ACCT 201 FINAL EXAM QUESTIONS
WITH CORRECT ANSWERS NEW
UPDATE
During December, Acme, Inc., performed and billed its customers $31,000 for services
on account of which it collected $2,000. How much revenue should Acme record in
December? - Answer-31,000
When Pizza Company sells three $100 gift cards at the beginning of the month, it
should record a $300 debit to ______ and a $300 credit to ______. - Answer-Cash;
Unearned Revenue
Using the information found in the financial statements for the month ended May 31 and
the Accounts Receivable T-account, determine its May 31 balance found on the balance
sheet. Assume all sales are on account.
Balance Sheet at April 30: Accounts Receivable = $2,000
Statement of Cash Flows: Cash Collected from Customers on the Statement of Cash
Flows = $6,000
Income Statement: Sales = $7,000
Balance Sheet at May 31: Accounts Receivable = ______? - Answer-3000
2000+7000-6000=3000
Melon-Cauli Grocers, Inc. had a $10,000 balance in Accounts Payable at the beginning
of the month. During the month, it made $60,000 of purchases on account due within
one month and paid $40,000 of the amounts owed. The Accounts Payable balance at
the end of the month has a ______ balance. - Answer-30,000 credit
On December 1, Morris Lest, Inc., borrowed $75,000 by issuing a 6-month note at 12%.
Interest Payable at December 31 equals ______.
Round your answer to the nearest dollar. - Answer-750
,On May 1, Lord of the Fries, Inc., issued a $10,000, 3-month, 12% note. It also issued
another $10,000 6-month, 12% note on the same day. On May 31, the adjusting entry to
record the interest owed will be ______. - Answer-the same for both notes
Revenue for the year totaled $900. Record the entry to close revenues at the end of the
year. DO NOT INCLUDE $ SIGNS IN YOUR ANSWER. - Answer-Revenue 900
Retained Earnings 900
The following information is available for Speaker City for January:
Balance per bank statement at January 31
$10,500
Outstanding checks
$2,700
Deposits in transit
$1,200
NSF check from customer
$150
Bank service charge
$8
Determine the true cash balance on the bank reconciliation for Speaker City. - Answer-
9000
10,500+1,200-2,700
Which statement below best explains credit terms of 2/10, n/30? - Answer-The buyer
will receive a 2 percent discount if it pays within 10 days.
The adjusting entry to record the estimated doubtful accounts includes a credit to
______. - Answer-Allowance for Doubtful Accounts
Deja Brew, Inc. had Accounts Receivable of $400,000 and an Allowance for Doubtful
Accounts with a credit balance of $20,000. Deja Brew then writes off a $5,000 account
receivable from Royal Flush Company which went bankrupt. The net realizable values
of the accounts receivable before and after this write-off are __________. - Answer-
380,000 before and 380,000 after
A $100,000 truck was depreciated using straight-line and assuming a 5-year life and
$10,000 salvage value. After 3 years, it was sold for $40,000 cash. The sale of the truck
appears under A.___________ activities on the Statement of Cash Flows in the amount
of B. $______________. - Answer-Investing, $40,000
, Select the financing activities from the list below. (Select all that apply.) - Answer-Issued
a Stock
Issued a Notes Payable
The statement of shareholders' equity reports the ______. - Answer-changes that
occurred in shareholders' equity during the accounting period
How many of the following accounts are assets?
Supplies Expense
Retained Earnings
Notes Payable
Depreciation Expense
Common Stock
Equipment - Answer-1 - Equipment is the only Asset
Haira Noia, Inc., issued $10,000 of stock to its owners for cash. It recorded the
transaction by increasing assets and increasing liabilities. Which of the following
statements are correct? (Select all that apply.) - Answer-Liabilities will be too high
Shareholders equity will be too low
Determine the missing amounts in the following multi-step income statement:
Sales
$1,000
Cost of Goods Sold
?
