Accounting Midterm

The m angiotensin-converting enzymenesstary whole assumption states that proceeding that bathroom be measured in arms of bills should be preserve in the credit line relationship system records. 5. The drawings history Is a subdivision of the owners detonator forecast and appears as an expense on the unicorn direction. 6. revenue enhancements argon a subdivision of owners jacket crown. 7. The political campaign balance has no limitations or weaknesses. 8. In an automated system, the entering of data and transferring of knowledge is 9. Adjusting entries argon often made beca employ any(prenominal) vocation events are not recorded as they occur. 10.Adjusting entries are recorded in the everyday Journal but are not posted to the accounts in the general ledger. 1 1 . Adjusting entries are not necessary if the trial balance account and credit columns balances are equal. 12. An adjusting entry incessantly involves two balance sheet accounts. 13. The account cycle begins at the start of a new accounting period. 14. A grow sheet is a mandatory cook that must be prepared on with an income statement and balance sheet. 15. Both regenerateing entries and adjusting entries etern whollyy affect at least one balance sheet account and one income statement account.Multiple Choice Select the just about crystallize answer. (1 5 tag) 1. As a result of corporate compensateing scandals, proposals to rectify business raciest have come from all of the following merely a. Regulators. B. The investment community. C. The Canada Revenue Agency. D. The accounting profession. 2. Ethics are the standards of stand by which ones actions are Judged as b. ripe or dishonest. . Fair or unfair. D. entirely of these. 3. All of the following are move used to analyze ethical dilemmas except a. Using the organizations code of moral philosophy to invest ethical situations. . Using own(prenominal) ethics to identify ethical situations. C. Identifying potential s str ickleholders. D. Discussing the ethical dilemma with co-workers. 4. Generally accepted accounting principles are a. Income tax regulations. B. Standards that indicate how to report economic events. C. Theories that are based on physical laws of the universe. D. Principles that have been proven correct by academic researchers. 5. The investment of hard silver by the owners off business requires a debit to and a credit to a. Owners capital coin b. Drawings owners capital c. Ash drawings d. funds owners capital 6. The withdrawal of cash for individualised use by the owners off business requires a to the drawings account and a a. calculate debit b. Debit credit c. mention credit . Credit debit to the cash account. 7. An accountant has debited an plus account for $1,000 and credit a liability account for $500. What can be done to complete the save of the transaction? a. Nothing further must be done. B. Debit an owners equity account for $500. C. Debit an other(a) asset account f or $500. D. Credit a different asset account for $500. 8.Purchase equipment with a note payable. be utilities with cash. . Owner withdraws money from the business for personal use. Example (a) and (d) are a snap because both of them include one cast up in assets and one decrease in assets, so there is no egress on the accounting equation. Question 1 Solution (b) and O) are a pock because both of them include one increment to equity and one decrease to equity. (c) and (h) are a jibe because one decreases liabilities and the other increases liabilities. (e) and (f) are a match because one decreases liabilities and the other increases liabilities. (g) and (I) are a match because one increases assets, and the other decreases assets, showing that utilities were pay in cash with guest cash payments for services rendered. Question 2 12 marks Hones Bike Repairs opened for business on frame 1, 2008. The following transactions occurred in display. display 1 labourer Hon.. Investe d $5,000 cash in the business and contributed equipment March 5 ideal services for customers who paying(a) cash $400. March 6 paying(a) $660 for a one-year insurance policy. The policy takes effect April 1 and will reach March 31, 2009. March 8 Completed services for a major customer and invoiced the customer $1 ,OHO.March 1 5 Paid for printing advertising brochures $125. The brochures were distributed the alike(p) day. March 20 Received a bill from the utilities company for March utilities in the amount of $70. The amount is due April 4. March 5 Entered into a contract with a new customer who will use Hones services for repairs on their entire glide by of rental bikes. The customer paid $800 in advance for repairs to be completed in April. March 31 Jack Hon.. Withdrew $1,200 for personal use. March 31 Received $600 cash from the customer billed on March 8. Instructions Journalize the above transactions. Explanations are required.Question 2 Solution *copy answer from radical notes* Question 3 10 marks Pierson Insurance Agency prepares monthly financial statements. Presented below is an income statement for the month of June that is correct on the basis of information insider. PIERSON insurance policy AGENCY Income Statement Month cease June 30 Revenues Premium commission revenues Expenses compensation expense $6,000 Advertising expense 800 use up expense 4,200 Amortization expense $35,000 primitive expenses Net income 13,800 $21,200 Additional Data When the income statement was prepared, the company accountant neglected to take into consideration the following information 1.