Autumn Enterprises had the following partial listing of accounts and balances at year-end: Cash, $7,000; Accounts Receivable, $6,000; Accounts Payable, $15,000; Equipment, $23,000; Inventories, $5,000; Supplies, $1,000; Land, $75,000; Unearned Service Revenue, $13,000, and Prepaid Rent, $4,000. The total current assets for Autumn Enterprises is :
Benedict Company compiled the following financial
information as of December 31, 2017:
Service revenue $1,120,000
Common stock 240,000
Equipment 320,000
Operating expenses 1,000,000
Cash 280,000
Dividends 80,000
Supplies 40,000
Accounts payable 160,000
Accounts receivable 120,000
Retained earnings, 1/1/17 600,000
Benedict's retained earnings on December 31, 2017 are
Star's Allowance for Doubtful Accounts had a credit balance of $37,800 on January 1, 2019. During 2019, the
company wrote off $30,600 of Accounts Receivable as uncollectible. The company prepared the following summary schedule from an aging of accounts receivable outstanding on December 31, 2019:
1-30 days 31-60 days 61-90 days Over 90 days
Balance of A/R $600,000 $240,000 $84,000 $54,000
Estimated Uncollectible % 1% 5% 10% 30%
Determine the Bad debts Expense to be recorded on December 31, 2019.
Mel's Mechanical Repair Shop started the year with total assets of $60,000, total liabilities of $40,000, and retained earnings of $18,000. During the year, the business recorded $100,000 in auto repair revenues, $70,000 in expenses, and the company paid dividends of $15,000.
If Mel's Mechanical Repair Shop ends the year with total assets of $80,000, and total liabilities of $35,000, what must be the amount of common stock issued during the year?
Select one:
A. $10,000
B. $14,000
C. $ 5,000
D. $ 3,000
E. None of the above
The following information was taken from the records of Circle Corporation for the year ended December 31, 2016.
Advertising expense
$80,000
Income tax expense
52,000
Accounts payable
53,800
Dividends paid
60,000
Retained earnings (Jan. 1, 2016)
231,440
Consulting fees revenue
400,000
Rent expense
46,800
Supplies expense
67,600
The net income reported by Circle Corporation for the year ended December 31, 2016
was:
Select one:
A. $153,600
B. $ 99,800
C. $205,600
D. $145,600
On January 1, 2016, Big Hero invested $300,000 to start Hero Corporation. During the year, Hero Corporation had total revenues of $60,000 and total expenses of $16,000. Cash dividends paid totaled $12,000.
What was the balance in Hero Corporation's retained earnings account at the end of the year?
Select one:
A. $ 32,000
B. $ 14,000
C. $314,000
D.
$302,000
At the beginning of the year, the Suzanne Company had total assets of $1,200,000 and total stockholders' equity of $460,000. During the year, total assets increased by $180,000, and total liabilities increased by $84,000. The company also paid $14,000 in dividends.
How much was the net income for the year?
Select one:
A. $ 62,000
B. $ 96,000
C. $110,000
D. $130,000
Which of the following is the
correct order of the steps in the accounting cycle?
Select one:
A. Report, analyze, close, record, and adjust
B. Analyze, record, adjust, report, and close
C. Adjust, report, analyze, record, and close
D. Record, report, analyze, adjust, and close
The accounting equation for Edwardo Enterprises is as follows:
Assets=Liabilities+Stockholders' Equity
$480,000=$240,000+$240,000
If the company now purchases office equipment on account for
$40,000, the accounting equation will change to:
Select one:
A. Assets Liabilities Stockholders' Equity
$520,000=$240,000+$280,000
B. Assets Liabilities Stockholders' Equity
$520,000=$264,000+$256,000
C. Assets Liabilities Stockholders' Equity
$520,000=$280,000+$240,000
D. Assets Liabilities Stockholders' Equity
$480,000=$240,000+$240,000
As of December 31, 2016, the Balance Sheet of Potawatomi Products, Inc.
contains the following items (in random order):
Accounts Payable
$ 24,000
Land
180,000
Building
500,000
Notes Payable
270,000
Accounts Receivable
60,000
Cash
14,000
Retained Earnings
220,000
Common Stock
376,000
Equipment
?
