Student Name: ______________________
Teacher:
______________________
Date: ________
Test:
9_12 Business and IT 6311 - Accounting 1 Test 2
Description:
Final Exam Review
District:
Granville
Form:
501
1. In the transaction, BILLED ANDERSON COMPANY FOR WORK COMPLETED, the
source document is a/an:
check stub.
A.
invoice.
B.
memorandum.
C.
receipt.
D.
2. In the transaction, BOUGHT SUPPLIES ON ACCOUNT FROM DIXON SUPPLY
CO., the source document is a/an:
check stub.
A.
invoice.
B.
memorandum.
C.
receipt.
D.
3. In the transaction, RECEIVED CASH FROM OWNER AS AN INVESTMENT, the
source document is a/an:
calculator tape.
A.
check stub.
B.
invoice.
C.
receipt.
D.
9_12 Business and IT 6311 - Accounting 1 Test 2
4. The transaction, PAID CASH FOR MISCELLANEOUS EXPENSE, $400, would result
in which journal entry?
Debit Cash and credit Miscellaneous Expense
A.
Debit Cash and debit Miscellaneous Expense
B.
Debit Miscellaneous Expense and credit Cash
C.
Debit Supplies and credit Miscellaneous Expense
D.
5. The transaction, SOLD SERVICES ON ACCOUNT TO BETH PARKER, would result
in which journal entry?
Debit Accounts Receivable/Beth Parker and credit Cash
A.
Debit Accounts Receivable/Beth Parker and credit Sales
B.
Debit Cash and credit Accounts Receivable/Beth Parker
C.
Debit Cash and credit Sales
D.
6. The transaction, RECEIVED CHECK FROM FRANK HARPER, OWNER, AS AN
INVESTMENT, would result in which journal entry?
Debit Cash and credit Frank Harper, Capital
A.
Debit Cash and credit Frank Harper, Drawing
B.
Debit Frank Harper, Capital and credit Cash
C.
Debit Frank Harper, Drawing and credit Cash
D.
7. On a worksheet, the Income Statement credit total is $1,200 and the Income Statement
debit total is $800. The company has a:
Net income of $400.
A.
Net loss of $400.
B.
Net income of $2,000.
C.
Net loss of $2,000.
D.
9_12 Business and IT 6311 - Accounting 1 Test 2
8. On a worksheet, the Income Statement credit total is $2,150 and the Income Statement
debit total is $2,400. The company has a:
Net income of $4,550.
A.
Net income of $250.
B.
Net loss of $4,550.
C.
Net loss of $250.
D.
9. When he applied for a bank loan, Robert was asked by the bank to develop a financial
statement that would show the financial health of his business as of March 31. What is
the FIRST step Robert will do to prepare this statement?
Write the name of the company.
A.
Prepare the Assets Section.
B.
Calculate the total of the liabilities.
C.
Double rule across the left and right columns.
D.
10. When preparing an Income Statement, after all account total debits and credits are
entered correctly, verified and totaled, what is the next step?
Add each column to verify that debits equal credits.
A.
Write each column's total below the single line.
B.
Double rule across both amount columns.
C.
Single rule across both amount columns below the last amounts.
D.
11. Mary is preparing a Balance Sheet. What must she do after she completes the Assets
section?
Prepare the Expense section.
A.
Prepare the Liability section.
B.
Prepare the Owner's Equity section.
C.
Double rule across the left and right columns.
D.
9_12 Business and IT 6311 - Accounting 1 Test 2
12. If the beginning prepaid insurance balance is $2,000, and the ending value of the
insurance is $800, the correct adjustment on the work sheet is to debit:
Insurance Expense and credit Prepaid Insurance $1,200.
A.
Insurance Expense and credit Prepaid Insurance $800.
B.
Prepaid Insurance and credit Insurance Expense $1,200.
C.
Prepaid Insurance and credit Insurance Expense $800.
D.
Please use the following passage for questions 13 through 14:
Scenario 2.02 BJackson Company has Sales of $7,500. The company has the following
expenses: Advertising Expense - $1,300 Insurance Expense - $850 Rent Expense - $900
Supplies Expense - $250 Utilities Expense - $175
13. In Scenario 2.02 B, what is the component percentage for Rent Expense?
12%
A.
2.5%
B.
2.3%
C.
16%
D.
14. In Scenario 2.02 B, what is the component percentage for Net Income?
62.5%
A.
53.7%
B.
100%
C.
63.4%
D.
9_12 Business and IT 6311 - Accounting 1 Test 2
Please use the following passage for questions 15 through 16:
15. Sam is preparing a Balance Sheet from the Work Sheet in Group Material 2.02 C.
What are the Total Assets for the Balance Sheet?
$1,700
A.
$2,000
B.
$2,900
C.
$3,000
D.
9_12 Business and IT 6311 - Accounting 1 Test 2
16. Sam is preparing a Balance Sheet from the Work Sheet in Group Material 2.02 C.
What are the Total Liabilities for the Balance Sheet?
$975
A.
$1,075
B.
$1,125
C.
$2,000
D.
17. In preparing adjustment entries for his company, Steve has written "Insurance
Expense" in the Account Title column. What will he do NEXT?
Record the debit amount in the General Debit column
A.
Record the credit amount in the General Credit column
B.
Write the title of the account debited in the Account Title column
C.
Write the title of the account credited in the Account Title column
D.
18. Steve is preparing the Post-Closing Trial Balance. After he has written "Post Closing
Trial Balance" in the heading section, what will he do NEXT?
Rule a single line below the last amount in each column
A.
Write the account balance in either the debit or credit column
B.
Write the account titles of all general ledger accounts that have balances in the
C. Account Title column
Write the account totals
D.
19. Adam is preparing the Post-Closing Trial Balance. He has recorded all the account
balances in the correct column. What will he do NEXT?
Rule a single line below the last amount in each column
A.
Write the account balance in either the debit or credit column
B.
Write the account titles of all general ledger accounts that have balances in the
C. Account Title column
Write the heading
D.
9_12 Business and IT 6311 - Accounting 1 Test 2
20. Mary is closing the income summary account. Her company had a net loss of $2,000.
The correct journal entry is to debit:
Drawing, and credit Income Summary, $2,000.
A.
Owner's equity, and credit Income Summary, $2,000.
B.
Sales, and credit Income Summary, $2,000.
C.
Income Summary, and credit Drawing, $2,000.
D.
21. The owner's drawing account has a balance of $275. The correct entry to close the
drawing account would be to debit:
Drawing, credit owner's equity account for $275.
A.
Drawing, credit Income Summary for $275.
B.
Owner's equity account, credit drawing account for $275.
C.
Income summary, credit drawing account for $275.
D.
22. When closing the Advertising Expense account, debit:
Owner's Equity and credit Advertising Expense
A.
Advertising Expense and credit Income Summary.
B.
Income Summary and credit Advertising Expense
C.
Advertising Expense and credit Owner's Equity.
D.
23. The Sales account has a balance of $3,875. To close the Sales account, debit:
Sales $3,875 and credit Income Summary $3,875.
A.
Income Summary $3,875 and credit Sales $3,875.
B.
