1- The payment for the monthly rent will require the following entry
Answer
Debit Cash and Debit Rent Expense
Credit Cash and Credit Rent Expense
Debit Rent Expense and Credit Cash
Credit Rent Expense and Debit Cash
2- A company, using the periodic inventory system, has merchandise inventory costing $175 on hand at the beginning of the period. During the period, merchandise costing $635 is purchased. At year-end, merchandise inventory costing $160 is on hand. The cost of merchandise sold for the year is
Answer
$970
$650
$300
$620
3- After all of the account balances have been extended to the Income Statement columns of the work sheet, the totals of the debit and credit columns are $77,500 and $85,300, respectively. What is the amount of the net income or net loss for the period?
Answer
$7,800 net income
$7,800 net loss
$85,300 net income
$77,500 net loss
4- A financial statement user would determine if a company was profitable or not during a specific period of time by reviewing
Answer
the Income Statement.
the Balance Sheet.
the Statement of Cash Flows.
cannot be determined.
5- April 23 Cash 14,000
Jim Xu, Capital 14,000
I nvest cash in Xu Co.
The journal entry will:
Answer
Increase Capital and decrease Cash
Increase Cash and decrease Capital
Increase Cash and increase Capital
Decrease Cash and decrease Capital