Reference no: EM131799699

Question 1: During 2016, XYZ had credit sales of $40,000 and cash sales of $18,000. In 2016 Bravo collected $21,000 of accounts receivable resulting from sales on credit. Bravo incurred operating expenses of $7,500; of this amount, $2,900 was paid in 2016, and the $4,600 balance represented a liability at year-end. In addition to these operating expenses, Bravo also purchased for cash a three-year insurance policy on January 1, 2016. The cost of this policy was $3,000. What is Bravo's 2016 cash basis net income?

Question 2: During 2016, Bravo Company had credit sales of $40,000 and cash sales of $18,000.  In 2016 Bravo collected $21,000 of accounts receivable resulting from sales on credit.  Bravo incurred operating expenses of $7,500; of this amount, $2,900 was paid in 2016, and the $4,600 balance represented a liability at year-end.  In addition to these operating expenses, Bravo also purchased for cash a three-year insurance policy on January 1, 2016.  The cost of this policy was $3,000.  What is Bravo's 2016 accrual basis net income?

Question 3: Bravo was paid $12,000 in advance for services to be performed.  By the end of the year, only one-eighth of the services had been performed.  What will be the financial statement disclosure for Bravo's Unearned Revenue at the end of the year?

Question 4: Charlie Corporation's adjusted trial balance included the following items (all account balances are normal): Accounts payable $65,000,  Accounts receivable $45,000, Capital stock $100,000, Cash $50,000, Dividends $10,000, Goodwill $47,000, Interest expense $4,000, Interest payable $2,000, Inventory $32,000, Notes payable $80,000, Prepaid expenses $5,000, Property, plant & equipment $123,000, Retained earnings $46,000, Rent expense $18,000, Revenues $101,000, and Salary expense $60,000.  How much is retained earnings to be reported in the balance sheet?

Question 5: Alpha Company provided the following data concerning its income statement: sales, $1,000,000; purchases, $400,000; beginning inventory, $250,000; ending inventory, $275,000; operating expenses, $95,000; freight-in, $5,000; sales discounts, $20,000; purchases discounts, $15,000; sales returns & allowances, $120,000; and purchases returns & allowances, $45,000.  The data are complete and provide the basis for preparation of an income statement.  How much are net sales for Alpha Company?

Question 6: Alpha Company provided the following data concerning its income statement: sales, $1,000,000; purchases, $400,000; beginning inventory, $250,000; ending inventory, $275,000; operating expenses, $95,000; freight-in, $5,000; sales discounts, $20,000; purchases discounts, $15,000; sales returns & allowances, $120,000; and purchases returns & allowances, $45,000.  The data are complete and provide the basis for preparation of an income statement.  How much is cost of goods sold?

Question 7: Alpha Company was preparing its month-end bank reconciliation.  The cash balance per the general ledger was $1,645.  Alpha's accountant discovered that the bank had charged $15 in service charges for the month, that outstanding checks were $60, and that there were no deposits in transit.  What is the correct adjusted ending cash balance?

Question 8: In preparing its August 31, 2015 bank reconciliation, Yankee Corp. has available the following information:

Balance per bank statement, 8/31/15	$18,050
Outstanding checks, 8/31/15	3,250
Return of customer's check for insufficient funds, 8/31/15	600
Deposit in transit, 8/31/15	2,750
Bank service charges for August	100

 At August 31, 2015, Yankee's correct cash balance is: