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Study Resources (Accounting)

189.Simpson Designers began operations on April 1, 2011. The financial statements for Simpson Designers are shown below for the month ended April 30, 2011 (the first month of operations). Determine the missing amounts for letters (a) through (o). Simpson Designers Income Statement For the Month Ended April 30, 2011 Fees earned $27,000 Operating expenses: Wages expense $5,250 Rent expense (a) Supplies.
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51.Debits will increase Unearned Revenues and Revenues. 52.All owner’s equity accounts record increases to the accounts with credits. 53.Journal entries can have more than two accounts as long as the debits equal the credits. 54.Normal balances are the side that increase the account balance. 55.When an owner invests assets in the business, the capital.
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176.For each of the following companies, identify whether they are a service, merchandising, or manufacturing business. A. Dillards B. Time Warner Cable C. General Motors D. Blockbuster E. Applebee’s F. Sony G. Best Buy H. Banana Republic I. H & R Block 177.Identify each of the following as either internal or external users of accounting information. A. Payroll Manager B. Bank C. President’s Secretary D. Internal Revenue Service E. Raw Material Vendors F. Social Security Administration G. Health Insurance Provider H. Managerial Accountant 178.Determine the missing.
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134.Darnell Company purchased $88,000 of computer equipment from Joseph Company. Darnell Company paid for the equipment using cash that had been obtained from the initial investment by Donnie Darnell. 135.Explain the meaning of: (a) the objectivity concept and (b) the unit of measure concept 136.Doug Miller is the owner and operator of.
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183.The chart of accounts classify the accounts to make identification of the accounts easier. Discuss how companies set up their chart of accounts for use in their business A chart of accounts is set-up by assigning numbers to each of the accounts. The account number for assets will begin with (1),.
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162.The total assets and the total liabilities of a business at the beginning and at the end of the year appear below. During the year, the owner had withdrawn $60,000 for personal use and had made an additional investment of $45,000 in the business. Assets Liabilities Beginning of year $305,000 $200,000 End of year 365,000 230,000 Calculate the net.
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147.All of the following accounts are increased with a debit except: A.Unearned Revenues B.Land C.Accounts Receivable D.Cash 148.Which of the following owner’s equity accounts follow the same debit and credit rules as liabilities? A.Expense accounts only B.Drawing accounts only C.Revenues accounts only D.Expenses and drawing accounts 149.The payment for the monthly rent will require the following entry A.Debit Cash and Debit.
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126.Discuss internal and external users of accounting information. What areas of accounting provide them with information? Give an example of the type of report each type of user might use. 127.Companies like Enron, WorldCom, and Tyco International, Ltd. have been caught in the midst of ethical lapses that led to fines,.
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170.The assets and liabilities of S&P Day Spa at December 31, 2011 and its revenue and expenses for the year are listed below. The capital of the owner was $68,000 at January 1, 2011. The owner invested an additional $10,000 during the year. Accounts Payable $4,375 Spa Operating Expense $23,760 Accounts Receivable $8,490 Office.
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187.Selected transaction data of a business for September are summarized below. Determine the following amounts for September: (a) total revenue, (b) total expenses, (c) net income. Service sales charged to customers on account during September $33,000 Cash received from cash customers for services performed in September 28,000 Cash received from customers on account during September: Services.
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21.Revenue accounts are increased by credits. 22.The normal balance of a capital account is a debit. 23.The normal balance of the drawing account is a debit. 24.The normal balance of an expense account is a credit. 25.The normal balance of revenue accounts is a credit. 26.Withdrawals decrease owner's equity and are listed on the income.
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167.The chart of account for the Corning Company includes some of the following accounts: Account Name Account Number Cash 11 Accounts Receivable 13 Prepaid Insurance 15 Accounts Payable 21 Unearned Revenue 24 Corning, Capital 31 Corning, Drawing 32 Fees Earned 41 Salaries Expense 54 Rent Expense 56 On the journal page 3, the following transaction was found: Prepaid Insurance 1,530 Cash 1,530 What is the post reference that will be found on the journal entry? A.15, 11 B.15 C.11 D.3 168.The.
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11.To determine the balance in an account, always subtract credits from debits. 12.The double-entry accounting system records each transaction twice. 13.The increase side of all accounts is the normal balance. 14.Transactions are initially entered into a record called a journal. 15.The process of recording a transaction in the journal is called journalizing. 16.Journalizing is the.
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184.Indicate whether each of the following activities would be reported on the Statement of Cash Flows as an Operating Activity, an Investing Activity, a Financing Activity, or does not appear on the Cash Flow Statement. (a) Cash paid for building (b) Cash paid to suppliers (c) Cash paid for owner's withdrawal (d) Cash received from customers (e) Cash received.
