Chapter 1-5

Review Quiz

Question # 1 David listed his son and daughter’s

tuition as an expense for his personal business?

What GAAP does this situation violate?

Question # 2 A major expense was incurred in

2009, but will not be paid until 2010, so the bookkeeper decided not to journalize it until 2010.

What GAAP does this violate?

Question # 3 Dec 3 -A new client was obtained

that will pay for one cleaning per month, paying $300.

What is the journal entry?

Question # 4 Apr 1 - B. Johnson paid off his

entire account with a cheque for $3400.

What is the journal entry?

Question # 5 Aug 11 -$1250 of revenue was

earned, but has yet to be billed or recorded.

What is the journal entry?

Question # 6 Sept 30 – A 6 month insurance

policy was purchased on Sept 1 for $1500.

What is the journal entry?

Question # 7 A. Dudeck paid off his debt of

$3500, Cash was debited 3500 and Sales was credited 3500.

What is the correcting entry?

Question 8 After closing entries, this year’s

capital has decreased $600 compared to last year.

How is this possible?

Question # 9 COGS= $24,500,000 Beginning Inventory = 3,250,000 Ending Inventory = 1,360,000 Calculate

Inventory Turnover Days Sales in Inventory

Question 10 Oct 1 -ABC purchased $10250 worth

of Inventory from XYZ terms n/30, the merchandise was shipped FOB Shipping Point, the proper party paid a $250 cash payment. The merchandise originally cost $8500.

What is the journal entry for ABC? What is the journal entry for XYZ?