Question Final exam paart 1

29 Jun Question Final exam paart 1

Question

Final exam paart 1

· Question 1

3 out of 3 points

A company was recently formed with $ 50,000 cash contributed to the company by stock-holders. The company then borrowed $ 20,000 from a bank and bought $ 10,000 of supplies on account. The company also purchased $ 50,000 of equipment by paying $ 20,000 in cash and issuing a note for the remainder. What is the amount of total assets to be reported on the balance sheet?

· Question 2

3 out of 3 points

A company purchases $23,000 of supplies in the current month and promises to pay for them next month. How would the company record a liability for the supplies?

Selected Answer:

Correct Answer:

· Question 3

3 out of 3 points

A company was recently formed with $ 100,000 cash contributed to the company by stock-holders. The company then borrowed $ 50,000 from a bank and bought a $ 20,000 vehicle for cash. They also purchased $10,000 of equipment by paying $ 2,000 in cash and issuing a note for the remainder. What is the amount of total assets to be reported on the balance sheet?

· Question 4

3 out of 3 points

A company has net sales of $500,000 and cost of goods sold of $400,000. The company’s gross profit percentage is:

· Question 5

3 out of 3 points

A $ 1,000 sale is made on May 1 with terms 2/ 10, n/ 30. What amount, if received on May 9, will be considered payment in full?

· Question 6

3 out of 3 points

The 200X records of Thompson Company showed beginning inventory of $6,000, cost of goods sold of $14,000 and ending inventory of $8,000. The cost of purchases for 200X was:

· Question 7

3 out of 3 points

Post Company began the current month with $10,000 in inventory, then purchased inventory at a cost of $35,000. The inventory at the end of the month was $20,000.The cost of goods sold would be:

· Question 8

3 out of 3 points

A company lends its CEO $150,000 for 3 years at a 6% annual interest rate. Interest payments are to be made twice a year. Each interest payment will be for:

· Question 9

3 out of 3 points

Post Company lends Blue Company $40,000 on April 1, accepting a 4 month, 4.5% interest note.Post Company prepares financial statements on April 30.What adjusting entry should they make?

· Question 10

3 out of 3 points

On January 1, 200X Jones Company purchased a machine for $20,000. The machine had a salvage value of $2,000 and a useful life of 5 years. Using straight line depreciation, the accounting entry for recording depreciation expense for 200X would be:

· Question 11

3 out of 3 points

Post Company uses straight- line depreciation for all of its depreciable assets.Post sold a piece of machinery on December 31, 2009, that it purchased on January 1, 2009 for $ 2,000. The asset had a five year life and zero residual value. Accumulated depreciation was $400.If the sales price of the used machine was $ 1,200, the resulting gain or loss on disposal was which of the following amounts?

· Question 12

3 out of 3 points

On July 1, 200X you enter into a note payable of $200,000 with a 5% annual interest rate. Your interest expense for 200X will be:

· Question 13

3 out of 3 points

Post Company issues a 6 year, 6%, $200,000 bond at par on July 31. How much interest will be paid over the life of the bond?

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· Final exam part2

· Question 1

3 out of 3 points

The accounting equation is:

· Question 2

3 out of 3 points

The Statement of Retained earnings shows:

· Question 3

3 out of 3 points

The Income Statement shows:

· Question 4

3 out of 3 points

Which of the following regarding retained earnings is false?

Response Feedback:

Retained earnings is an equity account, not an asset.

· Question 5

3 out of 3 points

In regard to current liabilities which of the following is false?