Quiz #1 Solution

Quiz #1 Solution - b) Debit Salary Expense for $20,000 c)...

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Name:_____________________________ Section : 8:00 – 9:15am 9:30 – 10:45am Quiz #1 1. XYZ Co. borrowed $100,000 at 6% for 3 months on Sept 1. The year ends on Sept. 30. The journal entry for the payoff at maturity should include: a) Debit Interest Expense for $1,500 b) Debit Interest Payable for $500 c) Debit Interest Expense for $6,000 d) Debit Interest Expense for $4,000 2. ABC Co. pays the payroll each Friday for a five day work week. The daily payroll is $5,000. Assuming the year ends on Monday, December 31, prepare the entry for the first payroll of the new year on Friday, January 4. The entry should include: a) Debit Salary Expense for $25,000
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Unformatted text preview: b) Debit Salary Expense for $20,000 c) Debit Salary Expense for $5,000 d) None of the above 3. Which accounts should be closed at the end of each accounting cycle? a) Revenues and expenses only b) Assets and liabilities c) Revenues, expenses, dividends and retained earnings d) Revenues, expenses, and dividends 4. Which of these adjusting entries is a deferral? a) Interest b) Salaries c) Payroll Taxes d) Depreciation 5. What concept is the basis for our requiring adjusting entries? a) Cost concept b) Matching concept c) Fair market value concept d) Business entity concept...
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