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Câu hỏi Hannah Johnson contributed equipment, inventory, and $53,000 cash to a partnership The equipment had a book value of $25,000 and a market value of $28,000 The inventory had a book value of $50,000 but only had a market value of $15,000 due to obsolescence The partnership also assumed a $12,000 note payable owed by Hannah that was originally used to purchase the equipment What amount should be recorded to Hannah’s capital account? Select one: a $108,000 b $96,000 c $116,000 d $84,000 Câu hỏi The Calvin-Dogwood Partnership plans to form a new partnership with Alexis The existing partnership owns inventory that was purchased for $90,000, has a current replacement cost of $85,900, and is priced to sell for $125,000 At what amount should the inventory be recorded in the accounts of the new partnership if Alexis is to be admitted? Select one: a $129,100 b $90,000 c $125,000 d $85,900 Câu hỏi Dayton Corporation began the current year with a retained earnings balance of $32,000 During the year, the company corrected an error made in the prior year, which was a failure to record depreciation expense of $3,000 on equipment Also, during the current year, the company earned net income of $12,000 and declared cash dividends of $7,000 Compute the year-end retained earnings balance Select one: a $41,000 b $44,000 c $34,000 d $37,000 Câu hỏi How is treasury stock shown on the balance sheet? Select one: a as an asset b Treasury stock is not shown on the balance sheet c as a decrease in stockholders' equity d as an increase in stockholders' equity Câu hỏi Stockholders' equity Select one: a includes paid-in capital and liabilities b is usually equal to cash on hand c includes retained earnings and paid-in capital d is shown on the income statement Match each of the following contingent liability scenarios to its proper accounting treatment (a–d) Each treatment may be used more than once, and some treatments may not be used Event is reasonably possible and amount is estimable Event is probable and amount is estimable Event is remote and amount is estimable Event is remote and amount is not estimable Event is probable but amount is not estimable Event is reasonably possible but amount is not estimable Câu hỏi A current liability is a debt that is reasonably expected to be paid Select one: a out of cash currently on hand b out of currently recognized revenues c between and 18 months d within one year Câu hỏi Assuming a 360-day year, when a $20,000, 90-day, 5% interest-bearing note payable matures, total payment will be Select one: a $250 b $1,000 c $20,250 d $21,000 Câu hỏi During its first year of operations, a company granted its employees vacation privileges and pension rights estimated at a cost of $21,500 and $15,000, respectively The vacations are expected to be taken in the next year, and the pension rights are expected to be paid in the future 5-30 years What is the total cost of vacation pay and pension rights to be recognized in the first year? Select one: a $36,500 b $15,000 c $21,500 d $6,500 Câu hỏi 10 Estimating and recording product warranty expense in the period of the sale best follows the Select one: a matching concept b business entity concept c materiality concept d cost concept Câu hỏi 11 Chưa trả lời Hall Company sells merchandise with a one-year warranty In the current year, sales consist of 4,500 units It is estimated that warranty repairs will average $10 per unit sold and 30% of the repairs will be made in the current year and 70% in the next year On the current year's income statement, Hall should show warranty expense of Select one: a $0 b $13,500 c $45,000 d $31,500 Câu hỏi 12 Martinez Co borrowed $50,000 on March of the current year by signing a 60-day, 9%, interest-bearing note Assuming a 360-day year, when the note is paid on April 30, the entry for the payment should include a Select one: a credit to Cash for $54,500 b debit to Interest Expense for $750 c debit to Interest Payable for $750 d credit to Cash for $50,000 Câu hỏi 13 On January 5, Thomas Company, which follows a calendar year, issued $1,000,000 of notes payable, of which $250,000 is due on January each of the next four years The proper balance sheet presentation on December 31 is Select one: a Long-term debt, $1,000,000 b Current liabilities, $750,000; Long-term debt, $250,000 c Current liabilities, $1,000,000 d Current liabilities, $250,000; Long-term debt, $750,000 Câu hỏi 14 Taylor Bank lends Guarantee Company $150,000 on January Guarantee Company signs a $150,000, 8%, nine-month note The journal entry made by Guarantee Company on January for the proceeds and issuance of the note is Select one: a Cash Notes Payable 150,000 150,000 b Interest Expense Cash Notes Payable c Notes Payable Interest Payable Cash Interest Expense d Cash 138,000 150,000 120,000 7,200 120,000 7,200 162,000 Interest Expense Notes Payable Câu hỏi 12,000 12,000 150,000 15 The cost of a product warranty should be included as an expense in the Select one: a period of the sale of the product b future period when the product is repaired or replaced c period the cash is collected for a product sold on account d future period when the cost of repairing the