Journal entries based on the bank reconciliation are required in the company's accounts for
a. outstanding checks
b. deposits in transit
c. bank errors
d. book errors
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Q. 2) Ace Electronics accepted a promissory note from Fenstermaker, who promised to pay Ace 2,000 plus 6 interest at the end of six months. The maker of the note is ________ and the payee is _________.
A) Fenstermaker; Ace Electronics
B) Fenstermaker; Fenstermaker
C) Ace Electronics; Ace Electronics
D) Ace Electronics; Fenstermaker
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Q. 3) In a(n) _____________________________
_ a Web site is overwhelmed by an intentional onslaught of thousands of simultaneous messages, making it impossible for the attacked site to engage in its normal activities.
Fill in the blank(s) with correct word
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Q. 4) Identify the effects of each of the following items on the accounting equation. Show the correct dollar amount. Account titles are not required. The first entry has been done for you.
a. Prepaid rent used up, 400
b. Only 500 remains unearned of the 3,500 recognized as unearned revenue at the beginning of the period
c. Of the 700 in office supplies on hand at the beginning of the period, only 100 remained at the end of the period
d. Interest accrued but unpaid on a note payable amounts to 120
e. Depreciation of the long-term assets amounts to 12,000
f. Wages and salaries earned by employees but unpaid amount to 10,000
Item Assets Liabilities Shareholders' equity
Contributed
capital Retained earnings
a. (400) (400)
b.
c.
d.
e.
f.
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Q. 5) A schedule of accounts receivable is prepared to
a. verify that the sum of the accounts receivable ledger balances equals the Accounts Receivable balance.
b. send to all customers at the end of the month.
c. prove that the general ledger and accounts receivable ledger were posted at the same time.
d. keep track of all the company's customers.
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Q. 6) All long-term assets are tangible.
Indicate whether the statement is true or false
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