Question 1

Total assets, liabilities, and shareholders' equity are $7,000, $5,000, and $2,000 before a new machine is purchased for $500 cash. What are the new amounts of assets, liabilities, and shareholders' equity after this event?

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Question 2

Total assets, liabilities, and shareholders' equity are $5,000, $1,500, and $3,500 before common stock is issued for $500 cash. What are the new amounts of assets, liabilities, and shareholders' equity after this event?

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Question 3

If interest payable on January 1 is $3,000, and during the current year interest expense is $62,000, and cash payments for interest is $63,000, then what is the balance in the T-account, Interest Payable, on December 31?

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Question 4

Ohio Company, a corporation, began operations on December 1, 2017. During January of 2018, the following transactions occurred:
.Billed customers $12,000 for services performed during January.
.Received payment from customers in the amount of $6,000 for services performed and billed in December.
.Received cash of $7,000 for services performed during January for customers who paid cash immediately. (No bills were mailed.)
A. How much total Revenue should Ohio Company report for January, 2018?
B. Determine the increase in cash during January of 2018 as a result of these transactions.

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Question 5

Phoenix Corp. paid rent of $15,000 for 3 months in advance on November 1, 2018. Phoenix accounting period ends on December 31, 2018. Which amount will be reported at December 31, 2018?

Accepted Answer

DPrepaid rent of $5,000 will be reported on the December 31, 2018, balance sheet because two months' rent ($10,000) would have been used by the end of December, leaving one month ($5,000) as prepaid. Rent expense of $10,000 (not $5,000 as mistakenly mentioned) will be reported on the income statement for the year ending December 31, 2018, reflecting the rent expense for November and December. However, the correct explanation involves recognizing $10,000 as the expense, not $5,000 as indicated in choice D. My mistake in the explanation; the correct rent expense for the period should indeed be $10,000, not $5,000 as choice D suggests. The correct answer should focus on the prepaid rent aspect for the balance sheet.

Question 6

Total assets, liabilities, and shareholders' equity are $14,000, $7,000, and $7,000 before a new copy machine is purchased in exchange for a $1,000 note payable. What are the new amounts of assets, liabilities, and shareholders' equity after this event?

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Question 7

If accounts receivable on January 1 totals $21,000, and during the current year sales revenue is $310,000, and cash receipts from customers is $296,000, then what is the balance in Accounts Receivable on December 31?

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Question 8

If interest payable on January 1 is $1,000, and during the current year interest is accrued for $2,200, and cash payments for interest amount to $2,000, then what is the balance in the T-account, Interest Expense, on December 31?

Accepted Answer

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Question 9

Dena, Inc. began operations during 2018. During January of 2018, the following transactions occurred:
.Received $80,000 from shareholders as initial investments
.Received cash of $55,000 for services performed during January
.Billed customers an additional $15,000 for services performed during January
.Borrowed $12,000 from NationsBank Company, and signed a one-year note payable
.Paid rent in the amount of $5,000 for January
.Paid dividends in January amounting to $8,000
.Paid wages of $35,000 for January
How much Net Income should Dena, Inc. report for January?

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Question 10

Retained earnings on January 1 was $27,000. During the current year net income is $160,000. Cash payments for dividends declared totals $145,000. What is the Retained Earnings balance on December 31?

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The answer of Retained earnings on January 1 was $27,000....

Question 11

Retained earnings on January 1 and December 31 is $65,000 and $58,000, respectively. During the year, net income is $113,000. How much dividends did the company declare and pay to the shareholders?

Accepted Answer

Retained earnings at the end of the year = Retained earnings at the beginning of the year + Net income - Dividends
$58,000 = $65,000 + $113,000 - Dividends
Dividends = $120,000

Question 12

During Bisbee's first year of business, office supplies were purchased for cash in the amount of $5,600 and the amount was debited to Supplies Expense. At the end of the first year, the physical count indicated that $425 of supplies were unused. How much should be reported on the income statement at year end for supplies expense?

Accepted Answer

The supplies expense should be adjusted for the value of supplies that were unused, which is $425. Therefore, the amount of supplies expense reported on the income statement at year end should be $5,600 - $425 = $5,175.

Question 13

Interest receivable on January 1 is $5,000. During the current year interest revenue is $65,000, and cash receipts from interest is $60,000. How much is the balance of Interest Receivable on December 31?

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The answer of Interest receivable on January 1 is $5,000....

Question 14

Total assets, liabilities, and shareholders' equity are $15,000, $6,000, and $9,000 before a $2,000 note payable is paid. Determine the new amounts of assets, liabilities, and shareholders' equity after this event?

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Question 15

Total assets, liabilities, and shareholders' equity are $7,000, $4,000, and $3,000 before $2,000 is received in exchange for a $2,000 bond payable. What change occurred to liabilities? Why is there no change in shareholders' equity?

