Bookkeeper's Hiring Test

Transcription

1 Basic Test Payroll Option Depreciation Option Test Name: AIPB Hiring Test Test Form: 3 Test Points: 20.00

2 Name: Bookkeeper's Hiring Test Date: Form: 3 [1]BASIC BANK01 - BAT 004 Which of the following accounts is increased by a debit? Accumulated Depreciation Federal Income Tax Withheld Prepaid Insurance Unearned Revenue [2]BASIC BANK02 - BAT 008 Which of the following is not a balance sheet classification? Current Assets Cost Of Goods Sold Stockholder s Equity Noncurrent Liabilities [3]BASIC BANK03 - OE 006 Your calendar year firm uses the allowance method for bad debt expense. On December 31, when the Allowance For Doubtful Accounts account has a credit balance of $400, you estimate that $3,000 in accounts receivable are uncollectible. To record bad debt expense for the year, you: Debit Bad Debt Expense for $3,000 Credit Bad Debt Expense for $3,000 Credit Allowance For Doubtful Accounts for $2,600 Debit Allowance For Doubtful Accounts for $2,600 [4]BASIC BANK04 - ABB 008 TiCo made a deposit on June 10 for $5,500. The deposit did not appear on TiCo s bank statement also dated June 10. In TiCo s bank reconciliation of June 10, $5,500 should be: Added to the balance per books Deducted from the balance per books Added to the balance per bank Deducted from the balance per bank [5]BASIC BANK05 - ABB 008 The amount of a fee charged by the bank for an NSF check should be: Added to the balance per bank in a bank reconciliation Deducted from the balance per bank in a bank reconciliation Added to the balance per books in a bank reconciliation Deducted from the balance per books in a bank reconciliation 1

3 [6]BASIC BANK06 - AR 008 On January 1, your calendar-year firm rented a machine to BuCo for $12,000 a year. If, as of December 31 your firm has received and recorded $11,500 in rent, what adjusting entry do you record? Rent Receivable 11,500 Rent Revenue 11,500 Rent Receivable 500 Rent Revenue 500 Rent Receivable 12,000 Rent Revenue 12,000 Cash 11,500 Rent Revenue 11,500 [7]BASIC BANK07 - AE 008 On December 1, your calendar-year company, which is on the accrual basis, receives a $3,000 advertising bill from a magazine for the next 5 months. If you decide to pay the bill next year, what entry do you record on December 31? Advertising Expense 600 Advertising Payable 600 Advertising Expense 2,400 Advertising Payable 2,400 Advertising Expense 600 Cash 600 Advertising Expense 3,000 Advertising Payable 3,000 [8]BASIC BANK08 - RCIA 008 On November 15, your firm, which is on the accrual basis, accepts a $30,000 advance on an $80,000 painting job and books the advance in Unearned Revenue. If, at year end, 25% of the work has been completed, what adjusting entry do you record? Cash 30,000 Revenue 30,000 Revenue 7,500 Unearned Revenue 7,500 Unearned Revenue 20,000 Revenue 20,000 Revenue 20,000 Unearned Revenue 20,000 2

4 [9]BASIC BANK09 - PE 008 Your company, which is on the accrual basis, pays a $2,000 advance on a $10,000 paint job and records it in Painting Expense. If, at year end, 15% of the job is completed, what adjusting entry do you record? Prepaid Painting 1,500 Painting Expense 1,500 Painting Expense 1,500 Cash 1,500 Painting Expense 2,000 Prepaid Painting 2,000 Painting Expense Painting Expense 500 Prepaid Painting 500 [10]BASIC BANK10 - COAE 008 Your calendar year firm pays an independent contractor $30,000 to paint the warehouse, making three $10,000 payments in March, April and May of 200X1. In May of 200X2, one year later, you discover that the third payment of $10,000 made in May of 20X1 was never recorded on the company s books. How do you correct the entry in May, 20X2? Painting Expense 10,000 Painting Payable 10,000 Painting Expense Retroactive 10,000 Painting Expense 10,000 Painting Payable 10,000 Cash 10,000 None of these entries can be used to correct the error [11]PAYROLL BANK11 - PHE 001 If employee Alice is paid $10 an hour and recorded the following hours for the workweek, what are her gross wages for the workweek under federal law? Hours on the job 36 Commuting between home and the job site 10 Lunch hours 5 Total hours 51 $360 $410 $412 $510 3

