JWI 530 Good Vibrations Debits and Credit Quiz

Question 1

10 / 10 pts

What are the rules of a T-Account? Mark all that are correct.

  

Every transaction requires an entry in at least two accounts

 

  

Debit is on the right side of the account and a credit is on the left side of the account

 

  

Total debits equal total credits

 

  

Credit is on the right side of the account and a debit is on the left side of the account

 

 

IncorrectQuestion 2

10 / 10 pts

Which are of the following are Permanent Accounts? Note permanent accounts do not get consolidated at the end of the year. Select the one right answer.

  

Assets and Liabilities and Owners Equity

 

  

Expenses and Revenue

 

  

Balance Sheet Accounts

 

  

Income Statement Accounts

 

  

Assets and Liabilities and Owners Equity and Balance Sheet Accounts

 

  

Expenses and Revenue and Income Statement Accounts

 

 

Question 3

10 / 10 pts

Which of the following are Temporary Accounts? Note temporary accounts get consolidated and moved at the end of the year. Select the one right answer.

  

Assets and Liabilities and Owners Equity

 

  

Expenses and Revenue

 

  

Balance Sheet Accounts

 

  

Income Statement Accounts

 

  

Assets and Liabilities and Owners Equity and Balance Sheet Accounts

 

  

Expenses and Revenue and Income Statement Accounts

 

 

Question 4

10 / 10 pts

In the Good Vibrations transactions (#4) there was a loan worth $300,000 borrowed from the Royal Bank. GVI agreed to pay interest costs of 10% each year based on the outstanding balance throughout the year and repay $100,000 of principal on December 31, 2012, December 31, 2013, and December 31, 2014. Please select all responses that apply.

  

Cash is debited for $300,000

 

  

Bank loan current is credited for $300,000

 

  

Bank loan current is credited for $100,000 and Bank loan long term is credited for $200,000

 

  

The accounts used in this transaction are categorized as assets and liabilities and owner’s equity.

 

 

Question 5

10 / 10 pts

In the Good Vibrations transactions (#8) there are products sold and booked to revenue. The company made $200,000 of cash sales and $600,000 of sales on credit. Select all that apply.

  

Some of the accounts used in this transaction are categorized as liabilities and owner’s equity.

 

  

The recording of the transaction includes a debit to cash of $200,000 and a debt to accounts receivable of $600,000.

 

  

The recording of the transaction includes a credit to accounts payable for $800,000.

 

  

Some of the accounts used in this transaction are categorized as expenses.

 

 

IncorrectQuestion 6

10 / 10 pts

In the Good Vibrations transactions (#10) there is an adjusted allowance for bad debt. A client who owed GVI $70,000 declared bankruptcy. Please select all that apply.

  

The accounts are categorized as Assets and Expenses.

 

  

The accounts are categorized as Liabilities and Owner’s Equity and Revenues

 

  

The transaction is recorded as a debit for $70,000 to bad debt expense and as a $70,000 credit to accounts receivable.

 

  

The transaction is recorded as a credit for $70,000 to bad debt expense and as a $70,000 debit to accounts receivable.

 

 

IncorrectQuestion 7

10 / 10 pts

In the Good Vibrations transactions (#12) the company made debt payments. They paid the bank $130,000 ($100,000 principal and $30,000 interest). Select all that apply.

  

One of the transactions is to credit cash for $130,000

 

  

One of the transactions is to credit interest expense for $30,000

 

  

The only transaction to the bank loan current account is to debit this account for $100,000

 

  

One of the transactions is to move $100,000 the bank loan long term to the bank loan current account

 

 

PartialQuestion 8

10 / 10 pts

In the Good Vibrations transactions (#13) the company conducted a physical inventory. A physical inventory count showed that goods valued at $150,000 remained in the store. Select all that apply.

  

The categorization of accounts includes assets, expenses and revenues.

 

  

The categorization of accounts includes assets and expenses.

 

  

The transaction includes debiting Cost of Goods Sold for $350,000 and crediting Inventory for $350,000.

 

  

The transaction includes crediting Cost of Goods Sold for $350,000 and debiting Inventory for $350,000.

 

 

PartialQuestion 9

10 / 10 pts

In the Good Vibrations transactions (#15). The company is depreciating their assets over their useful lives. The store equipment was expected to last ten years. Select all that apply.

  

The original store equipment was recorded on the books as an asset for $40,000.

 

  

The depreciation for the store equipment is $40,000.

 

  

Accumulated depreciation is credited and depreciation expense is debited.

 

  

The depreciation for the store equipment in $4,000.

 

 

Question 10

10 / 10 pts

In the Good Vibrations transactions (#18). John evaluated the potential acquisition (but ultimately did not proceed with the transaction). John evaluated purchasing a small company for $400,000. The company he was evaluating was carrying the value of its net assets at $300,000. How much Goodwill would he have booked if he had moved forward with the acquisition? Select the correct answer.

  

John would have recorded $300,000 in Goodwill.

 

  

John would have recorded $400,000 in Goodwill.

 

  

John would have recorded $100,000 in Goodwill.

 

  

No answers are correct

 

 

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Status NEW Posted 17 Mar 2024 05:03 AM My Price 10.00

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file 1710655646-JWI 530 Good Vibrations Debits and Credit Quiz.docx preview (747 words )

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