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Question 16

The accounts for Jalisa Company are listed below, identified by number. Following the list of accounts is a series of adjusting entries (a through f) prepared by Jalisa Company. For each entry, identify the number(s) of the accounts to be debited and credited and place them in the space provided adjacent to each adjusting entry.
 $\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\text { Accounts }$
$\begin{array}{ll}
\text { 1. Cash } & \text { 11. Notes Payable } \
\text { 2. Accounts Receivable } & \text { 12. Common Stock } \
\text { 3. Prepaid Rent } & \text { 13. Retained Earnings } \
\text { 4. Supplies } & \text { 14. Service Revenue } \
\text { 5. Automobiles } & \text { 15. Supplies Expense } \
\text { 6. Accumulated Depreciation } & \text { 16. Utilities Expense } \
\text { 7. Accounts Payable } & \text { 17. Salaries and Wages Expense } \
\text { 8. Interest Payable } & \text { 18. DepreciationExpense } \
\text { 9. Salaries and Wages Payable } & \text { 19. Interest Expense } \
\text { 10. Income Tax Pavable } & \text { 20. Income Tax Expense }
\end{array}$ 
 $$\begin{array} { | l | l | l | } 
\hline \text { Adjusting Entries } & \text { Debit } & \text { Credit } \
\hline \text { a. Provided legal services to clients that will pay next manth } & & \
\hline \text { a. Accrued wages earned by employees that will be paid next manth } & & \
\hline \text { c. Recagnized affice supplies used during the manth } & & \
\hline \text { d. Recarded the current manth of depreciation expense } & & \
\hline \text { e. Recarded manthly utilities expenses which are nat yet paid } & & \
\hline \text { f. Recagnized the amount of interest due to the bank an a nate } & & \
\hline
\end{array}$$

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The answer of The accounts for Jalisa Company are listed...

Question 17

Mingo Company has been in business several years. During January of 2018, the following transactions occurred:
.Paid employees $6,000 for wages during January.
.Paid $2,000 cash for other operating expenses of which $1,000 related to December and the balance related to January.
.Paid utilities and rent for January in the amount of $1,800.
.Paid a cash dividend to shareholders in the amount of $900 during January.
How much is total Expenses that Mingo Company will report for January 2018? Why is this amount different than the amount paid during the month?

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Question 18

Houston Times Publishing Inc. sells two-year magazine subscriptions. Cash receipts from subscribers are credited to Unearned Subscription. Revenue On December 31, 2018, immediately before the company made adjusting entries, the Unearned Subscription Revenue account had a balance of $8,000. Outstanding subscriptions relating to magazines that have not been delivered as of December 31, 2018, will be mailed to customers as follows:
During 2019 $2,800
During 2020 2,200
At December 31, 2018, what amount should Houston Times Publishing Inc. report as the balance for Unearned Subscription Revenue? Where should this amount be reported?

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Question 19

When a landlord records rent received in advance from a tenant in a revenue account, the adjusting entry required at year end to allocate the rent to the proper periods has an impact on financial statement elements. What effect (increase, decrease, no effect) does the required adjustment have on each of the following elements?
 $\begin{array}{|l|l|}
\hline \text { Assets } & \text { Revenues } \
\hline \text { Liabilities } & \text { Expenses } \
\hline \text { Shareholders' equity } & \
\hline
\end{array}$

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The answer of When a landlord records rent received in...

Question 20

Total assets, liabilities, and shareholders' equity are $4,000, $1,000, and $3,000 before current period wages of $200 are paid. What are the new amounts of assets, liabilities, and shareholders' equity after this event?

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The answer of Total assets, liabilities, and shareholders' equity are...

Quiz 4: The Mechanics of Financial Accounting

Total assets, liabilities, and shareholders' equity are $7,000, $5,000, and $2,000 before a new machine is purchased for $500 cash. What are the new amounts of assets, liabilities, and shareholders' equity after this event?

Total assets, liabilities, and shareholders' equity are $5,000, $1,500, and $3,500 before common stock is issued for $500 cash. What are the new amounts of assets, liabilities, and shareholders' equity after this event?

If interest payable on January 1 is $3,000, and during the current year interest expense is $62,000, and cash payments for interest is $63,000, then what is the balance in the T-account, Interest Payable, on December 31?

Phoenix Corp. paid rent of $15,000 for 3 months in advance on November 1, 2018. Phoenix accounting period ends on December 31, 2018. Which amount will be reported at December 31, 2018?

Total assets, liabilities, and shareholders' equity are $14,000, $7,000, and $7,000 before a new copy machine is purchased in exchange for a $1,000 note payable. What are the new amounts of assets, liabilities, and shareholders' equity after this event?

If accounts receivable on January 1 totals $21,000, and during the current year sales revenue is $310,000, and cash receipts from customers is $296,000, then what is the balance in Accounts Receivable on December 31?

If interest payable on January 1 is $1,000, and during the current year interest is accrued for $2,200, and cash payments for interest amount to $2,000, then what is the balance in the T-account, Interest Expense, on December 31?

Retained earnings on January 1 was $27,000. During the current year net income is $160,000. Cash payments for dividends declared totals $145,000. What is the Retained Earnings balance on December 31?

Retained earnings on January 1 and December 31 is $65,000 and $58,000, respectively. During the year, net income is $113,000. How much dividends did the company declare and pay to the shareholders?

Interest receivable on January 1 is $5,000. During the current year interest revenue is $65,000, and cash receipts from interest is $60,000. How much is the balance of Interest Receivable on December 31?

Total assets, liabilities, and shareholders' equity are $15,000, $6,000, and $9,000 before a $2,000 note payable is paid. Determine the new amounts of assets, liabilities, and shareholders' equity after this event?

Total assets, liabilities, and shareholders' equity are $7,000, $4,000, and $3,000 before $2,000 is received in exchange for a $2,000 bond payable. What change occurred to liabilities? Why is there no change in shareholders' equity?

Total assets, liabilities, and shareholders' equity are $4,000, $1,000, and $3,000 before current period wages of $200 are paid. What are the new amounts of assets, liabilities, and shareholders' equity after this event?