ACC 221 CORE MAIN EXAMINATION SET
QUESTIONS AND ANSWERS SURE A+
✔✔Transaction analysis involves which of the following? (Select all that apply.)
Posting the entry to the general ledger.
Identifying the elements involved in the transaction.
Closing the temporary accounts.
Identifying the accounts to be debited and credited. - ✔✔Identifying the elements
involved in the transaction,
Identifying the accounts to be debited and credited.
✔✔T account - ✔✔An account that is used for instructional purposes instead of drawing
a formal general ledger account is referred to as a(n) ______.
✔✔Identify which transaction would result in the following journal entry: debit to Cash
for $60,000 and credit to Common stock for $60,000. - ✔✔issue stock to investors
✔✔credit - ✔✔In a double entry accounting system, the right side of the account is
represented by a(n)
✔✔Carly Enterprises borrows $3,000 on a 9-month 8% note from Second National
Bank. The journal entry to record the note is:
debit cash $3,000; credit note receivable $3,000.
,debit note payable $3,000; credit note receivable $3,000.
debit account receivable $3,000; credit note payable $3,000.
debit cash $3,000; credit note payable $3,000. - ✔✔debit cash $3,000; credit note
payable $3,000.
✔✔When rent is paid in advance, it is properly recorded on the balance sheet as -
✔✔an asset
✔✔Kendall Corp. purchased equipment for $100,000 by paying $20,000 in cash and
signing a note payable for $80,000. The journal entry to record this transaction would
include a:
debit to cash $20,000.
debit to equipment $100,000.
debit to equipment $80,000.
debit to note payable $80,000. - ✔✔debit to equipment $100,000.
✔✔The journal entry to record the issuance of 100 shares of $5 par value common
stock for $500 would include which of the following?
Debit common stock $500.
Credit additional paid-in capital $500.
Debit cash $500.
Credit retained earnings $500. - ✔✔Debit cash $500.
✔✔Ferguson Corp. purchased inventory on account for $20,000. The entry to record
this transaction would include (Select all that apply.)
debit to inventory $20,000.
credit to accounts payable $20,000.
debit to accounts payable $20,000.
credit to inventory $20,000. - ✔✔debit to inventory $20,000.
credit to accounts payable $20,000.
✔✔Which transaction would result in the following journal entry: debit Cash for $40,000
and credit Notes payable for $40,000?
Sell goods to customers for cash.
Pay for items purchased on account.
Repay money owed to a bank.
Borrow from a bank. - ✔✔Borrow from a bank.
✔✔Janet Company purchased supplies on account for $3,000. The journal entry
required to record this transaction is
debit supplies used $3,000; credit cash $3,000.
debit cash $3,000; credit supplies on hand $3,000.
debit supplies on hand $3,000; credit cash $3,000.
, debit supplies on hand $3,000; credit accounts payable $3,000. - ✔✔debit supplies on
hand $3,000; credit accounts payable $3,000.
✔✔On July 1, Davis Corporation pays $10,000 for August rent. Which of the following
are correct? (Select all that apply.)
Davis debits prepaid rent $10,000
Davis debits cash $10,000
Davis credits prepaid rent for $10,000
Davis credits cash $10,000 - ✔✔Davis debits prepaid rent $10,000
Davis credits cash $10,000
✔✔What is the formula to calculate cost of goods sold? - ✔✔Beginning inventory +
purchases - ending inventory
✔✔Lemon Creek Industries purchased a building for $280,000. The journal entry to
record this transaction would include a:
debit to cash $280,000.
debit to building expense $280,000.
debit to building $280,000.
credit to prepaid building $280,000. - ✔✔debit to building $280,000.
✔✔On July 1, Davis Corporation receives $10,000 for rent in advance from a tenant.
Which of the following are correct for Davis to record? (Select all that apply.)
Credit cash $10,000
Debit prepaid rent $10,000
Debit cash $10,000
Credit deferred rent revenue $10,000 - ✔✔Debit cash $10,000
Credit deferred rent revenue $10,000
✔✔At the end of the period, an __________ ___________ ___________, a listing of all
accounts with their respective balances, is used to assist in the preparation of adjusting
entries, financial statements, and closing entries. - ✔✔unadjusted trial balance
✔✔Tindall Corp. purchased inventory for $50,000 cash. The entry to record this
transaction is
debit inventory $50,000; credit cash $50,000.
debit inventory $50,000; credit revenue $50,000.
debit inventory $50,000; credit accounts payable $50,000.
debit cash $50,000; credit revenue $50,000. - ✔✔debit inventory $50,000; credit cash
$50,000.
