Ch. 5
Ch.6
Ch. 7
Ch. 8
Wild Card
100
A total of $2,800 in supplies was purchased during the month. At the end of the month $700 of the supplies were left. The adjusting entry needed at the end of the month is:
debit Supplies Expense $2,100 and credit Supplies $2,100.
100
What account is the owner's drawing account closed to?
Owner's capital account
100
Merchandise is sold on credit for $1,600 plus 6 percent sales tax. What is the journal entry to record this sale?
DR Accounts Receivable 1,696
CR Sales tax payable 96
CR Sales 1600
100
Assuming a periodic inventory system, the journal entry to record the purchase on account of $900 of merchandise with freight of $65 prepaid and added to the invoice is:
debit Purchases $900, debit Freight in $65, and credit Accounts Payable $965.
100
What type of accounts are closed at the end of a period?
Temporary
200
True or False
If the adjustment for used supplies is not recorded, the firm's assets will be understated.
False
200
What is the first closing entry?
DR Fees Revenue 18,000
CR Income Summary 18,000
200
Modern Candy, a wholesaler, sold a crate of candy for $600 on account to a customer with credit terms of 3/20, n60. If the customer pays within the discount period, how much cash will Modern Candy receive when it is paid?
$582
200
During the year, a firm purchased $56,970 of merchandise and paid freight charges of $12,680. If the total purchases returns and allowances were $6,495 and purchases discounts were $2,050 for the year, what is the net delivered cost of purchases?
61,105
200
A total of $5,100 in supplies was purchased during the year. By the end of the year, the company had used $4,400 of the supplies. The adjusting entry needed at the end of the year is:
debit Supplies Expense $4,400 and credit Supplies $4,400
300
On October 25, 20X1, the company paid $26,400 rent in advance for the six-month period November 20X1 through April 20X2. On December 31, 20X1, what is the journal entry to record the adjustment for expired rent:
DR Rent expense - 8,800
CR Prepaid rent - 8,800
300
What is the 2nd closing entry? (List all accounts)
DR Income Summary 14,040
CR Advertising expense 8,900
CR Travel expense 4,200
CR Shipping expense 490
CR Computer software expense 450
300
On June 12, Music, Incorporated sells $4,000 of goods on account to a credit customer with credit terms of 1/10, n30. If the customer pays on June 20, what is the correct entry to record the receipt of the customer's payment:
DR Cash, 3,960
DR Sales Discounts 40
CR Accounts receivable 4,000
300
Purchased merchandise on credit from Lantz Designs, Invoice 1091, list price $8,000, trade discounts of 25 and 10 percent; terms 3/10, n/30.
Record this purchase transaction
DR Purchases 5,400
CR Accounts Payable - Lantz Designs 5,400
300
Assume the following account balances at January 1, 20X1:
Accounts Receivable—Jim Garcia $2,260
Accounts Receivable—Bill Hudson $7,400
Accounts Receivable—June Lin $2,180
After receiving $740 from Bill Hudson and providing a credit memorandum to Jim Garcia for $216, what is the balance in the control account?
10,884
400
The total assets on the balance sheet were $128,800 before journalizing and posting the adjusting entries for $800 of expired insurance, $2,400 of expired rent and $900 of depreciation. What are the total assets after journalizing and posting the adjusting?
$124,700
400
What would be the 3rd entry in the closing process?
DR Income Summary - 200
CR W. Mitchell Capital - 200
400
The customer returned $1,000 of the merchandise; Fashion Park provided a cash refund to the customer. Fashion Park charged 9% of sales tax on the original sale.
Record the journal entry for Fashion park when providing the customer a refund
DR Sales returns and allowance 1,000
DR Sales tax payable 90
CR Cash 1,090
400
On June 1, Lulu's Performing Arts School purchased merchandise with a list price of $3,000 from Monty's Incorporated with credit terms 3/10, n/45. On June 3, Lulu's returns $600 of the merchandise.
Compute the amount owed by Lulu's if the school pays within the discount period.
2,328
400
Valentino Farms started business on August 1, 20X1. During August, Valentino Farms reported sales of $52,000 and sales returns and allowances of $900. Valentino Farms must charge 7 percent sales tax on all sales. Compute the balance of the Sales Tax Payable account on August 31, 20X1
3,577
500
On January 1, 20X1, Johnson Consulting purchased a truck for $30,000. The truck is expected to last 60 months and has 4,700 salvage value. Calculate the book value of the truck on December 31, 20X2.
19,880
500
What would be the final balance of P. Black's capital account after all closing entries are made? Debit or Credit balance?
22,100 credit balance
500
Urban Sporting Goods charges 8% sales tax on all sales.
Urban Sporting Goods sold merchandise totaling $5,000 to customers using American Express. Urban Sporting Goods received amount due from American Express, less their 3 percent credit card discount, for sales made by customers using American Express. Record the journal entry when Urban Sporting Goods received the amount due from American Express.
DR Credit card expense 162, DR Cash 5,238, CR Accounts Receivable 5,400
500
On October 1, Rick’s Furniture purchased merchandise with a list price of $8,700 with credit terms of 2/15, n/45. On October 3, Rick's returns $1,700 of the merchandise. Assuming a periodic inventory system is used and Rick's pays the remaining amount owed on the purchase within the discount period, Rick's journal entry to record the payment would be...
DR Accounts Payable 7,000
CR Purchases discount 140
CR Cash 6,860
500
Tune Tones Instrument Tuning Company owes Mandy Lynn’s Music Studio $6,854 as of November 1. During November, Tune Tones purchased merchandise from Mandy Lynn totaling $9,548 and owes Mandy Lynn $9,152 on November 30. The total payments made by Tune Tones to Mandy Lynn during November were:
7,250