Fill in the Blank Questions  12.A(n) ____________________ business sells goods that it purchases in finished form for resale.          13.The entry to record a sale of merchandise on credit that is subject to sales tax includes a(n) ____________________ to Sales Tax Payable.          14.A business that sells goods and services directly to individual consumers is called a(n) ____________________ business.          15.The stock of goods kept on hand to sell to consumers is called ________________________.          16.A(n) ____________________ journal is a journal that is used to record only one type of transaction.    […]

    37.Which of the following accounts will not normally have a zero balance after the closing entries have been posted?    A. Income Summary   B. Fees Income   C. The owner's capital account   D. Rent Expense         38.One purpose of closing entries is to    A. transfer the results of operations to owner's equity.   B. reduce the owner's capital account balance to zero so that the account is ready for the next period.   C. adjust the ledger account balances to provide complete and accurate figures for use on financial statements.   D. close all accounts so that the ledger is ready for […]

  31) Allan Corporation issued 300, 8%, 10-year, $1,000 bonds on July 1. The annual bond interest date is June 30, and the bonds were issued at face value. The amount of interest expense reported for the current year is: A) $0. B) $24,000. C) $12,000. D) None of the above are correct.   32) On October 1, Allan Company issued 8%, 10-year, $300,000 bonds at 100. Interest dates are April 1 and October 1. The amount of cash paid out for interest during the current calendar year is: A) $0. B) $24,000. C) $12,000. D) $6,000. 33) On April […]

  11) When comparing net cash provided by operating activities using the indirect versus direct method: A) net cash is higher using the indirect method B) net cash is lower using indirect method C) there is no difference between the two methods D) depreciation expense is used in the direct method.   12) Rick Corporation's Accounts Receivable decreased by $25,000 during the year. What is the adjustment to the cash flow statement when it is prepared by the indirect method? A) Subtract the decrease from the net income in operating activities. B) Add the decrease to the net income in […]

  36) On July 1, Ball Computer Corporation issued 10-year, 8%, $100,000 bonds for 97. Prepare the journal entries to record:   a. Issuance of the bond. b. First semiannual interest period payment including the amortization of the discount using the straight-line method.   37) On January 1, Preston Corporation issued 6%, 20-year bonds at 108. The face value is $450,000 and interest is paid semiannually. Prepare the journal entries to record:   a. Issuance of the bonds. b. First semiannual interest payment and amortization of the premium using the straight-line method. 38) Scooters Doll Flower Company on July 1 […]