Coursera - Online Courses From Top Universities23

5/4/2017 Coursera|OnlineCoursesFromTopUniversities.
JoinforFree|Coursera
Homework #2 3/10 points (30%)

Quiz, 10 questions
Try again once you are ready. Back to Week 2
Required to pass: 80% or higher

Retake
You can retake this quiz up to 3 times every 8 hours.
1/1
points
1.
Which of these transactions would produce $10,000 of revenue in December?
(check all that apply)
BOC Bank is owed $10,000 of interest on a loan for December and

receives the payment in January.
Correct
The two revenue recognition criteria are earned and realized. Both criteria
are satised in December.
BOC Bank receives a check for $10,000 in December for November's

interest amount.
Un-selected is correct
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.
Correct
BOC Realty leases space to a tenant for December and the tenant pays
the $10,000 rent in cash in December.
https://www.coursera.org/learn/whartonaccounting/exam/OlYad/homework2 1/9
5/4/2017 Coursera|OnlineCoursesFromTopUniversities.JoinforFree|Coursera
Correct
Quiz, 10 questions The two revenue recognition criteria are earned and realized. Both criteria
BOC Realty leases space to a tenant for December and sends a bill for
the $10,000 rent to be paid in January.
Correct
0/1
points
2.
Which of these transactions would produce $10,000 of expenses in December?
(check all that apply)
BOC buys $10,000 of copper in December.
This should not be selected

These are product costs, which will become expenses when the batteries
are sold. No batteries have been sold yet.
BOC sells batteries costing $8,000 in December for $10,000 cash.
Un-selected is correct
BOC sells batteries costing $10,000 in December for $12,000 cash.
This should be selected
BOC uses copper to make batteries at a total cost of $10,000 in

December.
Homework #2
are sold. No batteries have been sold yet. 3/10 points (30%)
Quiz, 10 questions
BOC signs a contract in December to buy $10,000 of copper.

are sold. No batteries have been sold yet.
1/1
points
3.
Which journal entry reects the following transaction?:
BOC receives a $2,000 cash deposit from a customer for custom goods that will be
delivered next year.
Dr. Deposits 2,000
Cr. Future Revenue 2,000
Dr. Cash 2,000
Cr. Advances from Customers 2,000
Correct
We debit cash to increase it and we credit a liability for the obligation to
deliver goods in the future, which I have called Advances from Customers.
Dr. Advances from Customers 2,000
Cr. Cash 2,000
Dr. Cash 2,000
Cr. Inventory 2,000
Dr. Cash 2,000
Cr. Revenue 2,000

Quiz, 10 questions
0/1
points
4.
Which journal entry(s) reects 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.
Dr. Cash 10,000
Cr. Inventory 8,000
Cr. Revenue 2,000
Dr. Cash 10,000
Cr. Revenue 10,000
Dr. Cost of Goods Sold 8,000
Cr. Inventory 8,000
Dr. Cash 10,000
Cr. Revenue 10,000

Missing the inventory part of the transaction.
Dr. Cash 10,000
Cr. Inventory 10,000
Dr. Cash 10,000
Cr. Revenue 10,000
Dr. Accounts Payable 8,000
Cr. Inventory 8,000
0/1
Homework #2
Quiz, 10 questions
points 3/10 points (30%)
5.
How much quarterly depreciation expense would be recognized for a building that
originally cost $100,000 and has an estimated useful life of 10 years with a $20,000
salvage value?
$10,000

Under straight-line depreciation, the annual expense would be:
(Original Cost - Salvage Value) / Useful Life.
But the question asks for quarterly!
$8,000
$2,000
$1,000
$2,500
0/1
points
6.
Which journal entry reects 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 scal year.
No entry needed.
Dr. Rent Expense 10,000
Cr. Cash 10,000

The Cr to Cash is incorrect

Quiz, 10 questions
Cr. Prepaid Rent 30,000
Cr. Prepaid Rent 10,000
Cr. Cash 30,000
0/1
points
7.
Last year, BOC purchased a building for $1,000,000. The expected life of the
building is 20 years and its expected salvage value is $200,000. Now, it is December
31, the end of the scal year. No other entries were recorded for this building
during the year.
Dr. Depreciation Expense 40,000
Cr. Accumulated Depreciation 40,000
Cr. Accumulated Depreciation 50,000
No entry needed. The building was not purchased this year.
Cr. Building 50,000

