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Study Resources (Accounting)

144) Given the following adjusted trial balance for Leighton Industries, prepare a postclosing trial balance dated December 31, 2010. Leighton Industries Adjusted Trial Balance December 31, 2010 DebitCredit Cash$ 13,000 Accounts receivable7,000 Prepaid rent3,000 Prepaid insurance3,500 Supplies3,300 Land32,000 Building55,000 Accumulated amort.-building$ 12,000 Equipment36,000 Accumulated amort.-equipment9,000 Accounts payable8,000 Salary payable2,000 Interest payable2,500 Mortgage payable (due 12/31/2014)55,000 Leane Leighton, Capital70,500 Leane Leighton, Withdrawals25,000 Service revenue96,000 Salary expense34,000 Insurance expense1,200 Rent expense1,800 Utilities expense16,000 Advertising expense2,000 Amortization expense-building11,000 Amortization expense-equipment10,000 Supplies expense    .
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132) The following are the adjusting journal entries recorded by Mandarine Consulting for the year ended December 31, 2010.  Assuming that Mandarine uses reversing entries, prepare the reversing entries  on January 1, 2011. General Journal Date Accounts Debit Credit Dec. 31 Office Supplies Expense 300           Office Supplies 300 31 Insurance Expense 550           Prepaid Insurance 550 31 Amortization Expense 2,400           Accumulated Amortization 2,400 31 Unearned Service Revenue 250            Service.
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139) Details of a purchase invoice, credit terms, and a purchase return are shown below. Assume the credit memo was received and payment made within the discount period. Cost of merchandise as shown on purchase invoice $9,200 Cost of merchandise returned    3,700 Transportation charges, terms FOB shipping point500 Credit terms2/10 n/30 Compute the following: a)  amount.
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127) Given the following work sheet with the trial balance already entered, and the adjustment information, complete the work sheet. Tree Top Trimming Work Sheet For the Year Ended December 31, 2010   TrialAdjustmentsAdj. TrialInc.Balance AccountBalanceBal.StatementSheet Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Cash 55 A/R 5 Supplies 4 Equipment 40 Accum.Amort. - Equipment 5 A/P 18 Salary Payable 2 Unearned Service Revenue 22 Green, Capital 30 Green, Withdrawals 5 Service Revenue 55 Salary Expense 12 Rent Expense 6 Advertising Expense 5 Supplies Expense 0 Amort.Expense - Equipment 0 132 132   Additional information:   a) Accrued Salaries, $10. b) Supplies used, $2. c) Balance of unearned.
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123) Based on the following adjusted trial balance, prepare the closing entries for Dave Scott and Associates (a proprietorship) on December 31, 2010. Dave Scott and Associates    Adjusted Trial Balance       December 31, 2010 DebitCredit Cash$ 13,600 Accounts receivable2,000 Office supplies700 Prepaid insurance1,200 Equipment15,600 Accum. amort.-equipment$ 3,900 Accounts payable6,800 Salary payable1,100 Unearned service revenue800 Dave Scott, Capital22,900 Dave Scott, Withdrawals4,900 Service revenue9,250 Advertising expense1,400 Amort. expense-equipment1,300 Supplies.
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Match the following.   A) permanent account B) current ratio C) income summary D) current asset E) closing entries F) debt ratio G) temporary account H) current liability I) correcting entry J) postclosing trial balance 102) Another name for a real account 103) Entries that transfer the revenue, expense, and owner withdrawals balances to the capital account 104) Prepared as the last step in.
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136) Given the adjusted trial balance for the Stoney Creek Resort, prepare the statement of owner's equity for the year ended December 31, 2010. There were no owner investments during the year. Stoney Creek Resort Adjusted Trial Balance December 31, 2010 DebitCredit Cash$ 15,000 Accounts receivable30,000 Supplies3,200 Prepaid insurance7,500 Land40,000 Building160,000 Accum. amortization-building$ 12,000 Equipment75,000 Accum. amortization-equipment8,500 Accounts payable12,000 Salary payable2,000 Unearned service revenue25,000 Mortgage payable100,000 Douglas Reycraft,.