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107.Which of the following entries records the withdrawal of cash by Sue Martin, owner of a proprietorship, for personal use? A.debit Sue Martin, Capital; credit Cash B.debit Sue Martin, Drawing; credit Cash C.debit Salaries Expense; credit Cash D.debit Salaries Expense; credit Salaries Payable 108.Office supplies were sold by Ari’s Alarm Service at cost to another.
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194.The account balances of Trendsetter Travel Services at December 31, 2011 are listed below: Accounts Payable $12,000 J. Trendsetter, Capital 1/1/11 $10,000 Accounts Receivable 6,000 Supplies 1,000 Cash 18,000 Taxes Expense 1,300 Computer Equipment 21,000 Utilities Expense 8,000 Fees Earned 70,000 Wages Expense 25,000 Rent Expense 10,000 Supplies Expense 1,700 Prepare an income statement, statement of owner’s equity, and a balance sheet as of December 31, 2011. 195.The accountant for Flagger Company prepared the following list.
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177.Which of the following errors, each considered individually, would cause the trial balance totals to be unequal? A.a transaction was not posted B.a payment of $67 for insurance was posted as a debit of $42 to Prepaid Insurance and a credit of $42 to Cash C.a payment of $1,311 to a creditor was.
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77.Accounts A.do not reflect money amounts B.are not used by entities that manufacture products C.are records of increases and decreases in individual financial statement items D.are only used by large entities with many transactions 78.Accounts are classified in the ledger A.chronologically B.alphabetically C.in accordance with their appearance in the financial statements D.so that accounts used most often are listed.
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137.The chart of accounts classify the accounts to make identification of the accounts easier. This is done by way of assigning a number to each account. The first number identifies the classification of the type of account. Which of the following indicates the use of this classification? A.1-Assets, 2-Liabilities, 3-Owner’s Equity,.
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157.All of the following occur with a double-entry accounting system except: A.The accounting equation remains in balance. B.The sum of all debits is always equal to the sum of all credits in each journal entry. C.Each business transaction will have only two entries. D.Every transaction affects at least two accounts. 158. March 6 Cash 375 Unearned Fees 375 ???????????? What is.
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191.Using the following accounts and their amounts, prepare in good format an Income Statement for Bright Futures Company, month ended August 31, 2011: Telephone Expense $1,150 Cash $3,000 Accounts Payable $1,540 Jason Bright, Drawing $800 Fees Earned $15,700 Rent Expense $1,400 Supplies $140 Accounts Receivable $1,500 Computer Equipment $20,000 Jason Bright, Capital $14,320 Wages Expense $4,800 Utilities Expense $750 Notes Payable $2,400 Office Expense $420 192.Using the following accounts and their amounts, prepare in good format a Statement of.
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149.Discuss the characteristics of a LLC (Limited liability company). 150.Kim Hsu is the owner of Hsu’s Financial Services. At the end of its accounting period, December 31, 2011, Hsu’s has assets of $575,000 and owner’s equity of $335,000. Using the accounting equation and considering each cased independently, determine the following amounts. a..
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140.Use the accounting equation to answer each of the independent questions below: a. At the beginning of the year Norton Company assets were $75,000 and its owner’s equity was $38,000. During the year, assets increased by $18,000 and liabilities increased by $4,000. What was the owner’s equity at the end of.
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71.Which of the following is not a certification for accountants? A.CIA B.CMA C.CISA D.All are certifications. 72.Which of the following isnot a characteristic of a corporation? A.Corporations are organized as a separate legal taxable entity B.Ownership is divided into shares of stock. C.Corporations experience an ease in obtaining large amounts of resources by issuing stock. D.A corporation’s resources are.
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144.Ramierez Company received their first electric bill in the amount of $60 which will be paid next month. How will this transaction affect the accounting equation? 145.Jonathan Martin is the owner and operator of Martin Consultants. At December 31, 2011, Martin Consultants has assets of $430,000 and liabilities of $205,000. Using.
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117.A patient has a physical examination and asks the bookkeeper to mail the bill. The bookkeeper should A.make no entry until the cash is received B.Cash, debit; Accounts Receivable, credit C.Cash, debit; Fees Earned, credit D.Accounts Receivable, debit; Fees Earned, credit 118.Proof that the dollar amount of the debits equals the dollar amount of the.
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181.Schultz Tax Services, a tax preparation business had the following transactions during the month of June: Example: Received cash the owner Schultz, $25,000. 1. Received cash for providing accounting services, $3,000. 2. Billed customers on account for providing services, $7,000. 3. Paid advertising expense, $800. 4. Received cash from customers on account, $3,800. 5. Owner made.
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127.Which are the parts of the T account? A.title, date, total B.date, debit side, credit side C.title, debit side, credit side D.title, debit side, total 128.Which of the following is not a correct rule of debits and credits? A.assets, expenses and withdrawals are increased by debits B.assets are decreased by credits and have a normal debit.
