Accounting Midterm Verified Exam Questions and Answers Latest
update 2026/2027
Question:
and
Answer:
$91500 $244000 × [(8 - 2 - 3)/8] = $91500.
Question:
(Season ticket sales x Fraction of unplayed games = Unearn. ticket rev. bal.)
Answer:
Bonita City College sold season tickets for the 2020 football season for $244000. A total of 8 games
will be played during September, October and November. In September, two games were played. In
October, three games were played. The balance in Unearned Ticket Revenue at October 31 is $0.
$48800. $91500. $152500.
Question:
debit to Income Summary for $78700.
Answer:
The income statement for the year 2020 of Sheridan Co. contains the following information Revenues
$71700Expenses: Salaries and Wages Expense$46000 Rent Expense11400 Advertising
Expense10300 Supplies Expense6200 Utilities Expense2800 Insurance Expense2000 Total expenses
78700Net income (loss) $ (7000) The entry to close the expense accounts includes a debit to Income
Summary for $7000. credit to Income Summary for $7000. debit to Income Summary for $78700.
debit to Utilities Expense for $2800. $6600 credit $0 + $60800 - $34800 - $19400 = $6600
Question:
[Beg. bal. + (Rev. - Exp.) - Draws. = End. bal.]
Answer:
During 2020, its first year of operations, Bonita's Bakery had revenues of $60800 and expenses of
$34800. The business had owner's drawings of $19400. What is the amount of owner's equity at
December 31, 2020, if the beginning balance was $-0-? $0 $6600 credit $26000 credit $19400 debit a
credit to Income Summary for $9900. $68500 - $78400 = $(9900)
,Question:
[(Rev. closed with a cr. to inc. sum.) - (Tot. exp. closed with a dr. to inc. sum.) = Net loss, a dr. bal. in
inc. sum]
Answer:
The income statement for the year 2020 of Sunland Co. contains the following information Revenues
$68500 Expenses:
Salaries and Wages Expense$46300 Rent Expense11900 Advertising Expense9700 Supplies
Expense6100 Utilities Expense2200 Insurance Expense2200 Total expenses 78400 Net income (loss)
$ (9900) The entry to close Income Summary to Owner's Capital includes a debit to Revenue for
$68500. credits to Expenses totalling $78400. a credit to Income Summary for $9900. a credit to
Owner's Capital for $9900.
Question:
owner's equity will be overstated by $700.
Answer:
At March 1, Bonita Inc. reported a balance in Supplies of $240. During March, the company
purchased supplies for $740 and consumed supplies of $700. If no adjusting entry is made for supplies
owner's equity will be overstated by $700. expenses will be understated by $740. assets will be
understated by $200. net income will be understated by $700. a credit balance of $1260. $6980 -
$5720 = $1260.
Question:
[(Rev. closed with a cr. to inc. sum.) - (Tot. exp. closed with a dr. to inc. sum.) = Net inc., a cr. Bal. in
inc. sum]
Answer:
The income statement for the month of June, 2020 of Nash, Inc. contains the following information
Revenues $6980Expenses: Salaries and Wages Expense$3030 Rent Expense1560 Advertising
Expense730 Supplies Expense290 Insurance Expense110 Total expenses 5720Net income $1260
After the revenue and expense accounts have been closed, the balance in Income Summary will be a
debit balance of $6980. a debit balance of $1260. a credit balance of $1260. a credit balance of $6980.
Question:
debit Income Summary $27010, credit Owner's Capital $27010.
Answer:
Income Summary has a credit balance of $27010 in B. Tamarisk Co. after closing revenues and
expenses. The entry to close Income Summary is credit Income Summary $27010, debit Owner's
Capital $127010. credit Income Summary $27010, debit Owner's Drawings $27010. debit Income
Summary $27010, credit Owner's Drawings $27010. debit Income Summary $27010, credit Owner's
Capital $27010. Service Revenue. 3260 Unearned Service Revenue 3260 $16300 × (1 - 0.80) = $3260.
Question:
(Amt. collected × Percent. of work not completed = Unearn. serv. rev.)
, Answer:
David Justice is a lawyer who requires that his clients pay him in advance of legal services rendered.
