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Study Resources (Accounting)

11) Workers' compensation provides insurance for employees who are A) unemployed due to an economic downturn. B) unemployed due to a plant closing. C) injured while on the job. D) not paid enough. 12) Net pay and gross pay mean the same. 13) Payroll Tax Payable is credited for the amount of net pay. 14) Regular earnings.
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11) The second entry to adjust Merchandise Inventory includes A) a debit to Merchandise Inventory. B) a credit to Merchandise Inventory. C) a debit to Income Summary. D) None of these are correct. 12) Unearned Rent is what type of account? A) Asset B) Revenue C) Liability D) Expense 13) As Unearned Rent is earned, it becomes A) an asset. B) a.
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19) The synoptic journal for Gill's Guide Service has the following column headings with appropriate dividers for recording debits and credits Cash, Explanation, Sundry, Salary Expense, CPP Payable, and FIT Payable. EI has been omitted. The following is a partial chart of accounts of Gill's Guide Service: 111 Cash 411Guide Fees 114 Prepaid.
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7) Singh Company received payment in full within the credit period for goods sold for $400 plus 13% HST. Terms of the sale were n/30. Which entry records this transaction? A) Debit Accounts Receivable $420, credit Sales, $420 B) Debit Cash, $452, credit Sales, $452 C) Debit Cash, $400, credit Accounts Receivable, $400 D).
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11) The synoptic journal is a book of original entry. 12) The synoptic journal does not have the same advantages when journalizing and posting entries as the special journals. 13) The synoptic journal can replace the general journal and save time posting and journalizing. 14) A general journal is not used with the.
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23) The synoptic journal for Dr. Wheeler has the following headings with appropriate columns for recording debits and credits Cash, Explanation, Sundry, Professional Fees, Supplies Expense. The following is a partial chart of accounts of Dr. Wheeler: 111Cash 411Professional Fees 121Dental Equipment 511Rent Expense 312Wheeler, Withdrawals 515Telephone Expense 520Supplies Expense Indicate, in the spaces provided below,.
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10.7   Preparing schedules of accounts receivable and accounts payable, and balancing to control accounts. 1) Jackson purchased $400 plus 13% HST of goods and received credit terms of 2/10, n/30. How much did he pay if payment was made during the discount period? A) $452 B) $392 C) $400 D) $444 2) Bruno's Fashions bought 60.
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41) When counting supplies, several boxes were missed. This would cause A) Supplies to be overstated. B) Supplies Expense to be understated. C) Net Income to be overstated. D) All of the above are correct. 42) The physical count of inventory was incorrect which overstated the ending inventory. This would cause A) Cost of Goods Sold.
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  11.1   Defining method of accounting: accrual basis, cash basis, and modified cash basis. 1) The basis of accounting whereby revenue is recorded when cash is received and expenses are recorded when paid is A) the cash basis of accounting. B) the accrual basis of accounting. C) the current basis of accounting. D) the matching basis.
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10.4   Creating, recording, and posting a debit memorandum for purchase returns when GST or HST is included. 1) All controlling accounts must have a A) revenue ledger. B) general ledger. C) subsidiary ledger. D) journal. 2) The ledger containing all the balance sheet and income statement accounts is the A) general ledger. B) accounts payable subsidiary ledger. C) accounts.
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51) Interest Expense is A) a cost of borrowing money. B) included in the "Other Expenses" on the income statement. C) has a normal debit balance. D) All of the above are correct. 52) Mortgage Payable A) has a debit balance. B) has a credit balance. C) shows the amount owed on a mortgage. D) Both B and C.
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20) Bill Bungee opened Bungee Jumping Enterprises and also sold jumping accessories. The synoptic journal for Bungee has the following headings with appropriate columns for indicating debits and credits Explanation, Sundry, Cash, Accounts Receivable, Accounts Payable, Purchases and Sales. The following is a partial chart of accounts of Bungee Jumping Enterprises: 111.
