Crue company had the following transactions

Accounting Assignment

Instructions
Name______________________________________
Quiz #1 Professor Talbot
Grade 0
Start time_________________ Finish time__________________
Spring 2016 ACCT 301 UMUC
Welcome to Quiz 1 and good luck!
Save this file as:
Last Name_First name_ACCT 301_Quiz 1
Once you open up the exam found in the assignment section under quiz 1; you will have 2.5 hours to complete the quiz, closed book with no resources other than one page of your personal notes.
Please turn in the one page of personal notes with your exam in the assignment section.
Also on the top of the page annotate your start time and ending time and it should be no longer than 2 1/2 hours.
Please study for this quiz as a closed book test and study like you would any quiz that you take in the classroom.
Know basic journal entries
Know the accounting cycle
Study the classified balance sheet.
Study the Excel homework and exercises, review the in class discussions and the reading material.
Good luck on the quiz and make sure that you upload the excel document by Thursday at 11:45 in the assignment section of the Leo classroom.
Total Quiz is worth 100 points.
Each multiple choice question is worth 2 points, exercises are worth 10 points each.
Problem 1
Problem #1 Prepare an income statement. points
The accounts in the ledger of Talbot Delivery Service contain the following balances on July 31, 2014.
Accounts Receivable $10,642 Prepaid Insurance $  1,968
Accounts Payable 8,396 Maintenance and Repairs Expense 961
Cash ? Service Revenue 10,610
Equipment 49,360 Dividends 700
Gasoline Expense 758 Common Stock 40,000
Utilities Expense 523 Salaries and Wages Expense 4,428
Notes Payable 26,450 Salaries and Wages Payable 815
Retained Earnings 4,636
Instructions
Prepare an income statement and fill in the missing amount for Cash.
Problem 2
Problem #2 points
Otis Company accumulates the following adjustment data at December 31.
1. Services provided but not recorded total $1,420.
2. Supplies of $300 have been used.
3. Utility expenses of $225 are unpaid.
4. Unearned service revenue of $260 is recognized for services performed.
5. Salaries of $800 are unpaid.
6. Prepaid insurance totaling $380 has expired.
Instructions
For each of the above items indicate the following.
(a) Journalize the entry
Otis Company
General Journal Entry
Date Account Title Debit Credit
Problem 3
Problem #3 points

