1. Using the information below, find Alpha’s beginning inventory.

Ending inventory $ 1,400

Purchases 6,000
Purchase returns & 600
allowances
Purchase discounts 400
Operating expenses 4,800
Sales returns & allowances 1,600
Sales discounts 400
Net Income 1,800
Income tax expense 400
Sales 16,600
Group of answer choices

The correct answer is not listed.

$4,400
$4,000
$4,200
$3,800

2. Correcting the Trial Balance: Beta failed to record the following two
transactions: Prepayment of $400 cash for rent and the declaration of
dividends for $1,500 on the declaration date. What corrections, if any, should
be made to the trial balance?
DEBIT COLUMN
-400 +400 +1500
-400 -400 -1500
+400 -400 -1500
+400 +400 +1500
The correct answer is not listed
CREDIT COLUMN
-1500
+1500
-1500 -400
-400 +400 +1500
The correct answer is not listed

3. Alpha paid $400 that satisfied an existing account payable. The journal
entry to record this transaction is

Group of answer choices

Debit Accounts Payable 400 and credit Cash 400

The correct answer is not listed.
Debit Cash 400 and credit Accounts Receivable 400
Debit Cash 400 and credit Accounts Payable 400
Debit Accounts Payable 400 and credit Sales 400

4. Select the two source documents that are not one of the three source
documents that are matched bef6ore recording a purchase or sale.

-Sales Invoice and Purchase Requisition

-The correct answer is not listed.-

- Receiving Report and Sales Order

- Purchase Order and Shipping Report

-Sales Order and Purchase Requisition

5. Correcting the Trial Balance: Alpha failed to record two transactions that
should have been recorded: (a) a $20,000 credit sale using the perpetual
inventory system with a 30% gross profit percent and (b) a payment of
cash of $4,000 to satisfy an account payable. Ignore any AJEs. What
corrections, if any, should be made to the trial balance?
Debit Column -
-4000,+20,000
The correct answer is not listed
-4000, +20000, +14000, -14000
-14000, +20000, +4000, +14000
-20000, +14000, -14000, -4000
Credit Column -
The correct answer is not listed
+4000, -20000,
-4000, -20000
+4000, +20000
-4000, +2000

6. Alpha has the following adjusted trial balance at the end of the year. On the basis
of its annual physical count of inventory at year-end, Alpha determined that its
ending inventory was $36,000.
 Debit Credit

Cash $ 9,000

Accounts 15,000
receivable

Inventory 25,000

Supplies 2,000

Equipment 60,000

Accumulated $30,000
depreciation

Accounts 12,000
payable

Salaries 3,000
payable
Utilities 6,000
payable

Income tax 4,000

payable

Unearned 1,000
sales revenue

Common 45,000
stock

Retained 15,000
earnings

Dividends 3,000

Sales 130,000

Sales returns 6,000

and
allowances
Purchases 51,000

Purchase 3,000
discounts

Rent expense 24,000

Salaries 45,000
expense

Depreciation 6,000
expense

Income tax 3,000

expense

Total $249,000 $249,000

The credit to the Retained Earnings account in the first closing entry (as
described in class) would be
 $169,000 or $144,000
$158,000 or $133,000
$144,000 or $133,000
The correct answer is not listed.?
$169,000 or $122,000

7. Beta sold equipment with a book value of $30,000 for cash of $40,000 and used
$15,000 of that cash to purchase new furniture for its sales office. What is the total
effect of these two transactions?

Total assets will be increased by $10,000.

Total assets will not change.
Total assets will be decreased by $15,000.
Total assets will be increased by $40,000.
The correct answer is not listed.

8. Beta had a beginning balance of $500 in its supplies account. During the year,
Beta purchased $1,200 of supplies and recorded them as an "expense." If the
ending balance for supplies is $800, what is the required adjusting journal entry at
the end of the year?

Debit Supplies 300 and credit Supplies Expense 300

Debit Supplies Expense 1,200 and credit Supplies 1,200
Debit Supplies 900 and credit Supplies Expense 900
The correct answer is not listed.
Debit Supplies Expense 900 and credit Supplies 900

9.Beta had a beginning balance of $15,000 in its Common Stock account and a
beginning credit balance in Retained Earnings of $20,000. During the year, Beta
declared dividends of $1,000, had net income of $7,000, and sold (issued)
additional common stock for $5,000. Based on this information, what should the
ending balance be for Stockholders' Equity?
 $47,000
$48,000
$44,000
$46,000
The correct answer is not listed.