The Cr. to Building is incorrect, as well as the dollar amount
Cr. Building 40,000


Quiz, 10 questions
0/1
points
8.
In November, BOC received a $5,000 cash deposit from a customer for custom-
build goods that will be delivered in January (BOC recorded an entry for this $5,000
in November). Now, it is December 31, the end of the scal year.
Dr. Cash 5,000
Cr. Revenue 5,000

Assuming the $5,000 was properly recorded in November (Dr. Cash, Cr.
Unearned Revenue), no entry is needed now. BOC has still not earned the
revenue; it won't until it delivers the goods.
No entry needed.
Dr. Advances from Customers 5,000
Cr. Revenue 5,000
Dr. Unearned Revenue 5,000
Cr. Inventory 5,000
Dr. Unearned Revenue 5,000
Cr. Revenue 5,000
1/1
points
9.
Which item would not appear on the Income Statement?
Dividends
Correct
Homework #2
Dividends do not show up on the Income Statement! 3/10 points (30%)
Quiz, 10 questions
Operating Income
Pre-tax Income
SG&A Expense
Gross Prot
0/1
points
10.
Which of the following are permanent accounts? (check all that apply)
Revenue

Revenue and COGS are temporary accounts as they appear on the Income
Statement.
Cost of Goods Sold

Revenue and COGS are temporary accounts as they appear on the Income
Statement.
Retained Earnings
This should be selected
Common Stock
Correct
Permanent account.
Unearned Revenue
Quiz, 10 questions
Correct
Permanent account.

Coursera - Online Courses From Top Universities23

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Coursera - Online Courses From Top Universities23

Uploaded by

Copyright:

Available Formats

5/4/2017 Coursera|OnlineCoursesFromTopUniversities.

Homework #2 3/10 points (30%)

Try again once you are ready. Back to Week 2

Required to pass: 80% or higher

BOC Bank is owed $10,000 of interest on a loan for December and

BOC Bank receives a check for $10,000 in December for November's

BOC buys $10,000 of copper in December.

This should not be selected

BOC sells batteries costing $8,000 in December for $10,000 cash.

BOC sells batteries costing $10,000 in December for $12,000 cash.

This should be selected

BOC uses copper to make batteries at a total cost of $10,000 in

This should not be selected

BOC signs a contract in December to buy $10,000 of copper.

This should not be selected

Dr. Deposits 2,000

Cr. Future Revenue 2,000

Dr. Cash 2,000

Cr. Advances from Customers 2,000

Dr. Advances from Customers 2,000

Cr. Cash 2,000

Dr. Cash 2,000

Cr. Inventory 2,000

Dr. Cash 2,000

Cr. Revenue 2,000

Homework #2 3/10 points (30%)

Dr. Cash 10,000

Cr. Inventory 8,000

Cr. Revenue 2,000

Dr. Cash 10,000

Cr. Revenue 10,000

Dr. Cost of Goods Sold 8,000

Cr. Inventory 8,000

Dr. Cash 10,000

Cr. Revenue 10,000

This should not be selected

Dr. Cash 10,000

Cr. Inventory 10,000

Dr. Cash 10,000

Cr. Revenue 10,000

Dr. Accounts Payable 8,000

Cr. Inventory 8,000

This should not be selected

(Original Cost - Salvage Value) / Useful Life.

But the question asks for quarterly!

Dr. Rent Expense 10,000

Cr. Cash 10,000

This should not be selected

Dr. Rent Expense 30,000

Dr. Rent Expense 10,000

Cr. Prepaid Rent 10,000

Dr. Rent Expense 30,000

Cr. Cash 30,000

Dr. Depreciation Expense 40,000

Cr. Accumulated Depreciation 40,000

Dr. Depreciation Expense 50,000

Cr. Accumulated Depreciation 50,000

No entry needed. The building was not purchased this year.

Dr. Depreciation Expense 50,000

Cr. Building 50,000

This should not be selected

Dr. Depreciation Expense 40,000

Cr. Building 40,000