After the bank reconciliation is prepared, the entry to record bank service charges would have a credit to:
- Malloy Company estimates uncollectible accounts using the percentage-of-receivables method and expects that 5 percent of outstanding receivables will be uncollectible for 2015. The balance in Accounts Receivable is $200,000, and the allowance account has a $3,000 credit balance before adjustment at year-end. The uncollectible accounts expense for 2015 will be:
- Malloy Company issued its own $10,000, 90-day, non interest-bearing note to a bank. If the note is discounted at 10 percent, the proceeds to Malloy are:
- On 2015 July 1, Malloy Company purchased equipment for $400,000, and installation and testing costs totaled $40,000. The equipment has an estimated useful life of 10 years and an estimated salvage value of $40,000. If Malloy uses the double-declining-depreciation method, the depreciation expense for 2010 is:
- The result of recording a capital expenditure as a revenue expenditure is an:
- Cole Inc., a new company, purchases a two-year insurance policy for $12,000. Six months later, the correct balance in the prepaid insurance account would be
- Which of the following is not an advantage of the corporate form of organization?
8.Treasury stock should be shown on the balance sheet as a(n):
9.When the stockholders invest cash in the business, what is the effect?
- The ending balance in retained earnings is shown in the:
- A cash dividend of $500 was declared and paid to stockholders. The correct journal entry to record the declaration is:
- If $3,000 has been earned by a company’s workers since the last payday in an accounting period, the necessary adjusting entry would be:
- The accrual basis of accounting:
- The need for adjusting entries is based on
- Which of the following statements is false regarding the closing process?
- Which of the following statements is true regarding the classified balance sheet?
- The underlying assumptions of accounting includes all the following except:
- Malloy Company began the accounting period with $60,000 of merchandise, and net cost of purchases was $240,000. A physical inventory showed $72,000 of merchandise unsold at the end of the period. The cost of goods sold of Frick Company for the period is:
- A classified income statement consists of all of the following major sections except for:
- A business purchased merchandise for $12,000 on account; terms are 2/10, n/30. If $2,000 of the merchandise was returned and the remaining amount due was paid within the discount period, the purchase discount would be:
- Malloy Company began the accounting period with inventory of 3,000 units at $30 each. During the period, the company purchased an additional 5,000 units at $36 each and sold 4,600 units. Assume the use of periodic inventory procedure. The cost of ending inventory using weighted-average is:
- Malloy Company began the accounting period with inventory of 3,000 units at $30 each. During the period, the company purchased an additional 5,000 units at $36 each and sold 4,600 units. Assume the use of periodic inventory procedure. The cost of goods sold using weighted-average is:
- During a period of rising prices, which inventory method might be expected to give the highest net income?
- The following information: related to the bank reconciliation of the ACME Company:
In a bank reconciliation, deposits in transit should be:
- In a bank reconciliation, deposits in transit should be