product is paid Câu hỏi 16 The current portion of long-term debt should Select one: a be paid immediately b be classified as a long-term liability c not be separated from the long-term portion of debt d be reclassified as a current liability Câu hỏi 17 The journal entry a company uses for accrued vacation privileges for its employees at the end of the year is Select one: a debit Vacation Pay Expense; credit Vacation Pay Payable b debit Salaries Expense; credit Cash c debit Salaries Expense; credit Salaries Payable d debit Vacation Pay Payable; credit Vacation Pay Expense Câu hỏi 18 The journal entry a company uses for the estimated product warranty expense is Select one: a debit Product Warranty Expense; credit Product Warranty Payable b debit Product Warranty Expense; credit Cash c debit Product Warranty Payable; credit Cash d debit Product Warranty Payable; credit Product Warranty Expense Câu hỏi 19 Vacation pay payable is reported on the balance sheet as a(n) Select one: a current liability b expense c current liability or long-term liability, depending on when the vacations will be taken by employees d long-term liability Câu hỏi 20 Wright Company sells merchandise with a one-year warranty In the current year, sales consisted of 2,000 units It is estimated that warranty repairs will average $15 per unit sold and 30% of the repairs will be made in the current year and 70% in the next year On the current year's income statement, Wright should show warranty expense of Select one: a $30,000 b $0 c $9,000 d $21,000 Câu hỏi 21 Zennia Company provides its employees with varying amounts of vacation per year, depending on their length of employment The estimated amount of the current year’s vacation cost is $135,000 On December 31, the end of the current year, the current month’s accrued vacation pay is Select one: a $67,500 b $135,000 c $11,250 d $0 Câu hỏi 22 Abbey Co sold merchandise to Gomez Co on account, $35,000, terms 2/15, net 45 The cost of the goods sold was $24,500 Abbey Co issued a credit memo for $3,600 for merchandise returned that originally cost $1,700 Gomez Co paid the invoice within the discount period What is the amount of gross profit earned by Abbey Co on the above transactions? Select one: a $30,772 b $10,500 c $7,972 d $31,400 Câu hỏi 23 Details of invoices for purchases of merchandise are as follows: Invoice Merchandise Freight Invoice A Invoice B Invoice C Invoice D $2,800 7,600 1,400 500 $45 60 55 50 Freight Terms FOB shipping point, 1/10, n/30 FOB destination, n/30 FOB shipping point, 2/10, n/30 FOB destination, 1/10, n/30 Returns and Allowances $200 800 600 What will be the total amount collected on all four invoices, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period Select one: a $$10,863 b $10,653 c $10,803 d $10,753 Câu hỏi 24 Using a perpetual inventory system, the entry to record the purchase of $30,000 of merchandise on account would include a Select one: a debit to Inventory b credit to Sales c credit to Inventory d debit to Accounts Payable Câu hỏi 25 For a buyer using a perpetual inventory system, the entry to record the return of merchandise purchased on account includes a Select one: a credit to Accounts Payable b credit to Sales c credit to Merchandise Inventory d debit to Cost of Merchandise Sold Câu hỏi 26 Norfolk Sporting Goods purchases merchandise with a catalog list price of $30,000 The retailer receives a 30% trade discount and credit terms of 2/10, n/30 What amount should Norfolk debit to the merchandise inventory account? Select one: a $21,000 b $30,000 c $29,400 d $20,580 Câu hỏi 27 The journal entry for the receipt of inventory purchased for cash in a perpetual inventory system would be Select one: a Jan Purchases Accounts Payable b Jan Cash Accounts Receivable 1,500 1,500 1,500 1,500 c Jan Merchandise Inventory Cash d Jan Office Supplies Cash Câu hỏi 1,500 1,500 1,500 1,500 28 The proper journal entry for the receipt of inventory purchased on account in a periodic inventory system would be Select one: a Jan Purchases Accounts Payable b Jan Merchandise Inventory Accounts Payable c Jan Office Supplies Accounts Payable d Jan Purchases Accounts Receivable Câu hỏi 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 29 Contingent liabilities that are probable but cannot be reasonably estimated are disclosed in the _ Select one: a current liabilities section of the balance sheet b notes to the financial statements c long term-liabilities section of the balance sheet d retained earnings section of the statement of stockholders' equity Câu hỏi 30 Glow Co reacquired 60,000 shares of its common stock at $25 per share The balance of the treasury stock account is reported on the balance sheet as a(n) _ Select one: a reduction of stockholders' equity b increase in long-term liabilities c reduction of fixed assets d increase in current liabilities Câu hỏi 31 Liabilities due beyond one year are classified as _ Select one: a long-term liabilities b contingent liabilities c current liabilities d fixed liabilities Câu hỏi 32 The cost of a product warranty should be included as an expense in the _ Select one: a period of the sale of the product b future period when the product is repaired or replaced c period the cash