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146) Following is a random list of some of the accounts and their balances on December 31, 2010, for  Copperfield Merchandising. Copperfield uses a perpetual inventory system and all account balances are normal. Inventory$ 67,000 Sales revenue470,000 Interest revenue28,000 Salary expense46,000 Sales returns & allowances30,000 Interest expense13,000 Delivery expense15,000 Sales discounts25,000 Insurance expense8,000 P.Copperfield, Capital50,000 Utilities expense29,000 Amortization expense20,000 P Copperfield, Withdrawals25,000 Cost of.
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47) Given the following totals of the financial statements columns of the work sheet, determine the net income or loss for the period:           Income Statement                     Balance Sheet DebitCreditDebitCredit $9,500$7,750 $5,300 $7,050 A) $8,500 net loss B) $1,750 net income C) $4,300 net income D) $1,750 net loss 48) Accumulated amortization is found on the: A) trial balance credit.
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146) The steps in the accounting cycle (excluding the preparation of the work sheet) are listed below in random order. List the steps in the proper sequence, inserting the number 1 to 11. a)______Prepare a postclosing trial balance b)______Prepare an adjusted trial balance c)______Analyse transactions as they occur d)______Prepare an unadjusted trial balance e)______Compute the.
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35) The major revenue of a merchandiser is ________ while the major expense(s) is (are) ________. A) sales revenue, cost of goods sold B) gross margin, operating expenses C) income from operations, cost of goods sold D) sales revenue, operating expenses 36) Inventory held by a business is a(n) ________ and when sold becomes a(n).
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55) Day Company purchased $3,000 of merchandise on credit, terms 3/15 n/30. The entry to record payment for the merchandise within the discount period under a perpetual inventory system would include a: A) debit to inventory of $1,940 B) debit to accounts payable of $1,940 C) credit to purchase discounts of $90 D) credit.
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142) Indicate where each of the following accounts would be reported in the financial statements for the year ended December 31, 2010: a) property, plant and equipment b) current asset c) current liability d) long-term liability e) revenue f) expense 1)  __________  supplies 2)  __________  unearned revenue 3)  __________  note payable (due June 30, 2011) 4)  __________  accounts receivable 5)  __________ .
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157) Refer to table 5-6  Prepare the journal entries for Trendy Manufacturing for the transactions listed, assuming that Trendy uses a periodic inventory system. 158) Refer to table 5-6  Prepare the journal entries for New Miss Store for the transactions listed, assuming that New Miss Store uses a periodic inventory system. Table.
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53) Referring to Table 6-2, cost of goods sold calculated under the periodic FIFO method would be: A) $1,800 B) $2,160 C) $1,910 D) $1,850 54) Referring to Table 6-2, assuming all goods are sold throughout the year for $19 per unit, gross margin calculated under the periodic FIFO method would be: A) $1,620 B) $1,510 C) $1,260 D).
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125) Describe a work sheet and list the benefits to be derived from using a work sheet. Be specific. 126) Given the following work sheet with the trial balance already entered, and the adjustment information, complete the work sheet. Beatty Services Work Sheet For the Year Ended December 31, 2010 TrialAdjustmentsAdj. TrialInc.Balance AccountBalanceBal.StatementSheet Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Cash 25 A/R 15 Supplies 8 Equipment 35 Accum.Amort. - Equipment 0 A/P 8 Salary Payable 0 Unearned.
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87) Which of the following statements is true? A) The current ratio measures the ability of a company to pay its current debts. B) The current ratio is calculated by dividing current liabilities by current assets. C) The current ratio is calculated by dividing current assets by total assets. D) The current ratio is.
