FNSACC321-322-421 Quiz 12 part 1 of 2

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Monarch Institute *

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321

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Accounting

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Jan 9, 2024

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FNSACC321-322-421 Quiz 12 part 1 of 2 Question 1 The General Journal to record the initial cash contribution to the business by the owner is: Select one: a. DR Bank CR Capital b. DR Capital CR Retained Earnings c. DR Loans Payable CR Cash d. DR Bank CR Liabilities Question 2 G.Green purchased a new computer on credit from ABC Supply for $2,500 + GST. The journal required to record this transaction is : Select one: a. DR Office Equipment $2500, DR GST Paid $250 CR Accounts Payable $2750 b. DR Accounts Payable $2750, CR Office Equipment $2500, CR GST Paid $250 c. DR Office Equipment $2250, DR GST Paid $250 CR Accounts Payable $2500 d. DR Office Equipment $2750, CR Accounts Payable $2750 Question 3 W.White has been advised that the cheque from B. Ball for $528 has been dishonoured. There was also a $22 (including GST) discount involved. The journal required to record this transaction is: Select one: a. DR Accounts Receivable $550, CR Bank $528, CR Discount Allowed $22 b. DR Bank $528, DR Discount Allowed $20, DR GST Collected $2 c. DR Accounts Receivable $528, CR Bank $506, CR Discount Allowed $22 d. DR Accounts Receivable $550, CR Bank $528, CR Discount Allowed $20, CR GST Collected $2 Question 4 B.Black, the business owner, paid his home telephone bill of $550 with a company cheque. The telephone bill included $77 (including GST) of business telephone calls. The journal required to record this transaction is: Select one: a. DR Telephone expense $473, DR GST Paid $77, CR Bank $550 b. DR Telephone expense $500, DR GST Paid $50, CR Bank $550 c. DR Telephone expense $70, DR GST Paid $7, DR Other Expenses $430, DR GST Paid $43, CR Bank $550 d. DR Telephone expense $70, DR GST Paid $7, DR Drawings $473, CR Bank $550 Question 5 Purchase of office stationery for $110 (including GST) was accidentally allocated to the Maintenance expense account in error but for the correct dollar amount. The GST Paid amount was correctly allocated. The correcting journal required is: Select one: a. DR Stationery Expense $90, CR Maintenance Expense $90 b. DR Stationery Expense $110, CR Maintenance Expense $110 c. DR Stationery Expense $100, CR Maintenance Expense $100 d. DR Stationery Expense $100, DR GST Paid $10, CR Maintenance Expense $110 Question 6

M. Grainger commences his new business with cash at bank of $2000, inventory of $3000 and accounts receivable of $500. The General Journal required is : Select one: a. DR Bank $2000, DR Accounts Receivable Control $500, DR Inventory $3000, CR Capital $5500 b. DR Capital $4500, DR Accounts Receivable Control $500, CR Bank $2000, CR Inventory $3000 c. DR Capital $500, DR Accounts Receivable Control $500, DR Bank $2000, CR Inventory $3000 d. DR Capital $5500, CR Accounts Receivable Control $500, CR Bank $2000, CR Inventory $3000 Question 7 M. Grainger introduces more equity into the business in the form of cash $28000, machinery $16000, office equipment $13000, computers $22000 and a loan from the bank of $20000. The General Journal required is : Select one: a. DR Bank $28000, CR Capital $28000 b. DR Bank $28000, DR Machinery $16000, DR Office Equipment $13000, DR Computers $22000 CR Loan from Bank $20000, CR Capital $59000 c. DR Loan from Bank $20000, DR Capital $59000, CR Bank $28000, CR Machinery $16000, CR Office Equipment $13000, CR Computers $22000 d. DR Bank $8000, DR Machinery $16000, DR Office Equipment $13000, DR Computers $22000, CR Capital $59000 Question 8 James Bond, the business owner, takes home taxable stock worth $700 (at cost, excluding GST). The General Journal required to record this transaction is: Select one: a. DR Drawings $770, CR Inventory $700, CR GST Collected $70 b. DR Inventory $700, DR GST Paid $70 CR Drawings $770 c. DR Drawings $770, CR Inventory $700, CR GST Paid $70 d. DR Drawings $700, CR Inventory $700 Question 9 Which one of the following factors would not normally give rise to goodwill value of a business: Select one: a. the quality of its products and services b. the recent refurbishment of the premises c. its established clientele d. its location Question 10 Tom purchased an existing business from Jerry for $75,000. The assets of the business at fair value were $65,000 and the liabilities, at fair value, were $15,000. The value of the goodwill is : Select one: a. $50000 b. $25000 c. $60000 d. $75000 Question 11 The journal required to record the capital contribution by the owner is: Select one: a. DR Bank CR Capital

b. None of the above c. DR Capital CR Bank d. DR Bank CR Retained Earnings Question 12 The journal required to record the purchase of an existing business is: Select one: a. DR Accounts Receivable CR Bank b. DR Vendor DR Assets (detailed) CR Liabilities c. DR Bank CR Vendor d. DR Assets (detailed) CR Liabilities (detailed) CR Vendor

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