121.Zen Arcade paid the weekly payroll on January 2 by debiting Salaries and Wages Expense for $47,000.
Question:
121.Zen Arcade paid the weekly payroll on January 2 by debiting Salaries and Wages Expense for $47,000. The accountant preparing the payroll entry overlooked the fact that Salaries and Wages Expense of $27,000 had been accrued at year end on December 31. The correcting entry is
a.Salaries and Wages Payable........................27,000
Cash.........................................27,000
b.Cash...........................................20,000
Salaries and Wages Expense................................20,000
c.Salaries and Wages Payable........................27,000
Salaries and Wages Expense................................27,000
d.Cash...........................................27,000
Salaries and Wages Expense................................27,000
122.Jawbreaker Company paid $640 on account to a creditor. The transaction was erroneously recorded as a debit to Cash of $460 and a credit to Accounts Receivable, $460. The correcting entry is
a.Accounts Payable.................................640
Cash.........................................640
b.Accounts Receivable..............................460
Cash.........................................460
c.Accounts Receivable..............................460
Accounts Payable.........................................460
d.Accounts Receivable..............................460
Accounts Payable.........................................640
Cash.........................................1,100
123.A lawyer collected $720 of legal fees in advance. He erroneously debited Cash for $270 and credited Accounts Receivable for $270. The correcting entry is
a.Cash..............................................270
Accounts Receivable.......................................450
Unearned Service Revenue..................................720
b.Cash..............................................720
Service Revenue.........................................720
c.Cash..............................................450
Accounts Receivable.......................................270
Unearned Service Revenue..................................720
d.Cash..............................................450
Accounts Receivable.......................................450
124.On May 25, Yellow House Company received a $650 check from Grizzly Bean for services to be performed in the future. The bookkeeper for Yellow House Company incorrectly debited Cash for $650 and credited Accounts Receivable for $650. The amounts have been posted to the ledger. To correct this entry, the bookkeeper should:
a.debit Cash $650 and credit Unearned Service Revenue $650.
b.debit Accounts Receivable $650 and credit Service Revenue $650.
c.debit Accounts Receivable $650 and credit Cash $650.
d.debit Accounts Receivable $650 and credit Unearned Service Revenue $650.
125.On March 8, Black Candy Company bought supplies on account from the Arcade Fire Company for $880. Black Candy Company incorrectly debited Equipment for $800 and credited Accounts Payable for $800. The entries have been posted to the ledger. the correcting entry should be:
a.Supplies...........................................880
Accounts Payable..........................................880
b.Supplies...........................................880
Accounts Payable..........................................800
Equipment............................................80
c.Supplies...........................................880
Equipment............................................880
d.Supplies...........................................880
Equipment............................................800
Accounts Payable..........................................80
126.The following information is for Sunny Day Real Estate:
Sunny Day Real Estate
Balance Sheet
December 31, 2013
Cash$ 25,000Accounts Payable$ 60,000
Prepaid Insurance30,000Salaries and Wages Payable15,000
Accounts Receivable50,000Mortgage Payable 85,000
Inventory70,000Total Liabilities$160,000
Land Held for Investment85,000
Land120,000
Building$100,000Common Sock$120,000
Less AccumulatedRetained Earnings 250,000 370,000
Depreciation(20,000)80,000
Trademark 70,000Total Liabilities and
Total Assets$530,000Stockholders' Equity$530,000
The total dollar amount of assets to be classified as current assets is
a.$105,000.
b.$175,000.
c.$190,000.
d.$260,000.
127.The following information is for Sunny Day Real Estate:
Sunny Day Real Estate
Balance Sheet
December 31, 2013
Cash$ 25,000Accounts Payable$ 60,000
Prepaid Insurance30,000Salaries and Wages Payable15,000
Accounts Receivable50,000Mortgage Payable 85,000
Inventory70,000Total Liabilities$160,000
Land Held for Investment85,000
Land120,000
Building$100,000Common Sock$120,000
Less AccumulatedRetained Earnings 250,000 370,000
Depreciation(20,000)80,000
Trademark 70,000Total Liabilities and
Total Assets$530,000Stockholders' Equity$530,000
The total dollar amount of assets to be classified as property, plant, and equipment is
a.$200,000.
b.$220,000.
c.$285,000.
d.$305,000.
128.The following information is for Sunny Day Real Estate:
Sunny Day Real Estate
Balance Sheet
December 31, 2013
Cash$ 25,000Accounts Payable$ 60,000
Prepaid Insurance30,000Salaries and Wages Payable15,000
Accounts Receivable50,000Mortgage Payable 85,000
Inventory70,000Total Liabilities$160,000
Land Held for Investment85,000
Land120,000
Building$100,000Common Sock$120,000
Less AccumulatedRetained Earnings 250,000 370,000
Depreciation(20,000)80,000
Trademark 70,000Total Liabilities and
Total Assets$530,000Stockholders' Equity$530,000
The total dollar amount of assets to be classified as investments is
a.$0.
b.$70,000.
c.$85,000.
d.$155,000.
129.The following information is for Sunny Day Real Estate:
Sunny Day Real Estate
Balance Sheet
December 31, 2013
Cash$ 25,000Accounts Payable$ 60,000
Prepaid Insurance30,000Salaries and Wages Payable15,000
Accounts Receivable50,000Mortgage Payable 85,000
Inventory70,000Total Liabilities$160,000
Land Held for Investment85,000
Land120,000
Building$100,000Common Sock$120,000
Less AccumulatedRetained Earnings 250,000 370,000
Depreciation(20,000)80,000
Trademark 70,000Total Liabilities and
Total Assets$530,000Stockholders' Equity$530,000
The total dollar amount of liabilities to be classified as current liabilities is
a.$15,000.
b.$60,000.
c.$75,000.
d.$160,000.
130.The following information is for Bright Eyes Auto Supplies:
Bright Eyes Auto Supplies
Balance Sheet
December 31, 2013
Cash$ 20,000Accounts Payable$ 65,000
Prepaid Insurance40,000Salaries and Wages Payable25,000
Accounts Receivable50,000Mortgage Payable 75,000
Inventory70,000Total Liabilities$165,000
Land Held for Investment90,000
Land125,000
Building$100,000Common Sock$120,000
Less AccumulatedRetained Earnings 250,000 370,000
Depreciation(30,000)70,000
Trademark 70,000Total Liabilities and
Total Assets$535,000Stockholders' Equity$535,000
Expert Answer:
121 The correcting entry for Zen Arcades payroll error is c Salaries and Wages Payable27000 Salaries ... View the full answer
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
