WYU BUSA 202 Exam 1 (2015)

| June 6, 2016

Question
Review Test Submission: Exam 1

Course 201505-BUSA-202-7D2

Test Exam 1

Results Displayed All Answers, Submitted Answers, Correct Answers, Feedback, Incorrectly Answered Questions

• Question 1

2 out of 2 points

Faux Sure, Inc., earned $400,000 during its first month of business of which $300,000 was collected during the month. Match the amounts that will be reported on each of the first month’s financial statements listed below.

o

Question Correct Match Selected Match

Revenue on the Income Statement D.

$400,000 D.

$400,000

Cash Collected from Customers on the Statement of Cash Flows C.

$300,000 C.

$300,000

Accounts Receivable on the Balance Sheet B.

$100,000 B.

$100,000

o

All Answer Choices

A.

$0

B.

$100,000

C.

$300,000

D.

$400,000

o

• Question 2

2 out of 2 points

Nim Com Soup, Inc., purchased land at a cost of $8,000 five years ago. Currently, the land is estimated to be worth $45,000. At what amount should the land be reported on Nim Com Soups’ balance sheet at year end? DO NOT INCLUDE $ IN ANSWER

• Question 3

2 out of 2 points

Wok On Water, Inc.’s employees had worked during its first month of May and earned $7,000. Wok on Water had paid $3,000 of the amount owed. How much will be reported as Wages Expense on its May income statement?

• Question 4

2 out of 2 points

If a company’s total assets equals $80,000 and its shareholders’ equity equals $20,000, then its liabilities must equal $______.

Do not include $ signs or negative amounts in your answer.

• Question 5

2 out of 2 points

In its first month of business, Brewed Awakenings, Inc., collected $21,000 from customers in advance during May. During May, it performed $13,000 of services. What is the balance of the Unearned Revenue account at the end of the month?

DO NOT INCLUDE $ IN ANSWER

• Question 6

2 out of 2 points

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 ______.

Selected Answer: C.

the same amount for both notes.

Answers: A.

greater for the 6-month note.

B.

greater for the 3-month note.

C.

the same amount for both notes.

• Question 7

0 out of 2 points

At December 31, Year 1, Sea the World Cruises, Inc.’s assets were $60,000 and liabilities were $40,000. At December 31, Year 2, its assets are $130,000 and liabilities are $50,000. During the year, it did not issue new stock, and it declared and paid $100 dividend. Calculate net income for Year 2.

• Question 8

2 out of 2 points

The normal balance of Accounts Payable is a ______ because it is a(n) ______.

• Question 9

2 out of 2 points

For the year ended December 31, Year 2 For the year ended December 31, Year 1

Revenues $ 10,500 $ 500

Expenses $ 1,500 $_________

Net Income $________ $_________

December 31, Year 2 December 31, Year 1

Assets $ 16,500 $ 1,000

Liabilities $_________ $ 500

Common Stock $ 300 $ 300

Retained Earnings 1.$________ $ 200

Assume Year 1 is the company’s first year of business and there were $100 dividends in Year 1 and $100 dividends in Year 2. After determining the missing amounts ($______) in the above financial statements, calculate and type in the December 31, Year 2 Retained Earnings 1.$_________.

DO NOT INCLUDE $ IN YOUR ANSWER

• Question 10

2 out of 2 points

Given the Inventory T-account, match the correct description with each number. For the beginning (1. or 2.) and ending (5. or 6.) balances, select “Blank” for the side that is opposite the account’s normal balance.

o

Question Correct Match Selected Match

All Answer Choices

A.

Blank

B.

Beginning Balance

C.

Payments to Merchandisers

D.

Purchases on Account

E.

Collections from Customers

F.

Sale of Inventory

G.

Ending Balance

o

• Question 11

2 out of 2 points

On December 1, Morris Lest, Inc., borrowed $37,000 by issuing a 6-month note at 6%. Interest Payable at December 31 equals ______.

Round your answer to the nearest dollar.

DO NOT INCLUDE $ IN ANSWER

• Question 12

2 out of 2 points

Paying a cash dividend to shareholders is a(n) ______.

• Question 13

2 out of 2 points

Jim’s Jungle Gyms reported the following information in its year ended December 31 financials:

Net Income $ 18,000

Sales Revenue 86,000

Retained Earnings – beginning balance 24,000

Dividends 4,000

What were the company’s total Expenses for the current year?

