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Test1 Study Guide

Test1 Study Guide - Question 1 At year-end Sean counted the...

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Question 1 At year-end, Sean counted the office supplies on hand that amounted to $1,500.  The firm had $900 of supplies on hand at the start of the year and had purchased  $6,000 of supplies during the year. What was the total supplies expense for the  year? 4 $6,900 $3,600 $4,500 $5,400 Question 2 Select the answer that best describes the entry that is required to enter the  following transaction in the company’s accounting system: Cash sales to  customers totaled $2,800. The merchandise sold originally cost the company  $1,600. 3 assets increase in total by $2,800 assets decrease in total by $1,600 owner’s equity increases in total by $1,200 owner’s equity increases in total by $2,800 Question 3 On October 1, 2004, the company received a $9,000 check from a tenant to cover  the next six months’ rent. Which of the following increases as a result of the  October 1, 2004? 2 None of these assets and liabilities assets and revenue liabilities and revenue Question 4 Which of the following is a temporary account? 3 owners' equity
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accumulated depreciation cost of goods sold office equipment Question 5 Select the answer that best describes the end-of-year adjusting entry required for  the following transaction on December 31, 2005: Company owes $2,000 in wages  to workers for wages that they earned in the last week of December 2005 but will  not receive in cash until the first week of January 2006.4 owner’s equity increases; liabilities increase owner’s equity decreases; liabilities decrease owner’s equity remains unchanged; liabilities increase owner’s equity decreases; liabilities increase Question 6 Select the answer that best describes the entry that is required to enter the  following transaction in the company's accounting system: A store was rented for  $600 per month. The first month's rent was paid in advance.1 total assets remain unchanged  total assets decrease total assets increase owner’s equity increases Question 7 Select the answer that best describes the entry that is required to enter the  following transaction in the company’s accounting system: Company purchased  $4,000 of office supplies on account. The proper entry to record this event in the  accounting system would:2 increase expenses increase total assets decrease total assets have no effect on total assets
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