Financial Accounting: Key Concepts, Transactions, and Analysis

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Financial AccountingAnswers highlighted in Bold Black!Jackson Company recorded the following cash transactions for the year:Paid $135,000 for salaries.Paid $60,000 to purchase office equipment.Paid $15,000 for utilities.Paid $6,000 individends.Collected $245,000 from customers.What was Jackson’s net cash provided by operating activities?$89,000$35,000$110,000$95,000Which of the following describes the classification and normal balance of the UnearnedRentRevenue account?Liability, creditAsset, debitRevenues, creditExpense, debit

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Postingaccumulates the effects of journalized transactions in the individual accounts.involves transferring all debits and credits on ajournal page to the trial balance.should be performed in account number order.is accomplished by examining ledger accounts and seeing which ones need updating.Multiple Choice Question 78The following is selected information from LCorporation for the fiscal year ending October31, 2014.Cash received from customers$300,000Revenue earned390,000Cash paid for expenses170,000Cash paid for computers on November 1, 2013 that will beused for 3 years48,000Expensesincurred including any depreciation216,000Proceeds from a bank loan, part of which was used to pay forthe computers100,000Based on the accrual basis of accounting, what is L Corporation’s net income for the yearending October 31, 2014?$204,000$174,000

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$220,000$158,000La More Company had the following transactions during 2013.• Sales of $4,500 on account• Collected $2,000 for services to be performed in 2014• Paid $1,325 cash in salaries• Purchased airlinetickets for $250 in December for a trip to take place in 2014What is La More’s 2013 net income using cash basis accounting?$425$4,925$675$5,175Which one of the following isnot a justification for adjusting entries?Adjusting entries are necessary to ensure that the expense recognition principleis followed.Adjusting entries are necessary to bring the general ledger accounts in linewith the budget.Adjusting entries are necessary to ensure that therevenue recognition principleis followed.Adjusting entries are necessary to enable financial statements to be inconformity with GAAP.

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