Question 1

During July, its first period of operations, Aju Inc. sold ordinary shares for W960,000,000, earned net income of W130,000,000, and paid dividends of W27,000,000. Retained earnings at the end of July is

Accepted Answer

The answer of During July, its first period of operations,...

Question 2

At October 1, Smithson Enterprises reported equity of $210,000. During October, capital shares of $30,000 were issued and the company posted a net loss of $18,000. If equity at October 31 totals $210,000, what amount of dividends were paid during the month?

Accepted Answer

The answer of At October 1, Smithson Enterprises reported equity...

Question 3

During 2014, Li & Fung Corporation earned revenue of HK$9,225,000, incurred expenses of expenses of HK$6,945,000, and paid dividends of HK$630,000. Net income for 2014 is

Accepted Answer

Net Income = Revenue - Expenses
Net Income = HK$9,225,000 - HK$6,945,000 = HK$2,280,000
However, dividends paid are not considered part of expenses, therefore they must be subtracted from net income:
Net Income - Dividends Paid = HK$2,280,000 - HK$630,000 = HK$1,650,000
Therefore, the correct answer is B) HK$2,280,000.

Question 4

During May, Brunhilde Company earned revenue of €212,000, incurred expenses of €136,000, of which €96,000 were on account, and paid dividends of €32,000. Net income (loss) for the month is

Accepted Answer

To determine the net income for the month, we need to subtract the expenses from the revenue, and then subtract the dividends paid. 
Revenue - Expenses = Net income (loss)
€212,000 - €136,000 = €76,000
Net income (loss) - Dividends paid = Net income (loss)
€76,000 - €32,000 = €44,000
Therefore, the net income for the month is €44,000.

Question 5

Use the following information for questions

O' Hara Company began operations on December 1, 2014. Presented below is selected information related to O' Hara Company at December 31, 2014.

-At December 31, 2014, liabilities total

Accepted Answer

The answer of Use the following information for questions

O'...

Question 6

Le Bateau Company began operations on March 1, 2014. During March, Le Bateau sold ordinary shares for €6,750,000 and incurred a net loss of €915,000. Equity at the end of March is

Accepted Answer

The equity at the end of March is the sum of the proceeds from the sale of ordinary shares and the net loss incurred. Therefore, equity at the end of March is €6,750,000 - €915,000 = €5,835,000.

Question 7

Sing Tao inc. began operations on June 2, 2014. During June, Sing Tao sold ordinary shares for HK$17,175,000, earned revenue of HK$3,030,000, incurred expenses of HK$1,545,000, and paid dividends of HK$45,000. Equity at the end of June is

Accepted Answer

The equity at the end of June can be calculated as:
Equity = Beginning Equity + Share Issued - Dividends Paid + Revenue - Expenses
Beginning Equity is assumed to be zero as the company just began operations. 
Share Issued = HK$17,175,000 
Dividends Paid = HK$45,000 
Revenue = HK$3,030,000 
Expenses = HK$1,545,000 
Therefore, Equity = 0 + HK$17,175,000 - HK$45,000 + HK$3,030,000 - HK$1,545,000 = HK$18,615,000. 
Thus, the best choice is C.

Question 8

Mica Inc. began operations in October, 2014. During October, Mica sold ordinary shares for €600,000, earned revenue of €66,000, incurred expenses of €36,000, and paid dividends of €3,000. Equity at the end of the month is

Accepted Answer

The answer of Mica Inc. began operations in October, 2014....

Question 9

During January, Bruni Corporation earned revenue of €90,000, incurred expenses of €44,000, and paid dividends of €6,000. The income statement will report net income for the month of

Accepted Answer

Net income can be calculated as follows:
Revenue - Expenses = Net income
€90,000 - €44,000 = €46,000
Dividends paid are not considered in the calculation of net income. Therefore, the net income for the month of January is €46,000.