Sales $3,875 and credit Owner's Equity $3,875.
C.
Owner's Equity $3,875 and credit Sales $3,875.
D.
9_12 Business and IT 6311 - Accounting 1 Test 2
Please use the following passage for question 24:
Group Material 2.03 B
Coleman Industries
Work Sheet
For the Month Ended September 30, 2XXX
Income Statement
Balance Sheet
Account Title
Debit
Credit
Debit
Credit
Anthony Coleman, Capital
1,875.00
Anthony Coleman, Drawing
325.00
Income Summary
Sales
7,225.00
Advertising Expense
550.00
Insurance Expense
375.00
Miscellaneous Expense
225.00
Rent Expense
1,100.00
Supplies Expense
350.00
2,600.00
Net Income
7,225.00
7,225.00
4,625.00
7,225.00
2,600.00
4,625.00
7,225.00
7,225.00
7,225.00
24. Group Material 2.03 B contains a partial worksheet. The correct closing entry for the
owner's drawing account is to debit:
Anthony Coleman, Capital $325 and credit Anthony Coleman Drawing $325.
A.
Amos Maxwell, Drawing $325 and credit Income Summary $325.
B.
Amos Maxwell, Drawing $325 and credit Amos Maxwell, Capital $325.
C.
Income Summary $325 and credit Anthony Coleman, Drawing $325.
D.
9_12 Business and IT 6311 - Accounting 1 Test 2
25. Wally's Watches returned merchandise that was purchased on account to Timer's
Distributing, $400. What is the journal entry for Wally's Watches to record this
transaction?
Debit Accounts Payable/Timer's Distributing, $400; Credit Purchases Returns and
A. Allowances, $400.
Debit Accounts Receivable/Timer's Distributing, $400; Credit Purchases Returns
B. and Allowances, $400.
Debit Purchases Returns and Allowances, $400; Credit Purchases, $400.
C.
Debit Purchases Returns and Allowances, $400; Credit Accounts Payable/ Timer's
D. Distributing, $400.
26. Aquisha's Bookkeeping paid cash for the telephone bill, $134. What is the journal entry
to record this transaction?
Debit Purchases, $134; credit Cash, $134.
A.
Debit Telephone Expense, $134; credit Cash, $134.
B.
Debit Cash, $134; credit Purchases, $134.
C.
Debit Cash, $134; credit Telephone Expense, $134.
D.
27. Corrugated Box Company paid cash to Paper Supply, $686; covering Purchase Invoice
No. 88 for $700, less a 2% discount, $14.00. What is the journal entry for Corrugated
Box Company to record this transaction?
Debit Accounts Payable/ Paper Supply, $686; credit Cash, $686.
A.
Debit Accounts Payable/ Paper Supply, $700; credit Cash, $700.
B.
Debit Accounts Payable/ Paper Supply, $700; credit Purchases Discount $14 and
C. credit Cash $686.
Debit Purchases Discount $14 and debit Cash $686; credit Accounts Payable/ Paper
D. Supply $700.
9_12 Business and IT 6311 - Accounting 1 Test 2
28. Impressive Signs paid cash to Peoria Paints, $513; covering Purchase Invoice No. 77 for
$540, less a 5% discount, $27.00. What is the journal entry for Impressive Signs to
record this transaction?
Debit Accounts Payable/ Peoria Paints, $513; credit Cash, $513.
A.
Debit Accounts Payable/ Peoria Paints, $540; credit Cash, $540.
B.
Debit Accounts Payable/ Peoria Paints, $540; credit Purchases Discount $27 and
C. credit Cash $513.
Debit Purchases Discount $27 and debit Cash $513; credit Accounts Payable/ Peoria
D. Paints $540.
29. Computer Phones, Inc. paid cash to Software Supply, $817; covering Purchase Invoice
No.2254 for $860, less a 5% discount, $43.00. What is the journal entry for Computer
Phones, Inc. to record this transaction?
Debit Accounts Payable/ Software Supply, $817; credit Cash, $817.
A.
Debit Accounts Payable/ Software Supply, $860; credit Cash, $860.
B.
Debit Accounts Payable/ Software Supply, $860; credit Purchases Discount $43 and
C. credit Cash $817.
Debit Purchases Discount $43 and debit Cash $817; credit Accounts Payable/
D. Software Supply $860.
30. Frazier's Car Stereo paid cash on account to Sound Wire Supply, $395, covering
Purchase Invoice No. 3279. What is the journal entry for Frazier's Car Stereo to record
this transaction?
Debit Accounts Payable/ Sound Wire Supply $395; credit Cash, $395.
A.
Debit Accounts Receivable/Sound Wire Supply, $395; credit Cash, $395.
B.
Debit Cash $395; credit Accounts Payable/ Sound Wire Supply $395.
C.
Debit Cash $395; credit Accounts Receivable/ Sound Wire Supply $395.
D.
31. Juan's Hardware sold merchandise to Raul on account for $670, plus sales tax of $35.
What is the journal entry for Juan's Hardware to record this transaction?
Debit Accounts Payable/Raul, $705; Credit Sales, $670, Sales Tax Payable, $35.
A.
Debit Accounts Receivable/Raul, $705; Credit Sales $670, Sales Tax Payable $35.
B.
Debit Sales, $670, Sales Tax Payable, $35; Credit Accounts Payable/Raul, $705.
C.
Debit Sales, $670, Sales Tax Payable, $35; Credit Accounts Receivable/Raul, $705.
D.
9_12 Business and IT 6311 - Accounting 1 Test 2
32. Diane's Perfume Wholesale sold merchandise on account to Select Perfumes for $437,
plus sales tax of $23. What is the journal entry for Diane's Perfume to record this
transaction?
Debit Accounts Payable/Select Perfumes, $460; Credit Sales, $437, Sales Tax
A. Payable, $23.
Debit Accounts Receivable/Select Perfumes, $460; Credit Sales, $437, Sales Tax
B. Payable, $23.
Debit Sales, $437, Sales Tax Payable, $23; Credit Accounts Payable/Select Perfumes,
C. $460.
Debit Sales, $437, Sales Tax Payable, $23; Credit Accounts Receivable/Select
D. Perfumes, $460.
33. The Wayback Antique Supply sold Old Treasures, merchandise on account for $137,
plus sales tax of $8. What is the journal entry for Wayback Antique Supply to record
this transaction?
Debit Accounts Receivable/Old Treasures, $145; Credit Purchases, $137, Sales Tax
A. Payable, $8.
Debit Accounts Receivable/Old Treasures, $145; Credit Sales $137, Sales Tax
B. Payable, $8.
Debit Purchases, $137, Sales Tax Payable, $8; Credit Accounts Receivable/ Old
C. Treasures, $145.
Debit Sales, $137, Sales Tax Payable, $8; Credit Accounts Receivable/Old
D. Treasures, $145.
34. The Hot Spot Donut Shop sold donuts on account to The Corner Church for $50. What
is the journal entry for Hot Spot Donut Shop to record this transaction?
Debit Accounts Receivable/The CornerChurch, $50; Credit Purchases, $50.
A.
Debit Accounts Receivable/ The CornerChurch, $50; Credit Sales $50.
