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Acct 1 Most Missed Q
Accounting 1 Most frequently missed questions
| Question | Answer |
|---|---|
| When preparing an Income Statement, after all account total debits and credits are entered correctly, verified and totaled, what is the next step? | Double rule across both amount columns. |
| On a worksheet, the Income Statement credit total is $2,150 and the Income Statement debit total is $2,400. The company has a: | Net loss of $250. |
| Mary is preparing the closing entries for her company. After she has closed the Income Summary account, what will she do NEXT? | Journalize an entry to close the owner's drawing account |
| Busters' Store sold merchandise for $65, plus sales tax of $4, to Jake Cob who charged the sale on his bank credit card. Mr. Cob later returned the merchandise. What is the journal entry for Busters' Department Store to record the returned merchandise? | Debit Sales Returns and Allowances, $65, Sales Tax Payable, $4; Credit Cash, $69. |
| City Utilities received $118 cash from Cody Waters for payment on account. Cody Waters took a $3 discount for paying early. What is the journal entry for City Utilities to record this transaction? | Debit Cash, $118; debit Sales Discounts $3; credit Accounts Receivable/ Cody Waters, $121. |
| Lucy's Famous Mexican Food sold merchandise for $26, plus sales tax of $1, to Craig Morton, who paid for the merchandise with a bank credit card at the time of the sale. What is the journal entry for Lucy's Famous Mexican Food to record this transaction? | Debit Cash, $27; Credit Sales, $26, Sales Tax Payable, $1. |
| Feb 14, Watauga Enterprises received notice from the bank of a dishonored check from Wilkes Co in the amount of $200.00. The bank charged a service fee of $25.00. What is the correct journal entry for Watauga Enterprises to record the dishonored check? | Debit Accounts Receivable-Wilkes Company $225.00; credit Cash $225.00 |
| Burger Barn paid the following taxes: Social Security $240.00, Medicare $110.00, Federal Income Tax $250.00. What is the entry to journalize the payment of the payroll taxes? | Debit Social Security Tax Payable $240.00, Medicare Tax Payable $110.00, Federal Income Tax Payable $250.00; credit Cash $600.00 |
| John's Seafood has $1,500.00 in wages, $93.00 in Soc Security withholding, $21.75 in Medicare withholding, $200.00 in federal income tax withholding, and $80.00 in state income tax withholding. What is the correct entry for recording the company's payroll | Debit Salary Expense $1,500.00; credit Social Security Tax Payable $93.00, Medicare Tax Payable $21.75, Federal Income Tax Payable $200.00, State Income Tax Payable $80.00, Cash $1,105.25 |
| Blowing Rock Hardware paid First American Bank in full for a 180-day, 12%, interest-bearing note for $10,000. Using a 360-day year, what is the journal entry for the payment of the note payable? | Debit Notes Payable $10,000.00; debit Interest Expense $600.00; credit Cash $10,600.00 |
| Carson Tyler has an overdue account in the amount of $415.50 with Mountain Oil Company. Mountain Oil Company agrees to accept a note receivable from Carson. What is the journal entry to record the acceptance of the note receivable? | Debit Notes Receivable $415.50; credit Accounts Receivable/Carson Tyler $415.50 |
| Carson's Candy Shoppe signed a 60-day, 10% note to Jello Beans for an extension of time on its account payable in the amount of $2,000.00. What is the correct entry for Carson's Candy Shoppe to record the note payable for an extension of time? | Debit Accounts Payable/Jello Beans $2,000.00; credit Notes Payable $2,000.00 |
| Carson's Shoe Store signed a 90-day, interest-bearing, 10% note for $5,000.00 with First National Bank. What is Carson's Shoe Store's journal entry for the issuance of the note payable? | Debit Cash $5,000.00; credit Notes Payable $5,000.00 |
| Wholesome Food Distributors granted an extension of time for the account payable of Moore Food Store for a 90-day, 8%, $10,000 note. Using a 360-day year, what is the journal entry for Moore Food Store to record the payment of the note payable? | Debit Notes Payable $10,000.00; debit Interest Expense $200.00; credit Cash $10,200.00 |
| Burger Boy Diner purchased a commercial oven on August 1, 2010 for $6,800.00. The estimated salvage (disposal) value is $500.00 and the estimated useful life is 7 years. What is the depreciation expense for 2010? | $375.00 |
