What entry is required in the company books

Assignment Help Accounting Basics

Reference no: EM131008622

Answer correct option along with explanation

1. A company with sales revenue of $11,000 and a gross profit of $5,100 would a cost of goods sold of
$5,100
$5,900
16,900

2.Merchandise with a cost of $350 is sold for $500 on account with term 2/10, n/30. The journal entry to record the cost of the sale would include a
Credit to Sales Revenue
$350 Credit to Merchandise Inventory
$350 debit to Sales Revenue

3. A retailer purchases merchandise with a retail price of $20,000. The retailer receives a 20% trade discount and credit terms of 1/10, n/30. What amount should the retailer debit to the Merchandise Inventory account?
$20,000
$15,840
$16,000

5. A company sold $3,000 of merchandise on account, credit terms are 2/15, n/30. Cost of goods is $2,000. The journal entry to record the cost of the sale would include a
Debit to inventory $3,000
Debit to cost of goods sold $2,000
Debit to accounts receivables $3,000

6. A purchaser returns merchandise purchased for $1,800 on account. The purchaser's journal entry to record this would include a debit to
Accounts payable, $1,800
no journal entry required
inventory, $1,800

7. In a Multi-Step Income Statement, the salary expense in the administrative section would include salaries for the
salesman only
accounting department
depreciation on the showroom displays

8. A check written for $150 was erroneously charged by the bank as $1,500. The required journal entry would be include
Debit Cash for $1,500
Debit Cash for $1,350
No journal entry required

9. Accompanying the bank statement was a bank service charge. What entry is required in the company books?
no journal entry required
debit bank services expense, credit cash
debit cash, credit Accounts Payable

10. With a cash balance according to the bank statement of $11,000, deposits in transit of $1,500, outstanding checks of $300 and a bank service charge of $40, the bank section of the bank reconciliation would report and adjusted balance of
$12,500
$12,240
$12,200

11. With a cash balance according to the bank statement of $12,000, deposits in transit of $500, outstanding checks of $300 and a bank service charge of $40, the bank section of the bank reconciliation would report and adjusted balance of
$12,500
$12,240
$12,200

Reference no: EM131008622

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