1. On December 1, 2023, your calendar year firm purchases a delivery van with the data shown below. What is the depreciation expense for calendar year 2024 under the straight-line method?

Cost - $36,000

Salvage Value - $6,000

Useful Life - 5 years

2. Assets that will turn to cash within one year are reported as assets.

3. Which of the following will increase the balance in a liability account?

4. Which of the following is not an asset account?

5. On November 22, your calendar year firm receives a $2,400 cash advance for services to be performed in future, which is recorded as follows:

Cash - 2,400

Sales - 2,400

 

If your firm performs the services on December 11 of the same year, what correcting entry, if any, should you make?

6. Federal income tax withheld from an employee’s pay is matched by the employer.

7.
1. The report that sorts a company’s accounts receivables into current, 1-30 days past due, 31-60 days past due, etc. is referred to as the  of accounts receivable.

8. The bank statement has an ending balance of $1,700. There are $600 of deposits in transit and $2,100 of checks outstanding. Your adjusted bank balance is $ .

9. Normally, the Inventory account will report the goods on hand at the selling prices of the goods.

10. On December 1, your calendar year firm, which is on the accrual basis, accepts a 60-day, $2,400 note with annual interest of 10% due at maturity. On December 31 your firm will:

11. As of December 31, 2023 retained earnings at the company is $165,000. During 2024, the company recorded the following activity:

Gross Receipts                     $100,000

Expenses                              $90,000

Fixed asset purchases        $20,000

Distributions                         $50,000

 

Ending retained earnings as of December 31, 2024 is $

12. Generally, the amounts reported in the accounts Land, Buildings, and Equipment are the historical  of these assets and not their current market value.

13. Rent expense, wages expense, and advertising expense are expected to have normal  balances.

14. The balance sheet reports amounts for a __________ __________ time.

15. A listing of the account numbers and titles but without account balances is known as the  of accounts.

16. The book value of a company’s equipment is usually the same as the equipment’s fair market value.

17. Your calendar year company, which is on the accrual basis, pays sales reps a 5% commission on sales. If, as of December 31, your sales for the year are $1 million, and you have previously recorded $23,000 of commission expense, you will:

18. Given the following data, what is cost of goods sold for the year?

 

Beginning inventory                  $40,000

Purchases during year              $900,000

Ending inventory                        $50,000

19. On July 11, your firm, which is on the accrual basis, incurs $600 for repairs. On July 29, your firm pays $400 for the repairs and on August 15, pays the $200 balance. How do you record the August 15th $200 payment?

20. Which of the following will increase the balance in a revenue account?

21. -entry accounting involves two or more accounts when recording every business transaction.

22. Which of the following is a balance sheet account?

23. The amount of insurance premiums that have not yet expired is reported as an ________

24. The cost of the land that is used as the site of a new warehouse should be depreciated.