ACC290 Week 2 Apply Exercise SCORE 100 PERCENT

Question 1
On a statement of owner's equity, beginning capital is $45,000, Net Income for the year is $18,500 and Drawing for the year is $7,500, the ending capital amount would be:

Multiple Choice
    $45,000
    $71,000
$56,000
    $34,000

Question 2
Derrick Wells decided to start a dental practice. The first five transactions for the business follow. 
 
1.    Derrick invested $77,000 cash in the business.
2.    Paid $17,000 in cash for equipment.
3.    Performed services for cash amounting to $7,700.
4.    Paid $2,500 in cash for advertising expense.
5.    Paid $1,700 in cash for supplies.

(1) Select which two accounts are affected in each of the above transactions.
(2&3) Post the above transactions into the appropriate T accounts.
Requirement 1
Select which two accounts are affected in each of the above transactions

Req 2 and 3
Post the above transactions into the appropriate T accounts.

Question 3

The following T accounts show transactions that were recorded by Residential Relocators, a firm that specializes in local housing rentals.  

The following T accounts show transactions that were recorded by Residential Relocators, a firm that specializes in local housing rentals.   
 

Cash
(a)	182,000	(b)	38,000
(d)	22,000	(e)	620
(g)	2,200	(h)	10,200
		(i)	4,200
Equipment
(c)	72,000

 

Accounts Receivable
(f)	8,400	(g)	2,200
Accounts Payable
		(c)	72,000

 

Supplies
(b)	38,000
Wade Wilson, Capital
		(a)	182,000

 

Fees Income
		(d)	22,000
		(f)	8,400
Telephone Expense
(e)	620

 

Wade Wilson, Drawing
(i)	4,200
Salaries Expense
(h)	10,200

Required:
Prepare a trial balance and an income statement for Residential Relocators. The trial balance is for December 31, 2019, and the income statement is for the month ended December 31, 2019.

 

Question 4

The following T accounts show transactions that were recorded by Residential Relocators, a firm that specializes in local housing rentals. The entries for the first transaction are labeled with the letter (a), the entries for the second transaction with the letter (b), and so on.

 

Question 5
The total of the figures on the left side of a Cash account is $35,800. The total of the figures on the right side is $16,100. The balance of this account:
Multiple Choice
is $19,700 and would be recorded on the right side of the account.
is $51,900 and would be recorded on the left side of the account.
is $19,700 and would be recorded on the left side of the account.
is $51,900 and would be recorded on the right side of the account.

Question 6

Required information

[The following information applies to the questions displayed below.]

The accounts and balances for Paw Prints Pet Sitters on November 1 are provided below.
 

Cash	19,650		Fees Income	-0-
Accounts Receivable	850		Rent Expense	-0-
Office Equipment	2,500		Utilities Expense	-0-
Supplies	250		Salaries Expense	-0-
Accounts Payable	1,500
Kelly Connor, Capital	21,750
Kelly Connor, Drawing	-0-

The following transactions occurred during the month of November.
 

1. Collected $350 from credit customers.
2. Issued a check for $760 for November's rent.
3. Paid $1,700 for salaries.
4. The owner withdrew $560 in cash for personal expenses.
5. Issued a check for $200 to pay the monthly utility bill.
6. Received $2,725 in cash for services performed.
7. Purchased office equipment for $1,350 on credit.

 

Post the above transactions into the appropriate T accounts.

Question 9

Required information

[The following information applies to the questions displayed below.]

The T account balances for the accounts of Rya's Planning Services as of January 31, 2019 are listed below.
 

Cash	$	22,100
Accounts Receivable		18,100
Office Supplies		850
Equipment		15,000
Accounts Payable		5,160
Rya Page, Capital		29,100
Rya Page, Drawing		6,200
Planning Fees Income		34,250
Office Supplies Expense		320
Rent Expense		920
Salaries Expense		4,200
Utilities Expense		820

Prepare a Trial Balance as of January 31, 2019.

Question 10

Required information

[The following information applies to the questions displayed below.]

The T account balances for the accounts of Rya's Planning Services as of January 31, 2019 are listed below.
 

Cash	$	22,100
Accounts Receivable		18,100
Office Supplies		850
Equipment		15,000
Accounts Payable		5,160
Rya Page, Capital		29,100
Rya Page, Drawing		6,200
Planning Fees Income		34,250
Office Supplies Expense		320
Rent Expense		920
Salaries Expense		4,200
Utilities Expense		820

1. Prepare an income statement for the Rya's Planning Services for the month ended January 31, 2019.
2. Prepare a statement of owner's equity for Rya's Planning Services for the month ended January 31, 2019.
3. Prepare a balance sheet for Rya's Planning Services as of January 31, 2019.

A01 Week-1 Discussion

Define, compare and contrast sole proprietorships, partnerships, and corporations?

