ACC S1 17. Mount St Joseph University. School of Business. Pre-semester Assignment

Transcription

1 ACC S1 17 Mount St Joseph University School of Business Pre-semester Assignment The following assignment is based on the material you learned in the Principles of Accounting I (ACC 213) course. Please complete the assignment and submit it to the assignments folder in the ACC 301 course website (on Blackboard) before noon on August 22. Total points possible are 20. These points will be extra-credit towards your final grade. No late assignments will be accepted. Part 1: Select the best answer 1. Which of the following elements are found on the income statement? a. Cash b. Accounts receivable c. Common stock d. Retained earnings e. Salaries expense 2. Which of the following elements are found on the balance sheet? a. Service revenue. b. Net income. c. Operating activities. d. Utilities expense. e. Retained earnings. 1

2 3. A parcel of land is: offered for sale at $150,000, assessed for tax purposes at $95,000, recognized by its purchasers as being worth $140,000, and purchased for $137,000. The land should be recorded in the purchaser's books at: a. $95,000 b. $137,000 c. $138,500 d. $140,000 e. $150, An account used to record the owners' investments in the business is called: a. Dividends b. Share Capital c. Revenue d. Expense e. Liability 5. Unearned revenues are: a. Revenues that have been earned and received in cash. b. Revenues that have been earned but not yet collected in cash. c. Liabilities created when a customer pays in advance before the revenue is earned. d. Recorded as an asset in the accounting records. e. Increases to retained earnings. 2

3 6. A collection of all accounts (with account balances) used by a business is called a: a. Journal b. Book of original entry c. General Journal d. Balance column journal e. General Ledger 7. A list of all accounts of a company and the identification number assigned to each account is: a. Ledger b. Journal c. Trial balance d. Chart of accounts e. General Journal 8. On May 1 Mattingly Lawn Service collected $2,500 cash from a customer in advance of five months lawn service. Mattingly s journal entry to record this transaction includes a a. Credit to Unearned Service Fees for $2,500 b. Debit to Lawn Service Fees for $2,500 c. Credit to Cash for $ 2,500 d. Debit to Unearned Lawn Service Fee for $2,500 e. Credit to Common Stock for $2, On May 1, a company received $60,000 for a six-month contract in advance. The journal entry to record this on the company s books is: a. Debit to Unearned Management Fees for $60,000. b. Credit to Management Fees Earned for $60,000. c. Credit to Cash for $60,000. d. Credit to Unearned Management Fees for $60,000. e. Debit to Management Fees Earned for $60,000. 3

4 10. Wisconsin Rentals purchased office supplies on credit. The journal entry made by Wisconsin Rentals to record this transaction will include a: a. Debit to Accounts Payable. b. Debit to Accounts Receivable. c. Credit to Cash. d. Credit to Accounts Payable. e. Credit to Retained Earnings. 11. The Fireside Country Inn is a very popular destination for tourists. The Inn requires guests to make reservations at least two months in advance of their stay. A 20 percent down payment is required at the time the reservation is made. When should this inn recognize room rental revenue? a. On the date the reservation is received. b. On the date the money for the reservation is received. c. On the date the guests stay in the inn. d. On the date the guests pay the remaining 80 percent due. e. Once all cash has been received. 12. Which of the following is the appropriate journal entry if a company hires a new employee? a. Debit to Cash, credit to Wages Revenue. b. No entry should be made. c. Debit to Wages Expense, credit to Cash. d. Debit to Cash, credit to Wages Expense. e. Debit to Wages Payable, credit to Wages Expense. 4

5 Part 2 1. On November 1 of the current year, Lois Bell began Lois Bell, Interior Design as a corporation with an initial investment of $50,000 cash. On November 30 her records showed the following (alphabetically arranged) selected accounts and balances. Accounts Payable $12,000 Office Furnishings 40,000 Accounts receivable 23,000 Diivdends 6,000 Cash 17,200 Rent Expense 3,600 Fees Earned 30,000 Salaries Expense 6,200 Notes Payable 4,250 Telephone Expense 250 Share Capital 50,000 a. From the information given, prepare the November income statement. 5

6 2. From the information given, prepare a November 30 balance sheet 6