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need accounting help part 3?

31.

Gross profit is equal to:

A) sales plus (sales discounts and sales returns and allowances) plus cost of merchandise sold

B) sales plus sales returns and allowances less sales discounts less cost of merchandise sold

C) sales plus sales discounts less sales returns and allowances less cost of merchandise sold

D) sales less (sales discounts and sales returns and allowances) less cost of merchandise sold

32.

Which of the following will decrease retained earnings?

A) Supplies are purchased on account.

B) Dividends are declared and paid.

C) Cash is received from customers.

D) Payment is made on an accounts payable.

33.

Use the following information to answer the following questions.

The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1.

Date Product Z Units Cost

May 3 Purchase 5 $20

May 10 Sale 3

May 17 Purchase 10 $24

May 20 Sale 6

May 23 Sale 3

May 30 Purchase 10 $30

Assuming that the company uses the perpetual inventory system, determine the ending inventory for the month of May using the LIFO inventory cost method.

A) $324

B) $372

C) $320

D) $364

34.

On August 1, Kim Company accepted a 90-day note receivable as payment for services provided to Hsu Company. The terms of the note were $20,000 face value and 6% interest. On October 30, the journal entry to record the collection of the note should include a

A) credit to Notes Receivable for $20,300

B) debit to Interest Receivable for $300

C) credit to Interest Revenue for $300

D) debit to Notes Receivable for $20,000

35.

The entry to record the issuance of 150 shares of $5 par common stock at par to an attorney in payment of legal fees for organizing the corporation includes a credit to

A) Organizational Expenses

B) Goodwill

C) Common Stock

D) Cash

36.

The term cash includes

A) coins, currency (paper money), checks

B) money orders, and money on deposit that is available for unrestricted withdrawal

C) short-term receivables

D) both a and b

37.

When a transposition error is made on the trial balance, the difference between the debit and credit totals on the trial balance will be

A) zero

B) twice the amount of the transposition

C) one-half the amount of the transposition

D) divisible by 9

38.

Purchased $400,000 of ABC Co. 5% bonds at 100 plus accrued interest of $4,500. Sold $250,000 of bonds at 97. The journal entry for the purchase would include:

A) a credit to Interest Receivable for $4,500

B) a credit to Interest Revenue for $4,500

C) a debit to Interest Receivable for $4,500

D) a debit to Interest Revenue for $4,500

39. March 6 Cash 2,500

Unearned Fees 2,500

????????????

What is the best explanation for this journal entry?

A) Received cash for services performed.

B) Received cash for services to be performed in the future.

C) Paid cash in advance for services to be done.

D) Paid cash for services to be performed.

40.

Austin, Inc. made a Prepaid Rent payment of $3,500 on January 1st. The company’s monthly rent is $700. The amount of Prepaid Rent that would appear on the January 31 balance sheet after adjustment is:

A) $2,800

B) $700

C) $3,500

D) $1,750

41.

Which one of the steps below is not aided by the preparation of the work sheet?

A) preparing the adjusted trial balance

B) posting to the general ledger

C) preparing the financial statements

D) preparing the closing entries

42.

Accompanying the bank statement was a debit memo for bank service charges. On the bank reconciliation, the item is

A) a deduction from the balance per company's records

B) an addition to the balance per bank statement

C) a deduction from the balance per bank statement

D) an addition to the balance per company's records

43.

The balance in the office supplies account on June 1 was $7,500, supplies purchased during June were $3,100, and the supplies on hand at June 30 were $2,300. The amount to be used for the appropriate adjusting entry is

A) $2,100

B) $12,900

C) $6,700

D) $8,300

1 Answer

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  • Megan
    Lv 4
    7 years ago
    Favorite Answer

    31. Gross profit is equal to:

    D) sales less (sales discounts and sales returns and allowances) less cost of merchandise sold

    32. Which of the following will decrease retained earnings?

    B) Dividends are declared and paid.

    33. Use the following information to answer the following questions.

    The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1.

    Date Product Z Units Cost

    May 3 Purchase 5 $20

    May 10 Sale 3

    May 17 Purchase 10 $24

    May 20 Sale 6

    May 23 Sale 3

    May 30 Purchase 10 $30

    Assuming that the company uses the perpetual inventory system, determine the ending inventory for the month of May using the LIFO inventory cost method.

    D) $364

    34. On August 1, Kim Company accepted a 90-day note receivable as payment for services provided to Hsu Company. The terms of the note were $20,000 face value and 6% interest. On October 30, the journal entry to record the collection of the note should include a

    C) credit to Interest Revenue for $300

    35. The entry to record the issuance of 150 shares of $5 par common stock at par to an attorney in payment of legal fees for organizing the corporation includes a credit to

    C) Common Stock

    36. The term cash includes

    D) both a and b

    37. When a transposition error is made on the trial balance, the difference between the debit and credit totals on the trial balance will be

    D) divisible by 9

    38. Purchased $400,000 of ABC Co. 5% bonds at 100 plus accrued interest of $4,500. Sold $250,000 of bonds at 97. The journal entry for the purchase would include:

    C) a debit to Interest Receivable for $4,500

    39. March 6 Cash 2,500

    Unearned Fees 2,500

    ????????????

    What is the best explanation for this journal entry?

    B) Received cash for services to be performed in the future.

    40. Austin, Inc. made a Prepaid Rent payment of $3,500 on January 1st. The company’s monthly rent is $700. The amount of Prepaid Rent that would appear on the January 31 balance sheet after adjustment is:

    A) $2,800

    41. Which one of the steps below is not aided by the preparation of the work sheet?

    B) posting to the general ledger

    42. Accompanying the bank statement was a debit memo for bank service charges. On the bank reconciliation, the item is

    A) a deduction from the balance per company's records

    43. The balance in the office supplies account on June 1 was $7,500, supplies purchased during June were $3,100, and the supplies on hand at June 30 were $2,300. The amount to be used for the appropriate adjusting entry is

    D) $8,300

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