Balance sheet and statement of retained earnings

Assignment Help Financial Accounting

Reference no: EM13830353

Question 1

Items from Income Statement, Balance Sheet and Statement of Retained Earnings for the same company are listed below. Solve for the missing amount of end-of-year Total Assets.

	ABC Corp.
Common Stock	22
Dividends	6
Net Income	51
Retained Earnings, Beginning of Year	105
Retained Earnings, End of Year	?
Total Assets	?
Total Expenses	117
Total Liabilities	88
Total Revenues	176

Question 2

Using the following information, calculate the Net Income:

Admissions Revenue	385
Concessions Expenses	12
Concessions Revenue	79
Film Rental Expenses	40
Office Expenses	54
Rent Expense	33
Salaries and Wages Expense	46

Assume no income tax.

Question 3

Using the following, sovle for the shareholders equity:

Accounts Payable	90
Accounts Receivable	95
Cash	88
Equipment	270
Inventory	96
Notes Payable	189

Question 4

Using the following information, solve for the Retained Earnings:

Accounts Payable	16
Common Stock	128
Notes Payable	70
Retained Earnings	?
Total Assets	482

Question 5

Using the following Balance Sheet items, find the Total Asset value:

Accounts Payable	63
Common Stock	159
Notes Payable	53
Retained Earnings	80
Total Assets	?

Question 6

To determine whether generally accepted accounting principles (GAAP) were followed in the preparation of financial statements, an examination of:

		tax documents would be performed by the IRS.
		the company's accounting records would be performed by the SEC.
		the financial statements and related documents would be performed by an independent auditor.
		the financial statements and related documents would be performed by the FASB.

Question 7

The following accounts are taken from the December 31, Year 4 financial statements of a company.

Accounts Payable	$2,075
Accounts Receivable	800
Selling & Administrative Expenses	2,500
Cash	2,200
Common Stock	2,000
Dividends	1,900
Income Tax Expense	400
Interest Expense	75
Other Expenses	500
Notes Payable	5,000
Other Assets	2,500
Other Liabilities	3,000
Other Operating Expenses	2,000
Other Revenue	300
Property and Equipment	11,000
Retained Earnings, December 31, Year 3	4,800
Salaries and Wages Expense	3,000
Supplies	300
Service Revenue	10,000

Use the information above to answer the following question. What is the amount of total liabilities at the end of Year 4?

		$7,075.
		$10,075.
		$9,075.
		$12,975.

Question 8

The Don't Bite Me Pest Control Company has 10,000 gallons of insecticide supplies on hand that cost $300,000; a bill from the vendor for $100,000 of these supplies has not yet been paid. The company expects to earn $800,000 for its services when it uses the insecticide supplies. The company's balance sheet would include an asset, Supplies, in the amount of:

		$10,000.
		$200,000.
		$300,000.
		$800,000.

Question 9

A company started the year with the following: Assets $100,000; Liabilities $30,000; Common Stock $60,000; Retained Earnings $10,000. During the year, the company earned revenue of $5,000, all of which was received in cash, and incurred expenses of $3,000, all of which were unpaid as of the end of the year. In addition, the company paid dividends of $1,000 to owners. Assume no other activities occurred during the year.Use the information above to answer the following question. The amount of assets at the end of the year is

		$105,000.
		$108,000.
		$104,000.
		$107,000.

Question 10

Financing that individuals or institutions have provided to a corporation is:

		always classified as a liability.
		classified as a liability when provided by creditors and as stockholders' equity when provided by owners.
		always classified as equity.
		classified as a stockholders' equity when provided by creditors and a liability when provided by owners.

Question 11

A company's financial records at the end of the year including the following amounts:

Cash	$70,000
Accounts Receivable	28,000
Supplies	4,000
Accounts Payable	10,000
Notes Payable	5,000
Retained Earnings, beginning of year	17,000
Common Stock	40,000
Service Revenue	53,000
Wages Expense	8,000
Advertising Expense	5,000
Rent Expense	10,000

Use the information above to answer the following question. What is the amount of total stockholders' equity that would be reported on the Balance Sheet at the end of the year?