| NC Office Supply purchased a heating system on September 1, 2010 for $18,500.00. The estimated salvage (disposal) value is $500.00 and the estimated useful life is 10 years. What is the depreciation expense for 2010? | $600.00 |
| Steve's Auto Parts purchased a display case on January 1, 2009 for $3,400.00. The estimated salvage (disposal) value is $200.00 and the estimated useful life is 10 years. What is the accumulated straight-line depreciation at the end of 2011? | $960.00 |
| Mountain Business Services purchased a computer on July 1, 2010 for $2,500.00. The estimated salvage (disposal) value is $100.00 and the estimated useful life is 5 years. What is the depreciation expense for 2010? | $240.00 |
| Creative Art Supplies purchased a delivery van on March 1, 2009 for $12,500.00. The estimated salvage (disposal) value is $500.00 and the estimated useful life is 10 years. What is the accumulated depreciation at the end of 2011? | $3,400.00 |
| Mike is posting journal entries to the General Ledger. He has just calculated the new account balance in the credit column for Sales. What is the NEXT step in the posting procedure? | Record the account number that the entry was posted to in the journal in the post reference column. |
| William has almost finished updating the Supplies account at the end of the month. He has transferred all of the information in the General Journal to the General Ledger. What is the LAST step for William to do? | Record an account number in the journal. |
| Dipper's Ice Cream Parlor returned merchandise that was purchased on account to The Ice Cream Company, $600. What is the journal entry for Dipper's Ice Cream Parlor to record this transaction? | Debit Accounts Payable/The Ice Cream Company, $600; Credit Purchases Returns and Allowances, $600. |
| Icy Treats purchased merchandise for cash from Flavor Supply for $100. What is the journal entry for Icy Treats to record this transaction? | Debit Purchases, $100; credit Cash, $100 |
| Sluggers Sports Shop purchased merchandise for cash from Better Bats Warehouse for $850. What is the journal entry for Sluggers Sports Shop to record this transaction? | Debit Purchases, $850; credit Cash, $850. |
| Sally's Shoes sold merchandise for cash to Happy's Distributing for $200, plus sales tax of $15. Happy's Distributing later returned the merchandise. What is the journal entry for Sally's Shoes to record the returned merchandise? | Debit Sales Returns and Allowances, $200, Sales Tax Payable, $15; Credit Cash, $215. |
| FieldCrest signed a $75,000, two-year, interest-bearing, 5% note on October 1, 2009. What is the maturity value of the note? | $82,500.00 |
| Jamie is an accountant. She knows that she is expected to produce accurate financial reports. She knows when she submits her report to her superiors her friend will suffer consequences for misappropriation of funds. Which key principle for ethics | Objectivity |
| Lisa is applying for a position. They are looking to hire someone that can convert their manual accounting system to a computerized system. She listed on her application that she has an accounting degree as well as an emphasis in computerized systems. | Workplace Skills |
| John has applied for a position as Chief Financial Officer for a Fortune 500 company. He listed as his qualifications that he is a problem-solver and has the ability to plan and resolve issues. This is classified as which skill? | 21st Century Skills |
| Brian is an accountant in a local firm. He submits an accounting report to his manager that suggests an action that will ultimately benefit him monetarily. This example is a violation of which key principle for ethics in accounting? | Independence |
| What is the correct journal entry for the transaction, PAID CASH FOR INSURANCE, $200? | Debit Prepaid Insurance and credit Cash |
| On a worksheet, the Income Statement credit total is $2,150 and the Income Statement debit total is $2,400. The company has a: | Net loss of $250. |
| If the beginning supplies balance is $1,800, and the ending supplies balance is $300, the correct adjustment on the work sheet is to debit: | Supplies Expense and credit Supplies $1,500. |
| The owner's drawing account has a balance of $275. The correct entry to close the drawing account would be to debit: | Owner's equity account, credit drawing account for $275. |
| The Sales account has a balance of $3,875. To close the Sales account, debit: | Sales $3,875 and credit Income Summary $3,875. |
