ACCOUNTING 211 COMPREHENSIVE
QUESTIONS AND CORRECT ANSWERS
◉ Ken just started a business and made the following 3 inventory
purchases in November:
-Nov 1- 150 units @ $780
-Nov 8- 200 units @ $1170
-Nov 22- 200 units @ $1260
A physical count of merchandise inventory on Nov 30 reveals that
there are 150 units on hand. Using the average cost method, the
amount allocated to ending inventory for November is:
Answer: 150+200+200=550
(150x$780)+(200x$1170)+(200x$1260)= 603,000
◉ Closing entries:
Answer: *Cause the revenue and expense accounts to have zero
balances*
◉ Jayson's company began the year by issuing $50,000 of common
stock for cash. The company recorded revenues of $300,000,
expenses of $210,000, and paid dividends of $30,000. What was
Jayson's net income for the year?
Answer: net income= revenue- expenses:
,300,000- 210,000= *90,000*
◉ Sales revenues are usually considered earned when:
Answer: *Goods have been transferred from the seller to the buyer*
◉ Which of the following accounts would not likely need to be
adjusted for the year?
-Unearned revenue
-prepaid advertising
-cash
-supplies inventory
Answer: *cash*
◉ In the first month of operations, the total of the debit entries to
the cash account amounted to $400 and the total of the credit
entries to the cash account amounted to $150. The cash account has
a:
Answer: *$250 debit balance*
◉ An accountant has debited an asset account for $500 and credited
a liability account for $200. What can be done to complete the
recording of the transaction?
Answer: *credit a different asset account for $300*
,(because it balances the equation since assets will now equal 200
and so will liabilities)
◉ 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
QUESTIONS AND CORRECT ANSWERS
◉ Ken just started a business and made the following 3 inventory
purchases in November:
-Nov 1- 150 units @ $780
-Nov 8- 200 units @ $1170
-Nov 22- 200 units @ $1260
A physical count of merchandise inventory on Nov 30 reveals that
there are 150 units on hand. Using the average cost method, the
amount allocated to ending inventory for November is:
Answer: 150+200+200=550
(150x$780)+(200x$1170)+(200x$1260)= 603,000
◉ Closing entries:
Answer: *Cause the revenue and expense accounts to have zero
balances*
◉ Jayson's company began the year by issuing $50,000 of common
stock for cash. The company recorded revenues of $300,000,
expenses of $210,000, and paid dividends of $30,000. What was
Jayson's net income for the year?
Answer: net income= revenue- expenses:
,300,000- 210,000= *90,000*
◉ Sales revenues are usually considered earned when:
Answer: *Goods have been transferred from the seller to the buyer*
◉ Which of the following accounts would not likely need to be
adjusted for the year?
-Unearned revenue
-prepaid advertising
-cash
-supplies inventory
Answer: *cash*
◉ In the first month of operations, the total of the debit entries to
the cash account amounted to $400 and the total of the credit
entries to the cash account amounted to $150. The cash account has
a:
Answer: *$250 debit balance*
◉ An accountant has debited an asset account for $500 and credited
a liability account for $200. What can be done to complete the
recording of the transaction?
Answer: *credit a different asset account for $300*
,(because it balances the equation since assets will now equal 200
and so will liabilities)
◉ 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