		$30,000.
		$57,000.
		$87,000.
		$102,000.

Question 12

A company's balance sheet contained the following information:

Common Stock	$12,000	Total Assets	$176,000
Accounts Payable	64,000	Retained Earnings	28,000

Notes Payable is the only other item on the balance sheet. Notes Payable must equal:

		$200,000.
		$8,000.
		$72,000.
		$344,000.

Question 13

Which of the following would not be reported as a liability on the balance sheet?

		Accounts Payable
		Common Stock
		Notes Payable
		Salaries and Wages Payable

Question 14

A company's financial records at the end of the year including the following amounts:

Cash	$70,000
Accounts Receivable	28,000
Supplies	4,000
Accounts Payable	10,000
Notes Payable	5,000
Retained Earnings, beginning of year	17,000
Common Stock	40,000
Service Revenue	53,000
Wages Expense	8,000
Advertising Expense	5,000
Rent Expense	10,000

Use the information above to answer the following question. What is the amount of net income on the income statement for the year?

		$30,000.
		$38,000.
		$88,000.
		$47,000.

Question 15

Which of the following statements about financial statement information is correct?

		If a company has total revenues of $80,000, total expenses of $50,000 and dividends of $10,000, they will have net income of $20,000.
		A company with total stockholders' equity of $45,000 and total assets of $75,000 must have total liabilities of $120,000.
		A company with liabilities of $80,000 and stockholders' equity of $50,000 will have Assets of $30,000.
		A company with total stockholders' equity of $120,000 and common stock of $75,000 must have total retained earnings of $45,000.

Question 16

The following accounts are taken from the December 31, Year 4 financial statements of a company.

Accounts Payable	$2,075
Accounts Receivable	800
Selling & Administrative Expenses	2,500
Cash	2,200
Common Stock	2,000
Dividends	1,900
Income Tax Expense	400
Interest Expense	75
Other Expenses	500
Notes Payable	5,000
Other Assets	2,500
Other Liabilities	3,000
Other Operating Expenses	2,000
Other Revenue	300
Property and Equipment	11,000
Retained Earnings, December 31, Year 3	4,800
Salaries and Wages Expense	3,000
Supplies	300
Service Revenue	10,000

Use the information above to answer the following question. What is the amount of net income for Year 4?

		$3,825.
		$1,825.
		$10,300.
		$5,625.

Question 17

Generally accepted accounting principles (GAAP) were (are) established by:

		an Italian monk in 1494.
		the U.S. Congress and the SEC.
		the PCAOB.
		the FASB on an ongoing basis.

Question 18

Net income appears on which of the following financial statements?

		Balance sheet and income statement
		Balance sheet and statement of retained earnings
		Balance sheet and statement of cash flows
		Income statement and statement of retained earnings

Question 19

GIL'S FISHING EQUIPMENT, INC. Statement of Cash Flows For the Year Ended December 31, Year 3
Cash flows from operating activities
Cash collected from customers	A	$12,000
Cash paid to suppliers and employees	B	(7,000)
Cash paid for other operating activities	C	Unknown
Net cash flow from operating activities	D	$5,000
Cash flows from investing activities
Cash paid to purchase equipment and other assets	E	(45,000)
Cash received from selling equipment and other assets	F	Unknown
Net cash flow from (used by) investing activities	G	Unknown
Cash flows from financing activities
Cash paid on notes payable	H	(32,000)
Cash paid for dividends	I	(10,000)
Net cash flow from (used by) financing activities	J	Unknown
Net change in cash during the year	K	37,000
Beginning cash, January 1, Year 3	L	Unknown
Ending cash, December 31, Year 3	M	122,000

Use the information above to answer the following question. What amount is represented by letter L in the statement of cash flows?
		$159,000
		$85,000
		($85,000)
		($159,000)

Question 20

The Whackem-Smackem Software Company sold $11 million of computer games in its first year of operations. The company received payments of $7.5 million for these computer games. The company's income statement would report:

		Accounts Receivable of $3.5 million.
		expenses of $3.5 million.
		Sales Revenue of $7.5 million.
		Sales Revenue of $11 million.

Reference no: EM13830353

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