| River Road Farm Supply paid cash to C-V Chemical Distributors, $779; covering Purchase Invoice No. 623 for $820, less a 5% discount, $41.00. What is the journal entry for River Road Farm Supply to record this transaction? | Debit Accounts Payable/ C-V Chemical Distributors, $820; credit Purchases Discount $41 and credit Cash $779. |
| Mary Sewing Notions received a check for $75.00 from Cathy Martin, whose account was previously written off. Mary Ann's Sewing Notions uses the Allowance Method for uncollectible accounts. What is the correct entry to re-open the account for Cathy Martin? | Debit Accounts Receivable/Cathy Martin, $75.00; credit Allowance for Uncollectible Accounts, $75.00 |
| Pet Wholesale estimates uncollectible accounts expense by calculating a % of total sales on account. Total sales on account for year = $750,000.00. In the past, has been about 1.0% of total sales on account. What is the estimated uncollectible accounts | $7,500.00 |
| Beach Bums Surf Shop signed a 90-day, 5%, interest-bearing note for $3,000.00 with First National Bank. What is the journal entry for the issuance of the note payable? | Debit Cash $3,000.00; credit Notes Payable $3,000.00 |
| Marty Smith dishonored a 180-day, 5% note for $5,000.00. What is the journal entry to record the dishonored note receivable? | Debit Accounts Receivable/Marty Smith $5,125.00; credit Interest Income $125.00; credit Notes Receivable $5,000.00 |
| Carson's Candy Shoppe signed a 60-day, 10% note to Jello Beans for an extension of time on its account payable in the amount of $2,000.00. What is the correct entry for Carson's Candy Shoppe to record the note payable for an extension of time? | Debit Accounts Payable/Jello Beans $2,000.00; credit Notes Payable $2,000.00 |
| Carson's Shoe Store signed a 90-day, interest-bearing, 10% note for $5,000.00 with First National Bank. What is Carson's Shoe Store's journal entry for the issuance of the note payable? | Debit Cash $5,000.00; credit Notes Payable $5,000.00 |
| High Country Apparel signed a $75,000, two-year, interest-bearing, 5% note on October 1, 2009. What is the maturity value of the note? | $82,500.00 |
| Sports Incorporated has employer payroll taxes as follows: Social Security Tax $225.00, Medicare Tax $125.00 and Federal Unemployment Tax $55.00. What is the entry to record the employer's payroll taxes? | Debit Payroll Tax Expense $405.00; Credit Social Security Tax Payable $225.00, Medicare Tax Payable $125.00, Federal Unemployment Tax Payable $55.00. |
| Brandon worked 7 hours on Monday, 8 hours on Tuesday, 10 hours on Wednesday, 9 hours on Thursday, 10 hours on Friday, and 4 hours on Saturday. Brandon's rate of pay is $12 per hour. Calculate Brandon's regular, overtime and total hours for the week. | 40 Regular Hours, 8 Overtime Hours, and 48 Total Hours |
| WKRP Broadcasting paid federal unemployment taxes of $28. What is the entry to journalize the payment of the unemployment taxes? | Debit Federal Unemployment Tax Payable $28.00, credit Cash $28.00 |
| Lighten Up Electrical Supply received a payment of a note receivable in the amount of $1,675.00. Interest on the note receivable was $75.00. What is the journal entry to record the payment of the note receivable? | Debit Cash $1,675.00; credit Interest Income $75.00; credit Notes Receivable $1,600.00 |
| Pet Food Wholesale estimates its uncollectible accounts expense for the year to be $1,500.00. What is the correct entry to record the estimated uncollectible accounts expense? | Debit Uncollectible Accounts Expense, $1,500.00; credit Allowance for Uncollectible Accounts, $1,500.00 |
| On Your Mar Writing received a check for $225.00 from Pen & Paper, whose account was previously written off. On Your Mark Writing uses the Allowance Method for uncollectible accounts. What is the correct entry to re-open the account for Pen & Paper? | Debit Accounts Receivable/ Pen & Paper, $225.00; Credit Allowance for Uncollectible Accounts, $225.00 |
| Hair Design Supply estimates its uncollectible accounts expense for the year to be $4,250.00. What is the correct entry to record the estimated uncollectible accounts expense? | Debit Uncollectible Accounts Expense, $4,250.00; credit Allowance for Uncollectible Accounts, $4,250.00 |
| Joe's Taxi Service purchased a new taxi on March 1, 2009 for $24,000.00. The estimated salvage (disposal) value is $3,000.00 and the estimated useful life is 3 years. What is the accumulated depreciation at the end of 2011? | $19,833.33 |
| Mountain Business Services purchased a computer on January 1, 2009 for $3,600.00. The estimated salvage (disposal) value is $200.00 and the estimated useful life is 5 years. What is the annual depreciation expense? | $680.00 |
