Reference no: EM133041848

Questions -

Q1. At the end of Year 2, retained earnings for the Baker Company was $3,150. Revenue earned by the company in Year 2 was $3,400, expenses paid during the period were $1,800, and dividends paid during the period were $1,200. Based on this information alone, what was the amount of retained earnings at the beginning of Year 2?

A. $3,550

B. $6,800

C. $1,550

D. $2,750

Q2. Retained Earnings at the beginning and ending of the period were $1,150 and $2,400, respectively. If revenues were $4,500 and dividends paid to stockholders were $1,050, what was the amount of expenses for the period?

A. $3,450

B. $2,200

C. $1,250

D. $3,250

Q3. On January 1, Year 2, the Accounts Receivable balance was $32,200 and the balance in the Allowance for Doubtful Accounts was $4,000. On January 15, Year 2, an $1,160 uncollectible account was written-off. The net realizable value of accounts receivable immediately after the write-off is:

A. $28,200

B. $31,040

C. $27,040

D. $29,360

Q4. The Miller Company recognized $121,000 of service revenue earned on account during Year 2. There was no beginning balance in the accounts receivable and allowance accounts. During Year 2, Miller collected $81,000 of cash from accounts receivable. The company estimates that it will be unable to collect 3% of its sales on account. The net realizable value of Miller's receivables at the end of Year 2 was:

A. $36,370

B. $40,000

C. $43,630

D. $37,570

Q5. Rosewood Company made a loan of $11,000 to one of the company's employees on April 1, Year 1. The one-year note carried a 6% rate of interest. The amount of interest revenue that Rosewood would report during the years ending December 31, Year 1 and Year 2, respectively, would be:

A. $495 and $165

B. $0 and $660

C. $660 and $0

D. $165 and $495