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Unformatted text preview: Cash Inventory = 1) 2120 = 2)-1500 = 3) 1060 = 4) = 5) = 6)-2000 = 7) = 8)-100 = 9)-1000 = 10)-75 = 11)-200 = 12) 1000 13)-990-10 = 14) 2120 = 15) = 16)-1060 = 17) 500 = Accounts receivable Prepaid expense Equip- ment Accum- ulated deprec- iation Make a $2,000 sale on account. Must add 6% sales tax Record $1,500 cost of goods sold for sale Receive $1,060 cash in advance from customer for service not yet performed, of which 6% is sales tax Perform a service for a customer who had previously prepaid $1,000 Record $100 utilities used but not paid Record $2,000 current wages paid and earned. Record $1,000 wages unpaid and earned Pay the $100 utilities bill already recorded Pay $1,000 wages previously recorded Record one-month's ($75) worth of insurance expense expiring. Record $200 depreciation expense Purchase $1,000 inventory on account Pay for $1,000 inventory purchased and take 1% discount Make a $2,000 cash sale with 6% sales tax Pay $500 sales tax to government Customer returns goods. Sales amount was $1,000 and must also include 6% sales tax Cost of goods returned was $500 18) Which of the following are considered operating expenses in a multi-step income statement? Place an "x" below next to answer A. Cost of goods sold expense x B. Selling expense x C. Administrative expense D. Interest expense E. Income tax expense 19) Which of the following are considered current assets on a balance sheet? Place an "x" below next to answer A. Plant and equipment B. Accumulated depreciation x C. Inventory x D. Accounts receivable x E. Prepaid expense 20) Which of the following are considered current liabilities on a balance sheet?...
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This note was uploaded on 04/07/2008 for the course ACCT 205 taught by Professor Johnson during the Spring '08 term at St. Thomas.
- Spring '08