If a company issues common stock for $40,000 and uses $30,000 of the cash to purchase a truck,

assets will be increased by $40,000

assets will be increased by $10,000

equity will be reduced by $40,000

assets will be increased by $40,000

west county bank agrees to lend drake builders company $200,000 on january 1. drake builders company signs a $200,000, 6% 6 month note. What entry will Drake Builders Company make to pay off the note and interest at maturity assuming that interest has been accrued to june 30?

notes payable................................................200,000 interest payable.............................................6,000 -----cash..........................................................................206,000

notes payable........................................206,000 -----cash...................................................................206,000

notes payable................................................200,000 interest payable.............................................6,000 -----cash..........................................................................206,000

interest expense............................................6,000 notes payable................................................200,000 -----cash................................................................................206,000

Interest payable......................................3,000 notes payable.........................................200,000 interest expense.....................................3,000 -----cash.................................................................206,000

when an asset us sold, a gain occurs when the

sale price exceeds the book value of the asset sold

sale price exceeds the original cost of the asset sold

book value exceeds the sale price of the asset sold

sale price exceeds the depreciable cost of the asset sold

plant assets are ordinarily presented in the balance sheet

at cost less accumulated depreciation

in separate section along with intangible assets

when an account becomes uncollectible and must be written of

accounts receivable should be credited

allowance for doubtful accounts should be credited

accounts receivable should be credited

bad debt expense should be credited

sales revenue should be debited

A company using a perpetual inventory system that returns goods previously purchased on credit would

debit accounts payable and credit inventory

debit sales and credit accounts payable

debit cash and credit accounts payable

debit accounts payable and credit purchases

The journal entry to record a credit sale ignoring cost of good sold is

Accounts Receivable ............Sales Revenue

Accounts Receivable ...........Sales Returns and Allowances

Accounts Receivable ............Sales Revenue

The entry to record the return of goods from a customer would include a

debit to Sales Returns and Allowances

credit to Sales Returns and Allowances

Erin Corporation purchases $500 of merchandise on credit. Using the periodic inventory approach, Erin would record this transaction as:

DR. Inventory......500------------------CR. Accounts Payable......500

DR. Accounts Payable.......500-----------------CR. Purchases.......500

DR. Purchases.......500--------------------CR. Accounts Payable.......500

DR. Accounts Payable.......500---------------------CR. Inventory.........500

Crowder Corporation recorded the return of $200 of goods originally sold on credit to Discount Industries. Using the periodic inventory approach, Crowder would record this transaction as:

Sales Returns and Allowances....200------------Accounts Receivable.....200

Inventory.....200------------------Accounts Receivable....200

Sales Returns and Allowances....200------------Accounts Receivable.....200

Accounts Payable....200-------------Sales Returns and Allowances......200

Accounts Receivable....200-----------Sales Returns and Allowances....200

Turner Corporation returned $150 of goods originally purchased on credit from Morgan Industries. Using the period Inventory approach, Turner would record this transaction as:

Accounts Payable.....150 ------------Inventory.....150

Inventory....150 ----------Accounts Payable.....150

Accounts Payable.....150 ------------Inventory.....150

Purchase Returns and Allowances.....150 ---------Accounts Payable.....150

Accounts Payable.....150 ------------Purchase Returns and Allowances....150

As interest is recorded on an interest-bearing note, the Interest Expense account is

increased; the Interest Payable account is increased

increase; the Notes Payable account is increased

increased; the Note Payable account is decreased

increased; the Interest Payable account is increased

decreased; the Interest Payable account is increased

Accounting Exam 3 Review

Approved & Edited by ProProfs Editorial Team

At ProProfs Quizzes, our dedicated in-house team of experts takes pride in their work. With a sharp eye for detail, they meticulously review each quiz. This ensures that every quiz, taken by over 100 million users, meets our standards of accuracy, clarity, and engagement.

Learn about Our Editorial Process

| Written by Maxriemer

Maxriemer

Community Contributor

Quizzes Created: 1 | Total Attempts: 214

Questions: 31 | Attempts: 214 | Updated: Mar 20, 2023

Questions

Settings

Feedback

During the Quiz End of Quiz

Play as

Quiz Flashcard

Create your own Quiz

Questions and Answers

Accounting Exam 3 Review

If a company issues common stock for $40,000 and uses $30,000 of the cash to purchase a truck,

West county bank agrees to lend drake builders company $200,000 on january 1. drake builders company signs a $200,000, 6% 6 month note. What entry will Drake Builders Company make to pay off the note and interest at maturity assuming that interest has been accrued to june 30?

The Allowance for Doubtful Accounts is a liability account

Under the allowance method, Bad Debt Expense is debited when an account is deemed uncollectible and must be written off

When an account recievable that was previously written off is collected, it is first necessary to reverse the entry to reinstate the customers

The normal balance of sales returns and allowances is a credit

The normal balance of cost of good sold is a credit

The normal balance of inventory is a credit

The normal balance of accounts payable is a credit

Recording depreciation on plant assets affects the balance sheet and the income statement

When a business sells an item and collects a state sales tax on it, a current liability arises

The acquisition of treasury stock by a corporation increases total assets and total stockholders' equity

The issuance of common stock affects both paid-in capital and retained earnings

When an asset us sold, a gain occurs when the

Plant assets are ordinarily presented in the balance sheet

Interest is usually associated with

When an account becomes uncollectible and must be written of

A company using a perpetual inventory system that returns goods previously purchased on credit would

The journal entry to record a credit sale ignoring cost of good sold is

The entry to record the return of goods from a customer would include a

Which sales accounts normal have a debit balance?

Erin Corporation purchases $500 of merchandise on credit. Using the periodic inventory approach, Erin would record this transaction as:

Crowder Corporation recorded the return of $200 of goods originally sold on credit to Discount Industries. Using the periodic inventory approach, Crowder would record this transaction as:

Turner Corporation returned $150 of goods originally purchased on credit from Morgan Industries. Using the period Inventory approach, Turner would record this transaction as:

As interest is recorded on an interest-bearing note, the Interest Expense account is

Unearned Rent Revenue is

Sales taxes collected by a retailer are recorded by

A company receives $261, of which $21 is for sales tax. The journal entry record to sale would include a

Which of the following errors, each considered individually, would cause the trial balance to be out of balance?

Hoover Company had beginning of $15,000 at March 1, 2014. During the month, the company made purchases of $55,000. The inventory at the end of the month is $17,300. What is the cost of goods sold for the month of March?