900; credit Merchandise Inventory, $900.

• debit Merchandise Inventory, $900; credit Income Summary, $900.

Stan Stanley, a stockholder of Hubble Corporation, has just received a set of financials. While looking at these financials, he sees the words "Assets," "Liabilities," and "Stockholders' Equity" on a sheet. Which financial statement is Stan viewing?

• Income Statement

• Balance Sheet

• Statement of Cash Flow

• Statement of Stockholders' Equity

The Drawing account has a balance of $900. The correct entry to close the Drawing account would be to:

• Debit Drawing, $900; credit Income Summary, $900.

• debit Income Summary, $900; credit Drawing, $900.

• debit Owner's Equity, $900; credit Drawing, $900.

• debit Drawing, $900; credit Owner's Equity, $900.

Karaoke Mikes has sales of $11,500.

The company has the following expenses:

Advertising Expense - $1,500,

Insurance Expense - $975,

Rent Expense - $1,125,

Supplies Expense - $375,

Utilities Expense - $200.

What is the component percentage for total expenses?

• 53.7%

• 23.8%

• 36.3%

• 10.1%

The owner's Drawing account has a balance of $275. The correct entry to close the Drawing account would be to:

• debit Drawing, $275; credit Owner's Equity, $275.

• debit Income Summary, $275; credit Drawing, $275.

• debit Owner's Equity, $900; credit Drawing, $900.

• debit Owner's Equity, $275; credit Drawing, $275.

Refer to the year-end worksheet for the Frozen Tundra Outdoor Sales shown below. What are the net sales for Frozen Tundra Outdoor Sales?

• Net sales are $57,100.

• Net sales are $56,000.

• Net sales are $54,900.

• Net sales are $20,650.

What is the merchandise inventory balance on the post-closing trial balance?

• The merchandise inventory balance is $1,200.

• The merchandise inventory balance is $300.

• The merchandise inventory balance is $1,800.

• The merchandise inventory balance is $1,500.