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140) Identify the following accounts as temporary or permanent. TemporaryPermanent Cash____________________ Utilities expense____________________ Unearned service revenue____________________ Prepaid insurance____________________ Accounts receivable____________________ Interest expense____________________ Accumulated amort.-equip.____________________ Amortization expense-equip.____________________ Leonard Lucas, Withdrawals____________________ Leonard Lucas, Capital____________________ Salary payable____________________ Accounts payable____________________ Interest revenue____________________ Mortgage payable____________________ Prepaid rent____________________ Rent expense____________________ Equipment____________________ 141) Given the following adjusted trial balance for Whitfield Industries, prepare a postclosing trial balance dated December 31, 2010. Whitfield Industries Adjusted Trial Balance December 31, 2010 DebitCredit Cash$.
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67) The accounts that appear on a postclosing trial balance are: A) assets, liabilities, withdrawals, and revenues B) revenues, expenses, and capital C) assets, liabilities, and expenses D) assets, liabilities, and capital 68) Revenues, expenses, and withdrawals would not appear on a(n): A) postclosing trial balance B) adjusted trial balance C) unadjusted trial balance D) work sheet 69) Which of.
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129) The following information is given for Ribbons and Bows prior to adjustments on December 31, 2010. Ribbons and Bows prepares adjusting entries annually on December 31. a) Salaries of $5,000 are paid every Friday for a five-day workweek ending on Friday. December 31, 2010, is a Thursday. b) On October 1,.
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95) Referring to Table 5-2, if sales discounts amount to $15,000, the balance in sales returns and allowances must be: A) $7,000 B) $29,000 C) $22,000 D) $8,000 96) Referring to Table 5-2, what is the operating income or operating loss? A) operating income of $123,000 B) operating loss of $177,000 C) operating loss of $27,000 D) operating income.
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43) Refer to Table 6-1. Assume a periodic inventory system. Under the FIFO method, cost of goods sold on the income statement would be: A) $294 B) $375 C) $462 D) $420 44) Which of the following inventory costing methods requires a company to keep track of the actual physical movement of individual inventory items? A).
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142) Tobermory Merchandising had the following transactions during May: May 5Purchased $2,700 of merchandise on account, terms 3/15 n/60, FOB shipping point. 9Paid transportation cost on the May 5 purchase, $250. 10Returned $400 of defective merchandise purchased on May 5. 15Paid for the May 5 purchase, less the return and the discount. Required: Assuming the.
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Match the following. A) single-step income statement B) inventory turnover C) other revenue D) sales discount E) cost of goods sold F) inventory G) operating expenses H) gross margin I) net purchases J) gross margin percentage K) income from operations L) sales returns and allowances   124) The excess of sales revenue over cost of goods sold 125) Expenses, other than cost of goods sold,.
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154) Refer to table 5-6  Prepare the journal entries for Trendy Manufacturing for the transactions listed, assuming that Trendy uses a perpetual inventory system. 155) Refer to table 5-6  Prepare the journal entries for New Miss Store for the transactions listed, assuming that New Miss Store uses a perpetual inventory system. 156).
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148) Following is a random list of accounts with normal balances for the Lexis Merchandising as of December 31, 2010. All adjusting entries have been made. Closing entries have not been made. K. Lexis, Capital$159,000 Land80,000 Sales discounts18,000 Supplies expense9,000 Interest revenue14,000 Mortgage payable80,000 Cash22,000 Accounts receivable34,000 Unearned service revenue11,000 Salary expense23,000 Accounts payable36,000 Accumulated amort.-building17,000 Equipment46,000 Prepaid insurance8,000 Interest expense6,000 K. Lexis, Withdrawals15,000 Sales revenue285,000 Interest receivable5,000 Inventory28,000 Accumulated.
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For the items listed below, choose the appropriate code letter to indicate whether the account is: TR   Temporary account with normal balance credit, closed to Income Summary TETemporary account with normal balance debit, closed to Income Summary PAPermanent Account with normal balance debit, not closed PL&EPermanent Account with normal balance credit, not closed A) TE B).