The following accounts were taken from the financial statements of Orville Company.
Answer
1 Interest revenue
2 Accounts payable
3 Supplies
4 Bonds payable
5 Trademarks
6 Common stock
7 Accumulated depreciation—equipment
8 Equipment
9 Investment in real estate
10 Unearned rent revenue
Match each of the accounts to its proper balance sheet classification, as shown below. If the item would not appear on a balance sheet, use “NA.”
Current assets (CA)
Long-term investments (LTI)
Property, plant, and equipment (PPE)
Intangible assets (IA)
Current liabilities (CL)
Long-term liabilities (LTL)
Stockholders' equity (SE)
Mult choice
points 60 points total
Multiple choice answers: 30 multiple choice questions 60 points total
1 Question 1
2 < place answers here
3 A An asset account is
4 A. notes payable
5 B. Unearned revenue
6 C. Cash
7 D. Common stock
8
9 Question 2
10 Which one of the following represents the expanded basic accounting equation?
11 < place answers here
12 A. Assets = Revenues + Expenses - Liabilities.
13 B. Assets + Dividends + Expenses = Liabilities + Common Stock + Retained Earnings + Revenues.
14 C. Assets - Liabilities - Dividends = Common Stock + Retained Earnings + Revenues - Expenses.
15 D. Assets = Liabilities + Common Stock + Retained Earnings + Dividends - Revenues - Expenses.
16
17 Question 3
18 A debit is not the normal balance for which account listed below?
19 < place answers here
20 A. Dividends
21 B. Cash
22 C. Accounts Receivable
23 D. Service Revenue
24
25 Question 4
26 An accountant has debited an asset account for $1,200 and credited a liability account for $500.
27 What can be done to complete the recording of the transaction?
28 < place answers here A. Credit a different asset account for $700.
29 B. Nothing further must be done.
30 C. Debit another asset account for $700.
D. Debit a Stockholders' equity account for $700.
Question 5
Which of the following is an external user of the financial statements?
A. company president
B. investor
C. manager of a department
D. supervisor
Question 6
For the basic accounting equation to stay in balance, each transaction recorded must
A.always affect exactly two accounts.
B. affect two or less accounts.
C. affect two or more accounts.
D. affect the same number of asset and liability accounts.
Question 7
An awareness of the normal balances of accounts would help you spot
which of the following as an error in recording?
A. A credit balance in a liabilities account
B. A credit balance in a revenue account
C. A debit balance in the dividends account
D. A credit balance in an expense account
Question 8
The Dividends account
A. must show transactions every accounting period.
B. is found in retained earnings
C. is not a proper subdivision of retained earnings.
D. appears on the income statement along with the expenses of the business.
Question 9
Chik Chik Company showed the following balances at the end of its first year:
Cash $3,000
Prepaid insurance 4,700
Accounts receivable 3,500
Accounts payable 2,800
Notes payable 4,200
Common stock 1,400
Dividends 700
Revenues 22,000
Expenses 17,500
What did Chik Chik Company show as total credits on its trial balance?
A. $25,700
B. $35,100
C. $30,400
D. $31,100
Question 10
At December 1, 2014, Cursive Company's accounts receivable balance was $1,200. During December, Cursive had
credit revenues of $4,800 and collected accounts receivable of $4,000.
At December 31, 2014, the accounts receivable balance is
A. $3000
B. $2,000
C. $400
D. $800
Question 11
A liability account is
A. unearned revenue
B. cash
C. equipment
D. retained earninds
Question 12
A stockholders' equity account is
A retained earnings
B cash
C land
D mortgage payable
Question 13
The entire group of accounts maintained by a company is called the
A chart of accounts.
B general ledger.
C general journal.
D trial balance.
Question 14
The usual order of accounts in the general ledger is
A assets, liabilities, common stock, retained earnings, dividends, revenues, and expenses.
B liabilities, assets, common stock, retained earnings, revenues, expenses, and dividends.
C common stock, retained earnings, assets, liabilities, dividends, expenses, and revenues.
D assets, liabilities, dividends, common stock, retained earnings, expenses, and revenues.
Question 15
The first step in perparing the financial statements is to prepare the
A retained earnings statement
B balance sheet
C Cash flow
D income statement
Question 16
Which of the following are in accordance with generally accepted accounting principles?
A Neither accrual basis nor cash basis accounting
B Accrual basis accounting
C Cash basis accounting
D Both accrual basis and cash basis accounting
Question 17
Crue Company had the following transactions during 2013:
Sales of $4,500 on account
Collected $2,000 for services to be performed in 2014
Paid $1,625 cash in salaries
Purchased airline tickets for $250 in December for a trip to take place in 2014
What is Crue's 2013 net income using accrual accounting?
A $4,625.
B $4,875.
C $2,625.
D $2,875.
Question 18
Adjusting entries are required
A when revenues are recorded in the period in which they are earned.
B because some costs expire with the passage of time and have not yet been journalized.
C when the company's profits are below the budget.
D when expenses are recorded in the period in which they are incurred.
Question 19
An adjusting entry
A affects two income statement accounts.
B affects two balance sheet accounts.
C affects a balance sheet account and an income statement account.
D is always a compound entry.
Question 20
Adjusting entries are
A usually required before financial statements are prepared.
B made whenever management desires to change an account balance.
C made to balance sheet accounts only.
D not necessary if the accounting system is operating properly.
Question 21
Expenses incurred but not yet paid or recorded are called
A accrued expenses.
B unearned expenses.
C prepaid expenses.
D interim expenses.
Question 22
A current liability is
A accounts receivable
B equipment
C accounts payable
D commom stock
Question 23
Accrued revenues are
A earned and recorded as liabilities before they are received.
B earned but not yet received or recorded.
C received and recorded as liabilities before they are earned.
D earned and already received and recorded.
Question 24
Unearned revenues are
A received and recorded as liabilities before they are earned.
B earned and recorded as liabilities before they are received.
C earned but not yet received or recorded.
D earned and already received and recorded.
Question 25
Post closing trial balance includes
A retained earnings
B dividends
C revenues
D expenses
Question 26
The Asset section of the balance sheet includes
Arevenues and expenses.
B Land buildings and equipment
C unearned revenue
D Dcommon stock
Question 27
Which of the following would not result in unearned revenue?
A Rent collected in advance from tenants
B Services performed on account
C Sale of two-year magazine subscriptions
D Sale of season tickets to football games
Question 28
An adjusting entry involves
A Unearned Service Revenue and Cash.
B Unearned Service Revenue and Service Revenue.
C Cash and Prepaid Expense.
D Unearned Service Revenue and cash.
Question 29
At March 1, 2013, Minutemen Corp. had supplies on hand of $500. During the month,
Minutemen purchased supplies of $1,200 and used supplies of $1,400. The March 31 adjusting journal
entry should include a
A increase supplies expense account for $1,400.
B decrease to the supplies expense account for $500.
C increase to the supplies expense account for $1,200.
D decrease to the supplies expense account for $1,200.
Question 30
Which of the following depicts the proper sequence of steps in the accounting cycle?
A Journalize the transactions, analyze business transactions, prepare a trial balance
B Prepare a trial balance, post to ledger accounts, post adjusting entries
C Prepare a trial balance, prepare financial statements, prepare adjusting entries
D Prepare a trial balance, prepare adjusting entries, prepare financial statements
Problem 4
Problem #4 points
Latina Company had the following adjusted trial balance.
Latina Company
Adjusted Trial Balance
For the Month Ended June 30, 2014
Adjusted Trial Balance
Account Titles Debits Credits
Cash 3,712
Accounts Receivable 3,904
Supplies 480 (b)
Accounts Payable 1,556 Net Income:
Unearned Service Revenue 160
Common Stock 4,000
Retained Earnings 1,760
Dividends 600
Service Revenue 4,300
Salaries and Wages Expense 1,344 Retained earnings:
Miscellaneous Expense 180
Supplies Expense 1,900
Salaries and Wages Payable 344
12,120 12,120
Instructions
(a) Prepare a classified balance sheet at June 30, 2014.
(b) Hint: find net income and update retained earnings