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39) Match the following terms with their definitions or descriptions. 1.________ Accounts receivable subsidiary ledger 2.________ Cash receipts journal 3.________ Controlling account - Accounts Receivable 4.________ Credit memorandum 5.________ Credit period 6.________ Crossfooting 7.________ Discount period 8.________ Gross sales 9.________ Sales Returns and Allowances 10.________ Sales Tax Payable a. The revenue earned from the sale of merchandise to customers. b. The process.
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For each of the following identify - in column 1 the category to which the account belongs, in column 2 the normal balance for the account, and in column 3 the financial statement on which the account balance is reported. Column 1Column 2Column 3 19) Sales____________________________________ 20) Professional Fees Earned____________________________________ 21) Sales Returns and.
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18) The synoptic journal for Hile's Tax Service has the following headings with appropriate columns for recording debits and credits Cash, Explanation, Sundry, Professional Fees, Supplies Expense. The following is a partial chart of accounts for Hile's Tax Service: 111Cash312Hiles, Withdrawals 121Office Equipment 411 Professional Fees 211 Accounts Payable 511Rent Expense 311 Hiles, Capital 515Telephone.
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19) Prepare a general journal payroll entry for Manitoba Market using the following information: CumulativeWeekly Salary EarningsBefore PayrollDepartment Sam Schmidt35,000700Office Marianne Saul 40,000800Sales Jay Bachal50,0001,000Office Assume the following: a) CPP 4.95%; EI 1.8% b) Income Tax (including Federal and Provincial Income Tax) is 22% of gross pay c) Each employee pays $10 per week for medical insurance. 20) Using the.
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6) Lee's Golf Shop on May 31 has the following account balances: Sales$11,000 HST Collected1,600 Sales Returns and Allowances1,000 Purchases8,000 HST Paid1,090 Freight-In500 Purchases Returns and Allowances1,000 Purchases Discounts600 Based on the above, net purchases for the period are A) $12,600. B) $6,400. C) $6,910. D) $8,500. 7) What type of account is Purchases Discounts? A) Liability B) Contra asset C) Contra cost/expense D) Contra revenue 8) When a.
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26) The account credited for all payroll deductions is Payroll Deductions Expense. 27) The employer must contribute 1.4 times the employee's CPP contributions. 28) The employer's EI contribution is 1.4 times that of the employee's deduction. 29) The Employee Benefits Expense entry is recorded at the time the payroll is recorded. 30) The employer.
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  10.1   Recording sales that include PST, GST, and HST in the sales journal. 1) Provincial Sales Tax Payable is a A) liability account with a debit balance. B) liability account with a credit balance. C) contra-asset account with a debit balance. D) contra-asset account with a credit balance. 2) The liability account used to record HST.
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  9.1   How to calculate and record the employer’s expenses associated with payroll. 1) Employment Insurance premiums are paid by A) the employer. B) the employee. C) both the employer and employee. D) the Provincial Government. 2) Which of the following is a payroll tax paid by both employee and employer? A) CPP & EI B) EI only C) CPP.
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8.4   How to maintain an individual’s earnings record. 1) The amount of Gross Earnings, Income Tax, CPP and EI deducted is reported to the employee at the end of the year on a(n) A) Record of Employment. B) Payroll Summary. C) T4. D) Employee Earnings Record. 2) The amount deducted for CPP is reported at the.
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11.2   Recording, journalizing, and posting transactions for a synoptic journal of a professional service company using a modified cash basis of accounting. 1) One advantage a synoptic journal has over the general journal is that it A) does not require an understanding of accounting. B) eliminates the need of a general ledger. C) reveals.
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12) Payroll Tax Expense or Employee Benefits Expense are possible account titles employers use for the employer's payroll taxes (EI and CPP). 13) The account credited for the employer's portion of CPP is CPP Payable. 14) Businesses with payroll deductions under $15,000 must remit payroll withholdings quarterly. 15) The employer's EI contribution is.
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8.2   How to prepare a company’s payroll summary. 1) The posted payroll entry is based on information obtained from A) the payroll register. B) the general journal. C) each employee's earnings record. D) a TD-1 form. 2) The Office Salaries Expense account would be used to record A) net earnings for the office workers. B) a credit for.
