Marble company purchased a machine costing

On September 30, the Cash account of Value Company had a normal balance of $6,400. During September, the account was debited for a total of $13,600 and credited for a total of $12,900. What was the balance in the Cash account at the beginning of September?

A $7,100 debit balance.

A $0 balance.

A $5,700 debit balance.

A $5,700 credit balance.

A $7,100 credit balance.

On April 30, Holden Company had an Accounts Receivable balance of $18,900. During the month of May, total credits to Accounts Receivable were $52,900 from customer payments. The May 31 Accounts Receivable balance was $13,900. What was the amount of credit sales during May?

$5,000.

$57,900.

$32,800.

$52,900.

$47,900.

A $140 credit to Office Equipment was credited to Fees Earned by mistake. By what amounts are the accounts under- or overstated as a result of this error?

Office Equipment, overstated $280; Fees Earned, understated $140.

Office Equipment, overstated $140; Fees Earned, overstated $140.

Office Equipment, understated $280; Fees Earned, overstated $140.

Office Equipment, understated $140; Fees Earned, overstated $140.

Office Equipment, overstated $140; Fees Earned, understated $140

On June 30 of the current calendar year, Apricot Co. paid $8,900 cash for management services to be performed over a two-year period. Apricot follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. The adjusting entry on December 31 for Apricot would include:

A debit to an expense for $6,675.

A debit to a prepaid expense for $6,675.

A debit to an expense for $2,225.

A debit to a prepaid expense for $2,225.

A credit to a liability for $2,225.

Prior to recording adjusting entries, the Office Supplies account had a $341 debit balance. A physical count of the supplies showed $123 of unused supplies available. The required adjusting entry is:

Debit Office Supplies $123 and credit Office Supplies Expense $123.

Debit Office Supplies Expense $123 and credit Office Supplies $123.

Debit Office Supplies Expense $218 and credit Office Supplies $218.

Debit Office Supplies $218 and credit Office Supplies Expense $218.

Debit Office Supplies $123 and credit Supplies Expense $218.

On January 1 a company purchased a five-year insurance policy for $2,250 with coverage starting immediately. If the purchase was recorded in the Prepaid Insurance account, and the company records adjustments only at year-end, the adjusting entry at the end of the first year is:

Debit Prepaid Insurance, $2,250; credit Cash, $2,250.

Debit Prepaid Insurance, $1,800; credit Insurance Expense, $1,800.

Debit Prepaid Insurance, $450; credit Insurance Expense, $450.

Debit Insurance Expense, $450; credit Prepaid Insurance, $450.

Debit Insurance Expense, $1,800; credit Prepaid Insurance, $1,800.

On April 30, a three-year insurance policy was purchased for $22,500 with coverage to begin immediately. What is the amount of insurance expense that would appear on the company's income statement for the year ended December 31?

$625.

$5,000.

$7,500.

$17,500.

$22,500.

The balance in the prepaid insurance account before adjustment at the end of the year is $6,400, which represents the insurance premiums for four months. The premiums were paid on November 1. The adjusting entry required on December 31 is:

Debit Insurance Expense, $3,200; credit Prepaid Insurance, $3,200.

Debit Prepaid Insurance, $3,200; credit Insurance Expense, $3,200.

Debit Insurance Expense, $1,600; credit Prepaid Insurance, $1,600.

Debit Prepaid Insurance, $1,600; credit Insurance Expense, $1,600.

Debit Cash, $6,400; Credit Prepaid Insurance, $6,400.

On October 1, Haslip Company rented warehouse space to a tenant for $3,100 per month. The tenant paid five months' rent in advance on that date. The payment was recorded to the Unearned Rent account. The company's annual accounting period ends on December 31. The adjusting entry needed on December 31 is:

Debit Rent Receivable, $15,500; credit Rent Earned, $15,500.

Debit Rent Receivable, $9,300; credit Rent Earned, $9,300.

Debit Unearned Rent, $9,300; credit Rent Earned, $9,300.

Debit Unearned Rent, $6,200; credit Rent Earned, $6,200.

Debit Unearned Rent, $15,500; credit Rent Earned, $15,500.

Alex Company has 10 employees, who earn a total of $1,800 in salaries each working day. They are paid on Monday for the five-day workweek ending on the previous Friday. Assume that year ended December 31, is a Wednesday and all employees will be paid salaries for five full days on the following Monday. The adjusting entry needed on December 31 is:

Debit Salaries Expense, $5,400; credit Salaries Payable, $5,400.

Debit Salaries Expense, $3,600; credit Salaries Payable, $3,600.

Debit Salaries Expense, $9,000; credit Salaries Payable, $9,000.

Debit Salaries Payable, $5,400; credit Salaries Expense, $5,400.

Debit Salaries Expense, $5,400; credit Cash, $5,400.

The Unadjusted Trial Balance columns of a company's work sheet shows a balance in the Office Supplies account as $910. The Adjustments columns show that $505 of these supplies were used during the period. The amount shown as Office Supplies in the Balance Sheet columns of the work sheet is:

$405 debit.

$405 credit.

$505 debit.

$910 debit.

$910 credit

A company's ledger accounts and their end-of-period balances before closing entries are posted are shown below. What amount will be posted to Tricia DeBarre, Capital in the process of closing the Income Summary account? (Assume all accounts have normal balances.)

