Question 1

During January, Bruni Corporation earned revenue of €45,000, incurred expenses of €22,000, and paid dividends of €3,000.The income statement will report net income for the month of

Accepted Answer

To calculate the net income, we need to subtract expenses from revenues and then subtract dividends paid.

Net Income = Revenues - Expenses - Dividends Paid
Net Income = €45,000 - €22,000 - €3,000
Net Income = €20,000

Therefore, the net income for the month of January is €20,000. Choice A is incorrect as it does not take into account the dividends paid. Choice B is correct. Choice C is incorrect as the net income cannot be higher than the total revenues earned. Choice D is incorrect because it only includes revenue and not expenses or dividends.

Question 2

During July, its first period of operations, Aju inc.sold ordinary shares for W960,000,000, earned net income of W110,000,000, and paid dividends of W27,000,000.Equity at the end of July is

Accepted Answer

Equity at the end of July is calculated as the initial equity from selling shares (W960,000,000) plus net income (W110,000,000) minus dividends paid (W27,000,000), resulting in W1,043,000,000.

Question 3

During July, its first period of operations, Aju inc.sold ordinary shares for W960,000,000, earned net income of W110,000,000, and paid dividends of W27,000,000.Retained earnings at the end of July is

Accepted Answer

Retained earnings at the end of July is calculated as net income minus dividends, which is W110,000,000 - W27,000,000 = W83,000,000.

Question 4

Use the following information for questions O' Hara Company began operations on December 1,2011 . Presented below is selected information related to O' Hara Company at December 31, $ 2011 . $

-At December 31, 2011, assets total

Accepted Answer

The total assets at December 31, 2011 is the sum of cash (£15,000), accounts receivable (£12,000), supplies (£6,000), equipment (£40,000), and building (£8,000), which is £81,000.

Question 5

During June, Sing Tao Inc.sold ordinary shares for HK$11,450,000, earned revenue of HK$2,020,000, incurred expenses of HK$1,030,000, and paid dividends of HK$30,000.Net income for June is

Accepted Answer

Net income is calculated as total revenue minus total expenses. For Sing Tao Inc., net income for June is HK$2,020,000 (revenue) - HK$1,030,000 (expenses) = HK$990,000. Dividends and share sales do not affect net income calculation.

Question 6

Mica inc.began operations in October, 2011.During October, Mica sold ordinary shares for €200,000, earned revenue of €22,000, incurred expenses of €12,000, and paid dividends of €1,000.Equity at the end of the month is

Accepted Answer

At the beginning of the month, the company had no equity, so its equity at the end of the month will be equal to its net income for the month plus the amount of funds raised from issuing shares.

Net income for the month is equal to revenue minus expenses minus dividends:
€22,000 - €12,000 - €1,000 = €9,000

Adding the funds raised from issuing shares (€200,000), we get:
€9,000 + €200,000 = €209,000

Therefore, the equity at the end of the month is €209,000.

Question 7

Bruni corporation began operations on January 1, 2011.During January, Bruni earned revenue of €45,000, incurred expenses of €22,000, and paid dividends of €3,000.Retained earnings at the end the month is

Accepted Answer

Retained earnings = Beginning retained earnings + Net income - DividendsBeginning retained earnings = 0Net income = Revenue - Expenses = €45,000 - €22,000 = €23,000Retained earnings = 0 + €23,000 - €3,000 = €20,000

Question 8

Use the following information for questions O' Hara Company began operations on December 1,2011 . Presented below is selected information related to O' Hara Company at December 31, $ 2011 . $

-At December 31, 2011, liabilities total

Accepted Answer

The answer of Use the following information for questions O'...

Question 9

Nigiri inc.began operations on October 1, 2011.During October, Nigiri sold ordinary shares for ¥220,000,000, earned net income of ¥32,000,000, and paid dividends of ¥989,000.Equity at the end of October is

Accepted Answer

Equity = Total assets - Total liabilities
Since no information is given about total assets or liabilities, we can calculate equity based on the information provided:
Equity at beginning of month = 0 (since the company began operations on October 1)
Equity at end of month = Equity at beginning of month + Net income - Dividends + Issuance of ordinary shares
= 0 + ¥32,000,000 - ¥989,000 + ¥220,000,000
= ¥251,011,000

Question 10

Sing Tao inc.began operations on June 2, 2011.During June, Sing Tao sold ordinary shares for HK$11,450,000, earned Revenue of HK$2,020,000, incurred expenses of HK$1,030,000, and paid dividends of HK$30,000.Equity at the end of June is

