UNIT 7 CH 9• Question 1
0 out of 0 points
When recording depreciation, which of the following statements is true?
Total assets increase and stockholders equity increases.
Total assets decrease and total liabilities increase.
Total assets decrease and stockholders equity increases.
Total assets decrease and stockholders equity decreases.
• Question 2
0 out of 0 points
ACME, Inc. uses straight- line depreciation for all of its depreciable assets. ACME sold a piece of machinery on December 31, 2010, that it purchased on January 1, 2009, for $ 10,000. The asset had a five- year life and zero residual value. Accumulated depreciation was $4,000. If the sales price of the used machine was $ 7,500, the resulting gain or loss on disposal was which of the following amounts?
Loss of $ 6,000.
Loss of $ 1,500.
Gain of $ 6,000.
Gain of $ 1,500.
• Question 3
0 out of 0 points
On January 1, 200X Jones Company purchased a machine for $20,000. The machine had a salvage value of $2,000 and a useful life of 5 years. Using straight line depreciation, the accounting entry for recording depreciation expense for 200X would be:
Debit depreciation expense - $3,600, credit accumulated depreciation - $3,600.
Debit depreciation expense - $4,000, credit accumulated depreciation - $4,000.
Debit depreciation expense - $3,600, credit machine - $3,600.
Debit depreciation expense - $4,000, credit machine - $4,000.
• Question 4
0 out of 0 points
On January 1, 200X Jones Company purchased a machine for $10,000. The machine has no salvage value and a useful life of 5 years. Jones uses straight line depreciation. After 4 years the book value of the machine would be?
$10,000
$2,000
$8,000
$5,000.
• Question 5
0 out of 0 points
You purchase a patent for $100,000. The remaining useful life is 10 years. The entry for amortization expense for the first year would be:
Debit patent $100,000 and credit cash $100,000.
Debit patent expense $10,000 and credit cash $10,000.
Debit patent $10,000 and credit cash $10,000.
Debit amortization expense $10,000 and credit patent $10,000.
• Question 1
2 out of 2 points
Which of the following is not capitalized when a piece of production equipment is acquired for a factory?
Sales taxes.
Installation costs.
Transportation costs.
Ordinary repairs.
f $400,000 and a credit to bonds receivable of $400,000.
A debit to bonds receivable of $400,000 and a credit to cash of $400,000.
• Question 4
0 out of 0 points
Jones Company issues a 10 year, 8%, $400,000 bond at par on July 31. How much interest will be paid over the life of the bond?
$40,000
$4,000
$320,000
$32,000
• Question 1
2 out of 2 points
On July 1, 200X you enter into a note payable of $200,000 with a 5% annual interest rate. Your interest expense for 200X will be:
$10,000.
$2,500
$2,000
$5,000
• Question 2
0 out of 2 points
Post Company issues a 6 year, 6%, $200,000 bond at par on July 31. The journal entry would be:
A debit to cash of $200,000 and a credit to bonds payable of $200,000.
A debit to bonds payable of $200,000 and a credit to cash of $200,000.
A debit to cash of $200,000 and a credit to bonds receivable of $200,000.
A debit to bonds receivable of $200,000 and a credit to cash of $200,000.
• Question 3
2 out of 2 points
Post Company issues a 6 year, 6%, $200,000 bond at par on July 31. How much interest will be paid over the life of the bond?
$4,000
$6,000
$12,000
$72,000
• Question 4
2 out of 2 points
A company has current assets of $500,000, net income of $10,000, current liabilities of 250,000 and equity of $250,000. What is the current ratio?
0.5
7.5
0.3
2.0
• Question 5
2 out of 2 points
If a company has gross salaries of $12,000 and it withholds $1,800 for income taxes and $800 for FICA taxes, the journal entry to record the employee’s pay should include:
Debit to salary expense for $9,400
Debit to salary payable for $9,400
Credit to salary payable for $9,400
Credit to cash for $12,000
• Question 1
2 out of 2 points
On July 1, 200X you enter into a note payable of $200,000 with a 5% annual interest rate. Your interest expense for 200X will be:
$10,000.
$2,500
$2,000
$5,000
• Question 2
0 out of 2 points
Post Company issues a 6 year, 6%, $200,000 bond at par on July 31. The journal entry would be:
A debit to cash of $200,000 and a credit to bonds payable of $200,000.
A debit to bonds payable of $200,000 and a credit to cash of $200,000.
A debit to cash of $200,000 and a credit to bonds receivable of $200,000.