10. The following information describes Beta’s quarterly dividend.

Date declared: July 2

Ex-dividend date: July 22

Date of record: July 24

Payment date: August 15

The following companies had purchased and/or sold Beta’s common stock on the dates listed.

Delta: Purchased on June 5 and sold it on July 21

Omega: Purchased on July 21 and sold it on July 25

Beta: Purchased on July 22 and sold it on August 17

Gamma: Purchased on July 4 and sold it on July 23

Epsilon: Purchased on July 24 and did not sell any stock

Which of these companies (if any) are entitled to receive a dividend on August 15?

Epsilon and Omega

Beta and Gamma
Omega and Gamma
The correct answer is not listed.
Delta and Epsilon

11. Alpha made a credit sale of $4,000 to a customer with terms FOB Shipping Point.
Alpha uses the perpetual inventory system and has a gross profit percent of 20%. All of
the merchandise was shipped. But by the end of the year, the merchandise had not yet
been received by the customer. What should be recorded?
Group of answer choices

Debit Accounts Receivable 4,000, credit Sales 4,000

Debit Accounts Receivable 4,000, credit Sales 4,000, debit Cost of Goods Sold,
3,200 and credit Inventory 3,200
The correct answer is not listed.
Debit Accounts Receivable 4,000, credit Sales 4,000, debit Cost of Goods Sold
800, credit Inventory 800
No journal entry should be recorded.
12. When comparing the periodic inventory system to the perpetual inventory system,
the advantage that periodic has is which of the following?

The correct answer is not listed.

It doesn't require a physical count of inventory.
It better tracks shrinkage.
It is more widely used.
It better tracks returns.

13. On October 1, Alpha purchased land for $150,000, paying $50,000 cash and issuing
a 2-year, 4% note for the balance. The AJE for the interest that should be recorded on
December 31 for the first year will contain which amount?

$1,500
$1,000
$6,000
The correct answer is not listed.
$4,000

14. Which of the following is false?

None of the other answers are false.

A requirement of a discontinued operation is that there is no significant
continuing involvement with the operation.
A decrease for the same amount to both "ending" inventory and "purchases" has
no effect on net income.
An expense creates (increases) a liability or uses up (decreases) an asset, and a
revenue creates (increases) an asset.
A dividend decreases retained earnings.
15. Beta correctly recorded a cash sale for $2,000. A few days later, Beta's customer
returned this merchandise for cash. Beta did not record a journal entry for the return.
The gross profit percent was 40%. Beta uses the perpetual inventory system. What
corrections, if any, should be made to the trial balance?

DEBIT
No correct answer listed
No correction required
+2000 -2000 -1200 +1200
+2000 -2000 -800 +800
-800 +800
CREDIT

No correct answer listed

No correction required
+1200 -1200
-1200 +1200 +2000 -2000
1200 +1200 -800 +800
16. Correcting the Trial Balance: Beta failed to record two types of normal AJEs (as
described in class): A deferred revenue for $1,000 and an accrued expense for $1,600.
What corrections, if any, should be made to the trial balance?

Debit

-1600
-1000, +1000, +1600, +1600
+1600
The correct answer is not listed
+1600, +1600
Credit

+1600, -1600
The correct answer is not listed
+1600, -1600, -1000
 +1000, -1000, +1600
+1000, +1600, -1600

17.Beta has the following adjusted trial balance at the end of the year. On the basis of
its annual physical count of inventory at year-end, Alpha determined that its ending
inventory was $30,000.

Debit Credit

Cash $ 14,000

Accounts receivable 20,000

Inventory 41,000

Supplies 2,000

Equipment 60,000

Accumulated $30,000
depreciation

Accounts payable 12,000

Salaries payable 3,000

Utilities payable 6,000

Income tax payable 4,000

Unearned sales 1,000

revenue

Common stock 63,000

Retained earnings 12,000

Dividends 8,000

Sales 145,000
Sales returns and 6,000
allowances

Purchases 43,000

Purchase discounts 3,000

Rent expense 24,000

Salaries expense 45,000

Depreciation expense 6,000

Income tax expense 10,000

Total $279,00 $279,00

0 0

Using this trial balance and the periodic inventory system, net income for the year is

The correct answer is not listed.

$7,000
$3,000
$5,000
$15,000

18. Equipment with an original cost of $60,000 and a salvage value of $6,000 is
depreciated over 6 years using the straight-line method of depreciation. At the end of
the second year, what is the book value of the equipment?

