Reference no: EM132472149

Information pertaining to the Hearn Corporation is given below:

                                             Dec. 31, 20x3         Dec. 31, 20x2

Total Assets                                  $477311              $ 443793

Total Liabilities                               $288487                $ 210680

Common Shares                                $46871                       ?

Retained Earnings                                 ?                           ?

Question 1: If during 20x3, $20160 dividends were paid by the corporation and no net income was earned, what is the 20x3 opening retained earnings amount?

Select one:

a. $ 186242

b. $ 121793

c. $ 233113

d. $ 141953

Question 2: A company has $328319 of assets and $120000 in shareholders' equity at the beginning of the year. The net income for the year was $43082 and dividends declared were $11817. The liabilities increased by $33104 over the year. What is the ending balance of the assets?

Select one:

a. $404505

b. $392688

c. $263950

d. $361423

Below is a listing of asset accounts for Sandi Co.:

Cash                                                      $4225

Machine                                                 40553

Accumulated Depreciation- Machine             10162

Building                                                   54329

Accumulated Depreciation- Building              18472

Accounts Receivable                                 14573

Land                                                      87359

Inventory                                                7696

Prepaid Insurance                                    11299

Question 3: What are Sandi Co.'s total non-current assets?

Select one:

a. $66248

b. $182241

c. $164906

d. $153607

• Ruttle Co. sold merchandise inventory to a customer for $59560 on credit. The inventory cost Ruttle Co. $45235.

Question 4: What is the effect of this business transaction on the accounting equation of the company?

Select one:

a. Assets increase $104795, liabilities decrease $45235, and equity increases $59560

b. Assets increase $14325, liabilities decrease $14325, and equity increases $14325

c. Assets increase $14325, liabilities do not change, and equity increases $14325

d. Assets increase $59560, liabilities do not change, and equity increases $59560

Question 5: Choi Incorporated declared dividends of $71634 on February 18th of this year. The shareholders as of that date will receive the dividend on March 18th. What is the effect of the February 18th transaction on the accounting equation?

Select one:

a. Liabilities will increase by $71634 and assets will increase by $71634

b. Liabilities will increase by $71634 and shareholder's equity will decrease by $71634

c. Assets will decrease by $71634 and shareholder's equity will decrease by $71634

d. There is no effect on the accounting equation on February 18th seeing as no cash was paid