A debit to bonds receivable of $200,000 and a credit to cash of $200,000.
• Question 3
2 out of 2 points
Post Company issues a 6 year, 6%, $200,000 bond at par on July 31. How much interest will be paid over the life of the bond?
$4,000
$6,000
$12,000
$72,000
• Question 4
2 out of 2 points
A company has current assets of $500,000, net income of $10,000, current liabilities of 250,000 and equity of $250,000. What is the current ratio?
0.5
7.5
0.3
2.0
• Question 5
2 out of 2 points
If a company has gross salaries of $12,000 and it withholds $1,800 for income taxes and $800 for FICA taxes, the journal entry to record the employee’s pay should include:
Debit to salary expense for $9,400
Debit to salary payable for $9,400
Credit to salary payable for $9,400
Credit to cash for $12,000
UNIT 7
CH 11
• Question 1
0 out of 0 points
Post Company issues 100,000 shares of $10 par value stock for $18 a share. The accounting entry for this transaction would be:
Debit cash -$1,000,000 and credit Capital Stock - $1,000,000.
Debit cash -$1,800,000 and credit Capital Stock - $1,800,000.
Debit cash -$1,800,000 and credit Capital Stock - $1,000,000, credit Additional Paid in Capital $800,000.
Debit cash -$1,000,000, debit Additional Paid in Capital Stock - $800,000 and credit Capital - $1,800,000,
800,000
• Question 2
0 out of 0 points
Dividends become a liability of the corporation:
On the date the board of directors declares the dividend.
On the date of record.
On the date payment is made.
When preferred dividends have not been paid.
• Question 3
0 out of 0 points
On January 1, 200X XYZ Company declared a cash dividend of .50 per share. On January 1 they will make the following journal entry:
Debit cash and credit dividends payable.
Debit dividends declared and credit dividends payable.
Credit cash and debit dividends declared.
Debit expense and credit cash.
• Question 1
2 out of 2 points
Post Company issues 10,000 shares of $5 par value common stock for $20 a share. The accounting entry for this transaction would be:
Debit cash -$200,000 and credit Common Stock - $200,000.
Debit cash -$50,000 and credit Common Stock - $50,000.
Debit cash -$200,000, debit Additional Paid in Capital - $50,000 and credit Common Stock - $200,000,
Debit cash -$200,000 and credit Common Stock - $50,000, credit Additional Paid in Capital - $150,000.
• Question 2
2 out of 2 points
Dividends become a liability of the corporation:
On the date the board of directors declares the dividend.
On the date of record.
On the date payment is made.
When preferred dividends have not been paid.
• Question 3
2 out of 2 points
XYZ Company has 100,000 shares of stock outstanding. On January 1, 200X XYZ Company declared a cash dividend of .50 per share to be paid on January 31. On January 1 XYZ Company will make the following journal entry:
Debit cash $50,000 and credit dividends payable $50,000.
Debit dividends declared $50,000 and credit dividends payable $50,000.
Credit cash $50,000and debit dividends declared $50,000.
No entry is made until January 31.
• Question 4
2 out of 2 points
Which of the following will result when a dividend is paid?
A credit to dividends payable.
A debit to dividends payable.
A debit to capital.
A credit to capital.
• Question 5
2 out of 2 points
In its most basic form, the Earnings per Share (EPS) ratio is calculated as:
Dividends paid on common stock divided by the average number of shares outstanding of common stock.
Net income divided by the average number of shares outstanding of common stock.
Net income divided by average stockholder’s equity.
Sales divided by average stockholder’s equity
unit 6
Unit 6chapter 7
• Question 1
2 out of 2 points
The 200X records of Thompson Company showed beginning inventory of $6,000, cost of goods sold of $14,000 and ending inventory of $8,000. The cost of purchases for 200X was:
$12,000
$10,000
$ 9,000
$16,000
• Question 2
2 out of 2 points
Post Company began the current month with $10,000 in inventory, then purchased inventory at a cost of $35,000. The inventory at the end of the month was $20,000. The cost of goods sold would be:
$30,000
$35,000
$15,000
$25,000
• Question 3
2 out of 2 points
Following is the inventory activity for July:
Beginning Balance 10 sweaters @ $12 each
What is the cost of ending inventory using the FIFO inventory method?
$6,580
$4,540
$4,020
$5,620
• Question 4
0 out of 0 points
What is the cost of ending inventory using the LIFO inventory method?
