Problem 2-7A (LO 2-4, 2-5, 2-6)
Entries are numbered for posting.
(Issue common stock)
(Purchase sewing equipment with note payab
Problem 4-2A (LO 4-5)
Oscars Red Carpet Store
February 28, 2015
Banks Cash Balance
Per bank statement
Bank balance per
Companys Cash B
1. Which of the following best describes the goal of internal controls?
a. Ensuring the business is profitable.
b. Enhancing the health of employees.
c. Improving the accuracy and the reliability of financial information.
d. Ensuring the compliance with t
Exercise 2-3 (LO 2-2)
1. Issue 10,000 shares of common stock
in exchange for $32,000 in cash.
2. Purchase land for $19,000. A note
payable is signed for the full amount.
1. At the beginning of December, Global Corporation had $2,000 in supplies on hand. During the
month, supplies purchased amounted to $3,000, but by the end of the month the supplies balance
was only $800. What is the appropriate month-end adjusting entry?
1. What is the primary purpose of financial accounting?
a. Determine the amount of tax liability owed to the government.
b. Communicate business transactions to internal management.
c. Measure business transactions and communicate those measures to extern
1. For each transaction recorded in an accounting system, the basic equation that must be
maintained at all times is:
a. Assets = Liabilities + Stockholders Equity.
b. Cash Increases = Cash Decreases.
c. Revenues = Expenses + Dividends.
d. Assets = Liabil
1. The revenue recognition principle states that:
a. Revenue should be recognized in the period the cash is received.
b. Revenue should be recognized in the period earned.
c. Revenue should be recognized in the balance sheet.
d. Revenue is a component of