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144) Romeo Merchandising had the following transactions in June. Prepare journal entries for these transactions assuming Romeo uses a periodic inventory system. June 2Romeo received an $18,000 invoice from one of its suppliers. Terms were 2/10 n/30, FOB shipping point. Romeo paid the freight bill amounting to $2,000. 4Romeo returned $2,500 of the.
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57) Referring to Table 4-1, calculate the total amount in the credit column of the postclosing trial balance. A) $120,900 B) $165,250 C) $173,300 D) nil 58) Using the data in Table 4-1, the balance in accumulated amortization must be: A) $8,050 B) $10,200 C) $65,250 D) nil 59) Using the data in Table 4-1, if the owner's beginning capital.
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136) Define gross margin and operating income. Explain how they are used in evaluating a company. 137) Describe the difference between a perpetual inventory system and a periodic inventory system. 138) The following data pertain to Corbet Merchandising for the year ended December 31, 2010: Beginning inventory$190,300 Purchases of inventory on credit during the.
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134) Given the adjusted trial balance for the Stoney Creek Resort, prepare the income statement for the year ended December 31, 2010. There were no owner investments during the year. Stoney Creek Resort Adjusted Trial Balance December 31, 2010   DebitCredit Cash$ 15,000 Accounts receivable30,000 Supplies3,200 Prepaid insurance7,500 Land40,000 Building160,000 Accum. amortization-building$ 12,000 Equipment75,000 Accum. amortization-equipment8,500 Accounts payable12,000 Salary payable2,000 Unearned service revenue25,000 Mortgage payable100,000 Douglas Reycraft, Capital60,000 Douglas.
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Table 4-7 The following is a random list of the account balances of Baird Services for the year ended December 31, 2010.  All accounts have normal balances. Accumulated amortization - building$152 Land44 Salaries payable18 Accounts receivable66 Service Revenue280 Amortization expense - building8 Accounts payable38 Office expenses66 Mortgage payable (due 31/12/2019)112 B. Baird, drawings26 Accumulated amortization - furniture & fixtures60 Building248 Cash 20 Salaries expense60 Insurance expense40 Amortization.
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152) Following is a random list of some of the accounts and their December 31, 2010, balances for Milita Merchandising. Milita Merchandising uses a periodic inventory system and all account balances are normal. Purchases $330,000 Sales revenue470,000 Interest revenue 23,000 Salary expense45,000 Freight in    17,000 Purchase discounts 31,000 Sales returns and allowances 40,000 Interest expense    18,000 Delivery expense 24,000 Sales.
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150) Fill in the missing amounts for each case in the table presented below: A B C D Beginning inventory $  6,000 $  7,200 $  9,100 Net purchase 9,000 32,700 32,000 Freight in 500 950 1,200 Cost of goods avail. for sale 50,000 17,250 45,600 Ending inventory 5,375 14,850 Cost of goods sold 32,600 14,800 151) Following is a random list of some of the accounts and their December 31, 2010, balances for Carmen & Company.  Carmen.
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33) A FIFO perpetual inventory system: A) assigns the most recent costs to ending inventory B) assigns the most recent costs to cost of goods sold when goods are sold C) reports the oldest costs for ending inventory values D) does not match the typical physical flow of goods 34) Inventory is classified: A) as a.
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138) Given the following adjusted account balances in random order, prepare the closing entries for Sheer Fabrics on December 31, 2010. Cash35,000 Suzie Sheer, Capital85,000 Accounts payable33,000 Service revenue84,000 Amortization expense-building 12,000 Salary expense29,000 Unearned service revenue24,000 Prepaid rent9,000 Supplies expense6,000 Note payable71,000 Land65,000 Accounts receivable32,000 Accum. amortization-building12,000 Interest revenue14,000 Interest payable3,000 Suzie Sheer, Withdrawals20,000 Rent expense15,000 Building95,000 Supplies4,000 Interest expense4,000 139) Based on the following adjusted trial balance, prepare a.
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