B.
Debit Purchases, $50; Credit Accounts Receivable/The CornerChurch, $50.
C.
Debit Sales, $50; Credit Accounts Receivable/The CornerChurch, $50.
D.
9_12 Business and IT 6311 - Accounting 1 Test 2
35. Automotive Supply sold merchandise for cash to Billy Bob's Auto Shop for $775, plus
sales tax of $48. What is the journal entry for Automotive Supply to record this
transaction?
Debit Cash, $823; Credit Sales, $775, Sales Tax Payable, $48.
A.
Debit Accounts Receivable/Billy Bob's Auto Shop, $823; Credit Sales $775, Sales
B. Tax Payable, $48.
Debit Sales, $775, Sales Tax Payable, $48; Credit Cash, $823.
C.
Debit Sales, $775, Sales Tax Payable, $48; Credit Accounts Receivable/Billy Bob's
D. Auto Shop, $823.
36. Quick Supply sold office supplies for cash to Jet Set Travel for $45, plus sales tax of $3.
What is the journal entry for Quick Supply to record this transaction?
Debit Cash, $48; Credit Sales, $45, Sales Tax Payable, $3.
A.
Debit Accounts Receivable/Jet Set Travel, $48; Credit Sales $45, Sales Tax Payable,
B. $3.
Debit Accounts Receivable/Jet Set Travel, $48; Credit Cash, $48.
C.
Debit Sales, $45, Sales Tax Payable, $3; Credit Accounts Receivable/Jet Set Travel,
D. $48.
37. Timer's Distributing accepted returned merchandise purchased on account by Serious
Sports for, $400, plus sales tax of $32. What is the journal entry for Timer's
Distributing to record this transaction?
Debit Accounts Receivable/Serious Sports, $432; Credit Sales Returns and
A. Allowances, $400, Sales Tax Payable, $32.
Debit Accounts Payable/Serious Sports, $432; Credit Purchases Returns and
B. Allowances, $400, Sales Tax Payable, $32.
Debit Sales Returns and Allowances, $400, Sales Tax Payable, $32; Credit Accounts
C. Receivable/Serious Sports, $432.
Debit Sales Returns and Allowances, $400, Sales Tax Payable, $32; Credit Accounts
D. Payable/Serious Sports, $432.
9_12 Business and IT 6311 - Accounting 1 Test 2
38. Murphy Hardware sold merchandise for cash to Tim Thompson for $813, plus sales
tax of $56. Mr. Thompson later returned the merchandise. What is the journal entry
for Murphy Hardware to record the returned merchandise?
Debit Accounts Receivable/Tim Thompson, $869; Credit Sales Returns and
A. Allowances, $813, Sales Tax Payable, $56.
Debit Cash, $869; Credit Sales Returns and Allowances, $813, Sales Tax Payable,
B. $56.
Debit Sales Returns and Allowances, $813, Sales Tax Payable, $56; Credit Cash,
C. $869.
Debit Sales Returns and Allowances, $813, Sales Tax Payable, $56; Credit Accounts
D. Receivable/Tim Thompson, $869.
39. Tony's Custom Pool Cues accepted returned merchandise purchased on account by 3rd
Street Pool for, $806, plus sales tax of $52. What is the journal entry for Tony's Custom
Pool Cues to record this transaction?
Debit Accounts Receivable/3rd Street Pool, $858; Credit Sales Returns and
A. Allowances, $806, Sales Tax Payable, $52.
Debit Accounts Payable/3rd Street Pool, $858; Credit Purchases Returns and
B. Allowances, $858.
Debit Sales Returns and Allowances, $806, Sales Tax Payable, $52; Credit Accounts
C. Receivable/3rd Street Pool, $858.
Debit Sales Returns and Allowances, $806, Sales Tax Payable, $52; Credit Accounts
D. Payable/3rd Street Pool, $858.
40. Heart Medical received $544 cash from Corner Market for payment on account.
Corner Market took a $26 discount for paying early. What is the journal entry for
Heart Medical to record this transaction?
Debit Cash, $544; debit Sales Discounts $26; credit Accounts Receivable/ Corner
A. Market, $570.
Debit Cash, $544; credit Sales Discounts $26; credit Accounts Receivable/ Corner
B. Market, $518.
Debit Accounts Receivable/Corner Market, $570, credit Cash, $544;credit Sales
C. Discounts $26.
Debit Sales Discounts $26; Debit Accounts Receivable/Corner Market, $518; credit
D. Cash, $544.
9_12 Business and IT 6311 - Accounting 1 Test 2
41. What is the effect on owner's equity when a business receives $2000 cash from sales?
Decreased by $2000
A.
Increased by $2000
B.
Decreased by $4,000
C.
Increased by $4,000
D.
42. What is the effect on assets when the owner increases owner's equity by investing
$1,000 in the business?
Decreased by $1,000
A.
Decreased by $2,000
B.
Increased by $1,000
C.
Increased by $2,000
D.
43. What is the effect when $200 cash is paid to an advertising agency for advertisements
for the business?
Assets decrease $200 and owner's equity decreases $200.
A.
Assets increase $200 and owner's equity increases $200.
B.
Assets increase $200 and owner's equity decreases $200.
C.
Liabilities increase $200 and owner's equity decreases $200.
D.
44. What is an example of an account that has a normal credit balance?
Cash
A.
Accounts Payable/Jones Supply
B.
Prepaid Insurance
C.
Supplies
D.
45. What is an example of an account that has a normal credit balance?
Cash
A.
Office Equipment
B.
Sales
C.
Supplies
D.
9_12 Business and IT 6311 - Accounting 1 Test 2
46. What is an example of an account that has a normal credit balance?
Cash
A.
Joan Brown, Drawing
B.
Supplies
C.
Tyler Jackson, Capital
D.
47. What is an example of an account that has a normal debit balance?
Accounts Payable/Adam's Office Supply
A.
Advertising Expense
B.
Mary Johnson, Capital
C.
Sales
D.
48. What is an example of an account that has a normal debit balance?
Accounts Receivable/Oakdale School
A.
Accounts Payable/Jones Supply
B.
Mary Johnson, Capital
C.
Sales
D.
49. Cash, Office Equipment, and Prepaid Insurance are all classified as:
assets.
A.
liabilities.
B.
owner's equity.
C.
revenue.
D.
50. Mariah Smith, Capital and Mariah Smith, Drawing are both classified as:
owner's equity
A.
expenses.
B.
liabilities.
C.
revenue.
D.
9_12 Business and IT 6311 - Accounting 1 Test 2
Please use the following situation for question 51:
Scenario 4.01 G
On July 31 of the current year, Beaufort Brothers received a bank statement dated
July 30. The following information is obtained from the bank statement and from the
records of the business:
Bank statement balance
$1,350.00 Outstanding checks:
Bank service charge
$5.00
No. 250
$95.00
Outstanding deposits:
No. 251
$175.00
July 30
$250.00
Checkbook balance on Check Stub No. 252
$1,335.00
51. In Scenario 4.01 G, does the bank statement reconcile?
No, the adjusted checkbook balance is $230.00 too low.
A.
No, the adjusted checkbook balance is $115.00 too high.