Question 10

During July, its first period of operations, Aju Inc. sold ordinary shares for W960,000,000, earned net income of W130,000,000, and paid dividends of W27,000,000. Equity at the end of July is

Accepted Answer

Equity at the end of the period can be calculated using the formula:
Equity = Beginning Shares + Net Income - Dividends
Beginning Shares are not provided, so we assume it to be zero. 
Therefore, Equity = 0 + W130,000,000 - W27,000,000 = W103,000,000
Adding the total amount raised from share issuance, we get:
Equity = W960,000,000 + W103,000,000 = W1,063,000,000. 
Hence, the correct answer is B.

Question 11

Sing Tao Inc. began operations on June 2, 2014. During June, Sing Tao sold ordinary shares for HK$17,175,000, earned revenue of HK$3,030,000, incurred expenses of HK$1,545,000, and paid dividends of HK$45,000. Retained earnings at June 30, 2014

Accepted Answer

The answer of Sing Tao Inc. began operations on June...

Question 12

During June, Sing Tao Inc. sold ordinary shares for HK$17,175,000, earned revenue of HK$3,030,000, incurred expenses of HK$1,545,000, and paid dividends of HK$45,000. Net income for June is

Accepted Answer

The answer of During June, Sing Tao Inc. sold ordinary...

Question 13

Use the following information for questions

O' Hara Company began operations on December 1, 2014. Presented below is selected information related to O' Hara Company at December 31, 2014.

-Net income for the month of December is

Accepted Answer

The answer of Use the following information for questions

O'...

Question 14

Nigiri Inc. began operations on October 1, 2014. During October, Nigiri sold ordinary shares for ¥440,000,000, earned net income of ¥64,000,000, and paid dividends of ¥1,978,000. Equity at the end of October is

Accepted Answer

Equity at the end of October = (Initial equity + net income - dividends + share capital issued) = (0 + 64,000,000 - 1,978,000 + 440,000,000) = ¥502,022,000.

Question 15

During October, Mica Inc. sold ordinary shares for €600,000, earned revenue of €66,000, incurred expenses of €36,000, and paid dividends of €3,000. Net income for the month is

Accepted Answer

The answer of During October, Mica Inc. sold ordinary shares...

Question 16

Bruni Corporation began operations on January 1, 2014. During January, Bruni earned revenue of €90,000, incurred expenses of €44,000, and paid dividends of €6,000. Retained earnings at the end the month is

Accepted Answer

The answer of Bruni Corporation began operations on January 1,...

Question 17

Nigiri Inc. began operations on October 1, 2014. During October, Nigiri sold ordinary shares for ¥440,000,000, earned net income of ¥64,000,000, and paid dividends of ¥1,978,000. Retained earnings at the end of October is

Accepted Answer

The answer of Nigiri Inc. began operations on October 1,...

Question 18

Use the following information for questions

O' Hara Company began operations on December 1, 2014. Presented below is selected information related to O' Hara Company at December 31, 2014.

-At December 31, 2014, assets total

Accepted Answer

The information in the question only provides the value of assets at December 31, 2014, and does not give any other information about liabilities or equity. Therefore, the total assets at December 31, 2014 would be £162,000.

Question 19

Mica Inc. began operations in October, 2014. During October, Mica sold ordinary shares for €600,000, earned revenue of €66,000, incurred expenses of €36,000, and paid dividends of €3,000. Retained earnings at the end the month is

Accepted Answer

The answer of Mica Inc. began operations in October, 2014....

Question 20

During March, Bindi Company earned revenue of €270,000 on account of which €178,000 had been collected by the end of the month. The company incurred expenses of €156,000. The company paid all of its expenses in cash as well as paying dividends of €46,000. Net income (loss) for the month is

Accepted Answer

The answer of During March, Bindi Company earned revenue of...

