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4A ACCTG Final Exam Practice

Total questions: 8

Worksheet time: 5mins

Name
Class
Date
1.

Journey, Inc. provides services to customers. On June 1, a customer prepaid Journey, Inc. $6,000 for 3-months services in advance. The June 1 general journal entry on the books for this transaction will include a:

a)

Debit to Unearned Management Fees for $6,000.

b)

Credit to Management Fees Earned for $6,000.

c)

Credit to Cash for $2,000.

d)

Credit to Unearned Management Fees for $6,000.

2.

Journey, Inc. sales which product or service?

a)

Cell Phones

b)

Parking Service

c)

Widgets

d)

Accounting Services

3.

Journey, Inc. received its telephone bill in the amount of $250, and immediately paid it. The general journal entry to record this transaction will include a

a)

Debit to Telephone Expenses for $250.

b)

Credit to Accounts payable for $250.

c)

Debit to Cash for $250.

d)

Credit to Telephone Expenses for $250.

e)

Debit to Accounts payable for $250.

4.

Joy contributed $37,000 in cash and land worth $69,000 in exchange for common stock to begin a new corporation, Journey, Inc. Which of the following general journal entries will Journey, Inc. make to record this transaction?

a)

Debit assets $106,000; Credit Common Stock, $106,000.

b)

Debit Cash and Land, $106,000; Credit Common Stock, $106,000.

c)

Debit cash $37,000; debit land $69,000; Credit Common Stock, $106,000.

d)

Debit Common Stock, $106,000; credit cash $37,000; credit land $69,000.

e)

Debit Common Stock, $106,000; credit assets $106,000.

5.

Journey, Inc. billed a client $1,500 for work performed in the current month. Which of the following general journal entries will the firm make to record this transaction?

a)

Debit Accounts Receivable, $1,500; credit Unearned Service Fees Revenue, $1,500.

b)

Debit Cash, $1,500; credit Unearned Service Fees Revenue, $1,500.

c)

Debit Service Fees Revenue, $1,500; credit Accounts Receivable, $1,500.

d)

Debit Accounts Receivable, $1,500; credit Service Fees Revenue, $1,500.

e)

Debit Cash, $1,500; credit Accounts Receivable, $1,500.

6.

A company made no adjusting entry for accrued and unpaid employee wages of $8,000 on December 31. This oversight would:

a)

Understate net income by $8,000.

b)

Overstate net income by $8,000.

c)

Have no effect on net income.

d)

Overstate assets by $8,000.

e)

Understate assets by $8,000.

7.

Journey had cash inflows from operating activities of $30,000; cash outflows from investing activities of $14,000, and cash inflows from financing activities of $10,000. Calculate the net increase or decrease in cash.

a)

$26,000 decrease.

b)

$40,000 increase.

c)

$26,000 increase.

d)

$54,000 increase.

e)

$54,000 decrease.

8.

Today is a great day to . . .

a)

Save Lives!

b)

Teach Accounting!

c)

Learn Accounting!