  Tricia De Barre, Capital $ 6,500

  Tricia De Barre, Withdrawals 11,100

  Revenue 36,500

  Rent expense 5,100

  Salaries expense 8,700

  Insurance expense 1,070

  Depr. Expense-equipment 650

  Accum depr.-equipment 1,950

$20,980 debit.

$9,880 credit.

$20,980 credit.

$22,930 credit.

$27,480 credit.

Use the information in the adjusted trial balance presented below to calculate the current ratio for Jones Company:

  Account Title Dr. Cr.

  Cash 26,400

  Accounts receivable 17,700

  Prepaid insurance 8,300

  Equipment 117,000

  Accumulated Depreciation - Equipment 58,500

  Land 112,000

  Accounts payable 20,400

  Interest payable 4,100

  Unearned revenue 6,700

  Long-term notes payable 23,000

  J. Jones, Capital 168,700

            ________________________________________ ________________________________________

  Totals 281,400 281,400

            ________________________________________________________________________________ ________________________________________________________________________________

1.68.

.60.

3.55.

1.58.

1.41.

Using the following year-end information for Breanna Boutique, calculate the current ratio and acid-test ratio for the Boutique (Round your answer to 2 decimal places):

  Cash $ 51,400

  Short-term investments 12,600

  Accounts receivable 52,200

  Inventory 322,000

  Prepaid expenses 16,300

  Accounts payable 109,500

  Other current payables 28,000

1.7 and 0.95

1.79 and 1.33

2.54 and 1.33

3.31 and 0.85

None of these

Benson Company had cash sales of $99,675, credit sales of $88,850, sales returns and allowances of $3,500, and sales discounts of $5,275. Benson's net sales for this period equal:

$188,525.

$179,750.

$185,025.

$99,675.

$183,250.

A company has inventory of 18 units at a cost of $22 each on June 1. On June 3, it purchased 32 units at $24 each. 22 units are sold on June 5. Using the FIFO periodic inventory method, what is the cost of the 22 units that were sold?

$506.

$516.

$492.

$496.

$484.

A company that has operated with a 30% average gross profit ratio for a number of years had $101,000 in sales during the first quarter of this year. If it began the quarter with $18,100 of inventory at cost and purchased $72,100 of inventory during the quarter, its estimated ending inventory by the gross profit method is:

$18,100.

$21,210.

$27,300.

$30,300.

$19,500.

Jackson Company has sales of $313,000 and cost of goods available for sale of $271,300. If the gross profit ratio is typically 30%, the estimated cost of the ending inventory under the gross profit method would be:

$52,200

$177,400

$41,700

$93,900

Impossible to determine from the information provided.

If sales for the period were $313,000 and the company's typical gross profit ratio is 30%, gross profit would be approximately $93,900. That means that cost of goods sold must have been $219,100. Subtracting cost of goods sold of $219,100 from the $271,300 of cost of goods available for sale yields ending inventory of $52,200.

On July 24 of the current year, The Georgia Peach Company experienced a natural disaster that destroyed the company's entire inventory. At the beginning of July, the company reported beginning inventory of $227,750. Inventory purchased during July (until the date of the disaster) was $198,800. Sales for the month of July through July 24 were $643,500. Assuming the company's typical gross profit ratio is 50%, estimate the amount of inventory destroyed in the natural disaster.

$104,800

$321,750

$216,950

$213,275

$158,288

On July 24 of the current year, The Georgia Peach Company experienced a natural disaster that destroyed the company's entire inventory. At the beginning of July, the company reported beginning inventory of $227,750. Inventory purchased during July (until the date of the disaster) was $198,800. Sales for the month of July through July 24 were $643,500. Assuming the company's typical gross profit ratio is 50%, estimate the amount of inventory destroyed in the natural disaster.

$104,800

$321,750

$216,950

$213,275

$158,288

The following information is available for Holland Company at December 31:

  Money market fund balance $ 2,840

  Certificate of deposit maturing June 30 of next year $ 15,500

  Postdated checks from customers $ 1,600

  Cash in bank account $ 22,931

  NSF checks from customers returned by bank $ 700

  Cash in petty cash fund $ 250

  Inventory of postage stamps $ 23

  U.S. Treasury bill purchased on December 15 and maturing on February 28 of following year

$ 10,500

Based on this information, Holland Company should report Cash and Cash Equivalents on December 31 of:

$38,821

$36,521

$41,544

$37,421

$52,021

At the end of the day, the cash register's record shows $1,252, but the count of cash in the cash register is $1,246. The correct entry to record the cash sales is

Debit Cash $1,246; debit Cash Over and Short $6; credit Sales $1,252.

Debit Cash Over and Short $6, credit Sales $6.

Debit Cash $1,246; Credit Sales $1,246.

Debit Cash $1,252; credit Sales $1,252.

Debit Cash $1,252; credit Sales $1,246, credit Cash Over and Short $6.

Martha Company has an established petty cash fund in the amount of $500. The fund was last reimbursed on November 30. At the end of December, the fund contained the following petty cash receipts:

  December 4 Freight charge for merchandise purchased $ 53

  December 7 Freight charge for delivery to customer $ 77

  December 12 Purchase of office supplies $ 42

  December 18 Donation to charitable organization $ 61

If, in addition to these receipts, the petty cash fund contains $257.25 of cash, the journal entry to reimburse the fund on December 31 will include:

A credit to Office Supplies of $77.

A debit to Transportation-In of $95.

A credit to Cash Over and Short of $9.75.

A debit to Transportation-Out of $95.

A debit to Cash Over and Short of $9.75.