Multiple choice question 112 jawbreaker company paid $940 on account

Multiple Choice Question 112

Jawbreaker Company paid $940 on account to a creditor. The transaction was erroneously recorded as a debit to Cash of $490 and a credit to Accounts Receivable, $490. The correcting entry is

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Accounts Receivable…………………………………………………………………		490
	Cash…………………………………………………………………………………..		490

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Accounts Payable…………………………………………………………………….		940
	Cash…………………………………………………………………………………..		940

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Accounts Receivable…………………………………………………………………		490
	Accounts Payable…………………………………………………………………..		490

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Accounts Receivable…………………………………………………………………		490
Accounts Payable…………………………………………………………………….		940
	Cash…………………………………………………………………………………..		1,430

Multiple Choice Question 111

Zen Arcade paid the weekly payroll on January 2 by debiting Salaries and Wages Expense for $47,000. The accountant preparing the payroll entry overlooked the fact that Salaries and Wages Expense of $27,000 had been accrued at year end on December 31. The correcting entry is

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Salaries and Wages Payable…………………………………………………………………….		27,000
	Salaries and Wages Expense…………………………………………………………………..		27,000

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Salaries and Wages Payable…………………………………………………………………….		27,000
	Cash…………………………………………………………………………………………………		27,000

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Cash………………………………………………………………………………………………….		20,000
	Salaries and Wages Expense…………………………………………………………………..		20,000

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Cash………………………………………………………………………………………………….		27,000
	Salaries and Wages Expense…………………………………………………………………..		27,000

Multiple Choice Question 81

The income statement for the year 2014 of Fugazi Co. contains the following information:

Revenues				$70,000
Expenses:
	Salaries and Wages Expense		$45,000
	Rent Expense		12,000
	Advertising Expense		10,000
	Supplies Expense		6,000
	Utilities Expense		2,500
	Insurance Expense		2,000
		Total expenses		77,500
Net income (loss)				($7,500)

The entry to close the expense accounts includes a

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debit to Income Summary for $7,500.

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debit to Income Summary for $77,500.

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credit to Income Summary for $7,500.

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debit to Wages Expense for $2,500.

Multiple Choice Question 122

The following information is for Bright Eyes Auto Supplies:

Bright Eyes Auto Supplies
Balance Sheet
December 31, 2014

Cash				$ 40,000	Accounts Payable				$ 130,000
Prepaid Insurance				80,000	Salaries and Wages Payable				50,000
Accounts Receivable				100,000	Mortgage Payable				150,000
Inventory				140,000		Total Liabilities			330,000
Land Held for Investment				180,000
Land				250,000
Building			$200,000
	Less Accumulated				Owner’s Capital				740,000
		Depreciation	(60,000)	140,000
Trademark				140,000			Total Liabilities and
Total Assets				$1,070,000				Owner’sEquity	$1,070,000

The total dollar amount of assets to be classified as investments is

Multiple Choice Question 121

The following information is for Bright Eyes Auto Supplies:

Bright Eyes Auto Supplies
Balance Sheet
December 31, 2014

Cash				$ 40,000	Accounts Payable				$ 130,000
Prepaid Insurance				80,000	Salaries and Wages Payable				50,000
Accounts Receivable				100,000	Mortgage Payable				150,000
Inventory				140,000		Total Liabilities			330,000
Land Held for Investment				180,000
Land				250,000
Building			$200,000
	Less Accumulated				Owner’s Capital				740,000
		Depreciation	(60,000)	140,000
Trademark				140,000			Total Liabilities and
Total Assets				$1,070,000				Owner’sEquity	$1,070,000

The total dollar amount of assets to be classified as property, plant, and equipment is

Multiple Choice Question 94

Which account listed below would be double ruled in the ledger as part of the closing process?

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Accumulated Depreciation—Equipment

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Owner’s Drawings

Multiple Choice Question 108

If errors occur in the recording process, they

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should be corrected as soon as they are discovered.

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should be corrected as adjustments at the end of the period.

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cannot be corrected until the next accounting period.

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should be corrected when preparing closing entries.

Multiple Choice Question 148

Which statement about long-term investments is not true?

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They are not currently used in the operation of the business.

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They will be held for more than one year.

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They include investments in stock of other companies and land held for future use.

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They can never include cash accounts.

Multiple Choice Question 59

Closing entries are

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journalized in the general journal.

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an optional step in the accounting cycle.

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made to close permanent or real accounts.

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posted to the ledger accounts from the worksheet.

Multiple Choice Question 102

Which of the following steps in the accounting cycle may be performed most frequently?

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Prepare a trial balance.

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Prepare a post-closing trial balance.

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Journalize closing entries.

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Post closing entries.