5 [12]PAYROLL BANK12 - FFF 002 If you give an employee a salary advance in December 20X4 that will be earned in January, 20X5, you must report the advance on: The 4 th quarter 20X4 Form 941 The 1 st quarter 20X5 Form 941 Either the 4 th quarter 20X4 or the 1 st quarter 20X5 on Form 941 A 1099-MISC issued for 20X4 [13]PAYROLL BANK13 - WW 007 A company s total wage and tax information on its W-2 forms is presented on: Form W-2c Form W-3 Form W-2R Form SS-4 [14]PAYROLL BANK14 - ICE 009 If you don t know whether a new worker is an employee or an independent contractor: You must treat the individual as an employee You must treat the individual as an independent contractor You may seek a determination from the IRS as to the proper classification, but must treat the individual as an employee until the IRS makes a decision You may seek a written determination from the IRS as to the proper classification, but must treat the individual as an independent contractor until the IRS renders a decision [15]PAYROLL BANK15 - PJE 008 Your firm pays half of each employee s hospitalization insurance and remits payment on the 30 th of each month. If, for the payroll period ending April 15, 20X7, you withhold $2,700 from employees for hospitalization insurance, you will: Debit Hospitalization Insurance Expense for $2,700 Debit Hospitalization Insurance Expense for $5,400 Debit Hospitalization Insurance Withheld for $5,400 Credit Hospitalization Insurance Withheld for $5,400 4

6 [16]DEPRECN BANK16 - FDC 008 On May 18, 20X9, your firm pays $22,000 to purchase 2 used automobiles. The next day your firm discovers that it could have purchased both cars elsewhere for $19,500, as follows: Vehicle 1 could have been purchased for $10,000 Vehicle 2 could have been purchased for $9,500 What entry should you make to record the purchase of the two vehicles for $22,000? Automobiles 19,500 Loss On Purchase Of Automobiles 2,500 Cash 22,000 Automobiles 22,000 Cash 22,000 Automobiles 19,500 Depreciation Expense 2,500 Cash 22,000 Automobiles 19,500 Accumulated Depreciation 2,500 Cash 22,000 [17]DEPRECN BANK17 - SLD 008 On July 1, 200X, FryCo, whose fiscal year ends June 30, purchases a computer that has a cost of $6,000, a salvage value of $1,000 and a useful life of 5 years. If FryCo uses the straight-line method, what entry does it record for depreciation expense on June 30, 200X? Computer Expense 1,000 Accumulated Depreciation 1,000 Depreciation Expense 1,000 Accumulated Depreciation 1,000 Depreciation Expense 1,200 Accumulated Depreciation 1,200 Accumulated Depreciation 1,200 Depreciation Expense 1,200 5

7 [18]DEPRECN BANK18 - DDB 008 On January 1, 200X, your calendar year company purchases a machine with the data shown below. Under the double declining balance method, what is depreciation for the second year? Cost $10,000 Salvage value $1,000 Useful life 5 years $4,000 $2,000 $900 $2,400 [19]DEPRECN BANK19 - MAC 009 On May 11, 20X7, your calendar year firm purchases for $6,000 a computer with a 5-year life and a salvage value of $500. It is the only fixed asset purchased that year. If your firm does not take a Section 179, how much of a depreciation will it claim on its 20X7 federal income tax return based on the partial MACRS table below? Year 3-Year 5-Year 7-Year % 20.00% 14.29% % 32.00% 24.49% % 19.20% 17.49% % 11.52% 12.49% % 8.93% % 8.92% % % $2,000 $1,200 $869 $1,100 6

8 [20]DEPRECN BANK If a firm purchases the assets below during 2005, what is its maximum Section 179 deduction? Cost Salvage value Useful life MACRS recovery period Computer $ 50,000 $2,500 5 years 5 years File cabinet $ 4,000 $2, years 7 years Desk $ 10,000 $1, years 7 years Commercial building $415,000 $4,000 $64,000 $100,000 $10,000 You have completed the test! 7

9 ANSWER KEY REPORT for AIPB Hiring Test Test Form: 3 # ID Points 0 1 BASIC BANK01 - BAT C 2 BASIC BANK02 - BAT B 3 BASIC BANK03 - OE C 4 BASIC BANK04 - ABB D 5 BASIC BANK05 - ABB D 6 BASIC BANK06 - AR B 7 BASIC BANK07 - AE A 8 BASIC BANK08 - RCIA C 9 BASIC BANK09 - PE D 10 BASIC BANK10 - COAE D 11 PAYROLL BANK11 - PHE A 12 PAYROLL BANK12 - FFF A 13 PAYROLL BANK13 - WW B 14 PAYROLL BANK14 - ICE C 15 PAYROLL BANK15 - PJE A 16 DEPRECN BANK16 - FDC B 17 DEPRECN BANK17 - SLD B 18 DEPRECN BANK18 - DDB D 19 DEPRECN BANK19 - MAC B 20 DEPRECN BANK B Answers Tuesday, December 06, :22:05 PM 1