- Description
ACC 291T Week 5 Apply: Connect® Exercise
Review the Knowledge Check in preparation for this assignment.
Complete the Week 5 Exercise in Connect®.
Note: You have only one attempt available to complete this assignment.
Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date
The beginning capital balance shown on a statement of owner’s equity is $80,000. Net income for the period is $35,000. The owner withdrew $18,000 cash from the business and made no additional investments during the period. The owner’s capital balance at the end of the period is
Multiple Choice
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$133,000.
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$97,000.
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$80,000.
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$63,000.
The balance of the owner’s drawing account is reported
Multiple Choice
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in the Other Expenses section of the income statement.
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on the statement of owner’s equity.
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in the Current Assets section of the balance sheet.
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in the Operating Expenses section of the income statement.
Which of the following statements is not correct?
Multiple Choice
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The gross profit percentage is calculated by dividing the gross profit for the year by the net sales for the year.
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The average inventory is calculated by adding the beginning inventory to the ending inventory and dividing the sum by 2.
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A current ratio of 3.5 to 1 means that a firm has $3.50 in current liabilities for every $1 of current assets.
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Working capital is the difference between total current assets and total current liabilities.
On May 1, Brown’s Antiques paid $18,000 for 12 months of advance rent on its store and immediately debited the asset account Prepaid Rent for the full amount. Select the adjusting entry made on December 31, to record the amount of rent that had expired.
Multiple Choice
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Prepaid Rent 12,000
Rent Expense 12,000
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Prepaid Rent 18,000
Rent Expense 18,000
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Rent Expense 10,500
Prepaid Rent 10,500
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Rent Expense 12,000
Prepaid Rent 12,000
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Use the following account balances from the adjusted trial balance columns of RB Auto’s worksheet to answer below question.
Account Debit Balance Credit Balance
Cash 20,500
Merchandise Inventory 1,000
Accounts Payable 2,800
R. Holloway, Drawing 500
R. Holloway, Capital 13,000
Sales 15,000
Purchases 2,000
Purchase Returns and Allowances 200
Rent Expense 3,000
Salaries Expense 4,000
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Select the closing entry that RB Auto would make at the end of the accounting period to close their revenue accounts and income statement accounts with credit balances.
Multiple Choice
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debit Sales and credit Income Summary for $15,000.
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debit Sales $15,000; debit Purchase Returns and Allowances $200 and credit Income Summary for $15,200.
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debit Sales for $15,000; debit R Holloway, Capital for $13,000 and credit Income Summary for $28,000.
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debit Income Summary for $15,000 and credit Sales for $15,000.
Use the following account balances from the adjusted trial balance columns of RB Auto’s worksheet to answer below question.
Account Debit Balance Credit Balance
Cash 20,500
Merchandise Inventory 1,000
Accounts Payable 2,800
R. Holloway, Drawing 500
R. Holloway, Capital 13,000
Sales 15,000
Purchases 2,000
Purchase Returns and Allowances 200
Rent Expense 3,000
Salaries Expense 4,000
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Select the correct closing entry that RB Auto would make to close their expense account(s) at the end of the accounting period.
Multiple Choice
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debit Salary Expense $4,000; debit Rent Expense $3,000; debit Purchases $2,000 and credit Income Summary $9,000
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debit Income Summary $9,000 and credit Salary Expense $4,000; credit Rent Expense $3,000; credit Purchases $2,000
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debit Income Summary $9,000 and credit R. Holloway, Capital for $9,000
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debit R. Holloway, Capital $9,000 and credit Salary Expense $4,000; credit Rent Expense $3,000; credit Purchases $2,000
Use the following account balances from the adjusted trial balance columns of Goody Chocolate’s worksheet to answer below question.
Account Debit Balance Credit Balance
Cash 10,000
Merchandise Inventory 4,000
Accounts Payable 2,200
A. Goody, Drawing 1,000
A. Goody, Capital 6,000
Sales 24,000
Sales Discounts 200
Purchases 12,000
Salaries Expense 7,500
Income Summary 1,500 4,000
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Using the adjusted trial balance above, select the correct closing entry that Goody Chocolate would make to close their revenue accounts (and other temporary income statement accounts with credit balances) at the end of the accounting period.
Multiple Choice
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Income Summary 24,200
Sales 24,000
Sales Discounts 200
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A. Goody, Capital 28,000
Income Summary 4,000
Sales 24,000
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Sales 24,000
Income Summary 24,000
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Sales 24,000
A. Goody, Capital 24,000
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Which of the following accounts would be closed at the end of the accounting period?
Multiple Choice
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Capital
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Depreciation Expense
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Accumulated Depreciation
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Prepaid Rent
Which of the following accounts will appear on the post-closing trial balance?
Multiple Choice
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Capital
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Depreciation Expense
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Sales
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Payroll Tax Expense
The current ratio is calculated by
Multiple Choice
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dividing total assets by total liabilities.
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subracting current liabilities from current assets.
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dividing current assets by current liabilities.
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adding current assets to current liabilities.