$18,000
The correct answer is not listed.
$51,000
$36,000
$42,000
19. Alpha has the following adjusted trial balance at the end of the year. On the basis of
its annual physical count of inventory at year-end, Alpha determined that its ending
inventory was $39,000.

Debit Credit

Cash $ 35,000

Accounts receivable 40,000

Inventory 54,000

Supplies 6,000

Equipment 60,000

Accumulated $30,000
depreciation

Accounts payable 16,000

Salaries payable 3,000

Utilities payable 6,000

Income tax payable 4,000

Unearned sales revenue 1,000

Common stock 83,000

Retained earnings 30,000

Dividends 9,000

Sales 170,000

Sales returns and 6,000

allowances

Purchases 51,000

Purchase discounts 3,000

Rent expense 24,000

Salaries expense 45,000

Depreciation expense 6,000

Income tax expense 10,000

Total $346,00 $346,000

0

Using this trial balance, the current ratio and quick ratio are

Current Ratio: 4.5 -- Quick Ratio: 2.7

Current Ratio: 4.0 -- Quick Ratio: 2.5
Current Ratio: 2.0 -- Quick Ratio: 1.25
Current Ratio: 4.5 -- Quick Ratio: 1.25
The correct answer is not listed.

20. Alpha had ending inventory of $10 million, net purchases of $18 million, net sales of
$20 million, and a gross profit percent of 25%. Using the periodic inventory system, how
much was Alpha's beginning inventory?

The correct answer is not listed.

$8 million
$6 million
$5 million
$7 million

21. Stockholders' equity and total assets decreased $4,000. The transaction or AJE that
caused this could have been which of the following?
 An AJE of $4,000 for an accrued expense.
The correct answer is not listed.
Cash of $4,000 paid to satisfy an account payable.
The payment of a $4,000 dividend on the payment date.
A normal AJE of $4,000 for supplies that were used.

22.Alpha purchased inventory on credit for $20,000 with terms 2/10,n30, FOB
Destination. By the end of the year, the inventory had been shipped and received by
Alpha. Using the periodic inventory system, the correct journal entry for the purchase
was recorded. A few days after the purchase, Alpha paid what was owed within the
discount period. What journal entry should Alpha have recorded for the payment?

Debit Accounts Payable 19,600, debit Purchase Discounts 400, and credit Cash
20,000
Debit Accounts Payable 20,000, credit Cash 19,600, and credit Purchase
Discounts 400
The correct answer is not listed.
Debit Cash 19,600, debit Purchase Discounts 400, and credit Accounts Payable
20,000
Debit Accounts Payable 20,400, credit Cash 20,000, and credit Purchase
Discounts 400

23.Alpha received $5,000 cash from a customer for services to be performed in the
future, which was recorded as a revenue (not a liability). By the end of the year, $2,000
of the services had not yet been performed. The required adjusting journal entry to be
recorded on December 31 (end of year) is

Debit Unearned Service Revenue 2,000 and credit Service Revenue 2,000
Debit Service Revenue 2,000 and credit Unearned Service Revenue 2,000
Debit Unearned Service Revenue 3,000 and credit Service Revenue 3,000
The correct answer is not listed.
Debit Service Revenue 3,000 and credit Unearned Service Revenue 3,000
24.The following information describes Beta’s quarterly dividend.
Date declared: July 2

Ex-dividend date: July 22

Date of record: July 24

Payment date: August 15

The following companies had purchased and/or sold Beta’s common stock on the dates
listed.

Delta: Purchased on June 5 and sold it on July 21

Omega: Purchased on July 21 and sold it on July 25

Beta: Purchased on July 22 and sold it on August 17

Gamma: Purchased on July 4 and sold it on July 23

Epsilon: Purchased on July 24 and did not sell any stock

Which of these companies (if any) are entitled to receive a dividend on August 15?

25. Beta made a 4%, $20,000, 2-year loan to Alpha on July 1. The interest will be
received when the loan is repaid. What adjusting journal entry should be recorded on
December 31 (end of year)?

Debit Interest Receivable 400 and credit Interest Revenue 400

Debit Interest Receivable 800 and credit Interest Revenue 800
Debit Interest Receivable 1,600 and credit Interest Revenue 1,600
Debit Interest Receivable 600 and credit Interest Revenue 600
The correct answer is not listed.