Quiz 1: Accounting in Action

During July, its first period of operations, Aju Inc. sold ordinary shares for W960,000,000, earned net income of W130,000,000, and paid dividends of W27,000,000. Retained earnings at the end of July is

At October 1, Smithson Enterprises reported equity of $210,000. During October, capital shares of $30,000 were issued and the company posted a net loss of $18,000. If equity at October 31 totals $210,000, what amount of dividends were paid during the month?

During 2014, Li & Fung Corporation earned revenue of HK$9,225,000, incurred expenses of expenses of HK$6,945,000, and paid dividends of HK$630,000. Net income for 2014 is

During May, Brunhilde Company earned revenue of €212,000, incurred expenses of €136,000, of which €96,000 were on account, and paid dividends of €32,000. Net income (loss) for the month is

Use the following information for questions O' Hara Company began operations on December 1, 2014. Presented below is selected information related to O' Hara Company at December 31, 2014. -At December 31, 2014, liabilities total

Le Bateau Company began operations on March 1, 2014. During March, Le Bateau sold ordinary shares for €6,750,000 and incurred a net loss of €915,000. Equity at the end of March is

Sing Tao inc. began operations on June 2, 2014. During June, Sing Tao sold ordinary shares for HK$17,175,000, earned revenue of HK$3,030,000, incurred expenses of HK$1,545,000, and paid dividends of HK$45,000. Equity at the end of June is

Mica Inc. began operations in October, 2014. During October, Mica sold ordinary shares for €600,000, earned revenue of €66,000, incurred expenses of €36,000, and paid dividends of €3,000. Equity at the end of the month is

During January, Bruni Corporation earned revenue of €90,000, incurred expenses of €44,000, and paid dividends of €6,000. The income statement will report net income for the month of

During July, its first period of operations, Aju Inc. sold ordinary shares for W960,000,000, earned net income of W130,000,000, and paid dividends of W27,000,000. Equity at the end of July is

Sing Tao Inc. began operations on June 2, 2014. During June, Sing Tao sold ordinary shares for HK$17,175,000, earned revenue of HK$3,030,000, incurred expenses of HK$1,545,000, and paid dividends of HK$45,000. Retained earnings at June 30, 2014

During June, Sing Tao Inc. sold ordinary shares for HK$17,175,000, earned revenue of HK$3,030,000, incurred expenses of HK$1,545,000, and paid dividends of HK$45,000. Net income for June is

Use the following information for questions O' Hara Company began operations on December 1, 2014. Presented below is selected information related to O' Hara Company at December 31, 2014. -Net income for the month of December is

Nigiri Inc. began operations on October 1, 2014. During October, Nigiri sold ordinary shares for ¥440,000,000, earned net income of ¥64,000,000, and paid dividends of ¥1,978,000. Equity at the end of October is

During October, Mica Inc. sold ordinary shares for €600,000, earned revenue of €66,000, incurred expenses of €36,000, and paid dividends of €3,000. Net income for the month is

Bruni Corporation began operations on January 1, 2014. During January, Bruni earned revenue of €90,000, incurred expenses of €44,000, and paid dividends of €6,000. Retained earnings at the end the month is

Nigiri Inc. began operations on October 1, 2014. During October, Nigiri sold ordinary shares for ¥440,000,000, earned net income of ¥64,000,000, and paid dividends of ¥1,978,000. Retained earnings at the end of October is

Use the following information for questions O' Hara Company began operations on December 1, 2014. Presented below is selected information related to O' Hara Company at December 31, 2014. -At December 31, 2014, assets total

Mica Inc. began operations in October, 2014. During October, Mica sold ordinary shares for €600,000, earned revenue of €66,000, incurred expenses of €36,000, and paid dividends of €3,000. Retained earnings at the end the month is

During March, Bindi Company earned revenue of €270,000 on account of which €178,000 had been collected by the end of the month. The company incurred expenses of €156,000. The company paid all of its expenses in cash as well as paying dividends of €46,000. Net income (loss) for the month is