Homework#2 – Homam Academy

1.

Which of these transactions would produce $10,000 of revenue in December? (check all that apply)

A.BOC Realty leases space to a tenant for December and the tenant pays the $10,000 rent in cash in December.

B.BOC Realty leases space to a tenant for December and sends a bill for the $10,000 rent to be paid in January.

C.BOC Bank receives a check for $10,000 in December for November's interest amount.

D.BOC Realty leases space to a tenant for December and January. The tenant pre-paid the $20,000 rent for the two months in November.

E.BOC Bank is owed $10,000 of interest on a loan for December and receives the payment in January.

Question 1 of 10

2.

Which journal entry reflects the following transaction?:

BOC receives $2,000 cash from a customer, of which $1,000 was for goods delivered now and $1,000 was a deposit on custom goods that will be delivered next month.

A.Dr. Cash 2,000 Cr. Inventory 2,000

B.Dr. Cash 2,000 Cr. Advances from Customers 2,000

C.Dr. Cash 2,000 Cr. Revenue 2,000

D.Dr. Revenue 2,000 Cr. Cash 2,000

E.Dr. Cash 2,000 Cr. Revenue 1,000 Cr. Advances from Customers 1,000

Question 2 of 10

3. Which journal entry(s) reflects the following transaction?:

BOC received $10,000 of cash from a customer who took delivery of goods that originally cost BOC $8,000 to acquire.

A.Dr. Cash 10,000 Cr. Inventory 8,000 Cr. Revenue 2,000

B.Dr. Cash 10,000 Cr. Inventory 10,000

C.Dr. Cash 10,000 Cr. Revenue 10,000 Dr. Accounts Payable 8,000 Cr. Inventory 8,000

D.Dr. Cash 10,000 Cr. Revenue 10,000 Dr. Cost of Goods Sold 8,000 Cr. Inventory 8,000

E.Dr. Cash 10,000 Cr. Revenue 10,000

Question 3 of 10

4.

Which journal entry(s) reflects the following transaction?:

BOC received $10,000 of cash from a customer who took delivery of goods that originally cost BOC $8,000 to acquire.

A.Dr. Cash 10,000 Cr. Inventory 8,000 Cr. Revenue 2,000

B.Dr. Cash 10,000 Cr. Inventory 10,000

C.Dr. Cash 10,000 Cr. Revenue 10,000 Dr. Accounts Payable 8,000 Cr. Inventory 8,000

D.Dr. Cash 10,000 Cr. Revenue 10,000 Dr. Cost of Goods Sold 8,000 Cr. Inventory 8,000

E.Dr. Cash 10,000 Cr. Revenue 10,000

Question 4 of 10

5.

How much annual depreciation expense would be recognized for a truck that originally cost $30,000 and has an estimated useful life of 5 years with a $5,000 salvage value?

A.$6,000

B.$7,000

C.$3,333

D.$10,000

E.$5,000

Question 5 of 10

6.

Which journal entry reflects the adjusting entry needed on December 31?:

In November, BOC prepaid $30,000 of rent for December, January, and February (and it was recorded properly). Now, it is December 31, the end of the fiscal year.

A.Dr. Rent Expense 10,000 Cr. Cash 10,000

B.Dr. Rent Expense 30,000 Cr. Prepaid Rent 30,000

C.No entry needed.

D.Dr. Rent Expense 10,000 Cr. Prepaid Rent 10,000

E.Dr. Rent Expense 30,000 Cr. Cash 30,000

Question 6 of 10

7. Which journal entry reflects the adjusting entry needed on December 31?:

Last year, BOC purchased software for $10,000. The expected life of the software is 2 years and it has no expected salvage value. Now, it is December 31, the end of the fiscal year. No other entries were recorded for this software during the year.

A.Dr. Software Amortization Expense 5,000 Cr. Software 5,000

B.Dr. Software Amortization Expense 5,000 Cr. Software Revenue 5,000

C.Dr. Software Amortization Expense 5,000 Cr. PP&E 5,000

D.Dr. Software Amortization Expense 5,000 Cr. Cash 5,000

E.No entry needed.

Question 7 of 10

8.

Which journal entry reflects the adjusting entry needed on December 31?:

In September, BOC received an order for $500,000 of products that will be delivered and billed in January. Now, it is December 31, the end of the fiscal year, and no prior entry has been recorded for this order.

A.Dr. Accounts Receivable 500,000 Cr Revenue 500,000

B.Dr. Accounts Receivable 500,000 Cr Unearned Revenue 500,000

C.Dr. Order Backlog 500,000 Cr Revenue 500,000

D.Dr. Advances from Customers 500,000 Cr Revenue 500,000

E.No entry needed.

Question 8 of 10

9.

Which item would not appear on the Income Statement?

A.SG&A Expense

B.Pre-tax Income

C.Dividends

D.Operating Income

E.Gross Profit

Question 9 of 10

10.

Which of the following are temporary accounts? (check all that apply)

A.Dividends Payable

B.Sales Revenue

C.Retained Earnings

D.Cost of Goods Sold

E.Income Tax Expense

Question 10 of 10

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