Issued 8% bonds, $600,000 par, semiannually. Market rate 8%. The journal entry to record each semiannual interest payment is:

Debit Bond Interest Expense $$24,000; credit Cash $$ 24,000.

Debit Bond Interest Expense $$48,000; credit Cash $$ 48,000.

Debit Bond Interest Payable $$24,000; credit Cash $$ 24,000.

Debit Bond Interest Expense $$600,000; credit Cash $$ 600,000.

Rev $$100k, Rent Exp $$ 20k, Salaries Exp $30k. What is the closing entry for the expense accounts?

Debit Income Summary $$50,000; Credit Rent Expense $$ 20,000, Credit Salaries Expense $30,000

Debit Income Summary $$100,000; Credit Service Revenue $$ 100,000

Debit Rent Exp $$20k, Debit Salaries Exp $$ 30k; Credit Income Summary $50k

Debit Dividends $$10,000; Credit Income Summary $$ 10,000

Debit Income Summary $$50,000; Credit Rent Exp $$ 10k, Credit Salaries Exp $40k

Declared a $0.50/share cash dividend on 8,000 shares outstanding. The journal entry to record the dividend declaration is:

Debit Retained Earnings $$4,000; credit Common Dividends Payable $$ 4,000.

Debit Common Dividends Payable $$4,000; credit Cash $$ 4,000.

Debit Retained Earnings $$4,500; credit Common Dividends Payable $$ 4,500.

Debit Common Dividends Payable $$4,500; credit Cash $$ 4,500.

Debit Retained Earnings $$10,000; credit Common Dividends Payable $$ 10,000.

Declared a cash dividend of $0.50 per share on 24,000 shares outstanding. The journal entry to record the payment of the cash dividend is:

Debit Common Dividend Payable $$12,000; credit Cash $$ 12,000.

Debit Dividend Expense $$12,000; credit Cash $$ 12,000.

Debit Dividend Expense $$12,000; credit Common Dividend Payable $$ 12,000.

Debit Retained Earnings $$12,000; credit Common Dividend Payable $$ 12,000.

Debit Common Dividend Payable $$12,000; credit Retained Earnings $$ 12,000.

Retained earnings (description):

Generally consists of a company's cumulative net income less any net losses and dividends declared since its inception.

Can only be appropriated by setting aside a cash fund.

Represent an amount of cash available to pay shareholders.

Are never adjusted for anything other than net income or dividends.

Represents the amount shareholders are guaranteed to receive upon company liquidation.

Stated value of no-par stock is:

an amount assigned to no-par stock by the corporation's board of directors

another name for redemption value

an amount assigned to par value stock by the state of incorporation

the market value of the stock on the date of issuance

the difference between the par value of stock and the amount below or above par value paid-in by the stockholder

Stockholders' equity consists of which of the following?

Paid-in capital and retained earnings.

Par value of a stock refers to the:

B. Value assigned per share by the corporate charter.

C. Market value of the stock on the date of the financial statements.

D. Maximum selling price of the stock.

E. Dividend value of the stock.

The total amount of cash and other assets received by a corporation from its stockholders in exchange for its stock is:

Referred to as paid-in capital.

Always equal to its stated value.

Referred to as retained earnings.

A premium on common stock:

Occurs when a corporation sells its stock for more than par or stated value.

Is the difference between par value and issue price when the amount paid is below par.

Represents profit from issuing stock.

Represents capital gain on sale of stock.

A bond sells at a discount when the:

Contract rate is below the market rate.

Contract rate is above the market rate.

Contract rate is equal to the market rate.

Bond pays interest only once a year.

All of the following are true of known liabilities except:

May depend on some future event occurring.

Include accounts payable, notes payable, and payroll.

Are obligations set by agreements, contracts, or laws.

Short-term notes payable:

can be issued in return for money borrowed from a bank.

cannot replace an account payable.

are a conditional promise to pay.

rarely involve interest charges.

An advantage of bonds is:

Bonds do not affect owner control.

Bonds require payment of par value at maturity.

Bonds can decrease return on equity.

Bond payments can be burdensome when income and cash flow are low.

Bonds require payment of periodic interest.

Photometer Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?

Assets, $$30k decrease; liabilities, $$ 30k decrease; equity, no effect.

Assets, $$30k increase; liabilities, no effect; equity, $$ 30k increase.

Assets, $$30k decrease; liabilities, $$ 30k increase; equity, no effect.

