Answers_test%202[1] - Icrp 1. What effect will the...

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Icrp 1. What effect will the following entry have on Retained Earnings? B) Retained Earnings will decrease by $9,150. A) Retained Earnings will increase by $9,150. B) Retained Earnings will decrease by $9,150. C) Retained Earnings will remain unchanged. D) Retained Earnings will be transferred to the income statement. 2. On January 1, 2007, Shaffer Co. purchased inventory for $1,000 cash. These goods were sold on April 30, 2007 for $1,400 cash. The company can currently earn 3% interest on an account at a bank. What was Shaffer's cost of financing this inventory? C) $30 A) $10 B) $0 C) $30 D) $400 3. Sine Company borrowed $20,000 on October 1, 2007 when the company issued a one- year note with a 6% annual interest rate. The adjusting entry necessary to record accrued interest on December 31, 2007 would include a: D) debit to Interest Expense for $300. A) debit to Interest Expense for $1,200. B) debit to Interest Payable for $1,200. C) debit to Notes Payable for $300. D) debit to Interest Expense for $300. 4. George Co. had beginning inventory of $400 and ending inventory of $200. The cost of goods sold was $1,600. Based on this information, George Co. must have purchased inventory amounting to: C) $1,800. A) $1,400. B) $1,600. C) $1,800. D) $2,200. 5.
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What effect will the return of merchandise to the supplier have on the accounting equation? A) Assets and equity are reduced by $600. A) Assets and equity are reduced by $600.
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Answers_test%202[1] - Icrp 1. What effect will the...

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