ACCOUNTING 211 ACTUAL QUESTIONS WITH
VERIFIED SOLUTIONS
◉ Outback Kangaroos company showed the following balances at
the end of the year:
-cash: $15000
-prepaid rent: $6000
-accounts payable: $4000
-notes payable: $7000
-common stock: $10000
-dividends: $3000
-revenues: $21000
-expenses: $18000
What did Outback show as total credits on its trial balance
Answer: *$42,000*
credits: accounts payable, notes payable, common stock, dividends,
expenses
◉ Outback Kangaroos company showed the following balances at
the end of the year:
-cash: $15000
,-prepaid rent: $6000
-accounts payable: $4000
-notes payable: $7000
-common stock: $10000
-dividends: $3000
-revenues: $21000
-expenses: $18000
What did outback show as total assets on its balance sheet?
Answer: *$21,000*
assets= cash, prepaid rent
◉ Outback Kangaroos company showed the following balances at
the end of the year:
-cash: $15000
-prepaid rent: $6000
-accounts payable: $4000
-notes payable: $7000
-common stock: $10000
-dividends: $3000
-revenues: $21000
-expenses: $18000
, What did Outback show as total equity on its balance sheet?
Answer: *$10,000*
equity: common stock+revenues-expenses-dividends
◉ Jans decorating purchased $6000 worth of decorating supplies on
June 2 and recorded the purchase as an asset. On June 30, an
inventory of the supplies indicated only $2000 on hand. If the
accountant fails to record this adjusting entry what is the impact on:
asset, liabilities, equity, revenue, expense, net income?
Answer: asset: overstated
liabilities: no change
equity: overstated
revenue: no change
expense: understated
net income: overstated
◉ Jans Decorating prepaid $12000 worth of rent on June 1 and
recorded the purchase as an asset. This represents 6 months of rent.
If the accountant adjusted for two months instead of one on June 30,
how would this error impact: asset, liabilities, equity, revenue,
expense, net income?
Answer: asset: understated
liabilities: no change
VERIFIED SOLUTIONS
◉ Outback Kangaroos company showed the following balances at
the end of the year:
-cash: $15000
-prepaid rent: $6000
-accounts payable: $4000
-notes payable: $7000
-common stock: $10000
-dividends: $3000
-revenues: $21000
-expenses: $18000
What did Outback show as total credits on its trial balance
Answer: *$42,000*
credits: accounts payable, notes payable, common stock, dividends,
expenses
◉ Outback Kangaroos company showed the following balances at
the end of the year:
-cash: $15000
,-prepaid rent: $6000
-accounts payable: $4000
-notes payable: $7000
-common stock: $10000
-dividends: $3000
-revenues: $21000
-expenses: $18000
What did outback show as total assets on its balance sheet?
Answer: *$21,000*
assets= cash, prepaid rent
◉ Outback Kangaroos company showed the following balances at
the end of the year:
-cash: $15000
-prepaid rent: $6000
-accounts payable: $4000
-notes payable: $7000
-common stock: $10000
-dividends: $3000
-revenues: $21000
-expenses: $18000
, What did Outback show as total equity on its balance sheet?
Answer: *$10,000*
equity: common stock+revenues-expenses-dividends
◉ Jans decorating purchased $6000 worth of decorating supplies on
June 2 and recorded the purchase as an asset. On June 30, an
inventory of the supplies indicated only $2000 on hand. If the
accountant fails to record this adjusting entry what is the impact on:
asset, liabilities, equity, revenue, expense, net income?
Answer: asset: overstated
liabilities: no change
equity: overstated
revenue: no change
expense: understated
net income: overstated
◉ Jans Decorating prepaid $12000 worth of rent on June 1 and
recorded the purchase as an asset. This represents 6 months of rent.
If the accountant adjusted for two months instead of one on June 30,
how would this error impact: asset, liabilities, equity, revenue,
expense, net income?
Answer: asset: understated
liabilities: no change
