Chapter 5 Accounting

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

42000

44000

38000

40000

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

31 days

28 days

25 days

23 days

3. 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?

7000 gain

38000

45000

Cannot be determined

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?

1,525,000

2,125,000

1,675,000

1,600,000

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

38000

45000

7000 gain

Cannot be determined

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

Debit interest receivable 35

Credit interest revenue 35

Both a and b

Credit interest revenue 420

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

Liabilities are understated, net income is overstated, and OE is overstated

Assets, net income, and OE are understated

Assets, net income, and OE are overstated

Assets are overstated, net income is understated, and OE is understated

8. 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?

2730

2830

2800

2870