Exercise 1 - Pull & Wolf Inc.

9 Questions | Total Attempts: 140

SettingsSettingsSettings
Please wait...
Exercise 1 - Pull & Wolf Inc.

Prepare an adjusted trial balance for the Company as per 31. 12. 2013 according to the transactions in the quiz.


Questions and Answers
  • 1. 
    None posted cost of goods sold for the Q4 is 125.000.
    • A. 

      The cost of goods sold account (profit/loss) is debited 125.000

    • B. 

      The sales account (profit/loss) is credited 125.000

    • C. 

      The inventory account (asset) is credited 125.000

    • D. 

      The trade debtors account (asset) is debited 125.000

  • 2. 
    Posted prepaid rent of premises of 50.000 booked on the account “Premises expense”. The amount is rent for Q1 2014.
    • A. 

      The premises account (profit/loss) is credited 50.000

    • B. 

      The premises account (profit/loss) is debited 50.000

    • C. 

      The prepaid account (asset) is credited 50.000

    • D. 

      The prepaid account (asset) is debited 50.000

    • E. 

      The Bank account (asset) is credited 50.000

  • 3. 
    None posted depreciations on fixed assets:
    1. Land and buildings = 10.000
    2. Equipment =   5.000
    3. Car = 40.000
    4. Plant and machinery = 25.000
    • A. 

      Depreciations on buildings account (profit/loss) is debited 10.000

    • B. 

      Depreciations on eqiupment account (profit/loss) is debited 5.000

    • C. 

      Depreciations on eqiupment account (profit/loss) is credited 5.000

    • D. 

      Depreciations on cars account (profit/loss) is debited 40.000

    • E. 

      Depreciations on plant and machinery account (profit/loss) is debited 25.000

    • F. 

      Depreciations on cars account (profit/loss) is credited 40.000

    • G. 

      Accumulated depreciations on building account (asset) is credited 10.000

    • H. 

      Accumulated depreciations on car account (asset) is debited 25.000

    • I. 

      Accumulated depreciations on equipment account (asset) is credited 5.000

    • J. 

      Accumulated depreciations on equipment account (asset) is debited 5.000

    • K. 

      Accumulated depreciations on car account (asset) is credited 40.000

    • L. 

      Accumulated depreciations on plant and machinery account (asset) is credited 25.000

  • 4. 
    None posted interest revenue for Q4 is 1.000 (concerning bank deposit).
    • A. 

      The interest revenue account (profit/loss) is credited 1.000

    • B. 

      The prepaid expenses account (asset) is debited 1.000

    • C. 

      The accrued income account (asset) is credited 1.000

    • D. 

      The bank deposit account (asset) is debited 1.000

  • 5. 
    None posted interest expenses for Q4 is 8.000 (concerning bank overdraft).
    • A. 

      The interest expenses account (profit/loss) is credited 8.000

    • B. 

      The bank overdraft account (liability) is debited 8.000

    • C. 

      The interest expenses account (profit/loss) is debited 8.000

    • D. 

      The bank overdraft account (liability) is credited 8.000

  • 6. 
    None posted invoices on purchases of inventory (goods for resale) are 55.000. The invoices have not been paid to the trade creditors (suppliers of goods) as per 31.12.2013.
    • A. 

      The transaction should not be included in the books for the fiscal year 2013

    • B. 

      The goods for resale account (asset) is debited 55.000

    • C. 

      The cost of goods sold account (profit/loss) is credited 55.000

    • D. 

      The trade creditors account (liability) is credited 55.000

    • E. 

      The cost of goods sold account (profit/loss) is debited 55.000

  • 7. 
    None posted invoices to customers are 60.000 (the invoices have not been by paid the trade debtors as per 31.12.2013).
    • A. 

      The transaction should not be included in the books for the fiscal year 2013.

    • B. 

      The accrued income account (asset) is debited 60.000

    • C. 

      The sales account (profit/loss) is credited 60.000

    • D. 

      The trade debtors account (asset) is debited 60.000

  • 8. 
    None posted cash purchase of office supplies is 2.300.
    • A. 

      The miscellaneous expense account (profit/loss) is credited 2.300

    • B. 

      The transaction should not be included in the books for the fiscal year 2013

    • C. 

      The cash account (asset) is credited 2.300

    • D. 

      The cash account (asset) is debited 2.300

    • E. 

      The miscellaneous expense account (profit/loss) is debited 2.300

  • 9. 
    None posted settlement of the input and output VAT account to the VAT payable account.
    • A. 

      The output VAT account (liability) is debited 45.000

    • B. 

      The output VAT account (liability) is credited 45.000

    • C. 

      The input VAT account (liability) is debited 12.000

    • D. 

      The input VAT account (liability) is credited 12.000

    • E. 

      The VAT payable account (liability) is debited 12.000 and credited 45.000

    • F. 

      The VAT payable account (liability) is credited 12.000 and debited 45.000

Back to Top Back to top