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ACC 221 Final Exam: Multiple-Choice Quiz

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Question;Question 12 ptsAccompanying the bank statement was a debit memo for bank service charges. On the bank reconciliation, the item isa deduction from the balance per bank statementan addition to the balance per company's recordsan addition to the balance per bank statementa deduction from the balance per company's recordsQuestion 22 ptsA check drawn by a company in payment of a voucher for $635 was recorded in the journal as $365. This item would be included in the bank reconciliation as a(n)addition to the balance per the company's recordsdeduction from the balance per the bank statementdeduction from the balance per the company's recordsaddition to the balance per the bank statementQuestion 32 ptsThe amount of deposits in transit is included on the bank reconciliation as a(n)deduction from the balance per the company's booksaddition to the balance per bank statementaddition to the balance per company booksdeduction from the balance per bank statementQuestion 42 ptsAccompanying the bank statement was a debit memo for an NSF check received from a customer. What journal entry is required in the company's accounts?debit Accounts Receivable, credit Cashdebit Cash, credit Other Incomele:///Users/munaalsuloh/Desktop/Quiz: 221 Final Exam: Multiple-Choice.webarchivePage 1 of 8Quiz: 221 Final Exam: Multiple-Choice11/27/14, 9:42 AMdebit Cash, credit Other Incomedebit Other Income, credit Cashdebit Cash, credit Accounts ReceivableQuestion 52 ptsDerek Company gathered the following reconciling information in preparing its September bank reconciliation:Cash balance per books, 9/30$2,750Deposits in transit200Notes receivable and interest collected by bank630Bank charge for check printingOutstanding checksNSF check301,250190The adjusted cash balance per books on September 30 is$1,910.$2,110.$3,160.$5,050.Question 62 ptsIf the allowance method of accounting for uncollectible receivables is used, what general ledger account is debited to write off a customer's account as uncollectible?Allowance for Doubtful AccountsAccounts ReceivableUncollectible Accounts ExpenseInterest ExpenseQuestion 72 ptsA debit balance in the Allowance for Doubtful Accountsindicates that actual bad debt write-offs have been less than what was estimated.cannot occur if the percentage of receivables method of estimating bad debts is used.indicates that actual bad debt write-offs have exceeded previous provisions for bad debts.is the normal balance for that account.le:///Users/munaalsuloh/Desktop/Quiz: 221 Final Exam: Multiple-Choice.webarchivePage 2 of 8Quiz: 221 Final Exam: Multiple-Choice11/27/14, 9:42 AMis the normal balance for that account.Question 82 ptsAn aging of a company's accounts receivable indicates that the estimate of uncollectible accounts totals $4,000. If Allowance for Doubtful Accounts has a $1,200 debitbalance, the adjustment to record the bad debt expense for the period will require acredit to Allowance for Doubtful Accounts for $5,000.debit to Bad Debt Expense for $4,000.debit to Bad Debt expense for $2,800debit to Bad Debt Expense for $5,200.Question 92 ptsWhen a company uses the allowance method of accounting for uncollectible receivables, the journal entry to reinstate a previously written off account would include:A credit to Bad Debt ExpenseA debit to Bad Debt ExpenseA debit to Allowance for Doubtful AccountsA credit to Allowance for Doubtful AccountsQuestion 102 ptsOn October 1, Black Company receives a 6% interest bearing note from Reese Company to settle a $20,000 account receivable. The note is due in six months. AtDecember 31, Black should record interest revenue of$1,200$0$300$600Question 112 ptsHarper Company lends Hewell Company $40,000 on March 1, accepting a four-month, 6% interest note. Harper Company prepares financial statements on March 31.What adjusting entry should be made before the financial statements can be prepared?Interest ReceivableInterest Revenue800800le:///Users/munaalsuloh/Desktop/Quiz: 221 Final Exam: Multiple-Choice.webarchivePage 3 of 8Quiz: 221 Final Exam: Multiple-Choice11/27/14, 9:42 AMInterest ReceivableInterest RevenueNote ReceivableCashCash20020040,00040,000200Interest Revenue200Question 122 ptsWhich of the following is included in the cost of land?fences on the landcost of paving a parking lotbrokerage commissionoutdoor