is collected for a product sold on account d future period when the cost of repairing the product is paid Câu hỏi 33 Treasury stock is reported in the _ section of the balance sheet Select one: a stockholders' equity b contingent liabilities c current liabilities d investment Câu hỏi 34 On May 1, a company borrowed $30,000 from the First National Bank on a 1-year, 6% note Assuming the company keeps its records on a calendar year basis, an entry is needed on December 31st to increase Select one: a interest payable by $900 b interest expense by $600 c interest payable by $1,200 d interest expense by $1,800 Câu hỏi 35 The amount of a current liability reported on the balance sheet for interest payable includes Select one: a all interest currently owed related to amounts borrowed in past transactions b all interest to be paid in the future related to amounts borrowed in past transactions c all interest to be paid within one year into the future related to amounts borrowed in past transactions d all interest paid-to-date related to amounts borrowed in past transactions Câu hỏi 36 There are some liabilities, such as income taxes payable and the estimated warranty liability, for which the amounts must be estimated so they can be recorded in the same period as the related revenues Failure to record these amounts in the same period as the related revenues is a violation of the Select one: a expense recognition principle b concept of historical cost c going concern assumption d limitation of materiality Câu hỏi 37 Which of the following statements regarding accounts payable is false? Select one: a Accounts payable arise when a business promises to purchase goods or services in the future b Accounts payable seldom require the payment of interest c Accounts payable arise when a business purchases goods or services on credit d Accounting for accounts payable is really just the flip side of accounts receivable Câu hỏi 38 Which of the following would appear on the balance sheet as a current liability? Select one: a Payments that are likely to occur for pension benefits to employees b A loss that could be expected upon the occurrence of a strike by employees c A possible loss from a threatened lawsuit d Potential damages from the risk of explosions in a fireworks factory Câu hỏi 39 Which of the following would appear only in the footnotes accompanying the financial statements? Select one: a A liability resulting from a recent lawsuit settlement b A probable loss from a pending lawsuit, the amount of which is not yet determinable c A probable loss in the amount of $4 million from a pending lawsuit d A loss that is likely to occur in the amount of $4 million related to a pending lawsuit Câu hỏi 40 A company provides a one-year warranty for its products The estimated cost of parts and labor required to satisfy warranty claims should be recorded as a current liability in the period the products are sold Select one: True False Câu hỏi 41 Sales taxes collected from customers should be recorded in a liability account until the cash is passed along to the taxing authority Select one: True False Câu hỏi 42 On November 1, 2017, Brownsville Co borrowed $80,000 from State Bank and signed a 12%, six-month note payable, all due at maturity The interest on this loan is stated separately At December 31, 2017, Brownsville Co.'s overall liability for this loan amounts to Select one: a $83,200 b $80,000 c $81,600 d $84,800 Câu hỏi 43 On November 1, Greenfield Corporation borrowed $55,000 from a bank and signed a 12%, 90-day note payable in the amount of $55,000 If you assume 360 days in year, the November 30 adjustment will Select one: a increase interest expense by $550 and increase notes payable by $550 b increase discount on notes payable by $1,100 and increase interest payable by $1,100 c increase interest expense by $550 and decrease cash by $550 d increase interest expense by $550 and increase interest payable by $550 Câu hỏi 44 Proctor Inc has a weekly payroll of $8,000 for a five-day workweek, Monday through Friday If December 31, the last day of the accounting year, falls on Wednesday, Proctor would make an adjustment that would Select one: a decrease wages payable by $4,800 b increase wages payable by $8,000 c increase wages expense by $4,800 d decrease cash by $4,800 Câu hỏi 45 There are some liabilities, such as income tax payable, for which the amounts must be estimated Failure to estimate these amounts and record them would be a violation of the Select one: a matching principle b concept of historical cost c practice of consistency d convention of conservation ... Payable b Jan Cash Accounts Receivable 1 ,50 0 1 ,50 0 1 ,50 0 1 ,50 0 c Jan Merchandise Inventory Cash d Jan Office Supplies Cash Câu hỏi 1 ,50 0 1 ,50 0 1 ,50 0 1 ,50 0 28 The proper journal entry for the receipt... by $55 0 and increase notes payable by $55 0 b increase discount on notes payable by $1,100 and increase interest payable by $1,100 c increase interest expense by $55 0 and decrease cash by $55 0 d... Select one: a credit to Cash for $54 ,50 0 b debit to Interest Expense for $ 750 c debit to Interest Payable for $ 750 d credit to Cash for $50 ,000 Câu hỏi 13 On January 5, Thomas Company, which follows