Elliott routinely credits Service Revenue when his clients pay him in advance. In June David collected
$16300 in advance fees and completed 80% of the work related to these fees. What adjusting entry is
required by David's firm at the end of June? Unearned Service Revenue13040 Service Revenue 13040
Unearned Service Revenue3260 Service Revenue 3260 Cash16300 Service Revenue 16300 Service
Revenue3260 Unearned Service Revenue 3260 Cash 630 Accounts Receivable 180 Unearned Service
Revenue 810 $810 - $180 = $630.
Question:
(Cash rec'd - Dr. entry to cash acct. = Correcting dr. entry to cash acct.)
Answer:
A lawyer collected $810 of legal fees in advance. He erroneously debited Cash for $180 and credited
Accounts Receivable for $180. The correcting entry is Cash180 Accounts Receivable630 Unearned
Service Revenue 810 Cash810 Service Revenue 810 Cash630 Accounts Receivable180 Unearned
Service Revenue 810 Cash630 Accounts Receivable630 $30500. $39500 - ($750 × 12) = $30500
Question:
.[Equip. cost - (Monthly depr. exp. x No. of months in a yr.) = Book value]
Answer:
On January 1, 2020, Crane Company purchased equipment for $39500. The company is depreciating
the equipment at the rate of $750 per month. The book value of the equipment at December 31, 2020
is $0. $9000. $30500. $39500. $379700. $302000 + ($386000 - $278000) - $30300 = $379700.
Question:
[Beg. owner's equity + (Rev. - Exp.) - Draws. = End. owner's equity]
Answer:
Pharoah Company began the year with owner's equity of $302000. During the year, the company
recorded revenues of $386000, expenses of $278000, and had owner drawings of $30300. What was
Pharoah' owner's equity at the end of the year? $302000. $379700. $410000. $440300. $56700.
($59700 - $15600) + ($47600 - $29100) + $9700 - $15600 = $56700.
Question:
[(Beg. assets - Beg. liabl. = Beg. owner's equity); (Beg. owner's equity + (Rev. - Exp.) + Add'l. invest.
- Draws. = End. owner's equity)]
Answer:
Sunland Consulting started the year with total assets of $59700 and total liabilities of $15600. During
the year, the business recorded $47600 in consulting revenues and $29100 in expenses. Sunland made
an additional investment of $9700 and withdrew cash of $15600 during the year. The owner's equity at
the end of the year was $46200. $56700. $63200. $72300.
update 2026/2027
Question:
and
Answer:
$91500 $244000 × [(8 - 2 - 3)/8] = $91500.
Question:
(Season ticket sales x Fraction of unplayed games = Unearn. ticket rev. bal.)
Answer:
Bonita City College sold season tickets for the 2020 football season for $244000. A total of 8 games
will be played during September, October and November. In September, two games were played. In
October, three games were played. The balance in Unearned Ticket Revenue at October 31 is $0.
$48800. $91500. $152500.
Question:
debit to Income Summary for $78700.
Answer:
The income statement for the year 2020 of Sheridan Co. contains the following information Revenues
$71700Expenses: Salaries and Wages Expense$46000 Rent Expense11400 Advertising
Expense10300 Supplies Expense6200 Utilities Expense2800 Insurance Expense2000 Total expenses
78700Net income (loss) $ (7000) The entry to close the expense accounts includes a debit to Income
Summary for $7000. credit to Income Summary for $7000. debit to Income Summary for $78700.
debit to Utilities Expense for $2800. $6600 credit $0 + $60800 - $34800 - $19400 = $6600
Question:
[Beg. bal. + (Rev. - Exp.) - Draws. = End. bal.]
Answer:
During 2020, its first year of operations, Bonita's Bakery had revenues of $60800 and expenses of
$34800. The business had owner's drawings of $19400. What is the amount of owner's equity at
December 31, 2020, if the beginning balance was $-0-? $0 $6600 credit $26000 credit $19400 debit a
credit to Income Summary for $9900. $68500 - $78400 = $(9900)
,Question:
[(Rev. closed with a cr. to inc. sum.) - (Tot. exp. closed with a dr. to inc. sum.) = Net loss, a dr. bal. in
inc. sum]
Answer:
The income statement for the year 2020 of Sunland Co. contains the following information Revenues
$68500 Expenses:
Salaries and Wages Expense$46300 Rent Expense11900 Advertising Expense9700 Supplies
Expense6100 Utilities Expense2200 Insurance Expense2200 Total expenses 78400 Net income (loss)
$ (9900) The entry to close Income Summary to Owner's Capital includes a debit to Revenue for
$68500. credits to Expenses totalling $78400. a credit to Income Summary for $9900. a credit to
Owner's Capital for $9900.
