Adjusting Entries/Miscellaneous
A list of all account names used to record transactions of a company are referred to as the:
Chart of Accounts
The amount of cash that is expected to be collected on accounts receivable is referred to as?
Net Realizable Value
The following costs are associated with the purchase of a piece of land that will be used to rebuild an office building:
The sale price of the land was $350,000; they sold salvaged parts that were on the land for $25,000; they demolished the old building for $40,000; they had a ground breaking ceremony $4,000; and land preparation and leveling cost $12,000
What amount should be recorded for the purchase of the land?
$377,000
Which financial statement is Cost of Goods Sold found on (IS, BS)?
Income Statement
Jenfir Co. Purchased 10,000 shares of common stock for the treasury for $20 per share. What would you record for this purchase?
Debit Treasury Stock, and Credit Cash for 200,000
How would you journalize the closing entry for expenses?
Debit Retained Earnings, and Credit all of the expense accounts
What would you record as the adjusting entry for bad debt if the estimated uncollectible accounts is $60,000 and the allowance for uncollectible accounts already has a credit balance of $4,000 before adjustments?
Debit Bad Debt Expense for $56,000, Credit Allowance for Uncollectible Accounts for $56,000
On December 11, Your company sold Logo T-shirts to customers, the total cash receipts for the sale were $3,150. Upon further research, you find the sales tax rate is 5%. What would you record on December 11?
Debit Cash for $3,150
Credit Sales Revenue for $3,000 and Sales tax payable for $150
Deferred Revenue is what type of account (A, L, S/E, R, E)?
Liability
On January 1, 2021, Lemur Inc. borrowed $90,000 for 10 years at 5% interest. The loan requires monthly payments of $600. What would you record as the payment on 2/1/2021?
Debit Interest Expense for 374, debit notes payable for 226; and credit cash for 600
On May 1, 2020, company paid 90,000 for a 2 year rental agreement, in advance. What do we record on Dec 31, 2020?
Debit Rent Expense 30,000 and Credit Prepaid Rent for 30,000
Big Bad Co. had the following purchases and sales of inventory:
October 1 Beginning Inventory- 5 units @ $18
October 10 Purchased Inventory- 20 units @ $21
October 17 Purchased Inventory- 15 units @ $23
October 23 Sold Inventory- 24 units @ $35
October 29 Purchased Inventory- 20 units @ $25
Calculate the Ending Inventory using LIFO.
$821
On January 1, 2021, Able company purchased equipment to be used in their landscaping business. The equipment cost $150,000. It will be used for 4 years or 100,000 hours, after which its salvage value is estimated to be $30,000. In 2021 it used 23,000 hours. What would you record as the adjusting entry for depreciation on Dec 31, 2021 using activity based costing?
Debit Depreciation Expense and credit accumulated depreciation for $27,600
Allowance for Uncollectible Accounts has what type of normal balance?
Credit
Yungoo Corp has 1,000,000 authorized shares of $5 par stock. They issued 30,000 shares of common stock for $15 per share. What would you record?
Debit Cash for 450,000, and credit common stock for 150,000; credit additional paid in capital for 300,000
The company had $5,000 of supplies on Jan 1. During the year they purchased $6,000 worth of supplies. No entries were made as the supplies were used during the year. On Dec 31, the physical showed only $2,000 of supplies on hand. What would you record on Dec 31:
Debit Supplies Expense for 9,000, and credit Supplies for 9,000.
On June 3, HEAT Co. Sold goods on account to ICE Co, $5,000, 3/10, n/30; the goods cost the company $2,000. Shipping terms are fob shipping point. What would you record as the journal entry on June 3?
Debit Accounts Receivable for $5,000,Credit Sales Revenue for $ 5,000 and
Debit Cost of goods sold for $2,000, Credit Inventory for $2,000
The Kings company borrowed $30,000 cash from Queens Bank on a 9-month, 10% note on October 1, 2021. The interest is payable at maturity. What would you record for Kings Company at maturity on June 30, 2022?
Debit Notes Payable for $30,000, Interest Payable for $750, and Interest Expense for $1,500
and Credit Cash for $32,250
Are Sales Allowances temporary or permanent accounts?
Temporary
On Oct. 1, 2020, Roy Co. had 100,000 shares of authorized Common Stock at $10 par value, and 40,000 of those shares are issued and outstanding. Roy Co. also has 30,000 shares of authorized 5% cumulative preferred stock with 10,000 shares of them issued and outstanding at $50 par value. In 2021, the company declared dividends of $23,000, in 2022 they declared dividends of $34,000, and in 2023 they declared dividends of $45,000. How much of the dividends will go to preferred stockholders vs. common stockholders for 2022?
Preferred Stock- $27,000; Common Stock- $7,000
Jerry Company has the following information:
Jan 31, the balance in the company's cash account has a balance of 26,897. The company's bank statement shows a balance of $29,049.
Outstanding checks at Jan 31, include check #243 in the amount of $1,525, and check #265 in the amount of $1,369
The bank cleared check #268 in the amount of $770 the company had incorrectly recorded the check as 1,770; and the check was used to purchase supplies
The bank deducted $67 for an NSF check from a customer deposited on January 20, and a deposit in transit placed in the bank's night depository on Jan 31 totaled $1,675 and did not appear on the bank statement.
What would you record as adjusting entries from the bank reconciliation on Jan 31?
Debit Cash and credit supplies for $1,000
also
Debit Accounts Receivable and Credit Cash for $67
Umbra Inc. made full payment to Spectral Co. on June 26 for their purchase on account on June 19 for 6,000 with terms 2/10, n/30. What would you record as the journal entry on June 26?
Debit Accounts Payable for $6,000, Credit Cash for $5,880 and Inventory for $120.
On July 1, 2021, Candle company purchased equipment to be used in their landscaping business. The equipment cost $250,000. It will be used for 5 years, after which its salvage value is estimated to be $50,000. What would you record if Able company sold the equipment for $160,000 on Dec 31, 2023 using straight line?
Debit Cash for $160,000; accumulated depreciation $100,000
also Credit Equipment for $250,000 and Gain on sale of equipment for $10,000
What type of account is Treasury Stock (A, L, S/E, R, E)?
Contra S/E
On January 1, 2021, Cardinal Co. issued $450,000, 6%, Five-year bonds. Interest is paid semiannually on June 30 and December 31. The bonds are sold to yield an annual return of 8% at an issue price of $413,501. What would you record as the interest expense on Jun. 30, 2021?
Debit interest expense of 16,540; and credit Cash for 13,500 and credit discount on bonds payable for 3,040