Wacky Assets
What is the definition of cash equivalents?
Liquid investment- 3 months or less
In a journal entry, how would you decrease accounts payable?
Debit
What is it called when revenue is recognized on the income statement in the period when realized and earned- not when the cash is received?
Revenue recognition principle
We contracted with an advertising agency to create a social media campaign for us. We paid the company $5,000. What account would be the debit to the journal entry?
Marketing or advertising expense
Halloween
On September 1, 2019, a company paid $72,000 for a 3 year insurance policy. What would the balance of the Prepaid Account be on January 1, 2021?
$40,000
A company had a beginning balance in the utilities payable account of $150. During the month they incurred $210 of expense and had an ending balance in the utilities payable account of $75. What was the decrease (cash paid) in the utilities payable account?
$285
For publicly traded companies, what line item is always listed first on the income statement
Sales Revenue
A company has a supply account balance of $450. During the period they purchased $700 of supplies. At the end of the period, a physical count shows $325 remaining. What would be supplies expense for the period?
$825
Name 2 of the 4 famous people that passed away in 2020
Alex Trebek, Kobe Bryant, Chadwick Boseman, RBG
Hamilton Incorporated purchased land with a building on it for $1.4 million. The land and building were appraised at $450,000 and $1.2 million, respectively. Before operation began on the property, a new parking lot and lighting system was installed for $310,000. What would be the value assigned to the land for this transaction?
$378,000
Noah Company prepares an adjusting entry on December 31 for salaries. Two days of the pay period fell in the current year and the remaining eight days fall in the next fiscal year. What percentage of payroll should be accrued for at December 31?
20%
Despain and Co. had an unearned rental revenue account with $35,000. 45% of the account was earned in the current year. What would the value of rent revenue be on the income statement?
$15,750
A company uses the periodic system of inventory.
They had beginning inventory of 450 units @ $10. They purchased 200 units @ $12 on January 12th. They purchased 150 units @ $14 on January 27th. They sold 575 units. If the company uses LIFO, what would cost of good sold be?
$6,750
This country faced one of the most devastating wildfire seasons this year
Wells Inc. sold $4.3 million of inventory during the year costing the company $2.4 million. At year end, the company estimated that 5% of the sales may be returned in the next year. What effect or amount would the returned inventory have on the year-end adjusting entry?
Debit Inventory - estimated returns $120,000
Alex Accessories had net income for the year of $500,000. $120,000 was paid for taxes and she has a 30% tax rate. What would the amount be for the adjusting entry to record taxes payable for this year?
$150,000
Patridgeberry Pastries had a piece of equipment with a historical cost of $80,000 and accumulated depreciation of $57,000. They sold the equipment for $32,000 in the current year. What amount of gain or loss would be recorded on the income statement?
Rebecca's Roller Rink has an asset valued at $200,000. No salvage value. Eight year useful life. The company uses double declining balance to depreciate the asset. What would depreciation expense be for year 2?
$37,500
This insect was slated to take over the world in May 2020
Murder Hornets
On January 1, Lawrence Inc. had an accounts receivable balance of $36,000 and an allowance for uncollectible accounts of $5,000. During the year sales were $520,000 and cash collections totaled $519,000. In addition, $15,000 of accounts receivable was written off. If the company estimates uncollectibility based off of 12% of ending accounts receivable, what would be the balance of the allowance for uncollectible accounts at the end of the year?
$4,440
A customer paid $20,000 on April 7, 2020 for work to be performed in May and June 2020. On the May 31 balance sheet, what would be recorded in regards to this payment?
Unearned Revenue of $10,000
$4,375
Briar Patch Produce estimates bad debt expense at 2% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $471,000 and $1,650. During 2021, credit sales were $315,000. What is bad debt expense?
$6,300
If you travel outside of New York State, when you return, what is the COVID-19 policy currently?
Quarantine for 3 days, take a COVID test on day 4, if it is negative, you are all set.