On January 1, SONY Industries purchased supplies of $500 on account.

The entry to record

the purchase will include *
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c. a debit to Supplies and a credit to Cash.
b. a debit to Supplies Expense and a credit to Accounts Receivable.
d. a debit to Accounts Receivable and a credit to Supplies.
a. a debit to Supplies and a credit to Accounts Payable.

Posting *
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a. Accumulates the effects of ledger entries and transfers them to the general journal.
d. Is done by posting all the debits and credits of one entry before moving on to the next entry.
c. is done at least once per year.
b. Is done only for income statement activity; activity related to the statement of financial
position does not require posting.

Net sales for the month is *

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d. $7,800
c. $15,300.
a. $16,200.
b. $15,600.

A credit sale of ₤1,600 is made on April 25, terms 2/10, n/30, on which a return of ₤100 is
granted on April 28. What amount is received as payment in full on May 4? *
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a. ₤1,470
c. ₤1,600
d ₤1,500
b. ₤1,568

The entry to close the expense accounts includes a *

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d. debit to Wages Expense for ₤2,000.
a. debit to Income Summary for ₤3,400.
c. credit to Income Summary for ₤3,600.
b. credit to Rent Expense for ₤1,000,

The entry to close the revenue account includes a *

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b. credit to Income Summary for ₤3,400.

d. credit to Income Summary for ₤7,000.
a. debit to Income Summary for ₤3,400.
c. debit to Income Summary for ₤7,000.

The Income Summary account is an important account that is used *

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a. during interim periods.
b. in preparing adjusting entries.
d. annually in preparing correcting entries
c. annually in preparing closing entries.

A debit is not the normal balance for which account listed below? *
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b. Cash
d. Service Revenue
a. Dividends
c. Accounts Receivable
At October 1, 2019, Padilla Industries had an accounts payable balance of $30,000. During
the month, the company made purchases on account of $25,000 and made payments on
account of $40,000. At October 31, 2011, the accounts payable balance is *
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d. $40,000.
c. $15,000.
b. $10,000.
a. $30,000.

The entry to record the receipt of payment within the discount period on a sale of ¥7,500
with terms of 2/10, n/30 will include a credit to *
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b. Cash for ¥735.
d. Sales for ¥7,500.
c. Accounts Receivable for ¥7,500.
a. Sales Discounts for ¥150.

The trial balance *

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b. Has as its primary purpose to prove (check) that all journal entries were made for the
period.
d. Is used to prepare the statement of financial position while the general ledger is used to
prepare the income statement.
c. Can be used to uncover errors in journalizing and posting.
a. Is a listing of all the accounts and their balances in the order the accounts appear on the
statement of financial position.

During February 2019, its first month of operations, the owner of Alona Enterprises
invested cash of $50,000. Alona had cash revenues of $8,000 and paid expenses of $14,000.
Assuming no other transactions impacted the cash account, what is the balance in Cash at
February 28? *
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a. $6,000 credit
c. $58,000 debit
d. $36,000 credit
b. $44,000 debit

Ball Company sells merchandise on account for ₤2,000 to Edds Company with credit terms
of 2/10, n/30. Edds Company returns ₤400 of merchandise that was damaged, along with a
check to settle the account within the discount period. What is the amount of the check?  *
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b. ₤1,968
d. ₤1,568
a. ₤1,960
c. ₤1,600
A post-closing trial balance is prepared *
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a. after closing entries have been journalized and posted.
b. before closing entries have been journalized and posted.
d. before closing entries have been journalized but after the entries are posted.
c. after closing entries have been journalized but before the entries are posted.

Geran Company purchased merchandise inventory with an invoice price of $8,000 and
credit terms of 2/10, n/30. What is the net cost of the goods if Geran Company pays within
the discount period? *
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b. $7,840
d. $7,360
a. $8,000
c. $7,200

On July 9, Neal Company sells goods on credit to Al Dolan for $4,000, terms 1/10, n/60.
Neal receives payment on July 18. The entry by Neal on July 18 is: *
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a. (Db)Cash 4,000 (Cr) Accounts Receivable 4,000
d. (Db) Cash 4,040 (Cr) Sales Discounts 40 (Cr)Accounts Receivable 4,000
c. (Db) Cash 3,960 (Db) Sales Discounts 40 (Cr)Accounts Receivable 4,000
b. (Db) Cash 4,000 (CR) Sales Discounts 40 (Cr) Accounts Receivable 3,960

Using the periodic system, the cost of goods purchased is *

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c. ₤312,915.
a. ₤270,315.
b. ₤306,315.
d. ₤293,715.

Birk Company sells merchandise on account for $3,000 to Kiner Company with credit
terms of 2/10, n/30. Kiner Company returns $600 of merchandise that was damaged, along
with a check to settle the account within the discount period. What is the amount of the
check? *
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c. $2,400
d. $2,352
b. $2,952
a. $2,940

The closing entry process consists of closing *

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d. all temporary accounts.
c. all permanent accounts.
a. all asset and liability accounts.
b. out the retained earnings account.

Robitaille Company received a cash advance of $500 from a customer. As a result of this
event, *
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d. both a and b.
a. assets increased by $500.
c. liabilities decreased by $500.
b. equity increased by $500.