| Wholesome Food Distributors granted an extension of time for the account payable of Moore Food Store for a 90-day, 8%, $10,000 note. Using a 360-day year, what is the journal entry for Moore Food Store to record the payment of the note payable? | Debit Notes Payable $10,000.00; debit Interest Expense $200.00; credit Cash $10,200.00 |
| Kitchen Warehouse uses the direct write-off method when handling uncollectible accounts receivable. Coffey's Diner owes $450.00 on account. Kitchen Supply Warehouse determined this account to be uncollectible. Which is the correct entry | Debit Uncollectible Accounts Expense, $450.00; credit Accounts Receivable/Coffey's Diner, $450.00 |
| Mother Goose Clothing received a check for $125.00 from Little Angels, whose account was previously written off. Mother Goose Clothing uses the Allowance Method for uncollectible accounts. What is the correct entry to re-open the account | Debit Accounts Receivable/Little Angels, $125.00; credit Allowance for Uncollectible Accounts, $125.00 |
| Steve's Auto Parts purchased a display case on January 1, 2009 for $3,400.00. The estimated salvage (disposal) value is $200.00 and the estimated useful life is 10 years. What is the accumulated straight-line depreciation at the end of 2011? | $960.00 |
| Joe's Taxi Service purchased a new taxi on March 1, 2010 for $24,000.00. The estimated salvage (disposal) value is $3,000.00 and the estimated useful life is 3 years. What is the depreciation expense for 2010? | $5,833.33 |
| Employers must pay payroll taxes for | Social Security, Medicare, State & Federal Unemployment |
| What form do you fill out for federal tax deductions when starting a job? | W-4 |
| When payroll is paid, the credit to Cash is equal to the _____________ of all employees. +0.67 | net pay |
| The number that is used for a specific identification of a bank and must be recorded for wire transfers is known as the ____________ number. | ABA |
| The Total (Gross) Earnings column total is journalized as a debit to | Salary Expense |
| In a cash proof for a change fund, is the sales tax recorded separately? | No |
| A non-exempt employee | is paid overtime |
| Jessica wants to replenish the $200 petty cash fund. She has receipts for the following total payments: supplies, $85; and repairs, $55. A cash count shows $75 in the petty cash box. What is the correct journal entry to record the transaction? | Debit Repair Expense $55, debit Supplies $85, and credit Cash $125, credit Cash Short and Over $15 |
| Taxes withheld but not yet paid to the government are | liabilitites |
| On December 23, Wake Inc received notice from the bank of a dishonored check from Davie Company in the amount of $125.00. The bank charged a service fee of $25.00. What is the correct journal entry for Wake Incorporated to record the dishonored check? | Debit Accounts Receivable-Davie Company $150.00, Credit Cash $150.00 |
| On February 14, Watauga Enterprises received notice from the bank of a dishonored check from Wilkes Co in the amount of $200.00. The bank charged a service fee of $25.00. What is the entry for Watauga Enterprises to record the dishonored check | Debit Accounts Receivable-Wilkes Company $225.00; credit Cash $225.00 |
| David wants to replenish the $150 petty cash fund. He has receipts for the following total payments: supplies, $36; and postage (Office Expense), $27. A cash count shows $87 in the petty cash box. What is the correct journal entry to record | Debit Office Expense $27, debit Supplies $36 and credit Cash $63 |
| The person who signs a check is called the _________________. | Drawer |
| Sports Incorporated has employer payroll taxes as follows: Social Security Tax $225.00, Medicare Tax $125.00 and Federal Unemployment Tax $55.00. What is the entry to record the employer's payroll taxes? | Debit Payroll Tax Expense $405.00; Credit Social Security Tax Payable $225.00, Medicare Tax Payable $125.00, Federal Unemployment Tax Payable $55.00 |
| A bank on which a check in written is called the ______________. | drawee |
| John's Seafood has $1,500.00 in wages, $93.00 in Social Security withholding, $21.75 in Medicare withholding, $200.00 in federal income tax withholding, and $80.00 in state income tax withholding. What is the entry for recording the company's payroll? | Debit Salary Expense $1,500.00; credit Social Security Tax Payable $93.00, Medicare Tax Payable $21.75, Federal Income Tax Payable $200.00, State Income Tax Payable $80.00, Cash $1,105.25 |
