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ACCT 101 exam questions with 100%
accurate solutions + rationales 2026-
2027
Questions
1. Crown Brewing usually does not take advanced payments from
customers. In November 2021, however, Crown Brewing landed a large
beverage delivery contract with a hotel chain.
The hotel chain paid 37,200 in advance for beverage deliveries through
March 2022. Crown Brewing started making deliveries on December 1st
and has made all contractual deliveries for December by December 31st,
2021.
(a) What was the journal entry that Crown Brewing had to make when
receiving the advanced payment?
Dr Cash 37,200
Cr Unearned Revenue 37,200
(b) What adjustment entry did Crown Brewing make on December
31st, 2021?
Dr Unearned Revenue 9,300
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Cr Revenue 9,300
2. Crown Brewing hires a contractor to regularly perform maintenance
services for it’s brewing tanks.
(a) How much did Crown Brewing pay its maintenance service
provider in cash in 2021?
Accrued Service Expense
8,600 BB
Cash Plug 37,800 Expense
paid: 39,600 accrued
6,800 EB
(b) What was the closing entry Crown Brewing had to make to zero out
the the Service Expense Income Statement account on December
31st, 2021?
Dr Retained Earnings 37,800
Cr Service Expense 37,800
3. Over the course of 2021, Crown Brewing has continuously bought
products for its inventory. All of Crown Brewing’s inventory is initially
purchased on account.
(a) How much inventory did Crown Brewing buy during 2021?
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ACCT 101 exam questions with 100%
accurate solutions + rationales 2026-
2027
Questions
1. Crown Brewing usually does not take advanced payments from
customers. In November 2021, however, Crown Brewing landed a large
beverage delivery contract with a hotel chain.
The hotel chain paid 37,200 in advance for beverage deliveries through
March 2022. Crown Brewing started making deliveries on December 1st
and has made all contractual deliveries for December by December 31st,
2021.
(a) What was the journal entry that Crown Brewing had to make when
receiving the advanced payment?
Dr Cash 37,200
Cr Unearned Revenue 37,200
(b) What adjustment entry did Crown Brewing make on December
31st, 2021?
Dr Unearned Revenue 9,300
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Cr Revenue 9,300
2. Crown Brewing hires a contractor to regularly perform maintenance
services for it’s brewing tanks.
(a) How much did Crown Brewing pay its maintenance service
provider in cash in 2021?
Accrued Service Expense
8,600 BB
Cash Plug 37,800 Expense
paid: 39,600 accrued
6,800 EB
(b) What was the closing entry Crown Brewing had to make to zero out
the the Service Expense Income Statement account on December
31st, 2021?
Dr Retained Earnings 37,800
Cr Service Expense 37,800
3. Over the course of 2021, Crown Brewing has continuously bought
products for its inventory. All of Crown Brewing’s inventory is initially
purchased on account.
(a) How much inventory did Crown Brewing buy during 2021?
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