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ACCO Exam prep Latest Update 2022

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Which of the following accounts ordinarily appears in the post-closing trial balance? - ANSWER . Unearned Rent The accounting cycle requires three trial balances be done. In what order should they ... be prepared? - ANSWER . unadjusted, adjusted, post-closing Which of the following accounts would appear in the Balance Sheet columns of the end-of-period spreadsheet? - ANSWER . Prepaid Insurance During the end-of-period processing, which of the following best describes the logical order of steps? - ANSWER . preparation of adjustments, adjusted trial balance, financial statements Unearned fees appear on the - ANSWER balance sheet as a current liability Merchandise subject to terms 2/10, n/30, FOB shipping point, is sold on account to a customer for $26,200. What is the amount of the sales discount allowable? - ANSWER . $524 Using a perpetual inventory system, the entry to record the purchase of $30,000 of merchandise on account would include a - ANSWER debit to Merchandise Inventory A sales invoice included the following information: merchandise price, $6,000; terms 1/10, n/eom, FOB shipping point with prepaid freight of $1,100 added to the invoice. Assuming that a credit for merchandise returned of $800 is granted prior to payment and the invoice is paid within the discount period, what is the amount of cash that should be received by the seller? - ANSWER . $6,248 Cash Received = Sales - Sales Discount + Prepaid Freight - Cost of Merchandise Returned = $6,000 - (1% × $6,000) + $1,100 - [$800 - (1% × $800)] = $6,000 - $60 + $1,100 - ($800 - $8) = $7,040 - $792 = $6,248 Merchandise is sold for cash. The selling price of the merchandise is $6,000 and the sale is subject to a 7% state sales tax. The journal entry to record the sale would include a credit to - ANSWER . Sales Tax Payable for $420 Sales Tax Payable = Selling Price × 7% State Sales Tax = $6,000 × 7% = $420. The journal entry to record the sale would include a credit to Sales Tax Payable for $420. Some of the more common subsidiary ledgers are - ANSWER accounts receivable and accounts payable subsidiary ledgers If the individual subsidiary ledger accounts contained the following data: Cadence Company, Vendor, $168, credit balance Franklin Enterprises, Customer, $324, debit [Show More]

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