1.

Mount Tessory Academy offers their customers private school education. Today, Mount Tessory Academy bought equipment on account which has a 5-year useful life, and which had a cost of $20,000. The company uses straight-line depreciation method.

A

DR Accounts Payable $4,000

CR Equipment $4,000

B

DR Equipment $4,000

CR Accounts Payable $4,000

C

DR Equipment $20,000

CR Accounts Payable $20,000

D

DR Accounts Payable $20,000

CR Equipment $20,000

E

None of the above

2.

Mr. Mop is a corporation which sells household cleaners. This month, Mr. Mop has estimated that 25% of the accounts receivable might not end up being collectable, based on past experience. The accounts receivable will need to be adjusted from its current balance of $33,000.

A

DR Allowance for Doubtful Accounts $8,250

CR Bad Debt expense $8,250

B

DR Bad Debt expense $8,250

CR Allowance for Doubtful Accounts $8,250

C

DR Bad Debt expense $33,000

CR Allowance for Doubtful Accounts $33,000

D

DR Allowance for Doubtful Accounts $33,000

CR Bad Debt expense $33,000

E

None of the above

3.

Kola-Nut Ltd offers their customers a wide range of soft drinks. This month, Kola-Nut Ltd must amortize 1-month worth of utility bills which they had prepaid at the beginning of the year. The amount that they had paid upfront for the year was $15,600.

A

DR Prepaid Expense $1,300

CR Utilities expense $1,300

B

DR Utilities expense $1,300

CR Prepaid Expense $1,300

C

DR Utilities expense $15,600

CR Prepaid Expense $15,600

D

DR Prepaid Expense $15,600

CR Utilities expense $15,600

E

None of the above

4.

Kola-Nut Ltd is a company which offers their customers a wide selection of soft drinks. This month, Kola-Nut Ltd paid for 1 month of rent for the warehouse room, which has a monthly costs of $1200.

A

DR Accounts Payable $1,200

CR Rent expense $1,200

B

DR Rent expense $1,200

CR Cash $1,200

C

DR Rent expense $14,400

CR Accounts Payable $14,400

D

DR Accounts Payable $14,400

CR Rent expense $14,400

E

None of the above

5.

McGerald's is a corporation which sells fast food meals. This December, McGerald's recognized 1 year of depreciation on a building which had a total useful life of 25 years, and which had originally been bought for $655,000, no salvage value, and using the straight-line method.

A

DR Accumulated Depreciation $26,200

CR Depreciation expense $26,200

B

DR Depreciation expense $26,200

CR Accumulated Depreciation $26,200

C

DR Depreciation expense $655,000

CR Accumulated Depreciation $655,000

D

DR Accumulated Depreciation $655,000

CR Depreciation expense $655,000

E

None of the above

6.

Grand Convention Ltd is a corporation which sells banquet hall rentals for corporate meetings. Grand Convention Ltd has just provided 2000 large orders which had been paid for in advance last year. Each order was in the amount of $2100.

A

DR Unearned Revenue $2,100

CR Sales $2,100

B

DR Sales $4,200,000

CR Unearned Revenue $4,200,000

C

DR Sales $2,100

CR Unearned Revenue $2,100

D

DR Unearned Revenue $4,200,000

CR Sales $4,200,000

E

None of the above

7.

Hogtown Records is a corporation which sells audio services for local musicians to record their music albums. Hogtown Records has just purchased a building using cash, which has an expected useful life of 30 years, and which has a total cost of $383,000. What would the entry be for this transaction?

A

DR Building $12,767

CR Cash $12,767

B

DR Cash $383,000

CR Building $383,000

C

DR Cash $12,767

CR Building $12,767

D

DR Building $383,000

CR Cash $383,000

E

None of the above

8.

Kola-Nut Ltd is an organization which specializes in providing their customers with soft drinks. This week, Kola-Nut Ltd purchased 5910 batches of soda bottles which were placed into the warehouse, and which had a per unit cost of $1100.

A

DR Inventory $6,501,000

CR Cash $6,501,000

B

DR Accounts Payable $1,100

CR Inventory $1,100

C

DR Accounts Payable $6,501,000

CR Inventory $6,501,000

D

DR Inventory $1,100

CR Accounts Payable $1,100

E

None of the above

9.

What was the transaction that would bring about the following entry?

A

The company sold shares of stock

B

The company purchased treasury shares

C

The company generated revenue

D

The company increased retained earnings

E

None of the above

Most recent year

July 27, 2018

Previous year

July 28, 2017

Number of shares of common shares outstanding (weighted average – basic)

EPS for the year ending (basic)

(Assumed) Price per common share of common stock

$42.57

$31.52

P/E ratio