preview

Generally Accepted Accounting Principles and Office Supplies

Decent Essays
Open Document

1.. A company earned $3,960 in net income for October. Its net sales for October were $22,000. Its profit margin is: 1.8%. 18%. 180%. 556%. $18,040 2. On June 30 of the current calendar year, Apricot Co. paid $8,200 cash for management services to be performed over a two-year period. Apricot follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. The adjusting entry on December 31 for Apricot would include: A debit to an expense for $6,150. A debit to a prepaid expense for $6,150. A debit to an expense for $2,050. A debit to a prepaid expense for $2,050. A credit to a liability for $2,050. 3. Prior to recording adjusting entries, the …show more content…

The truck is estimated to have a useful life of 5 years and a salvage value of $5,600. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the truck during the first year ended December 31? $4,200. $4,760. $4,950. $8,400. $9,520. 11. A company 's Office Supplies account shows a beginning balance of $540 and an ending balance of $460. If office supplies expense for the year is $3,280, what amount of office supplies was purchased during the period? $2,820. $3,200. $3,360. $3,740. $3,820. 12. A company recorded 2 days of accrued salaries of $2,100 for its employees on January 31. On February 9, it paid its employees $8,400 for these accrued salaries and for other salaries earned through February 9. The January 31 and February 9 journal entries are: 1/31 Salaries Expense 2,100 Salaries Payable 2,100 2/9 Salaries Payable 8,400 Salaries Expense 2,100 Cash 10,500 1/31 Salaries Expense 2,100 Salaries Payable 2,100 2/9 Salaries Payable 6,300 Salaries Expense 2,100 Cash 8,400 1/31 Salaries Expense 2,100 Cash 2,100 2/9 Salaries Expense 8,400 Cash 8,400 1/31 Salaries Expense 2,100 Salaries Payable

Get Access
Related
Get Access