Terms
The process of transferring information from the Journal to the Ledger
Posting
The order in which current assets are listed, on a classified balance sheet
Liquidity
What is the term for the allocation of an intangible assets cost to future periods?
Amortization
What are the 4 basic Financial Reports found in an Annual Report?
Income Statement
Statement of Owners Equity
Balance Sheet
Statement of Cash Flow
This country gifted the Statue of Liberty to the United States
France
How we calculate Net sales?
Sales-sales returns and allowances-sales discounts
What is the formula to calculate Net Realizable Value?
Accounts Receivable
– Allowance for Bad Debts
What do you call an Assets “Cost” less its “Accumulated Depreciation”?
Book Value
On August 31, Home Depot sold materials for $6,000 that are subject to a 5% sales tax.How much cash did Home depot collected? what is the resulted liabilites, if any?
Cash 6,300
sales 6,000
sales taxes payable 300
A mythical creature with the head of a human and the body of a lion and exist in Egypt
Sphinx
Name 1 Contra-Asset account we have studied this semester.
1. Allowance for Bad Debt
2. Accumulated Depreciation
In times of rising prices, what inventory method would companies use to minimize their income taxes ?
LIFO since it reports the highest COGS and therefore the lowest Net Income
What are the two depreciation methods that we covered in this course?
Straight-line depreciation
Units-of-Production depreciation
What are the total Current Assets below?
Cash $ 200
A/R $ 400
Inventory 3,000
Prepaid Rent 1,000
A/P 2,000
Land 15,000
Unearned Rev. 500
N/R – due in 2 years 5,000
Current Assets: $4,600
Cash $ 200
A/R 400
Inventory 3,000
Prepaid Rent 1,000
A language written from right to left, has no capital letters, and is spoken by over 300 million
Arabic
The company fails to accrue interest on a Note Receivable at year end. Will the error Overstate, Understate, or have No Effect on Net Income for the year.
Understate. The company failed to record both the Interest Income and the Interest Receivable. Because they failed to record the Interest income the NI is Understated.
A company has net sales of $ 100,000 for the year.
At year end, before any Adjustment is made, the Allowance for Bad Debt Account has a credit balance of $ 5,000. If the company estimates that 3% of net sales are uncollectible, what is the balance in the Allowance Account after the year end adjustment has been made?
$ 8,000 credit balance
Beginning balance $5,000 cr.
+ 3% x Net sales $3,000 cr.
= Ending Balance $ 8,000 cr.
Equipment costing $16,000, with accumulated depreciation of $12,000 on Dec. 31 of previous year, was sold on March 31 for $7,000 cash. the company uses straight-line depreciation at $4,000 per year. What is the gain/loss on the sale, if any?
Gain on sale of equipment =$7,000 − $3,000 = $4,000 gain.
XYZ has a $6,000 loan from a bank at 5% annual interest on Oct. 1. The interest and principal are repayable in three months. What is the journal entry on Jan 1. Dec.31 is the end of the peiod.
Interest expense 50
Interest payable 25
Bank loan payable 6000
cash 6,075
What is the smallest country in the world?
The Vatican
During the closing process, we close four temporary accounts. Which accounts are closed?
Revenues
Expenses
Income Summary
Withdrawals
Using the following information, what is ending inventory in $ under FIFO?
Beginning Inventory 100 units @ $2.00
Purchase – May 200 units @ $1.50
Purchases – June 100 units @ $3.00
Ending inventory is 150 units.
$ 375
FIFO will value the ending inventory at the last units purchased.
The 150 units in ending inventory would be made up of:
100 units from June @ $3.00 = $300
50 units from May @ $1.50 = $ 75
A truck is purchased for $35,000. It has a five-year life and $5,000 residual value. Using the straight-line method, what is the truck’s carrying value after three years?
Answer : $ 17,000
Annual Depreciation = ($35,000-5,000)/5 yr
= $6,000/yr
After 3 years it will have depreciated $18,000
Carrying Value = Cost – Acc. Dep =
$35,000 - $18,000 = $17,000
ABC purchased $9,000 of supplies in December. A physical count performed on 12/31 shows that unused supplies equal $8,670. what is the journal entry on 12/31?
Supplies expense 330
Supplies 330
Who composed the scores for “The Lion King?”
Hans Zimmer