3rd attempt ch 3

3rd attempt ch 3 - PointsAwarded PointsMissed Percentage...

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Points Awarded 70.00 Points Missed 30.00 Percentage 70.0%
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1.  A journal entry to record a receipt of rent revenue in advance will include a  A) debit to  rent revenue.   B) credit to  rent revenue.   C) credit to  cash.   D) credit to  unearned rent Points Earned:  5.0/5.0  Correct Answer(s): D 2.  Which of the following properly describes a deferral?  A) Cash is received after revenue is earned.  B) Cash is received before revenue is earned.  C) Cash is paid after expense is incurred.  D) Cash is paid in the same time period that an expense is incurred.  Points Earned:  0.0/5.0  Correct Answer(s): B 3.  Brown Company's account balances at December 31, 2010 for Accounts Receivable and the related Allowance  for Doubtful Accounts are $460,000 debit and $700 credit, respectively. From an aging of accounts receivable,  it is estimated that $12,500 of the December 31 receivables will be uncollectible. The necessary adjusting entry  would include a credit to the allowance account for  A) $12,500.  B) $13,200.  C) $11,800.  Feedback:  $12,500 – $700 = $11,800. D) $700.  Feedback:  $12,500 – $700 = $11,800. Points Earned:  5.0/5.0  Correct Answer(s): C
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4.  Which of the following is not a principal purpose of an unadjusted trial balance?  A) It proves that debits and credits of equal amounts are in the ledger.  B) It is the basis for any adjustments to the account balances.  C) It supplies a listing of open accounts and their balances.  D) It proves that debits and credits were properly entered in the ledger accounts.  Points Earned:  5.0/5.0  Correct Answer(s): D 5.  Pappy Corporation received cash of $13,500 on September 1, 2010 for one year’s rent in advance and recorded  the transaction with a credit to Unearned Rent. The December 31, 2010 adjusting entry is  A) debit Rent Revenue and credit Unearned Rent, $4,500.  B) debit Rent Revenue and credit Unearned Rent, $9,000.  C) debit Unearned Rent and credit Rent Revenue, $4,500.  Feedback:  $13,500 x 4/12 = $4,500. D) debit Cash and credit Unearned Rent, $9,000. 
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This note was uploaded on 09/21/2010 for the course ACCT 2401 taught by Professor Riddles during the Spring '10 term at San Jacinto.

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3rd attempt ch 3 - PointsAwarded PointsMissed Percentage...

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