B.
Yes, the adjusted checkbook balance and the adjusted bank balance agree.
C.
Yes, the adjusted checkbook balance is more than the adjusted bank balance.
D.
Please use the following situation for question 52:
Scenario 4.01 H
On August 31 of the current year, Brunswick Builders received a bank statement dated
August 30. The following information is obtained from the bank statement and from
the records of the business:
Bank statement balance
$1,485.00 Outstanding checks:
Bank service charge
$3.75
No. 347
$55.00
Outstanding deposits:
No. 352
$28.00
Aug 30
$50.00
Checkbook balance on Check Stub No. 354
$1,468.00
52. In Scenario 4.01 H, assuming that the bank balance is correct, does the bank statement
reconcile?
No, the adjusted checkbook balance is $17.00 too low.
A.
No, the adjusted checkbook balance is $12.25 too high.
B.
Yes, the adjusted checkbook balance and the adjusted bank balance agree.
C.
Yes, the adjusted checkbook balance is more than the adjusted bank balance.
D.
9_12 Business and IT 6311 - Accounting 1 Test 2
53. On December 23, Wake Incorporated received notice from the bank of a dishonored
check from Davie Company in the amount of $125.00. The bank charged a service fee
of $25.00. What is the correct journal entry for Wake Incorporated to record the
dishonored check?
Debit Accounts Receivable-Davie Company $125.00, Debit Bank Service Charge
A. $25.00, Credit Cash $150.00
Debit Accounts Receivable-Davie Company $150.00, Credit Bank Service Charge
B. $25.00, Credit Cash $125.00
Debit Accounts Receivable-Davie Company $150.00, Credit Cash $150.00
C.
Debit Cash $150.00, Credit Accounts Receivable-Davie Company $150.00
D.
9_12 Business and IT 6311 - Accounting 1 Test 2
Please use the following figure for question 54:
Figure 3.03 R
54. In Figure 3.03 R, what is the extension of Merchandise Inventory Account after
adjustments?
$13,500 in the Income Statement Debit column
A.
$13,500 in the Income Statement Credit column
B.
$13,500 in the Balance Sheet Debit column
C.
$13,500 in the Balance Sheet Credit column
D.
9_12 Business and IT 6311 - Accounting 1 Test 2
55. What is the correct journal entry for the transaction, PAID CASH FOR PRINTER
CARTRIDGES?
Debit Owner's drawing and credit Cash
A.
Debit Cash and credit Owner's Capital
B.
Debit Supplies and credit Cash
C.
Debit Miscellaneous Expense and credit Cash
D.
56. What is the correct journal entry for the transaction PAID CASH FOR
MISCELLANEOUS EXPENSE, $400?
Debit Cash and credit Miscellaneous Expense
A.
Debit Cash and debit Miscellaneous Expense
B.
Debit Miscellaneous Expense and credit Cash
C.
Debit Supplies and credit Miscellaneous Expense
D.
57. What is the correct journal entry for the transaction, RECEIVED CASH FROM
SALES, $250?
Debit Cash and credit Sales
A.
Debit Cash and debit Sales
B.
Debit Miscellaneous Expense and credit Sales
C.
Debit Sales and credit Cash
D.
58. What is the correct journal entry for the transaction, RECEIVED CASH FROM
OWNER DANA JACKSON AS INVESTMENT, $5000?
Debit Cash and credit Dana Jackson, Capital
A.
Debit Cash and credit Dana Jackson, Drawing
B.
Debit Dana Jackson Capital and credit Cash
C.
Debit Miscellaneous Expense and credit Dana Jackson, Capital
D.
9_12 Business and IT 6311 - Accounting 1 Test 2
59. What is the correct journal entry for the transaction, BOUGHT SUPPLIES ON
ACCOUNT FROM STEINMAN COMPANY, $75?
Debit Accounts Payable/Steinman Company and credit Cash
A.
Debit Accounts Payable/Steinman Company and credit Supplies
B.
Debit Supplies and credit Accounts Payable/Steinman Company
C.
Debit Supplies and credit Cash
D.
60. What is the correct journal entry for the transaction, RECEIVED CASH ON
ACCOUNT FROM BURKE SUPPLY FOR, $800?
Debit Accounts Receivable/Burke Supply and credit Cash
A.
Debit Accounts Receivable/Burke Supply and credit Jane Smith, Capital
B.
Debit Cash and credit Accounts Receivable/Burke Supply
C.
Debit Cash and debit Accounts Receivable/Burke Supply
D.
61. Bill James discovered that a transaction for Utilities Expense was journalized and
posted in error as a debit to Repair Expense, $250. What is the entry to correct the
error?
Debit Utilities Expense, $250; credit Cash, $250
A.
Debit Utilities Expense, $250; credit Repairs Expense, $250
B.
Debit Repair Expense, $250; credit Utilities Expense, $250
C.
Debit Cash, $250; debit Utilities Expense, $250
D.
62. A journal's column totals are General Debit, $500; General Credit, $200; Sales Credit,
$750; Cash Debit, $1,000; Cash Credit, $600. This means that the:
Cash debit column is incorrect.
A.
General credit column is incorrect.
B.
Journal does not prove.
C.
Journal proves.
D.
9_12 Business and IT 6311 - Accounting 1 Test 2
63. A journal's column totals are General Debit, $500; General Credit, $200; Sales Credit,
$350; Cash Debit, $1,000; Cash Credit, $950. This means that the:
Cash debit column is incorrect.
A.
General credit column is incorrect.
B.
Journal does not prove.
C.
Journal proves.
D.
64. Sarah discovered that a sale on account to Jones Company on June 5 for $560 was
incorrectly charged to Jackson Company. What is the journal entry to correct this
error?
Debit Jones Company $560 and credit Jackson Company $560
A.
Debit Accounts Receivable/Jones Company $560 and credit Accounts
B. Receivable/Jackson Company $560
Debit Jackson Company $560 and credit Jones Company $560
C.
Debit Accounts Payable/Jackson Company $560 and credit Accounts Payable/Jones
D. Company $560
JOHN SLOW, INC.
CASH PAYMENTS JOURNAL
65
.
DATE
ACCOUNT TITLE
CK
POST.
NO
REF.
GENERAL
DEBIT
CREDIT
ACCOUNTS
PURCHASES
PAYABLE
DISCOUNT
CASH
DEBIT
CREDIT
CREDIT
1
Jan
1
Bill’s Marina
194
595.00
595.00
2
Figure 3.03 A
Which would be the correct posting of the Cash Payments Journal Entry
shown in Figure 3.03 A to the accounts payable subsidiary ledger?
Debit Accounts Payable/Bill's Marina, $595
A.
Credit Accounts Payable/Bill's Marina, $595
B.
Credit Cash $595
C.
Debit Accounts Payable/John Slow, Inc., $595
D.
9_12 Business and IT 6311 - Accounting 1 Test 2
Betsy’s Wholesale
Cash Receipts Journal
66
.
Page No. 3
GENERAL
Date
Account Title
Mar 5
Sue Sews
Mar 7
Pick up Stitch
Do
c
No.
R4
3
R4
4
Pos
t
Ref
.