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21) The debit amount to Payroll Tax Expense represents A) the employer's portion of the payroll taxes. B) the employees' portion of the payroll taxes. C) the employer's and employees' portion of the payroll taxes. D) None of the above are correct. 22) The information needed to make the journal entries to record the wages.
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11.3   Recording, journalizing, and posting transactions for a synoptic journal of a merchandising company using the accrual basis of accounting. 1) Rita Knauss invested $2,000 cash and $3,000 worth of office equipment in her new advertising agency business. The transaction would be recorded in a synoptic journal under the accrual basis,.
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31) The adjustment for unearned rent is recorded when A) cash is received. B) rent is earned. C) revenue is received. D) closing entries are prepared. 32) Accumulated Amortization-Buildings should be shown on the A) income statement. B) balance sheet. C) statement of owner's equity. D) The account does not appear on a financial statement since it is a.
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8.3   How to record a typical payroll from a summary. 1) The payroll register does NOT contain A) gross pay. B) deductions. C) net pay. D) ledger accounts for payroll. 2) The payroll register does NOT contain A) payroll information for the payroll period. B) net pay. C) gross pay. D) all cumulative payroll information for each individual employee. 3) To.
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12.1   Figuring adjustments for merchandise inventory, unearned rent, supplies used, insurance expired, amortization expense, and salaries accrued. 1) What inventory method is used when the inventory balance is updated only at the end of the accounting period? A) Periodic B) Perpetual C) Net Income D) Cost of Goods Sold 2) A characteristic of a perpetual inventory.
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9.3   Employers’ annual responsibilities for filing the T4 Summary form. 1) The form that contains information about gross earnings given to the employee by February 28 of the year following is the A) T4 Summary. B) ROE. C) T4. D) TD1. 2) A T4 Summary is filed A) annually. B) quarterly. C) monthly. D) depends on the amount owed. 3) The.
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10.2   Creating, recording and posting a credit memorandum for returned sales when PST, GST, or HST is included. 1) Sue's Jewelry sold 25 necklaces for $25 each to a credit customer. The invoice included HST at 13% and payment terms of 2/10, n/30. Five necklaces were returned prior to payment. The.
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The Dairy Co. had the following transactions involving the sale of merchandise. You are to prepare the necessary general journal entries. All sales are subject to a 13% HST. 28) April 13 Sold merchandise priced at $400 to Jan Ellsworth on account. ________________________________________________________________________ ________________________________________________________________________ 29) April 14 Sold merchandise priced at $300 to a.
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21) As the Unearned Rent is earned, A) the liability account is decreased and the revenue account is increased. B) the liability account is increased and the revenue account is decreased. C) the liability account is decreased and the revenue account is not affected. D) the liability account is not affected but the revenue.
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36) Using the information below, determine the amount of the payroll benefits expense for Paul's Parrots. Employee Gross PayCPP Deducted EI Deducted J. Gross 1,000 46.17 18.00 P. James 500 21.42 9.00 Q. Quan 600 26.37 10.80 37) The Famous Pizza Company had made the following entry to record the payroll: Salaries Expense10,000.00 CPP Payable385.00 EI Payable 210.00 Income.
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33) April 25 Received full payment from Dana Carter. ________________________________________________________________________ ________________________________________________________________________ 34) April 30 Paid the amount of HST owing for April sales. ________________________________________________________________________ ________________________________________________________________________ Electronic Accessories Co. had the following transactions involving the sale of merchandise. You are to prepare the necessary general journal entries. All sales are subject to HST at 13% and have.
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9.2   How employers remit and record their employees’ deductions to the Canada Revenue Agency. 1) When remitting CPP, the entry would be A) debit Cash, credit CPP Payable. B) debit CPP Expense, credit Cash. C) debit CPP Payable, credit Cash. D) debit Cash, credit CPP Expense. 2) When remitting EI, the entry would be A) debit EI.
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