Generally Accepted Accounting Concepts and Office Supplies Composition

п»ї1..

An organization earned $3, 960 in net income to get October. It is net product sales for Oct were $22, 000. Their profit margin is:

1 . 8%.

18%.

180%.

556%.

$18, 040

2 .

About June 35 of the current calendar year, Apricot Co. paid $8, 2 hundred cash pertaining to management services to be performed over a two-year period. Apricot follows an insurance policy of recording all prepaid expenses to asset accounts at the time of funds payment. The adjusting access on January 31 to get Apricot could include:

A debit to a expense to get $6, a hundred and fifty.

A debit into a prepaid price for $6, 150.

A debit to an charge for $2, 050.

A charge to a pre-paid expense for $2, 050.

A credit to a liability pertaining to $2, 050.

several.

Prior to recording adjusting items, the Office Products account had a $350 debit balance. An actual count in the supplies demonstrated $114 of unused materials available. The required adjusting access is:

Charge Office Materials $114 and credit Office Supplies Charge $114.

Debit Workplace Supplies Expense $114 and credit Office Supplies $114.

Charge Office Materials Expense $236 and credit Office Items $236.

Debit Workplace Supplies $236 and credit Office Materials Expense $236.

Charge Office Items $114 and credit Products Expense $236.

4.

On 04 1, a company paid the $2, 052 premium on a three-year insurance policy with benefits beginning upon that time. What will become the insurance price on the annual rent statement pertaining to the year finished December 23? (Round your answer to you decimal locations. )

$2, 052. 00.

$684. 00.

$1, 539. 00.

$513. 00.

$57. 00.

5.

A business had simply no office materials available at quick the year. During the year, the company purchased $250 worth of business office supplies. Upon December 23, $75 really worth of workplace supplies remained. How much should the company survey as business office supplies price for the entire year?

$75.

$125.

$175.

$250.

$325.

6.

In January one particular a company purchased a five-year insurance policy intended for $2, two hundred fifty with protection starting quickly. If the purchase was recorded inside the Prepaid Insurance account, and the company data adjustments just at year-end, the altering entry at the conclusion of the initial year is usually:

Debit Prepaid Insurance, $2, 250; credit rating Cash, $2, 250.

Debit Pre-paid Insurance, $1, 800; credit rating Insurance Price, $1, 800.

Debit Prepaid Insurance, $450; credit Insurance Price, $450.

Debit Insurance Expense, $450; credit Pre-paid Insurance, $450.

Debit Insurance Expenditure, $1, 800; credit Pre-paid Insurance, $1, 800.

7.

About April 30, a three-year insurance policy was purchased pertaining to $21, 600 with insurance to begin right away. What is the amount of insurance price that would show on the company's income statement intended for the year finished December 31? В

$600.

$4, 800.

$7, 200.

$16, 800.

$21, 600.

8.

PPW Co. rented a portion of its shop to another business for eight months commencing on Oct 1, at a monthly rate of $1, 200. This kind of other organization paid the entire $9, 600 cash about October one particular, which PPW Co. documented as unearned revenue. The journal admittance made by PPW Co. in year-end about December thirty-one would contain: В

A debit to Lease Earned intended for $3, six-hundred.

A credit to Unearned Lease for $3, 600.

A charge to Funds for $9, 600.

A credit rating to Hire Earned intended for $3, six-hundred.

A debit to Unearned Rent for $6, 000.

9.

An adjusting access was made on year-end December 31 to accrue income expense of $3, 2 hundred. Which with the following records would be able to record the $7, 500 payment of salaries in January of the following season? В

A.

Salaries Charge

7, 1000 В

Money

7, 500 В

B.

Salaries Payable

7, 1000 В

Cash

7, 500 В

C.

Salaries Payable

3, two hundred В

Funds

3, 2 hundred В

M.

Salaries Expense

3, 2 hundred В

Wages Payable

three or more, 200 В

E.

Salaries Payable

3, 200 В

Salaries Expenditure

3, 800 В

Money

7, 000 В

Decision A...



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