Chapter 5 Accounting

8 Questions | By Lnwilcox | Updated: Jan 7, 2021 | Attempts: 379

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1.

Rolling Tennis Academy held investments in trading securities valued at $45,000 on Dec 31. These investments cost $38,000. What is the appropriate amount for Rolling Green to report for these investments on Dec 31 balance sheet?
- A.
  
  7000 gain
- B.
  
  38000
- C.
  
  45000
- D.
  
  Cannot be determined
Correct Answer
C. 45000
2.

What should appear on the Rolling Green income statement for the year ended Dec 31 for the trading securities?
- A.
  
  38000
- B.
  
  45000
- C.
  
  7000 gain
- D.
  
  Cannot be determined
Correct Answer
C. 7000 gain
3.

Accounts Receivable has a debit of $2,900 and allowance for uncollectibles of $100. A $70 accounts receivable was written off. What is the amount of net receivables after the write off?
- A.
  
  2730
- B.
  
  2830
- C.
  
  2800
- D.
  
  2870
Correct Answer
C. 2800
4.

Rosewood Corp. began 2012 with AR of $450,000. Sales for year totaled $1,600,000. Rosewood ended the year with accounts receivable of $525,000. Rosewood's bad-debt losses are minimal. How much cash did rosewood collect from customers in 2012?
- A.
  
  1,525,000
- B.
  
  2,125,000
- C.
  
  1,675,000
- D.
  
  1,600,000
Correct Answer
A. 1,525,000
5.

Mars company received a four-month, 7%, $6,000 note receivable on March 1. The adjusting entry on March 31 will be
- A.
  
  Debit interest receivable 35
- B.
  
  Credit interest revenue 35
- C.
  
  Both a and b
- D.
  
  Credit interest revenue 420
Correct Answer
C. Both a and b
6.

What is the maturity value of a $40,000, 10%, six month note?
- A.
  
  42000
- B.
  
  44000
- C.
  
  38000
- D.
  
  40000
Correct Answer
A. 42000
7.

If the adjusting entry to accrue interest on a note receivable is omitted, then
- A.
  
  Liabilities are understated, net income is overstated, and OE is overstated
- B.
  
  Assets, net income, and OE are understated
- C.
  
  Assets, net income, and OE are overstated
- D.
  
  Assets are overstated, net income is understated, and OE is understated
Correct Answer
B. Assets, net income, and OE are understated
8.

Net sales total $547,500. Beginning and ending accounts receivable are $38,000 and $46,000. Calculate the day's sales in receivables
- A.
  
  31 days
- B.
  
  28 days
- C.
  
  25 days
- D.
  
  23 days
Correct Answer
B. 28 days

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Current Version
Jan 07, 2021

Quiz Edited by
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Dec 13, 2012

Quiz Created by
Lnwilcox

Chapter 5 Accounting

Rolling Tennis Academy held investments in trading securities valued at $45,000 on Dec 31. These investments cost $38,000. What is the appropriate amount for Rolling Green to report for these investments on Dec 31 balance sheet?

What should appear on the Rolling Green income statement for the year ended Dec 31 for the trading securities?

Accounts Receivable has a debit of $2,900 and allowance for uncollectibles of $100. A $70 accounts receivable was written off. What is the amount of net receivables after the write off?

Rosewood Corp. began 2012 with AR of $450,000. Sales for year totaled $1,600,000. Rosewood ended the year with accounts receivable of $525,000. Rosewood's bad-debt losses are minimal. How much cash did rosewood collect from customers in 2012?

Mars company received a four-month, 7%, $6,000 note receivable on March 1. The adjusting entry on March 31 will be

What is the maturity value of a $40,000, 10%, six month note?

If the adjusting entry to accrue interest on a note receivable is omitted, then

Net sales total $547,500. Beginning and ending accounts receivable are $38,000 and $46,000. Calculate the day's sales in receivables