MGTB05_2011F_Midterm_Review_Questions_Solution_Final_Version

MGTB05_2011F_Midterm_Review_Questions_Solution_Final_Version...

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

View Full Document Right Arrow Icon
MGTB05H3 FINANCIAL ACCOUNTING I – 2010 Fall Session Page 1 of 6 True or False Questions 1. T 2. F 3. F 4. T 5. T 6. T 7. T 8. F 9. T 10. F 11. T 12. F Multiple Choice Questions 1. E 2. D 3. B 4. C 5. D 6. E 7. C 8. B 9. E 10. D 11. C 12. E 13. C 14. C 15. D
Background image of page 1

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

View Full DocumentRight Arrow Icon
MGTB05H3 FINANCIAL ACCOUNTING I – 2010 Fall Session Page 2 of 6 Problems Problem #1 Oct 5 400 Oct 31 240 Oct 5 400 Oct 12 400 Oct 12 400 Oct 19 400 Oct 19 400 Oct 26 400 Oct 26 400 Oct 31 240 (1,600) 240 1,840 Blade Company's October Income Statement should show $1,840 of wages expense and its October 31 Balance Sheet should show a $240 liability for wages payable. The wages earned by its employee but unpaid on October 31 are an example of an accrued expense. Cash Wages Payable Wages Expense Problem #2 Date DR CR Nov 2 Wages Payable 240 Salary Expense 160 Cash 400 Salary payment November 2 (3 days accrued in October) Account and Explanation General Journal Long Company Dec 31 475 Dec 31 1,200 Nov 1 3,600 Dec 31 335,500 Dec 31 1,200 Dec 31 475 475 2,400 337,175 After the foregoing adjustments are entered in the accounts, the company’s Rent Revenue account has a $337,175 balance. Its Unearned Revenue account has a balance and this should be included in the company’s Balance Sheet as a liability . Likewise, the company’s Rent Receivable account has a $475 balance, and this should appear on its Balance
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 6

MGTB05_2011F_Midterm_Review_Questions_Solution_Final_Version...

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