Question:
owner's equity will be overstated by $700.
Answer:
At March 1, Bonita Inc. reported a balance in Supplies of $240. During March, the company
purchased supplies for $740 and consumed supplies of $700. If no adjusting entry is made for supplies
owner's equity will be overstated by $700. expenses will be understated by $740. assets will be
understated by $200. net income will be understated by $700. a credit balance of $1260. $6980 -
$5720 = $1260.
Question:
[(Rev. closed with a cr. to inc. sum.) - (Tot. exp. closed with a dr. to inc. sum.) = Net inc., a cr. Bal. in
inc. sum]
Answer:
The income statement for the month of June, 2020 of Nash, Inc. contains the following information
Revenues $6980Expenses: Salaries and Wages Expense$3030 Rent Expense1560 Advertising
Expense730 Supplies Expense290 Insurance Expense110 Total expenses 5720Net income $1260
After the revenue and expense accounts have been closed, the balance in Income Summary will be a
debit balance of $6980. a debit balance of $1260. a credit balance of $1260. a credit balance of $6980.
Question:
debit Income Summary $27010, credit Owner's Capital $27010.
Answer:
Income Summary has a credit balance of $27010 in B. Tamarisk Co. after closing revenues and
expenses. The entry to close Income Summary is credit Income Summary $27010, debit Owner's
Capital $127010. credit Income Summary $27010, debit Owner's Drawings $27010. debit Income
Summary $27010, credit Owner's Drawings $27010. debit Income Summary $27010, credit Owner's
Capital $27010. Service Revenue. 3260 Unearned Service Revenue 3260 $16300 × (1 - 0.80) = $3260.
Question:
(Amt. collected × Percent. of work not completed = Unearn. serv. rev.)
, Answer:
David Justice is a lawyer who requires that his clients pay him in advance of legal services rendered.
Elliott routinely credits Service Revenue when his clients pay him in advance. In June David collected
$16300 in advance fees and completed 80% of the work related to these fees. What adjusting entry is
required by David's firm at the end of June? Unearned Service Revenue13040 Service Revenue 13040
Unearned Service Revenue3260 Service Revenue 3260 Cash16300 Service Revenue 16300 Service
Revenue3260 Unearned Service Revenue 3260 Cash 630 Accounts Receivable 180 Unearned Service
Revenue 810 $810 - $180 = $630.
Question:
(Cash rec'd - Dr. entry to cash acct. = Correcting dr. entry to cash acct.)
Answer:
A lawyer collected $810 of legal fees in advance. He erroneously debited Cash for $180 and credited
Accounts Receivable for $180. The correcting entry is Cash180 Accounts Receivable630 Unearned
Service Revenue 810 Cash810 Service Revenue 810 Cash630 Accounts Receivable180 Unearned
Service Revenue 810 Cash630 Accounts Receivable630 $30500. $39500 - ($750 × 12) = $30500
Question:
.[Equip. cost - (Monthly depr. exp. x No. of months in a yr.) = Book value]
Answer:
On January 1, 2020, Crane Company purchased equipment for $39500. The company is depreciating
the equipment at the rate of $750 per month. The book value of the equipment at December 31, 2020
is $0. $9000. $30500. $39500. $379700. $302000 + ($386000 - $278000) - $30300 = $379700.
Question:
[Beg. owner's equity + (Rev. - Exp.) - Draws. = End. owner's equity]
Answer:
Pharoah Company began the year with owner's equity of $302000. During the year, the company
recorded revenues of $386000, expenses of $278000, and had owner drawings of $30300. What was
Pharoah' owner's equity at the end of the year? $302000. $379700. $410000. $440300. $56700.
($59700 - $15600) + ($47600 - $29100) + $9700 - $15600 = $56700.
Question:
[(Beg. assets - Beg. liabl. = Beg. owner's equity); (Beg. owner's equity + (Rev. - Exp.) + Add'l. invest.
- Draws. = End. owner's equity)]
Answer:
Sunland Consulting started the year with total assets of $59700 and total liabilities of $15600. During
the year, the business recorded $47600 in consulting revenues and $29100 in expenses. Sunland made
an additional investment of $9700 and withdrew cash of $15600 during the year. The owner's equity at
the end of the year was $46200. $56700. $63200. $72300.
