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7/2/2019 Introduction to Financial Accounting - Home | Coursera
Homework #2 6/10 points (60%)

Quiz, 10 questions
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Required to pass: 80% or higher

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1.
Which of these transactions would produce $10,000 of revenue in December? (check all that apply)
BOC collected $10,000 of cash in December from customers who received goods in November.
Un-selected is correct
BOC delivered $10,000 of goods in December to customers that ordered them and have 30 days
to pay for them.
Correct
The two revenue recognition criteria are earned and realized. Both criteria are satis ed in
December.
BOC collected a $10,000 deposit in December for goods it will ship in January.
BOC signed a contract to deliver $10,000 of goods to a customer in January.
BOC delivered $10,000 of goods in December to a customer that paid a $10,000 cash deposit in
November.
Correct
The two revenue recognition criteria are earned and realized. Both criteria are satis ed in
December.
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Quiz, 10 questions
0/1
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2.
Which of these transactions would produce $10,000 of expenses in December? (check all that apply)
BOC signs a contract in December to buy $10,000 of copper.
BOC sells batteries costing $10,000 in December for $12,000 cash.
Correct
These are product costs, which will become expenses when the batteries are sold. The $10,000
cost of the batteries becomes Cost of Goods Sold expense in December.
BOC uses copper to make batteries at a total cost of $10,000 in December.
BOC buys $10,000 of copper in December.
BOC sells batteries costing $8,000 in December for $10,000 cash.
This should not be selected

These are product costs, which will become expenses when the batteries are sold. The Cost of
Goods Sold expense would be $8,000 in this case.
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3.
Which journal entry re ects the following transaction?:
BOC receives a $2,000 cash deposit from a customer for custom goods that will be delivered next year.
Dr. Cash 2,000
Cr. Revenue 2,000
Dr. Deposits 2,000

Cr. Future Revenue 2,000
Quiz, 10 questions
Dr. Advances from Customers 2,000
Cr. Cash 2,000
Dr. Cash 2,000
Cr. Inventory 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.
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4.
Which journal entry(s) re ects 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. Revenue 10,000
Dr. Cost of Goods Sold 8,000
Cr. Inventory 8,000
Dr. Cash 10,000
Cr. Inventory 8,000
Cr. Revenue 2,000
Dr. Cash 10,000
Cr. Revenue 10,000

Missing the inventory part of the transaction.
Dr. Cash 10,000

Quiz, 10 questions
Cr. Revenue 10,000
Dr. Accounts Payable 8,000
Cr. Inventory 8,000
Dr. Cash 10,000
Cr. Inventory 10,000
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5.
How much annual depreciation expense would be recognized for a truck that originally cost $30,000 and
has an estimated useful life of 5 years with a $5,000 salvage value?
$5,000
Correct
Under straight-line depreciation, the annual expense would be:
(30,000 - 5,000) / 5 = 5,000.
$10,000
$3,333
$6,000
$7,000
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6.
Which journal entry re ects the adjusting entry needed on December 31?:
It is December 31, the end of the scal year. During December, employees earned $800,000 in salaries, but
paychecks do not get issued until January 2.
Dr. Salary Expense 800,000
Cr. Salaries Payable 800,000
Correct
We recognize (debit) Salary Expense based on the employees working for us and we credit the
Quiz, 10 questions
liability Salaries Payable to record our obligation to pay them in January.
No entry is needed.
Dr. Salaries Payable 800,000
Cr. Cash 800,000
Dr. Cash 800,000
Cr. Salaries Payable 800,000
Dr. Salary Expense 800,000
Cr. Cash 800,000
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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. Building 40,000
Cr. Building 50,000
No entry needed. The building was not purchased this year.
Cr. Accumulated Depreciation 40,000
Correct
The journal entry for depreciation is Dr. Depreciation Expense and Cr. Accumulated Depreciation.
The amount is (1,000,000 - 200,000) / 20 = 40,000.
Cr. Accumulated Depreciation 50,000

Quiz, 10 questions
0/1
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8.
In September, BOC received an order for $500,000 of products that will be delivered and billed in January.
Now, it is December 31, the end of the scal year, and no prior entry has been recorded for this order.
Dr. Order Backlog 500,000
Cr Revenue 500,000
Dr. Accounts Receivable 500,000
Cr Revenue 500,000
No entry needed.
Dr. Advances from Customers 500,000
Cr Revenue 500,000
Dr. Accounts Receivable 500,000
Cr Unearned Revenue 500,000

There should be no adjusting entry. There has been no transaction yet and no revenue has been
earned.
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9.
Which item would not appear on a Balance Sheet?
Gross Pro t
Correct
Gross Pro t shows up on the Income Statement.
Retained Earnings
Accounts Receivable
Quiz, 10 questions
Interest Payable
Prepaid expenses
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10.
Which of the following are permanent accounts? (check all that apply)
Retained Earnings
Correct
Permanent account.
Revenue
Cost of Goods Sold
Unearned Revenue
This should be selected
Common Stock
Correct
Permanent account.

Quiz, 10 questions

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7/2/2019 Introduction to Financial Accounting - Home | Coursera

Homework #2 6/10 points (60%)

Try again once you are ready. Back to Week 2

Required to pass: 80% or higher

BOC signed a contract to deliver $10,000 of goods to a customer in January.

Homework #2 6/10 points (60%)

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

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

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

BOC buys $10,000 of copper in December.

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

This should not be selected

Dr. Cash 2,000

Cr. Revenue 2,000

Dr. Deposits 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. Advances from Customers 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. Inventory 8,000

Cr. Revenue 2,000

Dr. Cash 10,000

Cr. Revenue 10,000

This should not be selected

Dr. Cash 10,000

Dr. Accounts Payable 8,000

Cr. Inventory 8,000

Dr. Cash 10,000

Cr. Inventory 10,000

(30,000 - 5,000) / 5 = 5,000.

Dr. Salary Expense 800,000

Cr. Salaries Payable 800,000

Dr. Salaries Payable 800,000

Cr. Cash 800,000

Dr. Cash 800,000

Cr. Salaries Payable 800,000

Dr. Salary Expense 800,000

Cr. Cash 800,000

Dr. Depreciation Expense 40,000

Cr. Building 40,000

Dr. Depreciation Expense 50,000

Cr. Building 50,000

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

Dr. Depreciation Expense 40,000

Cr. Accumulated Depreciation 40,000

Dr. Depreciation Expense 50,000

Cr. Accumulated Depreciation 50,000

Dr. Order Backlog 500,000

Cr Revenue 500,000

Dr. Accounts Receivable 500,000

Cr Revenue 500,000

Dr. Advances from Customers 500,000

Cr Revenue 500,000

Dr. Accounts Receivable 500,000

Cr Unearned Revenue 500,000

This should not be selected