A01 Online Exam 8_11 SCORE 100 Percent

Question 1 of 205.0 Points
Outstanding checks __________.
A.  have been subtracted on the bank records but not the checkbook records
B.  have not been presented to the bank for payment and have not been subtracted from the checkbook
C.  have not been presented to the bank for payment but have been subtracted in the checkbook
D.  have been returned to the business for non-payment

Question 2 of 205.0 Points
Internal control over a company's assets should include which of the following?
  A.  Responsibilities and duties of employees will be divided.
  B.  All cash receipts will be deposited into the bank the same day they arrive.
  C.  All cash payments will be made by check (except petty cash..
  D.  All of these answers are correct.

Question 3 of 205.0 Points
The bank statement shows __________.
A.  the beginning bank balance of the cash at the start of the month
B.  the checks the bank has paid and any deposits received
C.  any other charges or additions to the bank balance
  D.  All of these answers are correct.

Question 4 of 205.0 Points
From the bank reconciliation no entry was recorded for deposits in transit. This would cause __________.
A.  assets to be overstated
B.  assets to be understated
C.  no impact since deposits in transit are already included in the balance per books
D.  no impact since deposits are not recorded on the books

Question 5 of 205.0 Points
Scotch Services received a credit memorandum from the bank. During the bank reconciliation they should __________.
A.  increase their cash account on the company's books
B.  decrease their cash account on the company's books
C.  increase the ending cash balance on the bank statement
D.  decrease the ending cash balance on the bank statement

Question 6 of 205.0 Points
The journal entry to reverse the entry of a customer's nonsufficient funds check would include a __________.
A.  debit to Cash
B.  credit to Cash
C.  debit to Accounts Payable
D.  credit to Accounts Receivable

Question 7 of 205.0 Points
Advantages of on-line banking include __________.
A.  convenience
B.  transaction speed
C.  effectiveness
  D.  All of the above answers are correct.

Question 8 of 205.0 Points
The bank statement included bank charges. On the bank reconciliation, the item is __________.
A.  an addition to the balance per company books
B.  an addition to the balance per bank statement
C.  a deduction from the balance per bank statement
D.  a deduction from the balance per company books

Question 9 of 205.0 Points
The bank charged another company's check against our account, this would be included on the bank reconciliation as a(n. __________.
A.  addition to the balance per books
B.  subtraction from the balance per books
C.  addition to the balance per bank
D.  subtraction from the balance per bank

Question 10 of 205.0 Points
A nonsufficient funds check was returned to your company. How does the bank treat this on your bank statement?
  A.  It is added to the bank balance.
  B.  It is shown as a debit memo.
  C.  It is shown as a credit memo.
  D.  None of these answers are correct.

Question 11 of 205.0 Points
 Determine the adjusted cash balance per bank for Santa's Packaging on November 30, from the following information.

Cash balance on the bank statement
$2,350
Customer's check returned—NSF
500
Customer's note collected by the bank
600
Deposits in transit, November 30
1,400
Outstanding checks, November 30
2,650
A.  $1,250
B.  $1,100
C.  $1,550
D.  $1,350

Question 12 of 205.0 Points
Which item should be added to the company's book balance during the bank reconciliation?
A.  deposit in transit
B.  check outstanding
C.  bank service charge
D.  note collected by the bank

Question 13 of 205.0 Points
An example of an internal control is __________.
A.  the use of a bank account
B.  the use of pre-numbered checks
C.  the use of checks with reference source documents
  D.  All of these answers are correct.

Question 14 of 205.0 Points
Calculate, from the following information the adjusted cash balance at the end of April.

Bank statement ending cash balance
$2,000
General ledger cash balance ending
3,250
Bank monthly service charge
45
Deposits in transit
2,500
Outstanding checks
1,500
NSF check returned with bank statement
205
A.  $3,000
B.  $4,250
C.  $4,000
D.  $5,500

Question 15 of 205.0 Points
How would outstanding checks be handled when reconciling the ending cash balance per the bank statement to the correct adjusted cash balance?
  A.  They would be added to the balance of the bank statement.
  B.  They would be subtracted from the balance of the bank statement.
  C.  They would be added to the balance per books.
  D.  They would be ignored.

Question 16 of 205.0 Points
Which item(s. will require a journal entry to update the balance in the Cash account?
A.  checks outstanding and deposits in transit
B.  bank service charges, note collected by the bank, and deposits in transit
C.  bank service charges, note collected by the bank, and error made by Accounting Services
  D.  None of these answers are correct.

Question 17 of 205.0 Points
A restrictive endorsement on a check __________.
A.  can be further endorsed by someone else
B.  is the safest endorsement for businesses
C.  permits the bank to use its best judgment
  D.  None of these answers are correct.

Question 18 of 205.0 Points
Which of the following bank reconciliation items would be reflected in a journal entry?
A.  error made by the bank
B.  outstanding checks
C.  bank service charges
D.  deposit in transit
Question 19 of 205.0 Points
Endorsing a check __________.
A.  guarantees payment
B.  transfers the right to deposit or transfer cash
C.  cancels the transaction
  D.  All of these answers are correct.