Debit
Credit
Accounts
Receivable
Credit
Sales
Credit
Sales
Tax
Payable
Credit
Sales
Discount
Debit
Cash
Debit
544.00
544.00
325.00
325.00
Figure 3.03 H
Betsy’s Wholesale received $544 payment on account from Sue
Sews. What is the correct posting of the Mar 5 journalized transaction
shown in Figure 3.03 H to the accounts receivable subsidiary ledger?
Credit Accounts Receivable/Sue Sews, $544, which will decrease the subsidiary
A. ledger account Debit Balance, $544
Credit Accounts Receivable, $544, which will increase the subsidiary ledger account
B. Debit Balance, $544
Credit Accounts Receivable/Betsy's Wholesale, $544
C.
Debit Accounts Receivable/Sue Sews, $544
D.
67. The merchandise inventory account has a balance of $900. At the end of the month, a
physical count of the inventory items shows $600 on hand. How is the adjusting entry
to inventory recorded on a multi-column trial balance worksheet?
In the adjustments columns, Debit Merchandise Inventory, $300; Credit Income
A. Summary, $300
In the adjustments columns, Debit Income Summary, $300; Credit Merchandise
B. Inventory, $300
In the adjustments columns, Debit Merchandise Inventory, $600; Credit Income
C. Summary, $600
In the adjustments columns, Debit Income Summary, $600; Credit Merchandise
D. Inventory, $600
9_12 Business and IT 6311 - Accounting 1 Test 2
SAMMY'S WAREHOUSE
CASH PAYMENTS JOURNAL
68
.
DATE
1
Jan
1
ACCOUNT TITLE
Auto Parts Supply
CK
POST.
NO
REF.
GENERAL
DEBIT
CREDIT
194
ACCOUNTS
PURCHASES
PAYABLE
DISCOUNT
CASH
DEBIT
CREDIT
CREDIT
565.00
2
Figure 3.03 C
What is the correct posting of the journalized transaction shown in Figure
3.03 C to the accounts payable subsidiary ledger?
Credit Accounts Payable/Auto Parts Supply, $565
A.
Credit Cash $565
B.
Debit Accounts Payable/Sammy's Warehouse, $565
C.
Debit Accounts Payable/Auto Parts Supply, $565
D.
69.
PURCHASES JOURNAL
DATE
Nov. 7
ACCOUNT CREDITED
Surf Tales
Figure 3.03 F
PURCH
NO
321
POST
REF
Purchases Dr. Accts. Pay. Cr.
675.00
565.00
What is the correct posting of the journalized transaction shown in Figure
3.03 F to the accounts payable subsidiary ledger?
Debit Accounts Payable/ Surf Tales, $675
A.
Debit Purchases, $675
B.
Credit Purchases, $675
C.
Credit Accounts Payable/ Surf Tales, $675
D.
9_12 Business and IT 6311 - Accounting 1 Test 2
70
.
Willie's Wheels
Sales Journal
Page No. 2
Date
Account Debited
Sale
No.
Post
Ref.
Accounts
Receivable Debit
Sales Tax
Payable
Feb 4
Speed Demon
S15
108.00
100.00
8.00
Feb 5
R. Cool
S16
135.00
125.00
10.00
Sales Credit
Figure 3.03 I
Willie’s Wheels sold $100 merchandise on account to Speed
Demon. What is the correct posting of the Feb 4th journalized transaction
shown in Figure 3.03 I to the accounts receivable subsidiary ledger?
Debit Accounts Receivable/Speed Demon, $108, which will increase the subsidiary
A. ledger account Debit Balance by $108
Credit Accounts Receivable/Speed Demon, $108; which will decrease the subsidiary
B. ledger account Debit Balance by $108
Debit Accounts Receivable/Willie's Wheels, $108
C.
Credit Accounts Receivable/Willie's Wheels, $108
D.
GENERAL JOURNAL
71.
DATE
1
Jun
ACCOUNT TITLE
9
Supplies -Store
Page 11
Doc
POST.
GENERAL
NO
REF.
DEBIT
M44
1005
220.00
CREDIT
2
Accts. Pay./Shoe Shack
/
220.00
Figure 3.03 M
Which would be the correct posting of the General Journal Entry shown in
Figure 3.03 M to the General Ledger?
Debit Supplies-Store $220; credit Accounts Payable-Control, $220 and Accounts
A. Payable/Gourmet Foods, $220
Debit Supplies-Store $220; credit Accounts Payable/Gourmet Foods, $220
B.
Debit Accounts Payable-Control, $220; credit Accounts Payable/Gourmet Foods,
C. $220
Debit Accounts Payable/Gourmet Foods, $220; credit Supplies-Store $220
D.
9_12 Business and IT 6311 - Accounting 1 Test 2
72. The merchandise inventory account has a balance of $1,000. At the end of the month, a
physical count of the inventory items shows $1,700 is on hand. How is the adjusting
entry to inventory recorded on a multi-column trial balance worksheet?
Debit Merchandise Inventory, $700; credit Income Summary, $700
A.
Debit Income Summary, $700; credit Merchandise Inventory, $700
B.
Debit Merchandise Inventory, $1,700; credit Income Summary, $1,700
C.
Debit Income Summary, $1,700; credit Merchandise Inventory, $1,700
D.
73. $1,800 of the current year's sales will eventually be uncollectible. The Allowance for
Uncollectible Accounts balance is $150. What is the journal entry for recording the
uncollectible accounts adjustment?
Debit Allowance for Uncollectible Accounts, $1,800; credit Uncollectible Accounts
A. Expense - Office, $1,800
Debit Uncollectible Accounts Expense, $1,800; credit Allowance for Uncollectible
B. Accounts, $1,800
Debit Allowance for Uncollectible Accounts, $1,650; credit Uncollectible Accounts
C. Expense, $1,650
Debit Uncollectible Accounts Expense, $1,650; credit Allowance for Uncollectible
D. Accounts, $1,650
9_12 Business and IT 6311 - Accounting 1 Test 2
Please use the following figure for question 74:
Figure 3.03 T
74. Using the year ended worksheet for Alaina's Accounting in Figure 3.03 T, what is the
Retained Earnings balance on the Post-Closing Trial Balance?
The Retained Earnings balance is $2,500
A.
The Retained Earnings balance is $4,000
B.
The Retained Earnings balance is $6,500
C.
The Retained Earnings balance is $9,000
D.
9_12 Business and IT 6311 - Accounting 1 Test 2
Please use the following situation for question 75:
Scenario 4.01 D
On December 3, Union Manufacturing Company received a bank statement dated
November 30. The following information is obtained from the bank statement and
from the records of the business:
Bank statement balance
$3,425.00 Outstanding checks:
Bank service charge
$4.50
No. 290
$187.50
Outstanding deposits:
No. 294
$67.50
November 29
$300.00
November 30
$400.00
Checkbook balance on Check Stub No. 296
$3,874.50
75. In Scenario 4.01 D, what is the adjusted checkbook balance?
$3,420.50
A.
$3,870.00
B.
$4,120.50
C.
$4,319.50
D.
