Professional Documents
Culture Documents
$0.6
135.6
1.9
Cash
Other assets
1.8
10.7
Total assets
$150.6
Liabilities
Current liabilities
Long-term liabilities
Total liabilities
$2.1
102.2
104.3
Stockholders' Equity
Common stock
Retained earnings
Total stockholders' equity
Total liabilities and stockholders'
equity
21.8
24.5
46.3
$150.6
Dividends
(millio
ns)
$16.9
18.1
35.0
(10.5)
$24.5
$457,600
Interest expense
Salary expense
Property tax expense
Rent expense
Utilities expense
Total expenses
Net income
10,800
108,700
7,700
41,600
8,500
177,300
$280,300
Supplies
5,000
A/P
5,000
Which sequence of actions correctly summarizes the accounting process?
Journalize transactions, post to the accounts, prepare a trial balance
Vaughn-Williams Co. has total assets of $600,000 and owners equity of $320,000. It
purchased $80,000 of merchandise on account and collected $50,000 on account
from its customers. As a result, the companys total assets would be
$680,000
Which of the following accounts increase with a credit?
Owners Capital
Which of the following is the correct journal entry for a purchase of equipment for
$50,000 cash?
Equipment 50,000
Cash
50,000
During the month of July, the Scolari Corporation received $60,000 in investments
from owners, paid $25,000 cash for inventory, and purchased $10,000 of inventory
on account. The ending balance in the cash account for the month of July is:
$35,000
During the month of July, the Scolari Corporation received $60,000 in investments
from owners, paid $25,000 cash for inventory, and purchased $10,000 of inventory
on account. The ending balance in the accounts payable account for the month of
July is
$10,000 credit
During the month of July, the Scolari Corporation received $60,000 in investments
from owners, paid $25,000 cash for inventory, and purchased $10,000 of inventory
on account. The ending balance in the inventory account for the month of July is
$35,000 debit
A business makes a cash payment of $12,000 to a creditor. Which of the following
occurs?
Cash is credited for $12,000
Ravel Co. purchased merchandise with $200,000 of its cash. As a result, there was
No change in the total amount of its assets
A company in its first year of business earned revenues of $100,000 but collected
only $80,000 in cash from its customers. Which of the following is correct?
The income statement will show revenues of $100,000, the balance sheet will
show account receivable of $20,000, and the statement of cash flows will
show cash collected from customers of $80,000
On September 15, 20X4, the Larsen Company declared a $3,000 cash dividend
payable on October 10, 20X4. The effect of the October 10, 20X4 transaction on the
Larsen Company would be to:
Decrease the balance in the cash account and decrease the balance in the
dividend payable account by $3,000
During the year, ABC Company had revenues of $100,000 of which $90,000 has
been collected from customers. It also had expenses of $60,000 of which $40,000
has been paid. The owners were paid $20,000 in dividends. Net income for the year
equals:
40,000
A trial balance is which of the following?
List of all the accounts with their balances
A record of all the changes in a particular asset during a period of time is found in
a(n):
Account
All of the following accounts would be considered assets EXCEPT for:
Retained Earnings
Which account includes bank account balances in multiple checking accounts?
Cash
Notes payable, accounts payable, taxes payable and salaries payable are all
examples of
Liabilities
A double-entry accounting system
A debit entry is recorded on the left side of a T-account
$54
If an accountant forgets to adjust the Prepaid Rent account, the result will be
An overstatement of net income
During June, Busy Beaver bought $5,000 of office supplies on account, and promises
to pay the vendor the full amount in July. At the end of June, Busy Beaver estimated
that there was $2,000 of office supplies left unused. How much supplies expense
should Busy Beaver report for June?
$3,000
The adjusting entry to record and accrued expense also involves recording
A liability
Which of the following is true about every adjusting entry?
It affects a balance sheet account and an income statement account
Maxim Company has just started a program of selling gift certificates at its store. In
the first month, the company recorded a cash sale of $6,000 worth of certificates
and customers redeemed $1,750 of these certificates for merchandise. As of the
end of the month, what adjusting journal entry should be reported?
Unearned Revenue
1,750
Revenue from Gift Certificates 1,750
Mason Company has a weekly payroll of $5,000. Wages are paid every Friday for the
work performed Monday through Friday of the week. Assuming that the accounting
$42,500
10,300
25,000
Total expenses
Income before tax
Income tax expense
35,300
Net income
$5,100
7,200
2,100
Dividends
Thousands
$5,500
5,100
10,600
(1,500)
$9,100
$28,000
5,000
Cash
Inventories
Total current assets
Property and equipment, net
Other assets
26,700
35,000
94,700
19,800
22,000
$136,500
Total assets
Liabilities
Total current liabilities
Long-term liabilities
Total liabilities
$55,100
7,500
62,600
Stockholders' Equity
Retained earnings
Common stock
51,400
22,500
73,900
$136,500