Assets, no effect; liabilities, $$30k decrease; equity, $$ 30k increase.

Assets, $$30k decrease; liabilities, no effect; equity $$ 30k decrease.

How does Lead Company record by the billing of a client for $15,000 of service completed?

+ $$15,000 accounts receivable, +$$ 15,000 revenue.

Moffat Company... What is the entry need to record when Moffat Company bill of a client for $25,000 of contract completed?

+ $$25,000 accounts receivable, +$$ 25,000 revenue.

Prepaid insurance $4,800 for four months, paid on Nov 1. The adjusting entry required on December 31 is:

Debit Insurance Expense, $$2,400; credit Prepaid Insurance, $$ 2,400.

Debit Prepaid Insurance, $$2,400; credit Insurance Expense, $$ 2,400.

Debit Insurance Expense, $$1,200; credit Prepaid Insurance, $$ 1,200.

Debit Prepaid Insurance, $$1,200; credit Insurance Expense, $$ 1,200.

Debit Cash, $$4,800; Credit Prepaid Insurance, $$ 4,800.

Changes in retained earnings are commonly reported in the:

Statement of retained earnings.

Changes in accounting estimates are:

accounted for in current and future periods.

reported as prior period adjustments.

accounted for with a cumulative "catch-up" adjustment.

Which of the following is NOT a step in the closing process?

Record and post the closing entries

Prepare a post-closing trial balance

Update the owner's capital account

Provide descriptions for this transaction: Increase cash $$1,000 and Increase equity $$ 1,000

Investment of cash in business by owner or performed services for cash

Investment of cash in business by owner

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Authored by Quân Nguyễn

English

2nd Grade

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MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Lomax Enterprises purchased a depreciable asset for $20,000 on January 1, 2008. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset's salvage value is $2,000, what will be the amount of accumulated depreciation on this asset on June 30, 2011?

$18,000

$4,500

$13,500

$20,000

$15,750

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The following transactions occurred during July:
1. Received $900 cash for services provided to a customer during July.
2. Received $2,200 cash investment from Barbara Hanson, the owner of the business.
3. Received $750 from a customer in partial payment of his account receivable which arose from sales in June.
4. Provided services to a customer on credit, $375.
5. Borrowed $6,000 from the bank by signing a promissory note.
6. Received $1,250 cash from a customer for services to be rendered next year.

What was the amount of revenue for July?

$900.

$1,275.

$2,525.

$3,275.

$11,100.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

If assets are $365,000 and equity is $120,000, then liabilities are:

$120,000.

$245,000.

$365,000.

$485,000.

$610,000.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

At the beginning of 2009, a company's balance sheet reported the following balances: Total Assets = $125,000; Total Liabilities = $75,000; and Owner's Capital = $50,000. During 2009, the company reported revenues of $46,000 and expenses of $30,000. In addition, owner's withdrawals for the year totaled $20,000. Assuming no other changes to owner's capital, the balance in the owner's capital account at the end of 2009 would be:

$66,000.

$86,000.

$(4,000).

$46,000.

Cannot be determined.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

A company has sales of $350,000, Account Receivable of 50,000 and estimates that 0.7% of its sales are uncollectible. The estimated amount of bad debts expense is

$350

$2,450

$3,450

$300

$530

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

$34

$36

$37

$32

$39

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Sold merchandise $15,000 (terms 3/10, n/30). Customer paid within discount period. What is the journal entry to record the receipt of payment?

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555555

If assets are $365,000 and equity is $120,000, then liabilities are:

A company has sales of $350,000, Account Receivable of 50,000 and estimates that 0.7% of its sales are uncollectible. The estimated amount of bad debts expense is

Sold merchandise $15,000 (terms 3/10, n/30). Customer paid within discount period. What is the journal entry to record the receipt of payment?

Issued 8% bonds, $600,000 par, semiannually. Market rate 8%. The journal entry to record each semiannual interest payment is:

The balance in Tee Tax Services' office supplies account on February 1 and February 28 was $1,200 and $375, respectively. If the office supplies expense for the month is $1,900, what amount of office supplies was purchased during February?

A company uses the perpetual inventory system and the LIFO method. The inventory records show the following data: Beginning inventory: 50 units at $18 each; Purchases: 100 units at $20 each; Sales: 120 units at $35 each. Calculate the gross profit using the LIFO method.

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