Reference no: EM133183199

Questions -

Q1. The accountant for the World Company discovered Central Bank had made an error on World's August 31 bank statement. The bank balance read $8,728, while the book balance showed $6,998. The accountant found that an August 23 check for $1,250 did not appear on the bank statement (thus representing an outstanding check). If this check is the only reconciling item, how much is the amount of the bank error?

A. $1,730

B. $1,250

C. $480

D. $2,980

Q2. Refer to the following table:

Following is a random list showing the account balances of various assets, liabilities, revenues, and expenses for Michael's Landscaping at December 31, 2013, the end of its first year of operations.

Accounts receivable $25,000

Accounts payable 3,500

Salary expense 4,500

Repairs expense 800

Truck 8,500

Equipment 6,300

Notes payable 8,200

Cash 6,800

Supplies expense 1,600

Service revenue 22,800

Gasoline expense 800

Salary payable 2,200

The owner, Michael Mower, invested $22,600 at the beginning of the year and withdrew $5,000 during the year for personal use.

The net income or loss for the year was:

A. $7,700.

B. $15,100.

C. $12,800.

D. $5,900.