Please use the following situation for question 76:
Scenario 4.01 F
On February 28 of the current year, Yancey Company received a bank statement dated
February 27. The following information is obtained from the bank statement and from
the records of the business:
Bank statement balance
$3,500.00 Outstanding checks:
Bank service charge
$3.50
No. 234
$100.00
Outstanding deposits:
No. 235
$90.00
February 27
$500.00
February 28
$200.00
Checkbook balance on Check Stub No. 237
$3,873.00
76. In Scenario 4.01 F, what is the adjusted bank balance?
$2,800.00
A.
$3,173.00
B.
$3,869.50
C.
$4,010.00
D.
9_12 Business and IT 6311 - Accounting 1 Test 2
77. On October 31, Cherokee Company received a bank statement showing the following
information:
Bank statement balance
Bank service charge
$4,375.00
$25.00
The records of the business show the following information:
Outstanding deposit, Oct. 29
$500.00
Outstanding checks:
Outstanding deposit, Oct. 30
$175.00
No. 329 $325.00
No. 330 $125.00
No. 331 $75.00
Assuming that the bank statement balance is correct, what is the correct Cash account
balance on October 31?
$4,350.00
A.
$4,500.00
B.
$4,525.00
C.
$4,550.00
D.
78. On April 16, Caldwell Company received notice from the bank of a dishonored check
from Hickory Hosiery in the amount of $55.00. The bank charged a service fee of
$25.00. What is the correct journal entry for Caldwell Company to record the
dishonored check?
Debit Accounts Receivable-Hickory Hosiery $55.00, debit Bank Service Charge
A. $25.00; credit Cash $80.00
Debit Accounts Receivable-Hickory Hosiery $80.00, Credit Bank Service Charge
B. $25.00, Credit Cash $55.00
Debit Accounts Receivable-Hickory Hosiery $80.00; credit Cash $80.00
C.
Debit Cash $80.00; credit Accounts Receivable-Hickory Hosiery $80.00
D.
79. David wants to replenish the $150 petty cash fund. He has receipts for the following
total payments: supplies, $36; and postage (Office Expense), $27. A cash count shows
$87 in the petty cash box. What is the correct journal entry to record the transaction?
Debit Cash $63 and credit Miscellaneous Expense $63
A.
Debit Miscellaneous Expense $63 and credit Cash $63
B.
Debit Office Expense $27, debit Supplies $36 and credit Cash $63
C.
Debit Office Expense $27, debit Supplies $36 and credit Petty Cash $63
D.
9_12 Business and IT 6311 - Accounting 1 Test 2
Please use the following situation for question 80:
Sneaker's Grill pays its employees weekly. Taxes are withheld based on the following
percentages. Federal Income Tax withholding is calculated using the IRS Tax Tables.
Social Security Withholding: 6.20%Medicare Withholding: 1.45% Federal Income Tax
Withholding: Tax Withholding Tables State Income Tax Withholding: 6.50%
Employee Name
Sally Smith
Kevin Coffey
Marital Status
M
S
Allowances
0
1
Gross Pay
$425.00
$600.00
FIGURE 4.03 C
80. In FIGURE 4.03 C, what is the Social Security withholding for Sally?
$263.50
A.
$26.35
B.
$2.63
C.
$0.26
D.
81. Matt has gross earnings of $300.00 and total deductions of $126.75. What is Matt's net
pay?
$426.75
A.
$226.25
B.
$175.00
C.
$173.25
D.
9_12 Business and IT 6311 - Accounting 1 Test 2
Please use the following situation for question 82:
Sneaker's Grill pays its employees weekly. Taxes are withheld based on the following
percentages. Federal Income Tax withholding is calculated using the IRS Tax Tables.
Social Security Withholding: 6.20%Medicare Withholding: 1.45% Federal Income Tax
Withholding: Tax Withholding Tables State Income Tax Withholding: 6.50%
Employee Name
Sally Smith
Kevin Coffey
Marital Status
M
S
Allowances
0
1
Gross Pay
$425.00
$600.00
FIGURE 4.03 C
82. In FIGURE 4.03 C, what is the state income tax withholding for Sally?
$0.28
A.
$2.76
B.
$27.63
C.
$276.30
D.
83. Sports Incorporated has employer payroll taxes as follows: Social Security Tax
$225.00, Medicare Tax $125.00 and Federal Unemployment Tax $55.00. What is the
entry to record the employer's payroll taxes?
Debit Payroll Tax Expense $405.00, Social Security Tax Payable $225.00; credit
A. Medicare Tax Payable $125.00, Federal Unemployment Tax Payable $55.00
Debit Payroll Tax Expense $405.00; credit Cash $405.00
B.
Debit Payroll Tax Expense $405.00; credit Social Security Tax Payable $225.00,
C. Medicare Tax Payable $125.00, Federal Unemployment Tax Payable $55.00
Debit Social Security Tax Payable $225.00, Medicare Tax Payable $125.00, Federal
D. Unemployment Tax Payable $55.00; credit Payroll Tax Expense $405.00
9_12 Business and IT 6311 - Accounting 1 Test 2
84. Burger Barn paid the following taxes: Social Security $240.00, Medicare $110.00,
Federal Income Tax $250.00. What is the entry to journalize the payment of the payroll
taxes?
Debit Cash $600.00; credit Social Security Tax Payable $240.00, Medicare Tax
A. Payable $110.00, Federal Income Tax Payable $250.00
Debit Payroll Tax Expense $600.00; credit Cash $600.00
B.
Debit Social Security Tax Payable $240.00, Medicare Tax Payable $110.00, Federal
C. Income Tax Payable $250.00; credit Cash $600.00
Debit Social Security Tax Payable $240.00, Medicare Tax Payable $110.00, Federal
D. Income Tax Payable $250.00; credit Payroll Tax Expense $600.00
85. Hair Design Supply Company estimates uncollectible accounts expense by calculating a
percentage of total sales on account. Total sales on account for the year are
$1,200,000.00. In the past, actual uncollectible accounts expense has been about 2.0%
of total sales on account. What is the estimated uncollectible accounts expense for the
year?
$24.00
A.
$240.00
B.
$2,400.00
C.
$24,000.00
D.
86. Workman Tools estimates its uncollectible accounts expense for the year to be $950.00.
What is the correct entry to record the estimated uncollectible accounts expense?
Debit Uncollectible Accounts Expense, $950.00; credit Accounts Receivable,
A. $950.00
Debit Uncollectible Accounts Expense, $950.00; credit Allowance for Uncollectible
B. Accounts, $950.00
Debit Accounts Receivable, $950.00; credit Uncollectible Accounts Expense,
C. $950.00
Debit Allowance for Uncollectible Accounts, $950.00; credit Uncollectible Accounts
D. Expense, $950.00
9_12 Business and IT 6311 - Accounting 1 Test 2
87. Mary Ann's Sewing Notions received a check for $75.00 from Cathy Martin, whose
account was previously written off. Mary Ann's Sewing Notions uses the Allowance
Method for uncollectible accounts. What is the correct entry to re-open the account for
Cathy Martin?
