final_exam_vol_I - Final Exam 1 Chapters 1-12 Name...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Final Exam 1: Chapters 1-12 Name ___________________________ Accounting Principles, 9e Instructor ________________________ Weygandt, Kieso, & Kimmel Section # _________ Date __________ Part I II III IV V VI VII Total Points 72 20 13 15 12 18 20 170 Score PART I — MULTIPLE CHOICE (72 points) Instructions: Designate the best answer for each of the following questions. ____ 1. Which of the following events cannot be quantified into dollars and cents and recorded as an accounting transaction? a. The appointment of a new CPA firm to perform an audit. b. The purchase of a new computer. c. The sale of store equipment. d. Payment of income taxes. ____ 2. Anderson Company purchased equipment for $1,800 cash. As a result of this event, a. owner’s equity decreased by $1,800. b. total assets increased by $1,800. c. total assets remained unchanged. d. Both a and b. ____ 3. Which of the following statements related to the adjusted trial balance is incorrect? a. It shows the balances of all accounts at the end of the accounting period. b. It is prepared before adjusting entries have been made. c. It proves the equality of the total debit balances and the total credit balances in the ledger. d. Financial statements can be prepared directly from the adjusted trial balance. ____ 4. Carson Supply bought equipment at a cost of $72,000 on January 2, 2007. It originally had an estimated life of ten years and a salvage value of $12,000. Carson uses the straight-line depreciation method. On December 31, 2010, Carson decided the useful life likely would end on December 31, 2014, with a salvage value of $6,000. The depreciation expense recorded on December 31, 2010, should be a. $6,000. b. $6,600. c. $9,600. d. $13,200. Test Bank for Accounting Principles, Ninth Edition ____ 5. Dawson Company bought furniture on account. Their accountant debited Furniture and credited Accounts Receivable. An appropriate correcting entry is a. debit Furniture and credit Accounts Payable. b. debit Accounts Receivable and credit Accounts Payable. c. debit Miscellaneous Expense and credit Accounts Payable. d. no correcting entry is needed. ____ 6. Income Summary has a credit balance of $12,000 in J. Sawyer Co. after closing revenues and expenses. The entry to close Income Summary is a. credit Income Summary $12,000, debit J. Sawyer, Capital $12,000. b. credit Income Summary $12,000, debit J. Sawyer, Drawing $12,000. c. debit Income Summary $12,000, credit J. Sawyer, Drawing $12,000. d. debit Income Summary $12,000, credit J. Sawyer, Capital $12,000. ____ a 7. Orlando Company exchanged old equipment for new equipment. The old equipment had a cost of $150,000, accumulated depreciation of $90,000, and a fair market value of $75,000. The exchange had commercial substance. Orlando paid an additional $66,000 in cash. The new equipment should be recorded at a. $135,000....
View Full Document

This note was uploaded on 06/19/2010 for the course ACG 2011 taught by Professor Mr.ebaugh during the Spring '10 term at Edison State College.

Page1 / 18

final_exam_vol_I - Final Exam 1 Chapters 1-12 Name...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online