Gross Profit
300
Operating Expenses
100
Operating Income
WITH CORRECT ANSWERS NEW
UPDATE
During December, Acme, Inc., performed and billed its customers $31,000 for services
on account of which it collected $2,000. How much revenue should Acme record in
December? - Answer-31,000
When Pizza Company sells three $100 gift cards at the beginning of the month, it
should record a $300 debit to ______ and a $300 credit to ______. - Answer-Cash;
Unearned Revenue
Using the information found in the financial statements for the month ended May 31 and
the Accounts Receivable T-account, determine its May 31 balance found on the balance
sheet. Assume all sales are on account.
Balance Sheet at April 30: Accounts Receivable = $2,000
Statement of Cash Flows: Cash Collected from Customers on the Statement of Cash
Flows = $6,000
Income Statement: Sales = $7,000
Balance Sheet at May 31: Accounts Receivable = ______? - Answer-3000
2000+7000-6000=3000
Melon-Cauli Grocers, Inc. had a $10,000 balance in Accounts Payable at the beginning
of the month. During the month, it made $60,000 of purchases on account due within
one month and paid $40,000 of the amounts owed. The Accounts Payable balance at
the end of the month has a ______ balance. - Answer-30,000 credit
On December 1, Morris Lest, Inc., borrowed $75,000 by issuing a 6-month note at 12%.
Interest Payable at December 31 equals ______.
Round your answer to the nearest dollar. - Answer-750
,On May 1, Lord of the Fries, Inc., issued a $10,000, 3-month, 12% note. It also issued
another $10,000 6-month, 12% note on the same day. On May 31, the adjusting entry to
record the interest owed will be ______. - Answer-the same for both notes
Revenue for the year totaled $900. Record the entry to close revenues at the end of the
year. DO NOT INCLUDE $ SIGNS IN YOUR ANSWER. - Answer-Revenue 900
Retained Earnings 900
The following information is available for Speaker City for January:
Balance per bank statement at January 31
$10,500
Outstanding checks
$2,700
Deposits in transit
$1,200
NSF check from customer
$150
Bank service charge
$8
Determine the true cash balance on the bank reconciliation for Speaker City. - Answer-
9000
10,500+1,200-2,700
Which statement below best explains credit terms of 2/10, n/30? - Answer-The buyer
will receive a 2 percent discount if it pays within 10 days.
The adjusting entry to record the estimated doubtful accounts includes a credit to
______. - Answer-Allowance for Doubtful Accounts
Deja Brew, Inc. had Accounts Receivable of $400,000 and an Allowance for Doubtful
Accounts with a credit balance of $20,000. Deja Brew then writes off a $5,000 account
receivable from Royal Flush Company which went bankrupt. The net realizable values
of the accounts receivable before and after this write-off are __________. - Answer-
380,000 before and 380,000 after
A $100,000 truck was depreciated using straight-line and assuming a 5-year life and
$10,000 salvage value. After 3 years, it was sold for $40,000 cash. The sale of the truck
appears under A.___________ activities on the Statement of Cash Flows in the amount
of B. $______________. - Answer-Investing, $40,000
, Select the financing activities from the list below. (Select all that apply.) - Answer-Issued
a Stock
Issued a Notes Payable
The statement of shareholders' equity reports the ______. - Answer-changes that
occurred in shareholders' equity during the accounting period
How many of the following accounts are assets?
Supplies Expense
Retained Earnings
Notes Payable
Depreciation Expense
Common Stock
Equipment - Answer-1 - Equipment is the only Asset
Haira Noia, Inc., issued $10,000 of stock to its owners for cash. It recorded the
transaction by increasing assets and increasing liabilities. Which of the following
statements are correct? (Select all that apply.) - Answer-Liabilities will be too high
Shareholders equity will be too low
Determine the missing amounts in the following multi-step income statement:
Sales
$1,000
Cost of Goods Sold
?
Gross Profit
300
Operating Expenses
100
Operating Income