Debit Accounts Receivable/Cathy Martin, $75.00; credit Allowance for Uncollectible
A. Accounts, $75.00
Debit Accounts Receivable/Cathy Martin, $75.00; credit Uncollectible Accounts
B. Expense, $75.00
Debit Uncollectible Accounts Expense, $75.00; credit Accounts Receivable/Cathy
C. Martin, $75.00
Debit Uncollectible Accounts Expense, $75.00; credit Allowance for Uncollectible
D. Accounts, $75.00
88. Burger Boy Diner purchased a commercial oven on January 1, 2009 for $5,800.00. The
estimated salvage (disposal) value is $200.00 and the estimated useful life is 7 years.
What is the annual straight-line depreciation expense?
$200.00
A.
$400.00
B.
$800.00
C.
$828.50
D.
89. Mountain Business Services purchased a computer on January 1, 2009 for $3,600.00.
The estimated salvage (disposal) value is $200.00 and the estimated useful life is 5
years. What is the annual depreciation expense?
$200.00
A.
$360.00
B.
$680.00
C.
$720.00
D.
9_12 Business and IT 6311 - Accounting 1 Test 2
90. Joe's Taxi Service purchased a new taxi on January 1, 2010 for $22,000.00. The
estimated salvage (disposal) value is $1,000.00 and the estimated useful life is 3 years.
What is the annual depreciation expense?
$7,333.33
A.
$7,000.00
B.
$3,500.00
C.
$1,000.00
D.
91. Steve's Auto Parts purchased a display case on January 1, 2009 for $3,400.00. The
estimated salvage (disposal) value is $200.00 and the estimated useful life is 10 years.
What is the accumulated straight-line depreciation at the end of 2011?
$320.00
A.
$640.00
B.
$680.00
C.
$960.00
D.
92. Steve's Auto Repair has depreciation expense of $3,500.00 at the end of the fiscal year.
What is the entry to journalize the depreciation expense?
Debit Accumulated Depreciation $3,500.00; Credit Depreciation Expense $3,500.00
A.
Debit Depreciation Expense $3,500.00; Credit Accumulated Depreciation $3,500.00
B.
Debit Depreciation Expense $3,500.00; Credit Equipment $3,500.00
C.
Debit Equipment $3,500.00; Credit Accumulated Depreciation $3,500.00
D.
93. Beach Bums Surf Shop signed a 90-day, 5%, interest-bearing note for $3,000.00 with
First National Bank. What is the journal entry for the issuance of the note payable?
Debit Cash $3,037.50; credit Notes Payable $3,037.50
A.
Debit Cash $3,000.00; credit Notes Payable $3,000.00
B.
Debit Notes Payable $3,000.00; credit Cash $3,000.00
C.
Debit Notes Payable $3,150.00; credit Cash $3,150.00
D.
9_12 Business and IT 6311 - Accounting 1 Test 2
94. Lighten Up Electrical Supply received a payment of a note receivable in the amount of
$1,675.00. Interest on the note receivable was $75.00. What is the journal entry to
record the payment of the note receivable?
Debit Cash $1,675.00; credit Accounts Receivable $1,675.00
A.
Debit Accounts Receivable $1,675.00; credit Cash $1,675.00
B.
Debit Cash $1,675.00; credit Interest Income $75.00; credit Notes Receivable
C. $1,600.00
Debit Cash $1,600.00; debit Interest Expense $1275.00; credit Accounts Receivable
D. $1,675.00
95. Sneakers Snack Shop signed a $30,000, 90-day, 8%, interest-bearing note on August 1,
2009. Using a 360-day year, what is the maturity value of the note?
$30,400.00
A.
$30,592.00
B.
$30,600.00
C.
$32,400.00
D.
9_12 Business and IT 6311 - Accounting 1 Test 2
Betsy’s Wholesale
Cash Receipts Journal
96
.
Page No. 3
GENERAL
Date
Account Title
Mar 5
Sue Sews
Mar 7
Pick up Stitch
Pos
t
Ref
.
Do
c
No.
R4
3
R4
4
Debit
Accounts
Receivable
Credit
Credit
Sales
Credit
Sales
Tax
Payable
Credit
Sales
Discount
Debit
Cash
Debit
544.00
544.00
325.00
325.00
Figure 3.03 H
Betsy’s Wholesale received $544 payment on account from Sue
Sews. What is the correct posting of the Mar 5 journalized transaction
shown in Figure 3.03 H to the accounts receivable subsidiary ledger?
Credit Accounts Receivable/Sue Sews, $544, which will decrease the subsidiary
A. ledger account Debit Balance, $544
Credit Accounts Receivable, $544, which will increase the subsidiary ledger account
B. Debit Balance, $544
Credit Accounts Receivable/Betsy's Wholesale, $544
C.
Debit Accounts Receivable/Sue Sews, $544
D.
9_12 Business and IT 6311 - Accounting 1 Test 2
GENERAL JOURNAL
97.
DATE
1
Jun
ACCOUNT TITLE
9
Supplies -Store
2
Accts. Pay./Westin Supply
Page 33
Doc
POST.
GENERAL
NO
REF.
DEBIT
M44
1150
256.00
CREDIT
256.00
Figure 3.03 L
Westin Supply sold store supplies on account to Kayla’s Gift Shop for
$256 and Kayla’s Gift Shop recorded the transaction as shown
above. What would be the correct posting of this General Journal Entry
shown in Figure 3.03 L to the General Ledger?
Debit Supplies-Store $256; credit Accounts Payable-Control, $256 and credit
A. Accounts Payable/Westin Supply, $256
Debit Supplies-Store $256; credit Accounts Payable/Westin Supply, $256
B.
Debit Accounts Payable-Control, $256; credit Accounts Payable/ Westin Supply,
C. $256
Debit Accounts Payable/ Westin Supply, $256; credit Supplies-Store $256
D.
98
.
Willie's Wheels
Sales Journal
Page No. 2
Date
Account Debited
Sale
No.
Post
Ref.
Accounts
Receivable Debit
Feb 4
Speed Demon
S15
108.00
100.00
8.00
Feb 5
R. Cool
S16
135.00
125.00
10.00
Sales Credit
Sales Tax
Payable
Figure 3.03 I
Willie’s Wheels sold $100 merchandise on account to Speed
Demon. What is the correct posting of the Feb 4th journalized transaction
shown in Figure 3.03 I to the accounts receivable subsidiary ledger?
Debit Accounts Receivable/Speed Demon, $108, which will increase the subsidiary
A. ledger account Debit Balance by $108
Credit Accounts Receivable/Speed Demon, $108; which will decrease the subsidiary
B. ledger account Debit Balance by $108
Debit Accounts Receivable/Willie's Wheels, $108
C.
Credit Accounts Receivable/Willie's Wheels, $108
D.
9_12 Business and IT 6311 - Accounting 1 Test 2
9
9.
Page
22
CASH PAYMENTS JOURNAL
DAT
E
Nov.
7
Ck
No
POS
T
REF
30
1
5110
Item
Purchase
s
Figure 3.03 O
GENERAL
DEBIT
210.00
CREDI
T
Accounts
Payable
Debit
Purchases
Discount Cr
edit
Cash
Credit
210.00
Tiny Church Warehouse made the journal entry shown in Figure 3.03 O in
their Cash Payments Journal. What is the correct posting of this entry to
the general ledger?
