Accounting is fun. Right? – Flashcards

Accounting Cycle 1 - $100 When the company pays stockholders a dividend, what is the impact on the company's assets, liabilities and stockholders' equity?

Accounting Cycle 1 - $200 On November 1, 2010, Summer company receives $1,800 for services to be provided over the next six months. How should Summer record this transaction?

Accounting Cycle 1 - $300 The following table contains information for Fisher Inc. in 2010 before closing entries: Cash $26,000 Revenues 40,000 Common Stock 40,000 Wage expense 3,000 Inventory 20,000 Prepaid rent 4,000 Selling expenses 1,500 Dividends 3,000 Accounts Payable 20,000 Equipment 45,000 How many of the above accounts are temporary accounts?

Accounting Cycle 1 - $400 Frosty Inc. has the following balances on December 31 prior to closing entries: Sales Revenue $35,000 Salary Expense 20,000 Retained Earnings, Jan. 1 10,000 Utility expense 3,000 Cash 7,000 Accounts Payable 4,000 Dividends 1,000 Based upon the information above, what is the ending balance of retained earnings after all closing entries are made?

Accounting Cycle 1 - $500 Sally Corporation reported the following amounts at December 31, 2008. Assets $7,000,000 Liabilities 1,000,000 Common Stock 2,500,000 Revenues 6,000,000 Retained Earnings 1/1/08 500,000 Assuming no dividends were paid in the year 2008, what is the amount of expenses that should appear on Sally's income statement?

Accounting Cycle 2 - $100 The following information pertains to Sooner Company: May 1 Customer ordered an installation service to be done on May 15. May 2 Customer paid cash for the installation job to be done on May 15. May 8 Sooner company purchased installation supplies for the job. May 15 The installation job was started and completed. Sooner Company uses accrual-basis accounting. When would the company record revenues related to the installation service?

Accounting Cycle 2 - $200 Pumpkin Inc. sold $500 in pumpkins to a customer on account on January 1. On January 11 Pumpkin collected the cash from that customer. How does the cash collection affect the company's assets, liabilities, and stockholders' equity?

Accounting Cycle 2 - $300 On July 1, 2010, ABC company paid $96,000 for 24 months of rent on their warehouse from July 2010 to June 2012. What would be the amount of rent expense in the 2010 financial statements for ABC under the (1) cash-basis and (2) accrual-basis accounting?

Accounting Cycle 2 - $400 ATT Construction purchases new equipment for $37,000 cash on April 1, 2008. At the time of the purchase, the equipment is expected to be used in operations for six years (72 months) and have a resale vale of $1,000 at the end. ATT depreciates equipment evenly over the 72 months. Record the adjusting entry for depreciation on December 31, 2008.

Accounting Cycle 2 - $500 Jacob company borrows $10,000 from USbank on August 1, 2008. Jacob repays the amount borrowed and pays interest of 12% on July 31, 2009. (1) Record the borrowing for Jacob on August 1, 2008. (2) Record the adjusting entry for Jacob on December 31, 2008. (3) Record the payment on July 31, 2009 for Jacob.

Accounting Cycle 3 - $100 A company provides services to customers on account, $3,500. Record the transaction.

Accounting Cycle 3 - $200 During 2008, Williams Company incurred operating expenses amounting to $250,000, of which $120,000 were paid in cash; the balance will be paid in January 2009. On the 2008 income statement of the company, what amount should be reported for operating expenses?

Accounting Cycle 3 - $300 A customer rents a vehicle for six months from Hertz for the period of October 2008 to March 2009, and pays the total rental fee of $4,800 on Oct 1, 2008. Record the adjusting entry on December 31, 2008 for Hertz.

Accounting Cycle 3 - $400 The accounts payable account has a beginning balance of $12,000. During the month the company purchased $50,000 of inventory on account, $8,000 of supplies on account, and $100,000 of equipment on account. The ending balance of accounts payable was $10,000. How much did the company pay to creditors during the month? Prepare a summary journal entry for the payment.

Accounting Cycle 3 - $500 Eve's Apples opened business on January 1, 2010, and paid for two insurance policies effective that date. The liability policy was $36,000 for eighteen-months, and the crop damage policy was $12,000 for a two-year term. (1) Record the adjusting entry on December 31, 2010. (2) What was the balance in Eve's Prepaid Insurance as of December 31, 2010?