3)If adjustments are made on a monthly basis, the entry for a three-month note payable of $5,000 with an interest rate of 6% will include the following:

A)no entry is required.

B)a credit to Cash of $300.

C)a credit to Interest Payable of $25.

D)a debit to Interest Expense of $75.

5)Keswick Industries has the following current assets and current liabilities on the companys balance sheet: Cash $17,000; Accounts Receivable $8,200; Inventory $54,000; Prepaid Rent $3,000; Accounts Payable $23,000; Notes Payable due within one year $20,000; and Unearned Revenue $5,500. The companys current ratio would be

A)0.34:1

B)1.69:1

C)0.59:1

D)1.07:1

6)In order to close the Owner's Drawings account, the

A)Income Summary account should be credited.

B)Owner's Capital account should be debited.

C)Owner's Capital account should be credited.

D)Income Summary account should be debited

7)Bonita Company recently made a $10000 purchase from a major supplier. Shipping costs were $250, terms FOB shipping point. To record this purchase, Bonita Company will need to debit the

A)Cost of Goods Sold account for $250.

B)Merchandise Inventory account for $10250.

C)Cost of Goods Sold account for $10250.

D)Merchandise Inventory account for $10000.

8)The control activity related to not having the same person authorize and pay for goods is known as

A)segregation of duties.

B)establishment of responsibility.

C)independent check of performance.

D)rotation of duties.

9)On a bank reconciliation, outstanding cheques are:

A)added to the book balance.

B)added to the bank balance.

C)deducted from the bank balance.

D)deducted from the book balance.

10)Cullumbers Forest Products showed the following account balances at the end of 2021:

Cash		$ 103150
Accounts Receivable		19700
Accounts Payable		14000
Unearned Revenue		920
Sales		151700
Cullumber, Capital		71100
Cullumber, Withdrawals		59200
Office Supplies		2520
Wages Expense		44500
Utilities Expense		8650

Assuming all accounts have normal balances, what are the totals for the debit and credit columns in the trial balance?

A)$237720

B)$236800

C)$134570

D)$166620