CHAPTER 1
CHAPTER 2
CHAPTER 3
CHAPTER 4
100
Business owned by one individual who carries all the responsibility
Sole Proprietorship
100
Cash, and other resources that are reasonably expected to be realized in cash or sold or consumed in the business within one year or the operating cycle, are called:
Current Assets
100
Accounting reports that summarize the financial results of business and financing activities
Financial Statements
100
Accumulated Depreciation is a(n)
Contra Asset Account
200
The normal balance of any account is the
side which increases that account.
200
What Kind of Intangible assets are there?
Copy rights
Patents
Franchise rights
Trademarks
Customer lists
200
Expanded Accounting Equation
Assets + Dividends + Expenses = Liabilities + Common Stock + Revenues
200
A furniture factory's employees work overtime to finish an order that is sold on March 31. The office sends a statement to the customer in early February and payment is received by mid-April. The overtime wages should be expensed in:
March
300
The total assets of Salley Company are $170,000 and its stockholders’ equity is $80,000. What is the amount of its total liabilities?
$90000
300
The Mac Company has four plants nationwide that cost $450 million. Accumulated depreciation on the plants is $100 million at December 31, 2022. The current fair value of the plants at that date is is $300 million. The plants will be reported on the December 31, 2022 balance sheet at
$350 million
300
If total liabilities decreased by $4000, then
Assets must have decreased by $4000, or stockholders’ equity must have increased by $4000.
300
Events that change a company's financial statements are recognized in the period they occur rather than in the period in which cash is paid or received.
Accrued basis of accounting
400
Classify each of the following accounts as an asset, liability, stockholders’ equity, revenue, or expense item.
Accounts payable
Accounts receivable
Equipment
Sales revenue
Unearned Service revenue
Liability
Asset
Asset
Revenue
Liability
400
These are selected account balances on December 31, 2022.
Land $150000
Land (held for future use) $225000
Buildings $1200000
Inventory $300000
Equipment $675000
Furniture. $150000
Accumulated Depreciation $450000
What is the total amount of property, plant, and equipment that will appear on the balance sheet?
$1725000
400
When a company performs a service but has not yet received payment, it
debits Accounts Receivable and credits Service Revenue.
400
On January 1, 2022, M. Johanson Company purchased equipment for $54000. The company is depreciating the equipment at the rate of $750 per month. The book value of the equipment at December 31, 2022 is:
$45000
500
What accounts can be both credited and debited?
Cash, Account Receivable and Account Payable
500
0
500
$ 130000
500
The ledger of Hammond, Inc. on March 31, 2017, includes these selected accounts before adjusting entries are prepared.
Debit Credit
Prepaid Insurance $ 3,600
Supplies 2,800
Equipment 25,000
Accumulated Depreciation—Equipment $5,000
Unearned Service Revenue 9,200
An analysis of the accounts shows the following.
1. Insurance expires at the rate of $100 per month.
2. Supplies on hand total $800.
3. The equipment depreciates $200 a month.
4. During March, services were performed for $4,000 of the unearned service revenue reported.
Prepare the adjusting entries for the month of March.
1. Insurance Expense 100
Prepaid Insurance 100
2. Supplies Expense 2,000
Supplies 2,000
3. Depreciation Expense 200
Accumulated Depreciation 200