Question 20 of 205.0 Points
Company policy for internal control should include all of the following EXCEPT for what?
  A.  Employees will be rotated.
  B.  Monthly bank statements should be sent to and reconciled by the same employees who authorize payments and write checks.
  C.  The owner (or responsible employee. signs all checks after receiving authorization to pay from the departments concerned.
  D.  At time of payment, all supporting invoices or documents will be stamped "paid."

A01 Lesson 2 Exam SCORE 100 PERCENT

Question 1 (5 points)
 
When services are rendered but payment is not made, which account would be increased?
Question 1 options:

accounts receivable

accounts payable

cash

withdrawal
Question 2 (5 points)
 
Go Blue Retail Store collected $12,000 of its accounts receivable. The expanded accounting equation changes include __________.
Question 2 options:

cash and capital increase, $12,000

cash and revenue increase, $12,000

cash increases and accounts receivable decreases $12,000

accounts receivable decreases and capital increases $12,000
Question 3 (5 points)
 
A company has the following balances in its asset accounts: Cash, $750; Accounts Receivable, $125; Equipment, $2,000; Supplies, $875. The amount of the company's total assets is __________.
Question 3 options:

$875

$1,750

$2,875

$3,750
Question 4 (5 points)
 
An accounting report that shows the changes in capital during the accounting period is __________.
Question 4 options:

a balance sheet

an income statement

a statement of owner's equity

All of these answers are correct.
Question 5 (5 points)
 
Which of the following transactions has no effect on owner's equity?
Question 5 options:

paying salaries expense

equipment purchase

billing for services rendered

a withdrawal
Question 6 (5 points)
 
The increase or decrease in the owner's equity is reported on the __________.
Question 6 options:

income statement

statement of owner's equity

balance sheet

All of these answers are correct.
Question 7 (5 points)
 
The payment of accounts payable would __________.
Question 7 options:

increase both assets and liabilities

increase assets and decrease liabilities

decrease both assets and liabilities

decrease assets and increase liabilities
Question 8 (5 points)
 
Ryan withdrew cash from the business to pay his personal cell phone bill. The expanded accounting equation changes include __________.
Question 8 options:

increase in both cash and withdrawal

decrease in both cash and withdrawal

decrease in cash and increase in withdrawal

increase in cash and decrease in withdrawal
Question 9 (5 points)
 
The financial statement that shows revenue and expenses for a period of time is the __________.
Question 9 options:

balance sheet

income statement

statement of owner's equity

statement of cash flows
Question 10 (5 points)
 
A company has $4,500 in its Revenue account at the end of a period. The Expenses are as follows: Rent, $750; Utilities, $150; Salaries, $2,400; Insurance, $225. The net income (loss. for the period is __________.
Question 10 options:

$3,600

($2,100.

$975

($1,425.
Question 11 (5 points)
 
Carrie billed her legal clients $6,000 for legal work completed during the month. This transaction will __________.
Question 11 options:

cause a $6,000 increase in revenues and liabilities

cause a $6,000 increase in revenues and a decrease in liabilities

cause a $6,000 increase in assets and revenues

not be recorded until the cash is collected
Question 12 (5 points)
 
Which of the following is not one of the four basic financial statements?
Question 12 options:

Statement of Cash Flows

Income Statement

Statement of Company Position

Balance Sheet
Question 13 (5 points)
 
The net income or net loss is calculated on the __________.
Question 13 options:

balance sheet

statement of owner's equity

income statement

None of the above answers are correct.
Question 14 (5 points)
 
The statement of owner's equity contains the __________.
Question 14 options:

owner's capital for the beginning of the period

liabilities of the company

total amount owed by credit customers

balance in the cash account
Question 15 (5 points)
 
The financial statement that shows business results in terms of revenue and expenses is __________.
Question 15 options:

an income statement

a balance sheet

a statement of owner's equity

the statement of cash flows
Question 16 (5 points)
 
Which of the following statements is prepared first?
Question 16 options:

Statement of Owner's Equity

Balance Sheet

Income Statement

None of the above
Question 17 (5 points)
 
An expense should be recorded when __________.
Question 17 options:

the bill is paid

the expense is incurred

a bill is received in the mail

None of the above answers are correct.
Question 18 (5 points)
 
If 'Ol Fashioned Toys' revenues are less than its expenses during the accounting period, then __________.
Question 18 options:

owner's withdrawals decrease net income

net income causes liabilities to decrease

the business will incur a loss

owner's withdrawals increase owner's equity
Question 19 (5 points)
 
If a company's revenues are higher than its expenses, it will cause __________.
Question 19 options:

an increase in owner's equity

a decrease in owner's equity

an increase in assets

no effect on owner's equity
Question 20 (5 points)
 
BPK Industries has a net income for the period of $2,500. The balance in the Owner's Capital account for the beginning of the period is $5,000 and the owner has withdrawn $1,650 for personal expenses. The balance in the Owner's Capital account at the end of the period will be __________.
Question 20 options:

$5,850

$7,500

$850

$9,150