ACIS_2115_Quiz_4 - ACIS 2115 Quiz 4 1 The following general...

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ACIS 2115 Quiz 4 1. The following general journal entry was recorded in the books of Miles Company: Accounts Payable 700 Cash 700 Based on this entry, a. liabilities increased. b. assets increased. c. equity decreased. d. net income was unaffected. 2. The following account balances were drawn from the adjusted trial balance of Janson, Inc. Service Revenue $ 700 Operating Expenses 400 Accounts Payable 600 Dividends 200 Retained Earnings 1,200 Interest Revenue 100 After the closing entries have been recorded and posted, the balance in the retained earnings account would be a. $1,200. b. $1,400. c. $1,600. d. None of the above. 3. AWS Company issued a $10,000 face value note to the National Bank on October 1, 2003. The note had a 12 percent annual interest rate and a one-year term. Which of the following general journal entries would be necessary to record accrued interest on December 31, 2003? a. Interest Expense $300 Interest Payable $300 b. Interest Payable $300 Interest Expense $300 c. Interest Expense $900 Interest Payable $900 d. Interest Payable $900 Interest Expense
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Unformatted text preview: $900 4. LMN experienced an accounting event that affected its financial statements as follows Assets = Liab. + Equity Rev. ─ Exp. = Net Inc. Cash Flow + NA + + NA + + OA The general journal entry to record the event must have included a. A debit to an asset account and a credit to unearned revenue. b. A credit to an asset account and a debit to a revenue account. c. A debit to cash and a credit to revenue. d. A debit to cash and a credit to accounts receivable. 5. ABC Company experienced an accounting event that is recorded in the following T-accounts: Cash Unearned Revenue 5,000 5,000 Which of the following reflects how this event affects the company’s financial statements? Assets = Liab. + Equity Rev. ─ Exp. = Net Inc. Cash Flow a. + + NA NA + ─ + FA b. + + NA NA NA NA + OA c. + NA + + NA + + OA d. + + NA NA NA NA + FA 2PTS BONUS QUESTION Closing entries are journalized after the financial statements are prepared. True False...
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  • Spring '07
  • JAYardley
  • Accounting, Generally Accepted Accounting Principles, NA NA NA

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