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81.Denzel Jones owns and operates Crystal Cleaning Company. Recently, Denzel withdrew $18,000 from Crystal Cleaning, and he contributed $14,000, in his name, to Habitat for Humanity. The contribution of the $14,000 should be recorded on the accounting records of which of the following entities? A.Crystal Cleaning and Habitat for Humanity B.Denzel Jones'.
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51.Profit is the difference between A.assets and liabilities B.the incoming cash and outgoing cash C.the assets purchased with cash contributed by the owner and the cash spent to operate the business D.the amounts received from customers for goods or services and the amounts paid for the inputs used to provide the goods or services. 52.Most businesses.
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97.In which of the following types of accounts are increases recorded by debits? A.assets, liabilities B.drawing, liabilities C.expenses, liabilities D.assets, expenses 98.In which of the following types of accounts are increases recorded by credits? A.revenues, liabilities B.drawing, assets C.liabilities, drawing D.expenses, liabilities 99.In which of the following types of accounts are decreases recorded by debits? A.assets B.revenues C.expenses D.drawing 100.In which of the following types.
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41.Liabilities are debts owed by the business entity. 42.The accounts payable account is listed in the chart of accounts as an asset. 43.A drawing account represents the amount of withdrawals made by the owner. 44.Revenues are equal to the difference between cash receipts and cash payments. 45.Expenses use up assets or consume services in.
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138.Krammer Company has liabilities equal to one fourth of the total assets. Krammer’s owner’s equity is $30,000. Using the accounting equation, what is the amount of liabilities for Krammer? 139.Daniels Company is owned and operated by Thomas Daniels. The following selected transactions were completed by Daniels Company during May: 1. Received cash from.
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190.Eric Wood, CPA, was organized on January 1, 2011, as a proprietorship. List the errors that you find in the following financial statements and prepare the corrected statements for the three months ended March 31, 2011. Eric Wood, CPA Income Statement For the Three Months Ended March 31, 2011 Fees earned $42,000 Operating expenses: Salary expense $9,735 Rent expense 5,200 Advertising.
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61.Which of the following group of companies are all examples of a merchandising business? A.Delta Airlines, Marriott, Gap B.Gap, Amazon, NIKE C.GameStop, Sony, Dell D.GameStop, Best Buy, Gap 62.Which of the following would not normally operate as a service business? A.Pet Groomers B.Restaurant C.Lawn Care Company D.Styling Salon 63.Select the type of business that is most likely to obtain large.
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179.Identify each of the following as an (1) increase in owner's equity, or a (2) decrease in owner's equity. (a) Fees Earned (b) Wages Expense (c) Withdrawal (d) Lawn Care Revenue (e) Investment (f) Supplies Expense 180.Selected transactions completed by a proprietorship are described below. Indicate the effects of each transaction on assets, liabilities, and owner's equity by inserting "+" for increase.
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166.Name and describe the four primary financial statements for a proprietorship. 167.There are four transactions that affect Owner’s equity. (a) What are the two types of transactions that increase Owner’s equity? (b) What are the two types of transactions that decrease Owner’s equity? 168.The assets and liabilities of S&P Day Spa at.
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87.Which of the following types of accounts have a normal credit balance? A.assets and liabilities B.liabilities and expenses C.revenues and liabilities D.capital and drawing 88.Which of the following groups of accounts have a normal debit balance? A.revenues, liabilities, capital B.capital, assets C.liabilities, expenses D.assets, expenses 89.Which one of the statements below is not a purpose for the journal? A.to show increases.
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41.A statement of owner's equity reports the changes in the owner's equity for a period of time. 42.The statement of cash flows consists of three sections: cash flows from operating activities, cash flows from income activities, and cash flows from equity activities. 43.The financial statements of a proprietorship should include the owner's.
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111.Gomez Service Company paid their first installment on their Notes Payable in the amount of $2,000. How will this transaction affect the accounting equation? A.Increase Liabilities (Notes Payable) and decrease Assets (Cash) B.Decrease Assets (Cash) and decrease Owner’s equity (Note Payable Expense) C.Decrease Assets (Cash) and decrease Assets (Notes Receivable) D.Decrease Assets (Cash) and.
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101.The debt created by a business when it makes a purchase on account is referred to as an A.account payable B.account receivable C.asset D.expense payable 102.If total assets decreased by $88,000 during a period of time and owner's equity increased by $65,000 during the same period, then the amount and direction (increase or decrease) of.
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91.The assets and liabilities of the company are $175,000 and $40,000, respectively. Owner’s equity should equal A.$215,000 B.$135,000 C.$175,000 D.$40,000 92.If total liabilities decreased by $55,000 during a period of time and owner's equity increased by $60,000 during the same period, the amount and direction (increase or decrease) of the period's change in total assets.
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1.Accounts are records of increases and decreases in individual financial statement items. 2.A chart of accounts is a listing of accounts that make up the journal. 3.The chart of accounts should be the same for each business. 4.Accounts payable are accounts that you expect will be paid to you. 5.Consuming goods and services in.
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