Accounting First Exam

Question 1

Investing T- Accounts

Answer 1

PPE, Ac D, IA, Ac AM

Question 2

Journal Entry for Gain (Sales Price > Book value)

Answer 2

Left
Cash
Ac Dep

Right
Equiment
Gain

Question 3

Journal Entry for Loss (Sales Price < Book Value)

Answer 3

Left
Cash
Ac Dep
Loss

Right
Equipment

Question 4

Journal Entry for Deprectiation

Answer 4

Depreciation Expense
Accumulated Depreciation

Question 5

Financing T-accounts

Answer 5

Notes/Mortgages/Bonds Payable
Long-Term Debt
Dividends Payables
Retained Earnings
Common Stock

Question 6

Declaring Dividend Journal Entry

Answer 6

Cash Dividends
Dividends Payable

Question 7

Paying Dividends Journal Entry

Answer 7

Dividends Payable
Cash

Question 8

Operating added to Sales

Answer 8

A/R, U/R

Question 9

Operating Added to COGS

Answer 9

Inventory, A/P

Question 10

Adjusting Entry: recieving cash before earning

Answer 10

Cash
U/R

U/R
Cash

Question 11

Adjusting Entry: Revenue before Cash

Answer 11

A/R
Sales Revenue

Cash
A/R

Question 12

Accounting Cycle

Answer 12

1. Analyze
2. Journal Entries
   3.Post to Ledger
3. Unadjusted Trial Balance
4. Adjusted Entry
5. Adjusted Trial Balance
6. Prepare Financial Statements
7. Closing Entries
8. Post-closing trial balance

Question 13

Order of Assets

Answer 13

Cash
marketable securities
A/R
Inventory
Supplies
Prepaid Expenses

Question 14

NTC: I have 141.1 billion in receivables. This is 69% of my total assets of $205.96 Billion

Google
Truist Banks
Home Depot
Boeing

Answer 14

Truist Banks

Question 15

NTC: I have 252.6 in PPE. This is 73% of my total assets of $348.6 billion

Google
Bank of America
The Gap
Exxon Mobil

Answer 15

Exxon Mobil

Question 16

My total revenue for the year was $46.3 billion. I generated 23% in quarter 1, 22% in quarter 2, 23% in quarter 3 and 32% in quarter 4

Travelers Insurance
Alocoa (makes aluminum)
3M (makes office supplies)
Best Buy

Answer 16

Best Buy

Question 17

COGS is my largest expense. For the year ended January 28, 2018, my COGS of $66.5 billion was 66% of my sales of $100.9 billion

Home Depot
Google
American Express
Walt Disney

Answer 17

Home Depot

Question 18

My bad debt expense for each of the past four years has been as follows: 2.5 million, 3 million, 2.4 million, 1.4 million

Wells Fargo
Mcdonalds
Walt Disney
Wal-mart

Answer 18

Wells Fargo has large amount of recievables companies record bad debt expense to account for people not paying recievables

Question 19

My depreciation for 2012 totaled $5.9 billion. This is down substantially from prior years. For example, my depreciation in 2005 was $15.8 billion

Google
Microsoft
General Motors
Bkershire Hathaway

Answer 19

General Motors has large PPE

Question 20

My return on sales was 3% which was much lower than the other three companies

Apple
Google
Exxon Mobil
Microsoft

Answer 20

Exxon Mobil has lots of revenue, but also a lot of expenses

Question 21

My return on sales was 1.9% which was the lowest of any companies listed below

Kroger
Coke
Mcdonalds
Boeing

Answer 21

Kroger grocery stores are not very profitable because so competitive

Question 22

Four Financial Statements

Answer 22

Income Statement, Balance Sheet, Cash Flows, Retained Earnings

Question 23

Receipt of Unearned Revenue

Answer 23

Cash
Unearned Revenue

Question 24

Prepaying Rent/Insurance

Answer 24

Prepaid Rent/Insurance
Cash

Question 25

Paying One month of rent

Answer 25

Rent Expense
Cash

Question 26

Indirect Method for Operating

Answer 26

NI
1. Add deprecation/amortization
2. subtract gains
3. subtract increased CA (ignore cash)
4. Add decreased in CA (ignore cash)
5. add increases in CL (ignore finance)
6. Subtract decreased in CL (ignore finance

Question 27

Cash Collected from Customers journal entry

Answer 27

Sales on Account:
A/R
Sales Revenue

Collection of A/R:
Cash
A/R

add change in unearned revenue

Question 28

Cash paid for inventory purchases journal entries

Answer 28

Selling Inventory:
COGS
Inventory

Purchase on Account:
Inventory
A/P

Paying for Inventory
A/P
Cash

Question 29

Cash paid to employees JE

Answer 29

Accrue Salaries/Wages
Salaries and Wages Expense
Salaries and Wages Payable

Paying Salaries/Wages
Salaries/Wages Payable
Cash