Reference no: EM133265493

Question: Park Company reported the following amounts for the year ended Dec. 31, 2021:
Utilities Expense $ 9,000 Service Revenue $158,000
Building 185,000 Interest Expense 2,500
Salaries Expense 22,000 Advertising Expense 10,000
Accounts Payable 3,700 Equipment 25,000
Cash 10,000 Notes Payable 12,000
Accounts Receivable 2,000
Park Company had common stock of $10,000 at the beginning of the year and issued an
additional $5,000 of common stock during the year. The company had retained earnings of
$81,800 at the beginning of the year and paid dividends of $5,000.

6. Which of the following accounts has a normal debit balance and would appear in the
balance sheet? (There is only 1 correct answer.)
Notes Payable, Cash, Service Revenue, Salaries Expense, Dividends

7. Which of the following accounts has a normal credit balance and would appear in the
income statement? (There is only 1 correct answer.)
Utilities Expense, Accounts Payable, Cash, Service Revenue, Deferred Revenue
8. West Seattle Catering has the following transactions during the month of October:
October 1 Issued common stock in exchange for $5,000 cash.
October 8 Purchase $650 supplies on account.
October 10 Paid $4,000 in advance for a 2-year insurance policy
October 18 Provide services of $3,000 to customers and receive cash.
October 19 Pay employee salaries for the current month of $900.
October 20 Provide services of $600 to customers on account.
October 31 Pay rent for the current month of $2,000.
October 31 Pay for the supplies purchased on October 8.
In the space below, record the journal entry the company would make for each transaction.

9. A company paid cash for the following items in July. Show your calculations for all answers.
Rent 3,000
Equipment 10,000
Building 80,000
Repaid loan to bank 9,000
Salaries 11,000
What was the total amount of cash paid for operating activities?
What was the total amount of cash paid for investing activities?
What was the total amount of cash paid for financing activities?
10. Use the accounting equation to solve for missing amounts:
Covington Company's balance sheet includes the following amounts:
Total Assets $ 12,800
Common Stock $ 5,500
Retained Earnings $ 4,800
What must be the amount of total liabilities? Show your calculations.
11. Tucson Company's balance sheet includes the following amounts:
Total Assets $ 55,000
Total Liabilities $ 18,200
Retained Earnings $ 14,100
What must be the amount of the Common Stock account? Show your calculations.