$6,580
$4,540
$4,020
$5,620
Unit 6 - Chapter 7 Income Statement Exercise
• Question 1
0 out of 0 points
Sales Revenue $800
Beginning Inventory $100
Purchases $700
Available for Sale ?
Ending Inventory $500
Cost of Goods Sold ?
Gross Profit ?
Operating Expenses $200
Net Income ?
The missing dollar amounts are:
Goods Available for Sale – $800
Cost of Goods Sold – $300
Gross Profit – $500
Net income - $300
Goods Available for Sale – $900
Cost of Goods Sold – $300
Gross Profit – $500
Net income - $400
Goods Available for Sale – $800
Cost of Goods Sold – $600
Gross Profit – $200
Net income - $50
Goods Available for Sale – $800
Cost of Goods Sold – $300
Gross Profit – $400
Net income - $400
• Question 2
0 out of 0 points
Sales Revenue $900
Beginning Inventory $200
Purchases $700
Available for Sale ?
Ending Inventory ?
Cost of Goods Sold ?
Gross Profit ?
Operating Expenses $150
Net Income $0
The missing dollar amounts are:
Goods Available for Sale – $300
Ending Inventory – $150
Cost of Goods Sold – $600
Gross Profit – $300
Goods Available for Sale – $900
Ending Inventory – $150
Cost of Goods Sold – $750
Gross Profit – $150
Goods Available for Sale – $300
Ending Inventory – $150
Cost of Goods Sold – $750
Gross Profit – $100
Goods Available for Sale – $300
Ending Inventory – $100
Cost of Goods Sold – $800
Gross Profit – $200
• Question 3
0 out of 0 points
Sales Revenue ?
Beginning Inventory $150
Purchases ?
Available for Sale ?
Ending Inventory $250
Cost of Goods Sold $200
Gross Profit $400
Operating Expenses $100
Net Income ?
The missing dollar amounts are:
Sales Revenue - $600
Purchases - $250
Goods Available for Sale – $500
Net income - $300
Sales Revenue - $800
Purchases - $300
Goods Available for Sale – $450
Net income - $500
Sales Revenue - $600
Purchases - $300
Goods Available for Sale – $450
Net income - $300
Sales Revenue - $600
Purchases - $200
Goods Available for Sale – $350
Net income - $300
• Question 4
0 out of 0 points
Sales Revenue $800
Beginning Inventory ?
Purchases $600
Available for Sale ?
Ending Inventory $250
Cost of Goods Sold ?
Gross Profit ?
Operating Expenses $250
Net Income $100
The missing dollar amounts are:
Beginning Inventory - $100
Goods Available for Sale – $600
Cost of Goods Sold – $350
Gross Profit – $350
Beginning Inventory - $300
Goods Available for Sale – $500
Cost of Goods Sold – $550
Gross Profit – $450
ACCOUNTING MID TERMMichael’s Plumbing Company has the following transactions for the year
- December 1 – Issued capital stock for $50,000 to start plumbing business.
- December 1 - Paid gas expense $500.
- December 1 - Paid one year insurance premium costing $3,600.
- December 2 - Received $3,000 for job to install plumbing system in January next year.
- December 8 – Plumbing repairs for three houses totaling $15,000 and billed customers.
- December 10 - Purchased equipment costing $8,400 on credit.
- December 12 - Purchased supplies costing $900 on credit.
- December 23 – Plumbing services completed and billed to customers for $1,500.
- December 24 - Paid for equipment purchased on December 10th.
- December 28 - Received $2,000 for the repairs done on December 8th.
- December 31 - Paid a $1,000 dividend.
Required:
1. Prepare journal entries for the above transactions. Be sure to identify them as a through k.
2. Post the above transactions to T Accounts.
3. Prepare a Trial Balance.
4. Prepare adjusting entries in journal format and post to T Accounts.
Supplies on Hand December 31 was $500.
The Equipment is to be depreciated over 48 months starting with December.
(HINT: Record one month depreciation expense).
Wages owed but not paid on December 31 was $250.
One month of insurance has expired.
5. Prepare an Adjusted Trial Balance.
6. Prepare an Income Statement, Statement of Retained Earnings and a Balance Sheet.
7. Prepare closing entries in journal format and post to the T Accounts.
8. Prepare a Post-Closing Trial Balance.
| John's House Painting | | | John's House Painting |
| Income Statement | | | Statement of Retained Earnings |
| For the Year Ending December 31, 20XX | | | For the Year Ending December 31, 20XX |
Solution: post acc111 full course [ all units quizes, self quizes all homework midterm and all finals ]