Reference no: EM13842168
1.
Bledsoe Company received $28,000 cash from the issue of stock on January 1, 2013. During 2013 Bledsoe earned $9,800 of revenue on account. The company collected $8,600 cash from accounts receivable and paid $6,700 cash for operating expenses. Based on this information alone, during 2013.
o Total assets increased by $39,700.
o Total assets increased by $1,900.
o Total assets increased by $31,100.
o Total assets did not change.
2.
Revenue on account amounted to $6,400. Cash collections of accounts receivable amounted to $4,100. Expenses for the period were $3,300. The company paid dividends of $1,050. Net income for the period was
o $2,050.
o $800.
o $3,100.
o $3,050.
3.
Franklin Trash Removal Company received a cash advance of $12,000 on December 1, 2013 to provide services during the months of December, January, and February. The year-end adjustment to recognize the partial expiration of the contract will
o increase equity by $4,000
o increase assets by $4,000
o increase liabilities by $4,000
o Increase Equity by $4,000 and assets by $4,000.
4.
The following account balances were drawn from the 2013 financial statements of Gunn Company
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Cash
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$5,200
|
|
Accounts payable
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$1,650
|
|
Accounts receivable
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$2,300
|
|
Common stock
|
?
|
|
Land
|
$8,800
|
|
Retained earnings, Jan.1
|
$3,500
|
|
|
|
|
Revenue
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$10,300
|
|
|
|
|
Expenses
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$7,650
|
Based on the above information, what is the balance of Common Stock for Gunn Company?
o $11,150
o $8,500
o $850
o $11,200
5.
Prior to closing, XYZ Company's accounting records showed the following balances:
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Retained earnings
|
$8,300
|
|
Service revenue
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9,050
|
|
Interest revenue
|
1,500
|
|
Salaries expense
|
5,900
|
|
Operating expenses
|
2,050
|
|
Interest expense
|
1,200
|
|
Dividends
|
1,800
|
After closing, XYZ's retained earnings balance would be
o $8,300.
o $7,900.
o $9,700.
o None of these.
6.
Olaf Company began 2013 with $1,800 in its supplies account. During the year, the company purchased $5,300 of supplies on account. The company paid $2,700 on accounts payable by year end. On December 31, 2013, Olaf counted $3,100 of supplies on hand. Olaf's financial statements for 2013 would show:
o $4,400 of supplies; $5,300 of supplies expense
o $4,400 of supplies; $1,300 of supplies expense
o $3,100 of supplies; $2,200 of supplies expense
o $3,100 of supplies; $4,000 of supplies expense
7.
James Company paid $2,400 for one year's rent in advance beginning on October 1, 2013. James's 2013 income statement would report rent expense, and its statement of cash flows would report cash outflow for rent, respectively, of
o $600; $600
o $600; $2,400
o $2,400; $2,400
o $400; $2,400
8.
Revenue on account amounted to $6,800. Cash collections of accounts receivable amounted to $6,500. Cash paid for expenses was $4,400. The amount of employee salaries accrued at the end of the year was $2,200. Cash flow from operating activities was
o $2,100.
o $2,200.
o $2,400.
o None of these.
9.
Woodward Enterprises had the following events during 2013:
The business issued $22,000 of common stock to its stockholders.
The business purchased land for $14,000 cash.
Services were provided to customers for $18,000 cash.
Services were provided to customers for $7,000 on account.
The company borrowed $18,000 from the bank.
Operating expenses of $14,000 were incurred and paid in cash.
Salary expense of $1,000 was accrued.
A dividend of $6,000 was paid to the owners of Woodward Enterprises.
Assuming the company began operations during 2013, the amount of retained earnings as of December 31, 2013 would be:
o $25,000
o $3,800
o $4,000
o $12,000
10.
Ruiz Company provided services for $25,500 cash during the 2013 accounting period. Ruiz incurred $19,000 expenses on account during 2013, and by the end of the year, $6,500 of that amount had been paid with cash. Assuming that these are the only accounting events that affected Ruiz during 2013.
o The amount of net income shown on the income statement is $6,500.
o The amount of net loss shown on the income statement is $6,500.
o The amount of net cash flow from operating activities shown on the statement of cash flows is $13,000.
o The amount of net income shown on the income statement is $12,500.
11.
The following accounts and balances were drawn from the records of Hoover Company on December 31, 2013:
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Cash
|
$3,600
|
|
Accounts Receivable
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$1,500
|
|
Dividends
|
1,800
|
|
Common Stock
|
2,275
|
|
Land
|
2,100
|
|
Revenue
|
2,100
|
|
Accounts Payable
|
1,100
|
|
Expense
|
1,200
|
Total assets on the December 31, 2013 balance sheet would amount to:
o $9,000.
o $5,700.
o $7,200.
o $9,300.
12.
The following accounts and balances were drawn from the records of Hoover Company on December 31, 2013:
|
Cash
|
$3,800
|
|
Accounts Receivable
|
$1,550
|
|
Dividends
|
1,900
|
|
Common Stock
|
2,375
|
|
Land
|
2,200
|
|
Revenue
|
2,200
|
|
Accounts Payable
|
1,150
|
|
Expense
|
1,250
|
The amount of net income shown on the December 31, 2013 income statement would amount to:
o $1,250.
o $2,200.
o $950.
o $750.
13.
Norris Company experienced the following transactions during 2013, its first year in operation.
1. Issued $10,000 of common stock to stockholders.
2. Provided $6,300 of services on account.
3. Paid $2,600 cash for operating expenses.
4. Collected $3,900 of cash from accounts receivable.
5. Paid a $300 cash dividend to stockholders.
The amount of net income recognized on Norris Company's 2013 income statement is:
o $3,400.
o $2,400.
o $2,700.
o $3,700.
14.
Norris Company experienced the following transactions during 2013, its first year in operation.
1. Issued $7,800 of common stock to stockholders.
2. Provided $4,100 of services on account.
3. Paid $2,050 cash for operating expenses.
4. Collected $2,800 of cash from accounts receivable.
5. Paid a $190 cash dividend to stockholders.
The amount of net cash flow from operating activities shown on Norris Company's 2013 statement of cash flows is
o $560.
o $750.
o $1,860.
o $2,050.
15.
Norris Company experienced the following transactions during 2013, its first year in operation.
1. Issued $8,800 of common stock to stockholders.
2. Provided $5,100 of services on account.
3. Paid $2,300 cash for operating expenses.
4. Collected $3,300 of cash from accounts receivable.
5. Paid a $240 cash dividend to stockholders.
The total amount of assets shown on Norris Company's December 31, 2013 balance sheet is:
o $9,560.
o $11,360.
o $11,600.
o None of these.
16.
Norris Company experienced the following transactions during 2013, its first year in operation.
1. Issued $9,800 of common stock to stockholders.
2. Provided $6,100 of services on account.
3. Paid $2,550 cash for operating expenses.
4. Collected $3,800 of cash from accounts receivable.
5. Paid a $290 cash dividend to stockholders.
The amount of retained earnings appearing on Norris Company's December 31, 2013 balance sheet is:
o $2,590.
o $3,260.
o $13,060.
o $3,550.
17.
Gonzales Company collected $19,800 on September 1, 2013 from a customer for services to be provided over a one-year period beginning on that date. How much revenue would Gonzales Company report related to this contract on its income statement for the year ended December 31, 2013? How much would it report as cash flows from operating activities for 2013?
o $6,600; $6,600
o $0; $19,800
o $19,800; $19,800
o $6,600; $19,800