Debit Cash, $210; Credit Accounts Payable, $210
A.
Debit Purchases, $210; Credit Accounts Payable $210
B.
Debit Purchases, $210; credit Cash, $210
C.
Debit Cash, $210; credit Purchases, $210
D.
100.
PURCHASES JOURNAL
DATE
Nov. 7
ACCOUNT CREDITED
Hi Frequency
PURCH
NO
POST
REF
321
Purchases Dr. Accts. Pay. Cr.
455.00
Figure 3.03 E
What is the correct posting of the journalized transaction shown in
Figure 3.03 E to the accounts payable subsidiary ledger?
Debit Accounts Payable/ Hi Frequency, $455
A.
Debit Purchases, $455
B.
Credit Purchases, $455
C.
Credit Accounts Payable/ Hi Frequency, $455
D.
9_12 Business and IT 6311 - Accounting 1 Test 2
101. Supplies - Office has a balance of $3,500. At the end of the month, a physical count of
the Supplies - Office items shows $1,500 is on hand. How is the adjusting entry to
Supplies - office recorded on a multi-column trial balance worksheet?
In the adjustments columns, debit Supplies-Office, $2,000; credit Supplies Expense A. Office, $2,000
In the adjustments columns, debit Supplies Expense - Office, $2,000; credit
B. Supplies-Office, $2,000
In the adjustments columns, debit Supplies-Office, $1,500; credit Supplies Expense C. Office, $1,500
In the adjustments columns, debit Supplies Expense - Office, $1,500; credit
D. Supplies-Office, $1,500
102. Office Equipment has a balance of $9,000. The equipment has a useful life of 3 years
and a salvage value of $3,000. At the end of the year, how is the adjusting entry for
depreciation recorded on a multi-column trial balance worksheet?
In the adjustments columns, debit Office Equipment, $2,000; credit Depreciation
A. Expense - Office Equipment, $2,000
In the adjustments columns, debit Depreciation Expense - Office Equipment,
B. $2,000; credit Office Equipment, $2,000
In the adjustments columns, debit Accumulated Depreciation - Office Equipment,
C. $2,000; credit Depreciation Expense - Office Equipment, $2,000
In the adjustments columns, Debit Depreciation Expense - Office Equipment,
D. $2,000; Credit Accumulated Depreciation - Office Equipment, $2,000.
103. $1,500 of the current year's sales will eventually be uncollectible. The Allowance for
Uncollectible Accounts balance is $200. What is the journal entry for recording the
adjustment for uncollectible accounts?
Debit Allowance for Uncollectible Accounts, $1,500; credit Uncollectible Accounts
A. Expense, $1,500
Debit Uncollectible Accounts Expense, $1,500; credit Allowance for Uncollectible
B. Accounts, $1,500
Debit Allowance for Uncollectible Accounts, $1,300; credit Uncollectible Accounts
C. Expense, $1,300
Debit Uncollectible Accounts Expense, $1,300; credit Allowance for Uncollectible
D. Accounts, $1,300
9_12 Business and IT 6311 - Accounting 1 Test 2
104. Allen discovered that a sale on account to Jones Company on June 5 for $560 was
incorrectly charged to the account of Jackson Company. What is the journal entry to
correct this error?
Debit Jones Company $560 and credit Jackson Company $560
A.
Debit Accounts Receivable/Jones Company $560 and credit Accounts
B. Receivable/Jackson Company $560
Debit Jackson Company $560 and credit Jones Company $560
C.
Debit Accounts Payable/Jackson Company $560 and credit Accounts Payable/Jones
D. Company $560
Please use the following situation for question 105:
Alison's Fresh Market has the following payroll information for their weekly pay
period.
Name
Time
Rate of Pay
Commission %
Sales
Worked
Mark
55 hours
Nick
35 hours
Daniel
48 hours
Alison
1 week
FIGURE 4.03 B
$15.00
$10.00
$9.00
$85,000.00/year
2%
2%
N/A
N/A
$7,000.00
$5,750.00
N/A
N/A
105. In FIGURE 4.03 B, what are Mark's gross earnings for the pay period?
$740.00
A.
$825.00
B.
$937.50
C.
$1,077.50
D.
9_12 Business and IT 6311 - Accounting 1 Test 2
Please use the following situation for question 106:
Sneaker's Grill pays its employees weekly. Taxes are withheld based on the following
percentages. Federal Income Tax withholding is calculated using the IRS Tax Tables.
Social Security Withholding: 6.20%Medicare Withholding: 1.45% Federal Income Tax
Withholding: Tax Withholding Tables State Income Tax Withholding: 6.50%
Employee Name
Sally Smith
Kevin Coffey
Marital Status
M
S
Allowances
0
1
Gross Pay
$425.00
$600.00
FIGURE 4.03 C
106. In FIGURE 4.03 C, what is the Social Security withholding for Kevin?
$3.72
A.
$37.00
B.
$37.20
C.
$372.00
D.
107. Greg has gross earnings of $245.00, Social Security withholding of $15.19, Medicare
withholding of $3.55, federal income tax withholding of $50.00, and state income tax
withholding of $15.93. What are Greg's total deductions?
$34.67
A.
$68.74
B.
$84.67
C.
$160.33
D.
9_12 Business and IT 6311 - Accounting 1 Test 2
Please use the following situation for question 108:
Carson's Candy Shoppe has $2,000.00 in wages, $124.00 in Social Security withholding,
$29.00 in Medicare withholding, $500.00 in federal income tax withholding, and
$100.00 in state income tax withholding. The federal unemployment tax rate is 0.8%.
FIGURE 4.03 E
108. In FIGURE 4.03 E, what is the employer's Social Security tax amount for the pay
period?
$ 12.40
A.
$124.00
B.
$153.00
C.
$248.00
D.
109. Sports Incorporated has employer payroll taxes as follows: Social Security Tax
$225.00, Medicare Tax $125.00 and Federal Unemployment Tax $55.00. What is the
entry to record the employer's payroll taxes?
Debit Payroll Tax Expense $405.00, Social Security Tax Payable $225.00; credit
A. Medicare Tax Payable $125.00, Federal Unemployment Tax Payable $55.00
Debit Payroll Tax Expense $405.00; credit Cash $405.00
B.
Debit Payroll Tax Expense $405.00; Credit Social Security Tax Payable $225.00,
C. Medicare Tax Payable $125.00, Federal Unemployment Tax Payable $55.00
Debit Social Security Tax Payable $225.00, Medicare Tax Payable $125.00, Federal
D. Unemployment Tax Payable $55.00; credit Payroll Tax Expense $405.00
110. WKRP Broadcasting paid federal unemployment taxes of $28. What is the entry to
journalize the payment of the unemployment taxes?
Debit Cash $28.00; credit Federal Unemployment Tax Payable $28.00
A.
Debit Federal Unemployment Tax Payable $28.00, credit Cash $28.00
B.
Debit Federal Unemployment Tax Payable $28.00, credit Payroll Tax Expense
C. $28.00
Debit Payroll Tax Expense $28.00, credit Cash $28.00
D.