Reference no: EM132484106
Question 1: Annapolis Corporation's trial balance included debits to expense accounts of $155,000, credits to revenue accounts of $180,000, and debits to the Dividends account of $50,000. Based on this information, what is the amount of the company's net income or loss. Enter a loss as a negative number.
Question 2: Baltimore Company reports total assets and total liabilities of $231,000 and $80,000, respectively, at the conclusion, of its first year of business. The company earned $75,500 during the first year, and distributed $35,000 to shareholders as dividends. How much did shareholders initially invest in the business?
Question 3: On January 1, 20X1, Bravo Company borrowed $26,000 to purchase equipment. The loan is to be repaid plus interest of 10% per year, on December 31, 20X2. Prepared the general journal adjusting entry (without explanation) needed for December 31, 20X1. If no entry is required then write "No Entry Required.
Question 4: On Tuesday March 31, 20X1 the Bravo Company had accrued wages of $1,000. Friday, April 3, Bravo paid employee wages of $2,500 for the week. Prepared the general journal entry (without explanation) needed for March 31, 20X1. If no entry is required then write "No Entry Required."
Question 5: During 2018, Towson Company had credit sales of $58,000 and cash sales of $17,000. In 2018 Towson collected $31,000 of accounts receivable resulting from sales on credit. Towson incurred operating expenses of $47,000; of this amount, $42,900 was paid in 2018, and the remaining balance represented a liability at year-end. In addition to these operating expenses, Towson also purchased for cash a three-year insurance policy on January 1, 2018. The cost of this policy was $9,000. What is Towson's 2018 accrual basis net income or loss? Enter a loss as a negative number.
Question 6: A partial list shows that Charles Corporation's adjusted trial balance included the following items (all account balances are normal):
Accounts payable $35,000,
Accounts receivable $46,500,
Capital stock $100,000,
Cash $50,000,
Dividends $10,000,
Interest expense $4,000,
Interest payable $3,800,
Inventory $32,000,
Prepaid expenses $4,600,
Property, plant & equipment $123,000,
Retained earnings $46,000,
Rent expense $18,000,
Revenues $101,000, and
Salary expense $60,000.
- The note payable balance is due in nine months. How much is Charlie's current ratio? (Round your answer to two decimal places.)