Questions from Financial Accounting

Q: Refer to the United First Bank data in Quiz question 5-

Refer to the United First Bank data in Quiz question 5-44. At December 31, United First Banks balance sheet should report: a. dividend revenue of $37,000. b. short-term investment of $700,000. c. s...

Q: Under the allowance method for uncollectible receivables, the entry to record

Under the allowance method for uncollectible receivables, the entry to record uncollectible-account expense has what effect on the financial statements? a. Decreases owners equity and increases liabi...

Q: If a bookkeeper mistakenly recorded a $35 deposit as $53

If a bookkeeper mistakenly recorded a $35 deposit as $53, the error would be shown on the bank reconciliation as a a. $53 deduction from the book balance. b. $53 addition to the book balance. c. $1...

Q: If a bank reconciliation included a deposit in transit of $880

If a bank reconciliation included a deposit in transit of $880, the entry to record this reconciling item would include a a. credit to cash for $880. b. debit to cash for $880. c. credit to prepaid...

Q: Graham Company uses the percent-of-sales method to estimate

Graham Company uses the percent-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to $130,000 and management estimates 3% will be uncollectible. Allowance for do...

Q: Refer to question 5-49. The balance of Allowance for

Refer to question 5-49. The balance of Allowance for Doubtful Accounts, after adjustment, will be a. $7,900. b. $1,000. c. $5,900. d. $5,200. e. Cannot be determined from the information given.

Q: The Little French Bakery is budgeting cash for 2011. The cash

The Little French Bakery is budgeting cash for 2011. The cash balance at December 31, 2010, was $6,000. The Little French Bakery budgets 2011 cash receipts at $83,000. Estimated cash payments include...

Q: On August 1, 2010, Botores, Inc., sold equipment

On August 1, 2010, Botores, Inc., sold equipment and accepted a six-month, 12%, $50,000 note receivable. Botores year-end is December 31. How much interest revenue should Botores accrue on December 3...

Q: On August 1, 2010, Botores, Inc., sold equipment

On August 1, 2010, Botores, Inc., sold equipment and accepted a six-month, 12%, $50,000 note receivable. Botores year-end is December 31. If Botores, Inc., fails to make an adjusting entry for the ac...

Q: Vincent Company uses the aging method to adjust the allowance for uncollectible

Vincent Company uses the aging method to adjust the allowance for uncollectible accounts at the end of the period. At December 31, 2010, the balance of accounts receivable is $200,000 and the allowanc...