9. Smith Inc. purchased office supplies on account for $ 6,500. Ten days later S
ID: 2601123 • Letter: 9
Question
9. Smith Inc. purchased office supplies on account for $ 6,500. Ten days later Smith pays off its obligation. Which journal entry is made for the purchase of the office supplies? a. Office Supplies 6,500 Accounts Payable 6,500 b. Accounts Payable 6,500 6,50o Office Supplies c. Office Supplies 6,500 Accounts Receivable 6,500 d. Accounts Payable 6,500 Cash 6,500 10. Which of the following accounts may appear on a post-closing trial balance? a. Rent Expense, Capital, and Cash b. c. Office Supplies, Unearned Revenue, and Accumulated Depreciation Service Revenue, Taxes Expense, and Withdrawals Accounts Receivable, Depreciation Expense, and Accounts Payable d. 11. Partner withdrawals a. Decrease partnership capital c. decrease partnership net income d. increase partnership liabilities b. Increase partnership capital 12. The partnership of Smith and Jones splits profits 1/s to Smith and 4/S to Jones. There is no provision for losses. The partnership has a net loss of $ 30,000. What is Jones share of the loss? a. $15,000 b. $6,000 c. $ 24,000 d. $30,000 13. The document that explains all the differences between the company's cash records and bank's figures is called a(n) a. Electronic fund transfer b. Bank statement c. bank collection d. bank reconciliation 14. Which of the following accounts is not a liability? Unearned Revenue Income Taxes Payable c. Accumulated Depreciation d. Utilities Payable a. b. c. Merchandise Inventory d. All of the above 15. Which account does a merchandiser use that a service company does not use? a. Cost of Goods Sold b. Sales RevenueExplanation / Answer
9.
Answer = A
Office supplies are an asset and an Asset has an Debit balance so it will be debited during purchase and it is bought on Credit so it will increase Accounts payable.
Office Supplies
6,500
Accounts Payable
6,500
10.
Answer = A
11.
Answer = A
If a partner withdraws from firm then it is considered Drawing which is deducted from Capital and it will decrease the Capital of the Partner.
12.
Answer = C
The loss sharing ratio will be equal to Profit sharing so,
Jones share = 4/5 * 30,000
= $24,000
13.
Answer = D
Bank reconciliation statement is a statement which shows the reason for differences in Company cash records and Bank figures.
14.
Answer = C
Accumulated Depreciation is an account which is created to allocate the cost of an asset which is depreciated i.e. It contained all the depreciation which the firm has charged on an asset till now i.e. since its purchase
15.
Answer = D
All the accounts belong to Merchandise as Cost of Goods Sold, Sales Revenue and Inventory are not there in Service industry.
Office Supplies
6,500
Accounts Payable
6,500
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