✔✔adjusting entries - ✔✔journal entries recorded to update general ledger accounts at
the end of a fiscal period
QUESTIONS AND ANSWERS SURE A+
✔✔Transaction analysis involves which of the following? (Select all that apply.)
Posting the entry to the general ledger.
Identifying the elements involved in the transaction.
Closing the temporary accounts.
Identifying the accounts to be debited and credited. - ✔✔Identifying the elements
involved in the transaction,
Identifying the accounts to be debited and credited.
✔✔T account - ✔✔An account that is used for instructional purposes instead of drawing
a formal general ledger account is referred to as a(n) ______.
✔✔Identify which transaction would result in the following journal entry: debit to Cash
for $60,000 and credit to Common stock for $60,000. - ✔✔issue stock to investors
✔✔credit - ✔✔In a double entry accounting system, the right side of the account is
represented by a(n)
✔✔Carly Enterprises borrows $3,000 on a 9-month 8% note from Second National
Bank. The journal entry to record the note is:
debit cash $3,000; credit note receivable $3,000.
,debit note payable $3,000; credit note receivable $3,000.
debit account receivable $3,000; credit note payable $3,000.
debit cash $3,000; credit note payable $3,000. - ✔✔debit cash $3,000; credit note
payable $3,000.
✔✔When rent is paid in advance, it is properly recorded on the balance sheet as -
✔✔an asset
✔✔Kendall Corp. purchased equipment for $100,000 by paying $20,000 in cash and
signing a note payable for $80,000. The journal entry to record this transaction would
include a:
debit to cash $20,000.
debit to equipment $100,000.
debit to equipment $80,000.
debit to note payable $80,000. - ✔✔debit to equipment $100,000.
✔✔The journal entry to record the issuance of 100 shares of $5 par value common
stock for $500 would include which of the following?
Debit common stock $500.
Credit additional paid-in capital $500.
Debit cash $500.
Credit retained earnings $500. - ✔✔Debit cash $500.
✔✔Ferguson Corp. purchased inventory on account for $20,000. The entry to record
this transaction would include (Select all that apply.)
debit to inventory $20,000.
credit to accounts payable $20,000.
debit to accounts payable $20,000.
credit to inventory $20,000. - ✔✔debit to inventory $20,000.
credit to accounts payable $20,000.
✔✔Which transaction would result in the following journal entry: debit Cash for $40,000
and credit Notes payable for $40,000?
Sell goods to customers for cash.
Pay for items purchased on account.
Repay money owed to a bank.
Borrow from a bank. - ✔✔Borrow from a bank.
✔✔Janet Company purchased supplies on account for $3,000. The journal entry
required to record this transaction is
debit supplies used $3,000; credit cash $3,000.
debit cash $3,000; credit supplies on hand $3,000.
debit supplies on hand $3,000; credit cash $3,000.
, debit supplies on hand $3,000; credit accounts payable $3,000. - ✔✔debit supplies on
hand $3,000; credit accounts payable $3,000.
✔✔On July 1, Davis Corporation pays $10,000 for August rent. Which of the following
are correct? (Select all that apply.)
Davis debits prepaid rent $10,000
Davis debits cash $10,000
Davis credits prepaid rent for $10,000
Davis credits cash $10,000 - ✔✔Davis debits prepaid rent $10,000
Davis credits cash $10,000
✔✔What is the formula to calculate cost of goods sold? - ✔✔Beginning inventory +
purchases - ending inventory
✔✔Lemon Creek Industries purchased a building for $280,000. The journal entry to
record this transaction would include a:
debit to cash $280,000.
debit to building expense $280,000.
debit to building $280,000.
credit to prepaid building $280,000. - ✔✔debit to building $280,000.
✔✔On July 1, Davis Corporation receives $10,000 for rent in advance from a tenant.
Which of the following are correct for Davis to record? (Select all that apply.)
Credit cash $10,000
Debit prepaid rent $10,000
Debit cash $10,000
Credit deferred rent revenue $10,000 - ✔✔Debit cash $10,000
Credit deferred rent revenue $10,000
✔✔At the end of the period, an __________ ___________ ___________, a listing of all
accounts with their respective balances, is used to assist in the preparation of adjusting
entries, financial statements, and closing entries. - ✔✔unadjusted trial balance
✔✔Tindall Corp. purchased inventory for $50,000 cash. The entry to record this
transaction is
debit inventory $50,000; credit cash $50,000.
debit inventory $50,000; credit revenue $50,000.
debit inventory $50,000; credit accounts payable $50,000.
debit cash $50,000; credit revenue $50,000. - ✔✔debit inventory $50,000; credit cash
$50,000.
✔✔adjusting entries - ✔✔journal entries recorded to update general ledger accounts at
the end of a fiscal period