| What is the overtime rate set by the Fair Labor Standards Act? | 1.5 times regular, hourly rate |
| Tony's Custom Pool Cues accepted returned merchandise purchased on account by 3rd Street Pool for, $806, plus sales tax of $52. What is the journal entry for Tony's Custom Pool Cues to record this transaction? | Debit Sales Returns and Allowances, $806, Sales Tax Payable, $52; Credit Accounts Receivable/3rd Street Pool, $858. |
| Frazier's Car Stereo paid cash on account to Sound Wire Supply, $395, covering Purchase Invoice No. 3279. What is the journal entry for Frazier's Car Stereo to record this transaction? | Debit Accounts Payable/ Sound Wire Supply $395; credit Cash, $395. |
| When assets are purchased on account, you must record the debit in the | general debit column |
| Heart Medical received $544 cash from Corner Market for payment on account. Corner Market took a $26 discount for paying early. What is the journal entry for Heart Medical to record this transaction? | Debit Cash, $544; debit Sales Discounts $26; credit Accounts Receivable/ Corner Market, $570. |
| At year end, S calculated Federal Income Tax amount for the year to be $10,000. Super has already made Federal Income Tax payments in the amount of $4,000. How is the adjusting Federal Income Tax Expense recorded on a multi-column trial balance worksheet? | In the adjustments columns, debit Federal Income Tax Expense, $6,000; credit Federal Income Tax Payable, $6,000 |
| The merchandise inventory account has a balance of $2,400. At the end of the month, a physical count of the inventory items shows $2,700 is on hand. How is the adjusting entry to inventory recorded on a multi-column trial balance worksheet? | Debit Merchandise Inventory, $300; credit Income Summary, $300 |
| Murphy Hardware sold merchandise for cash to Tim Thompson for $813, plus sales tax of $56. Mr. Thompson later returned the merchandise. What is the journal entry for Murphy Hardware to record the returned merchandise? | Debit Sales Returns and Allowances, $813, Sales Tax Payable, $56; Credit Cash, $869. |
| What is the entire invoice amount for a customer who buys $3760 worth of merchandise as a sales tax rate of 7.25%? | $4032.60 |
| Timer's Distributing accepted returned merchandise purchased on account by Serious Sports for, $400, plus sales tax of $32. What is the journal entry for Timer's Distributing to record this transaction? | Debit Sales Returns and Allowances, $400, Sales Tax Payable, $32; Credit Accounts Receivable/Serious Sports, $432. |
| In a purchases journal, the accounts payable credit total should equal | The general debit and purchases debit columns |
| Temporary accounts with CREDIT balances are ________________ to Income Summary. | Credited |
| Juan's Hardware sold merchandise to Raul on account for $670, plus sales tax of $35. What is the journal entry for Juan's Hardware to record this transaction? | Debit Accounts Receivable/Raul, $705; Credit Sales $670, Sales Tax Payable $35. |
| Where would you find the owner's capital balance at the beginning of a period? | General Ledger |
| What is the correct journal entry for the transaction, RECEIVED CASH FROM OWNER DANA JACKSON AS INVESTMENT, $5000? | Debit Cash and credit Dana Jackson, Capital |
| William has almost finished updating the Supplies account at the end of the month. He has transferred all of the information in the General Journal to the General Ledger. What is the LAST step for William to do? | Record an account number in the journal. |
| Mike is posting journal entries to the General Ledger. He has just calculated the new account balance in the credit column for Sales. What is the NEXT step in the posting procedure? | Record the account number that the entry was posted to in the journal in the post reference column. |
| What is the correct journal entry for the transaction, PAID CASH FOR INSURANCE, $400? | Debit Prepaid Insurance and credit Cash |
| A journal's column totals are General Debit, $500; General Credit, $200; Sales Credit, $350; Cash Debit, $1,000; Cash Credit, $950. This means that the | Journal proves. |
| The source document used when a customer makes a payment on his/her account owed would be a | receipt |
| Every journal consists of FOUR parts which are: | date, debit, credit, source document |
| Things of value that a business uses to generate income are known as | capital |
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