The function composed of people, procedures, and equipment and is typically called the information systems department, IS department, or the IT department is the information systems organization.
Indicate whether the statement is true or false
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Q. 2) The payroll register for the week ended May 28 for J & D United indicates gross earnings of 4,000 and total deductions of 1,200 . The total of all the credit entries for the payroll for the week ending May 28 would be
a. 1,200.
b. 2,800.
c. 4,000.
d. 5,200.
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Q. 3) Review the following balance sheet and answer the following questions.
Barry Rich, CPA
Balance Sheet
April 30, 2012
Assets Liabilities
Cash 2,430 Note Payable 3,000
Supplies 1,690 Shareholders' equity
Equipment 7,500 Contributed capital 5,000
Retained Earnings 3,620
Total Sharheolders' equity 8,620
Total assets 11,620 Total liabilities and shareholders' equity 11,620
1. Is this business a sole proprietorship, partnership, or corporation? How do you know?
2. Who has claims to the assets owned by the business and how much are they?
3. Assume that April is the first month of operations and no dividends were given to the owner. How much net income was earned during April?
4. Using this balance sheet, describe what Barry Rich did during the first month of running his business.
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Q. 4) On December 29, Perch X, Inc. purchased 2,000 of merchandise from a supplier. The shipping terms were FOB destination. The merchandise did not arrive until after yearend. Perch X should ______.
A) exclude the merchandise from its inventory but should record the related accounts payable as of yearend.
B) include the merchandise in its inventory and record the related accounts payable.
C) exclude both the merchandise from its inventory and the related accounts payable as of yearend.
D) expense the merchandise as cost of goods sold at yearend.
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Q. 5) The inventory data for an item for November are: Nov. 1 Inventory 20 units at 19 4 Sold 10 units 10 Purchased 30 units at 20 17 Sold 20 units 30 Purchased 10 units at 21 Using a perpetual system, what is the cost of the merchandise sold for November if the company uses FIFO?
a. 610
b. 600
c. 590
d. 580
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Q. 6) Z Company obtained the following balances from its computerized accounting information system at the end of the year before adjustments:
Accounts receivable 50,000
Allowance for uncollectible accounts (1,000)
Net sales 200,000
Bad debts expense 0
The company estimates that 2 of net sales will be uncollectible. After the correct adjusting entry has been made, bad debts expense for the year will be:
A) 4,000.
B) 1,000.
C) 3,000.
D) 5,000.
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