11) If the cosmetic department in the store measures 20,000 square feet and the total building cost is $60,000 for a 40,000 square foot building, the cost that would be allocated to the cosmetic department would be: A) $30,000. B) $10,000. C) $22,500. D) $7,500. 12) If the music department in a department store is 8,000 square feet and the total square feet is 40,000, how much of the total building cost of $50,000 will be allocated to music? A) $8,000 B) $1,000 C) $32,000 D) $10,000 13) Advertising totaled $10,000; $3,000 was indirect. What would be the best […]

  11) When the trial balance includes a debit column total of $10,350 and a credit column total of $10,950, it is probable that: A) a transposition error occurred. B) a $300 debit was recorded twice. C) a $300 credit was recorded twice. D) a $300 debit was recorded as a credit. 12) The trial balance lists the accounts: A) alphabetically. B) in the same order as in the ledger. C) all debits first and then credits. D) all credits first and then debits. 13) A trial balance is a list of the accounts and their ledger balances. 14) The […]

11) Which of the following statements is true of partnership? A) If the partners have no partnership agreement specifying how to divide profits and losses, then they share equally. B) It is legally required to share the profit and losses equally, irrespective of the partnership agreement. C) The stated ratio of profit sharing needs to be approved by the SEC. D) The profit sharing is always based on each partner's capital balances and any losses will be shared equally. 12) Dana and Emile allocate 2/3 of the profits and losses to Dana and 1/3 to Emile. The net income of […]

  56) On January 1, 20XX, Edward Company issued $100,000, 10-year, 8% bonds at face values. The bonds have semiannual interest payments on June 30 and December 31. Record the 20XX journal entries.                                                                           57) On March 1, 20XX, Jones Company issued $100,000, 10-year, 6% bonds at face value. The bonds have semiannual interest payments on June 30 and December 31. Record the 20XX […]

  2.1   Learning Objective 2-1   1) Accounts Payable had a normal starting balance of $500. There were debit postings of $200 and credit postings of $100 during the month. The ending balance is: A) $400 credit. B) $800 debit. C) $400 debit. D) $800 credit. 2) The beginning balance in the Computers account was $3,000. The company purchased an additional $1000 worth of computers. The ending balance in the account is: A) debit of $2,000. B) credit of $3,000. C) debit of $4,000. D) credit of $2,000. 3) An accounting device used to record increases and decreases in individual […]