What is the final balance of the salaries expense account

Assignment Help Financial Accounting
Reference no: EM131559451

Financial Accounting Exam

Answer each of the following questions.

1. A company has Liabilities of $23,500 and Stockholders' Equity of $56,500. How much does the company have in Assets?

2. Beginning Retained Earnings are $65,000; sales are $29,500; expenses are $33,000; and dividends paid are $3,500. How much is the net income or loss for the company?

3. The account "Salaries Expense" began with a zero balance and then had the following changes: increase of $450, decrease of $175, increase of $600, and an increase of $350. What is the final balance of the "Salaries Expense" account, and is it a debit or credit?

4. A $375 purchase of supplies on account was recorded by debiting Supplies for $375 and crediting Cash for $375. What is the journal entry needed to correct this error?

5. Allied, Inc. bought a two-year insurance policy on August 1 for $3,600. What is the adjusting journal entry on December 31?

6.A company started the year with no supplies. During the year they bought $200 worth of supplies on account and later paid $150 of this debt. If there were $40 worth of supplies left at the end of the year, what is the supply expense for the period?

7. ABC Corporation has received an invoice for $4,500 with terms of 3/15, n/50. If ABC pays the invoice on the seventeenth day, what is the effect on the Cash account and will the Cash account be debited or credited?

8. Bond and Associates has the following account balances listed in alphabetical order: Accumulated Depreciation, $23,000; Accounts Payable, $8,500; Accounts Receivable, $12,000; Cash, $3,500; Equipment, $44,000; Land, $21,000; Mortgage Payable, $45,000; Prepaid Insurance, $7,500; Supplies, $2,000; Unearned Revenue, $6,000; Wages Payable, $4,500. How much are Bond and Associates' current liabilities?

9. Olympic Enterprises has the following inventory data

Date


Quantity

Unit cost

June 1

Beginning inventory

5

$52

June 4

Purchase

10

$55

June 7

Sale

12


June 11

Purchase

9

$58

June 14

Sale

8


Assuming average cost, what is the cost of goods sold for the June 14 sale?

10. A company has $4,500 in net sales, $3,200 in gross profit, $1,300 in ending inventory, and $1,800 in beginning inventory. What is the company's cost of goods sold?

11. Goods available for sale are $40,000; beginning inventory is $16,000; ending inventory is $20,000; and the cost of goods sold is $50,000. What is the inventory turnover?

12. Which element of internal control deals with establishing procedures for things such as handling of incoming checks, and which element deals with the oversight of the internal control systems?

13. What is an audit opinion?

14. A company has $235,000 in credit sales. The company uses the allowance method to account for uncollectible accounts. The Allowance for Doubtful Accounts now has a $7,250 credit balance. If the company estimates 7% of credit sales will be uncollectible, what is the amount of the journal entry to record estimated uncollectible accounts?

15. Bestway, Inc. had credit sales of $142,000 for the period. The balance in Allowance for Doubtful Accounts is a debit of $643. If Bestway estimates that 2% of credit sales will be uncollectible, what is the required journal entry to record estimated uncollectible accounts?

16. An asset has a cost of $50,000, with a residual value of $10,000. It has a life of 5 years and was purchased on January 1. Under double-declining-balance, what is the asset's fourth full year of depreciation expense?

17. A truck costing $56,000 has accumulated depreciation of $50,000. The truck is sold for $8,500. What is the journal entry for this transaction?

18. On January 1, Bixby Machine signed a $210,000, 6%, 30-year mortgage that requires semiannual payments of $7,585 on June 30 and December 31 of each year. What is the correct journal entry for recording the second semiannual payment (round interest calculation to the nearest dollar)?

19. On January 1, $500,000 of 8%, 10-year bonds were sold for $530,000. The bonds require semiannual interest payments on June 30 and December 31. What is the correct entry for recording the June 30 interest payment on the bonds?

20. Motor Works, Inc. has declared a $20,000 cash dividend to shareholders. The company has 5,000 shares of $15-par, 10°/0 preferred stock and 10,000 shares of $20-par common stock. The preferred stock is non-cumulative. How much will the preferred and common stockholders receive on the date of payment?

21. Allied Industries, Inc. has 250,000 shares of $7-par common stock outstanding. They have declared a 7% stock dividend. The current market price of the common stock is $11/share. What is the amount that will be credited to Paid-in Capital in Excess of Par Common Stock on the date of declaration?

22. Accounts receivable amounts to $215,000 for the beginning of the year and $245,000 for the end of the year. Income reported on the income statement for the year is $300,000. How much is the cash flow from operating activities on the cash flow statement using the indirect method?

23. Operating expenses other than depreciation for the year were $400,000. Accrued expenses increased by $35,000. What are the cash payments for operating expenses reported on the cash flow statement using the direct method?

24. Red Line, Inc. has a cash balance of $80,000, short-term investments of $20,000, net receivables of $60,000, and inventory of $450,000. Current liabilities total $200,000. What is Red Line's quick ratio?

25. River City, Inc. reported the following for 2014:

Net sales

$220,000

Net income

$37,000

Market price per share of common stock

$28.75

Dividends

$4,100

Average number of shares of common stock outstanding

10,000

What are the earnings per share for River City, Inc. (to the nearest cent)?

Reference no: EM131559451

Questions Cloud

Create portable forensic evidence kit for corporate security : Create a portable forensic evidence kit for corporate security investigations. Create a portable forensic evidence kit for corporate security investigations.
Find the median wage rate of the given workers : WAGE RATES The frequency distribution of the hourly wage rates (in dollars) among blue-collar workers in a certain factory is given in the following table.
Write a system with three equations : Write a system of two equations for the problem - Solve each system using the addition or addition-multiplication method where necessary.
How you would explain the importance of researching policies : Describe how you would explain the importance of researching policies and procedures to someone that just wants to get started on the project.
What is the final balance of the salaries expense account : What is the final balance of the "Salaries Expense" account, and is it a debit or credit? What is an audit opinion
Review the code and perform analysis as needed : Carefully, review the code and perform analysis as needed. Consider the following rules and recommendations and hints for items that you might want to review.
How much federal and state tax you need to pay : Create one Java application to calculate how much federal and state tax you need to pay. The program should accomplish the following tasks
Find the mean score the mode and the median score : EXAM SCORES In an examination given to a class of 20 students, the following test scores were obtained.
Important documents for gaining and maintaining : Acquisition strategy statements are important documents for gaining and maintaining executive support for programs and projects.

Reviews

len1559451

7/10/2017 3:35:55 AM

Please follow all instruction and answer them. Complete the exam by answering the questions and compiling your answers into a word-processing document. When you're ready to submit your answers, refer to the instructions at the end of your exam booklet. It's not necessary to type the questions. Type only the solution to the question. Be certain to indicate the proper question number before each of your answers. Remember to show your work if an answer requires a mathematical solution.

Write a Review

 

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd