Acct102 Quiz
2006 Summer ACCT102 L1 Quiz 2
NAME: STUDENT ID: Mark:
Multiple Choice Questions (10 marks):
1. On December 1, Martin Company signed a $5,000 3-month 6% note payable, with the principle plus interest due on March 1 of the following year. What amount of interest expense is accrued at December 31 on the note? ( B ) A) $0 B) $25 C) $50 D) $75 E) $300
2. During 2000, Tito Corporation had revenues of $99,000 and expenses of $64,000. Dividends of $14,000 were paid during the year and additional stock was issued for $10,700. If total assets and total liabilities on January 1, 2000, were $65,000 …show more content…
E) A financial statement that lists the types and amounts of the revenues and expenses of a business for an accounting period.
5. A short-term note payable: ( A ) A) Is a written promise to pay a specified amount on a definite future date within one year or the company's operating cycle, whichever is longer. B) Is a contingent liability. C) Is an estimated liability. D) Is not a liability until the due date. E) Cannot be used to extend the payment period for an account payable.
6. Which of the following items is reported on the statement of cash flows under financing activities?
A) Declaration of a cash dividend. B) Payment of a cash dividend. C) Declaration of a stock dividend. D) Payment of a stock dividend. E) Stock split.
Answer: B
7. Long-term investments include:
A) Investments in bonds and stocks that are not marketable. B) Investments in marketable stocks that are intended to be converted into cash in the …show more content…
Record the warranty expense for the month of June. 2. Record the costs of the warranty work completed in June.
Answer:
|1. |Warranty Expense ($450,000 x .06) |27,000 | |
| | Estimated Warranty Liability | |27,000 |
| | | | |
|2. |Estimated Warranty Liability |12,000 | |
| | Parts Inventory | |12,000 |
| | | | |
2. On July 31, a company declared a cash dividend of $0.25 per common share to the shareholders of record on August 15. The cash dividend will be paid on August 25. This company has 500,000 shares authorized and 100,000 shares outstanding. Prepare the journal entries required on July 31, August 15 and August
NAME: STUDENT ID: Mark:
Multiple Choice Questions (10 marks):
1. On December 1, Martin Company signed a $5,000 3-month 6% note payable, with the principle plus interest due on March 1 of the following year. What amount of interest expense is accrued at December 31 on the note? ( B ) A) $0 B) $25 C) $50 D) $75 E) $300
2. During 2000, Tito Corporation had revenues of $99,000 and expenses of $64,000. Dividends of $14,000 were paid during the year and additional stock was issued for $10,700. If total assets and total liabilities on January 1, 2000, were $65,000 …show more content…
E) A financial statement that lists the types and amounts of the revenues and expenses of a business for an accounting period.
5. A short-term note payable: ( A ) A) Is a written promise to pay a specified amount on a definite future date within one year or the company's operating cycle, whichever is longer. B) Is a contingent liability. C) Is an estimated liability. D) Is not a liability until the due date. E) Cannot be used to extend the payment period for an account payable.
6. Which of the following items is reported on the statement of cash flows under financing activities?
A) Declaration of a cash dividend. B) Payment of a cash dividend. C) Declaration of a stock dividend. D) Payment of a stock dividend. E) Stock split.
Answer: B
7. Long-term investments include:
A) Investments in bonds and stocks that are not marketable. B) Investments in marketable stocks that are intended to be converted into cash in the …show more content…
Record the warranty expense for the month of June. 2. Record the costs of the warranty work completed in June.
Answer:
|1. |Warranty Expense ($450,000 x .06) |27,000 | |
| | Estimated Warranty Liability | |27,000 |
| | | | |
|2. |Estimated Warranty Liability |12,000 | |
| | Parts Inventory | |12,000 |
| | | | |
2. On July 31, a company declared a cash dividend of $0.25 per common share to the shareholders of record on August 15. The cash dividend will be paid on August 25. This company has 500,000 shares authorized and 100,000 shares outstanding. Prepare the journal entries required on July 31, August 15 and August