Determine the amount of Equipment.
Select one:
A. $136,000
B. $690,000
C. $ 87,000
D. $ 84,000
To take advantage of a zero percent rent increase for the coming year, a company paid, at year-end, $150,000 rent for the first three months of the next year.
What would the effect of this transaction on the company's year-end accounting equation?
Select one:
A. No effect on Assets; $150,000 decrease in Liabilities; $150,000 increase in Stockholders' Equity
B. $150,000 increase in Assets; No effect on Liabilities; $150,000 increase in Stockholders' Equity
C. $150,000 increase in Assets; $150,000 increase in Liabilities; No effect on
Stockholders' Equity
D. No effect on Assets; No effect on Liabilities; No effect on Stockholders' Equity
Apartment Rental, Inc. received $9,600 from a tenant on December 1 for three months' rent of an apartment. This rent was for December, January, and February.
If Apartment Rental debited Cash and credited Unearned Rental Income for $9,600 on December 1, what necessary adjustment would be made on December 31?
A. Rental Income 6,400
Unearned
rental income 6,400
B. Rental Income 3,200
Unearned rental income 3,200
C. Unearned rental income 6,400
Rental income 6,400
D. Unearned rental income 3,200
rental income 3,200
The Book Binders Company's Supplies account balance at the end of the period is $44,000. Supplies totaling $37,600 have been purchased during the period and debited to Supplies. A physical count shows $10,000 worth of supplies on hand at the end of the period.
The proper adjusting entry is:
Select one:
A. Supplies Expense 37,600
Supplies 37,600
B. Supplies Expense 34,000
Supplies 34,000
C. Supplies 10,000
Supplies Expense 10,000
D. Supplies Expense 9,400
Supplies 9,400
Assume December 31 is a Monday. Weld-Rite Company's wages are paid every Friday, and the weekly payroll (for five days) amounts to $12,000.
To record the correct amount of expense for December Weld-Rite makes
the following entry on December 31:
Select one:
A. Wages Expense 12,000
Wages Payable 12,000
B. Wages Payable 2,400
Wages Expense 2,400
C. Wages Expense 2,400
Wages Payable 2,400
D. Wages Expense 9,600
Wages Payable 9,600
Rocky Company has beginning equity of $600,000, net income of $100,000, dividends of $60,000 and investments by owners in exchange for stock of $20,000. Its ending equity is:
Select one:
A.
$446,000
B. $660,000
C. $480,000
D. $536,000
During 2016, Duncan Company's total assets increased $50,000, and total liabilities decreased $30,000. During the same year, the company's investors invested an additional $60,000 and the company paid dividends of $30,000.
What must have been the company's net income for 2016?
Select one:
A. $40,000
B. $50,000
C. $20,000
D. $30,000
On September 1, 2016, Chopper, Inc. reported Retained Earnings of $272,000. During the month of September, Chopper generated revenues of $40,000, incurred expenses of $24,000, purchased equipment for $10,000 and paid dividends of $12,000.
What is the balance in Retained Earnings on September 30, 2016?
Select one:
A. $274,000 credit
B. $276,000 credit
C. $ 16,000 credit
D. $272,000 debit
Bud Company records purchases at invoice price, using the periodic inventory system. On July 5, Bud returned $12,000 of goods purchased on account to the seller.
How would Bud record this transfer?
Select one:
A. Accounts Payable 12,000
Purchases 12,000
B. Accounts Receivable 12,000
Purchases Returns and Allowances 12,000
C. Accounts Payable 12,000
Purchases Returns and Allowances 12,000
D. Cash 12,000
Purchases Returns and Allowances 12,000
Bowser Company sold $1,200,000 worth of merchandise, had $100,000 returned, and then the balance was received during the 2% discount period.
What were the company's net sales?
Select one:
A. $1,020,000
B. $ 900,000
C. $1,078,000
D. $ 880,000
Holmes Company reported the following year-end amounts:
Net Sales
$210,000
Beginning Inventory
30,600
Net Cost of Purchases
135,000
Ending Inventory
?
