ACC 201 Exam 1 Practice Set Multiple Choice Identify the choice that best comple

Question

ACC 201 Exam 1 Practice Set Multiple Choice Identify the choice that best completes the statement or answers the qwestion on Hand account balance at the beginning of the period was $6,600. Supplies totaling $12,825 during the period and debited to Supplies on Hand. A physical count shows $3,825 of Supplies on Hand at the end of the period. The proper journal entry at the end of the period. debits Supplies on Hand and credits Supplies Expense for $9,000 a. c. debits Supplies on Hand and credits Supplies Expense for $15,600. d. debits Supplies Expense and credits Supplies on Hand for $15,600. 2. Moon Company purchased equipment on November 1, 2013, by giving its supplier a 12-month, 9 percent note with a face value of S48,000. The December 31, 2013, adjusting entry is a. debit Interest Expense and credit Cash, $720 b. debit Interest Expense and credit Interest Payable, $720. c. debit Interest Expense and credit Intcrest Payable, $1,080. d. debit Interest Expense and credit Interest Payable, $4,320. A company loaned $6,000 to another corporation on December 1, Year 1, and received a 90-day, 10 percent, interest-bearing note with a face value of $6,000. a. Interest Receivable $150 3. The lender's December 31, Year 1, adjusting entry is $150 S 50 $100 $150 Interest Revenue Interest Receivable S 50 c. Interest Revenue S100 $150 Interest Revenue Interest Receivable Interest Receivable d. Interest Revenue 4. On August 1, a company received cash of $9,324 for one year's rent in advance and recorded the transaction on that day as a credit to rent revenue. The December 31 adjusting entry would include a. a debit to Rent Revenue for $3,885. b. a credit to Unearned Rent Revenue for $5,439. c. a debit to Uncarned Rent Revenue for $3,885 d. a credit to Rent Revenue for $9,324 A trial balance is prepared to a prove that there were no errors made in recording b. prove that no errors were made in posting to the ledger c. prove that each account balance is correct d. summarize the account balances to help prepare financial statements 5. into the journal Using accrual accounting, revenue is recorded and reported only a. when cash is received without regard to wben the services are rendered b. when the services are rendered without regard to when cash is received c when cash is received at the time services are rendered 6.

Explanation / Answer

As per chegg guidelines we answer one question per post. But I have answered multiple questions. Kindly post remaining questions in next post Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Q1 d) Debit supplies expense and credit supplies on hand for $15,600 (6,600 + 12,825 - 3,825) Q2 b debit interest expense and credit interest payable 720 (48,000*9%*2/12) Q3   b Interest receivable DR   50 To interest revenue            50 Q4 a credit to unearned revenue of 5439 since rent of 7 months is not earned . Formula is 9324/12*7

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