parking lot lighting attached to the landQuestion 132 ptsA used machine with a purchase price of $77,000, requiring an overhaul costing $8,000, installation costs of $5,000, and special acquisition fees of $3,000, would havea cost basis of$82,000$93,000$85,000$90,000Question 142 ptsExpenditures that add to the utility of fixed assets for more than one accounting period arecommitted expenditurescapital expenditurescurrent expendituresrevenue expendituresQuestion 15le:///Users/munaalsuloh/Desktop/Quiz: 221 Final Exam: Multiple-Choice.webarchive2 ptsPage 4 of 8Quiz: 221 Final Exam: Multiple-Choice11/27/14, 9:42 AMOn June 8, Alton Co. issued a $90,000, 6%, 120-day note payable to Seller Co. What is the maturity value of the note?$90,450$95,400$90,000$91,800Question 162 ptsFor which of the following taxes is there no ceiling on the amount of employee annual earnings subject to the tax?only Social Security taxnone of theseonly unemployment compensation taxonly Medicare taxQuestion 172 ptsAn employee receives an hourly rate of $25, with time and a half for all hours worked in excess of 40 during a week. Payroll data for the current week are as follows:hours worked: 46, federal income tax withheld: $350, cumulative earnings for year (prior to current week): $99,700, social security tax rate: 6.0% on maximum of$100,000 and Medicare tax rate is 1.5% on all earnings. What is the net amount to be paid the employee?$875.00$1,133.14$857.00$838.62Question 182 ptsThe following totals for the month of June were taken from the payroll register of Arcon Company:Salaries expenseSocial security and Medicare Taxes withheld$14,000975Income Taxes withheld2,600Retirement Savings1,000The journal entry to record the payment of net pay would include a:credit to Salaries Expense for $9,425debit to Salaries Payable for $9,425le:///Users/munaalsuloh/Desktop/Quiz: 221 Final Exam: Multiple-Choice.webarchivePage 5 of 8Quiz: 221 Final Exam: Multiple-Choice11/27/14, 9:42 AMcredit to Salaries Payable for $9,425debit to Salaries Payable for $14,000Question 192 ptsWhich of the following taxes does the employer (only) pay?Medicare taxFICA taxesSocial Security taxunemployment compensationQuestion 202 ptsThe detailed record indicating the data for each employee for each payroll period and the cumulative total earnings for each employee is called the:employee's earnings recordemployer's earnings recordpayroll registerpayroll checkQuestion 212 ptsThe two ways that a corporation can be classified by ownership are:majority and minorityfor profit or not-for-profitinside and outsidestock and non-stockQuestion 222 ptsA corporation issues 1,500 shares of common stock for $32,000. The stock has a stated value of $10 per share. The journal entry to record the stock issuance wouldinclude a credit to Common Stock for:$2,000$17,000le:///Users/munaalsuloh/Desktop/Quiz: 221 Final Exam: Multiple-Choice.webarchivePage 6 of 8Quiz: 221 Final Exam: Multiple-Choice11/27/14, 9:42 AM$15,000$32,000Question 232 ptsNexis Corp. issues 1,000 shares of $15 par value common stock at $25 per share. When the transaction is recorded, credits are made to:Common Stock $25,000 and Retained Earnings $15,000Common Stock $15,000 and Paid-in Capital in Excess of Par Value $10,000Common Stock $25,000Common Stock $15,000 and Paid-in Capital in Excess of Stated Value $10,000Question 242 ptsThe date on which a cash dividend becomes a binding legal obligation is on the:payment datedate of recordlast day of the fiscal year enddeclaration dateQuestion 252 ptsThe net effect to a corporation of the payment of a cash dividend is to:decrease assets and decrease stockholders' equityincrease assets and increase stockholders' equitydecrease liabilities and decrease stockholders' equityincrease stockholders' equity and decrease liabilitiesQuestion 262 ptsThe entry to record the amortization of a discount on bonds payable is:debit Discount on Bonds Payable, credit Interest Expensedebit Bonds Payable, credit Interest Expensele:///Users/munaalsuloh/Desktop/Quiz: 221 Final Exam: Multiple-Choice.webarchivePage 7 of 8Quiz: 221 Final Exam: Multiple-Choice11/27/14, 9:42 AMdebit Interest Expense, credit Discount on Bonds Payabledebit Discount on Bonds Payable, credit Bonds PayableQuestion 272 ptsIf the market rate of interest is less than the coupon rate of interest, the bonds will sell for a:premiumdiscountface valuematurity value

 

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