Cost of Goods Sold
?
Gross Profit
85,800
What
is Holmes Company's Ending Inventory and Cost of Goods Sold for the year?
Select one:
A. Ending Inventory = $35,600; Cost of Goods Sold = $80,800
B. Ending Inventory = $41,400; Cost of Goods Sold = $124,200
C. Ending Inventory = $35,000; Cost of Goods Sold = $80,800
D. Ending Inventory = $19,800; Cost of Goods Sold = $124,200
The following information was used in reconciling the bank account for Maude Company on October 31:
Balance per
bank, October 31
$36,640
Insufficient funds check
1,400
Outstanding checks
1,800
Utility bill paid by bank
1,240
Check printing charge
80
Deposits in transit
2,440
Balance per books, October 31
40,000
Calculate the Adjusted Book Balance on October 31.
Select one:
A. $37,280
B. $37,680
C. $33,440
D. $36,080
On December 31, 2016 before adjusting entries, Accounts Receivable for Nickolas Company had a debit balance of $200,000, and the Allowance for Doubtful Accounts had a credit balance of $6,000. Credit sales for the year were $1,600,000.
If credit losses are estimated at 1% of credit sales:
Select one:
A. The balance of the Allowance for Doubtful Accounts will be $16,000 after adjustment
B. Bad Debts Expense for the year will be $22,000
C. The balance of the Allowance for Doubtful Accounts will be $10,000 after adjustment
D. The balance of the Allowance for Doubtful
Accounts will be $22,000 after adjustment
John Den Bear Company had a $150,000 beginning balance in Accounts Receivable and a $6,000 credit balance in the Allowance for Doubtful Accounts. During the year, credit sales were $600,000 and customers' accounts collected were $590,000. Also, $4,000 in worthless accounts were written off.
What was the net amount of receivables included in the current assets at the end of the year, before any provision was
made for doubtful accounts?
Select one:
A. $120,000
B. $126,000
C. $154,000
D. $130,000
Star's Allowance for Doubtful Accounts had a credit balance of $37,800 on January 1, 2019. During 2019, the company wrote off $30,600 of Accounts Receivable as uncollectible. The company prepared the following summary schedule from an aging of accounts receivable outstanding on December 31, 2019:
1-30 days
31-60 days
61-90 days
Over 90
days
Balance of A/R
$600,000
$240,000
$84,000
$54,000
Estimated Uncollectible %
1%
5%
10%
30%
Determine the Bad debts Expense to be recorded on December 31, 2019.
Select one:
A. $42,600
B. $49,800
C. $35,400
D. $25,800
Circle Company, acquired a machine that involved the following expenditures and related factors:
Gross invoice price
$76,000
Sales tax
2,850
Cash discount
taken
1,140
Freight
1,350
Assembly of machine
1,800
Installation of machine
2,700
Assorted spare parts for future use
5,400
Tuning and adjusting machine before use
900
The initial accounting cost of the machine should be:
Select one:
A. $89,860
B. $87,010
C. $85,600
D. $84,460
Revi Company purchased land and a building for a total price of $10,400,000. Individually, the land was appraised at $1,680,000 and the building at $9,520,000.
How much should be recorded as the acquisition cost of each asset?
Select one:
A. Land, $1,680,000; Building, $9,520,000
B. Land, $1,560,000; Building, $8,840,000
C. Land, $1,600,000; Building, $8,800,000
D. Land, $1,680,000; Building, $8,720,000
B. Land, $1,560,000; Building, $8,840,000
Total appraised value: $1,680,000 + $9,520,000 = $11,200,000
Land: ($1,680,000 / $11,200,000) x
($10,400,000) = $1,560,000
Building: ($9,520,000 / $11,200,000) x ($10,400,000) = $8,840,000
On April 1, 2016, Jemmie, Inc. acquired a new machine for $160,000. Its estimated useful life is eight years with an expected salvage value of $16,000.
Assuming straight-line depreciation, 2016 depreciation expense is:
Select one:
A. $20,000
B. $13,500
C. $18,000
D. $15,000