DO NOT INCLUDE $ IN ANSWER

• Question 14

2 out of 2 points

Record the entry for the sale and the cost of the sale of merchandise to a customer on account for $800, which cost $500, by selecting which accounts are debited and which are credited.

• Question 15

2 out of 2 points

The income statement reports the ______.

Answers: changes that occurred in shareholders’ equity during the accounting period

cash collected and cash paid during the period

economic resources, obligations, and net worth

revenues minus expenses for the accounting period

• Question 16

2 out of 2 points

During December, Acme, Inc., performed and billed its customers $38,000 for services on account of which it collected $8,000. How much revenue should Acme record in December?

DO NOT INCLUDE $ IN ANSWER

• Question 17

2 out of 2 points

The adjusting entry to record depreciation on equipment includes a ______. (Select all that apply.)

Answers: credit to Cash

credit to Equipment

credit to Depreciation Expense

debit to Accumulated Depreciation

Question 18

2 out of 2 points

In May, Rec Rooms, Inc., collected $8,000 owed by customers for services performed in April. Show the effect of this collection on the accounting equation.

If there is no effect, select “0 No Effect.”

All Answer Choices

A.

8,000 Accounts Payable

B.

8,000 Cash

C.

(8,000) Accounts Receivable

D.

8,000 Accounts Receivable

E.

8,000 Cash; (8,000) Accounts Receivable

F.

8,000 Accounts Receivable; (8,000) Cash

G.

8,000 Cash; (8,000) Accounts Payable

H.

0 No Effect

Question 19

2 out of 2 points

On January 1 of its first month of business, Juan in a Million, Inc., paid $47,000 for four months rent beginning in January. How much will be reported as Prepaid Rent on its balance sheet at January 31?

DO NOT INCLUDE $ IN ANSWER

Question 20

2 out of 2 points

Determine the missing amounts.

December 31

Cash $ 10,000 Accounts Payable $ 4,000

Accounts Receivable 10,000 Notes Payable 10,000

Inventory 1. ___?___ Common Stock 47,000

Buildings (net of accumulated depreciation) 24,000 Retained Earnings 5,000

Total Assets $____ Total Liabilities and Shareholders’Equity $66,000

After determining the missing amounts ($______) in the above Balance Sheet, calculate and type in the December 31 amount of Inventory 1.____?_____.

DO NOT INCLUDE $ IN YOUR ANSWER

Question 21

2 out of 2 points

When a company pays for advertising in advance, it will record a debit to ______ and a credit to ______.

Answers: Advertising Expense; Cash

Cash; Prepaid Advertising

Prepaid Advertising; Advertising Expense

Advertising Expense; Advertising Payable

Question 22

2 out of 2 points

How many of the following accounts are assets?

Supplies Expense

Retained Earnings

Notes Payable

Depreciation Expense

Common Stock

Equipment

Question 23

2 out of 2 points

When a company makes a payment for amounts owed from prior purchases of inventory, it will record a debit to ______ and a credit to ______.

Answers: Expenses; Cash

Accounts Payable; Cash

Accounts Payable; Retained Earnings

Cash; an expense

Question 24

2 out of 2 points

During the year, A Salt & Buttery, Inc., had revenue of $62,000 of which $10,000 was collected from customers. It also had expenses of $31,000 of which $3,000 was paid. The owners were paid $20,000 in dividends. Net income for the year equals ______.

DO NOT INCLUDE $ IN ANSWER

Question 25

2 out of 2 points

On December 31, Year 1, Cash had a balance of $100,000. During year 2, there were $1,100,000 debits and $950,000 credits posted to Cash. The December 31, Year 2, balance must equal $______. Do not include a $ in your answer.

Question 26

2 out of 2 points

Record the entry to close revenues for the period by selecting the correct accounts from below. (Select all that apply.)

Answers:

debit Accounts Receivable

credit Revenues

debit Unearned Revenue

debit Retained Earnings

Question 27

2 out of 2 points

Which financial statement reports how much is left to sell at the end of the period?

Question 28

2 out of 2 points

Purses, Inc., sold 8 purses that cost $40 each to its customers for a price of $80 each. The Gross Profit amount on the income statement will equal $______. Do not include $ in your answer.

Question 29

2 out of 2 points

Thistle Do Nicely had $200 of supplies on May 1. During May, it purchased $400 of supplies on account. It paid $250 of the $400 it owed for its supplies. At May 31, Thistle Do Nicely only had $85 of supplies left. Supplies Expense on the income statement equals ______.

Question 30

2 out of 2 points

A transaction may be recorded with an increase in an asset and a decrease in ______.

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