Case studies

One answer is correct. Choose:

1. The debited account if merchandise are purchased and paid in cash is:
a) Cash
b) Merchandise
c) Bank deposit
d) Expenses with merchandise

2. The credited account of depreciation is recorded for the current year for a piece of equipment is:
a) Equipment
b) Accumulated depreciation
c) Expense with accumulated depreciation
d) Bank deposit

3. Raw materials 13,000 mu; capital 45,000 mu; reserves 7,000; land 25,000 mu; suppliers 11,000 mu; clients???.
The value of missing element is:
a) 11,000 mu
b) 25,000 mu
c) 51,000 mu
d) 15,000 mu.

4. State whether the following transactions generate expenses (explain your judgement):

a) purchase of raw
materials;
b) consumption of raw
materials;
c) acquisition of
merchandise on credit;
d) disposal of merchandise
sold;
e) recording the phone
bill;
f) payment of bank fees;

g) recording dividends to
be paid to shareholders.

1. State whether the following transactions generate income (explain your judgement):

a) collection from customers;

b) sale of finished goods;

c) receive of new contributions

from shareholders;
d) collection of interest revenue

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 2. Merchandise acquired during current month 17000 units * 3 mu / unit. If half of them are sold for 5 mu / unit -
sale price, determine the value of closing inventory and provide full details of journalized events and of computation
(accounting analysis and records in the T accounts).

3. Prepare the Accounting Analysis for the following:

Transaction Accounting Analysis

a) acquisition of
merchandise at 500 lei
acquisition cost on credit;

b) acquisition of
merchandise of 1000 lei
on cash;

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 Transaction Accounting Analysis

c) cash payment of car

insurance for the next
year, 500 lei / month

d) collection from customers

into the bank account;
(according to transaction b))

e) acquisition of furniture for

office of 41.000 lei on
credit;

f) payment of tax on salaries

of 2500 lei;

g) recording the decrease in a

land value of 22.000 lei;

h) acquisition of van of
55.000 lei on credit;