Accepted Answer

To calculate the equity at the end of June, we need to use the accounting equation: Assets = Liabilities + Equity. 
Since the question does not provide information about liabilities, we will assume that there are no liabilities. 
Therefore, the equity at the beginning of June was zero (since it was the first month of operations). 
The net income for June was: 
Revenue - Expenses = HK$2,020,000 - HK$1,030,000 = HK$990,000 
The dividends paid do not affect the net income, they are just a distribution of profits to shareholders. 
Thus, the equity at the end of June is: 
HK$11,450,000 (shares sold) + HK$990,000 (net income) - HK$30,000 (dividends) = HK$12,410,000. 
Therefore, the correct answer is C.

Question 11

Sing Tao inc.began operations on June 2, 2011.During June, Sing Tao sold ordinary shares for HK$11,450,000, earned revenue of HK$2,020,000, incurred expenses of HK$1,030,000, and paid dividends of HK$30,000.Retained earnings at June 30, 2011

Accepted Answer

Retained earnings are calculated as the net income minus dividends. Net income is revenue minus expenses, which is HK$2,020,000 - HK$1,030,000 = HK$990,000. After paying dividends of HK$30,000, retained earnings are HK$990,000 - HK$30,000 = HK$960,000.

Question 12

Mica inc.began operations in October, 2011.During October, Mica sold ordinary shares for €200,000,earned revenue of €22,000, incurred expenses of €12,000, and paid dividends of €1,000.Retained earnings at the end the month is

Accepted Answer

Retained earnings are calculated as the net income minus dividends. Net income is revenue minus expenses, which is €22,000 - €12,000 = €10,000. After paying dividends of €1,000, retained earnings are €10,000 - €1,000 = €9,000.

Question 13

During May, Brunhilde Company earned revenue of €53,000, incurred expenses of €34,000, of which €24,000 were on account, and paid dividends of €8,000.Net income (loss) for the month is

Accepted Answer

Revenue earned: €53,000
Expenses incurred: €34,000 (out of which €24,000 were on account, so €10,000 were paid in cash)
Net Income/Loss = Revenue - Expenses - Dividends

Net Income/Loss = €53,000 - €34,000 - €8,000 = €11,000

Therefore, the correct answer is C) €19,000.

Question 14

During 2011, Li& Fung Corporation earned revenue of HK6,150,000, incurred expenses of expenses of HK4,630,000,and paid dividends of HK420,000.Net income for the 2011 is

Accepted Answer

Net income is calculated as revenue minus expenses. Therefore, HK6,150,000 - HK4,630,000 = HK1,520,000. Dividends do not affect net income calculation.

Question 15

Nigiri inc.began operations on October 1, 2011.During October, Nigiri sold ordinary shares for ¥220,000,000, earned net income of ¥32,000,000, and paid dividends of ¥989,000.Retained earnings at the end of October is

Accepted Answer

Retained earnings at the end of October is calculated as the net income minus dividends paid. Therefore, ¥32,000,000 - ¥989,000 = ¥31,011,000.

Question 16

During March, Bindi Company earned revenue of €135,000 on account of which €89,000 had been collected by the end of the month.The company incurred expenses of 78,000.The company paid all of its expenses in cash as well as paying dividends of €23,000.Net income (loss) for the month is

Accepted Answer

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

Question 17

Use the following information for questions O' Hara Company began operations on December 1,2011 . Presented below is selected information related to O' Hara Company at December 31, $ 2011 . $

-Net income for the month of December is

Accepted Answer

There is no information given about the revenue or expenses of the company, but we are given the net income for the month of December. Therefore, we can assume that this is the only source of income and deduct any expenses incurred during the month. The net income for December is £42,000.

Question 18

At October 1, Smithson Enterprises reported equity of $70,000.During October, capital shares of $10,000 were issued and the company posted a net loss of $6,000.If equity at October 31 totals $70,000, what amount of dividends were paid during the month?

Accepted Answer

Equation: Beginning Equity + Issued Shares - Net Loss - Dividends = Ending Equity

$70,000 + $10,000 - $6,000 - Dividends = $70,000

Solving for Dividends:

Dividends = $4,000

Therefore, the amount of dividends paid during the month was $4,000. Choice B is correct.

Question 19

During October, Mica Inc.sold ordinary shares for €200,000, earned revenue of €22,000, incurred expenses of €12,000, and paid dividends of €1,000.Net income for the month is

Accepted Answer

To find the net income, we need to subtract the expenses and dividends from the revenue. Therefore, net income = €22,000 - €12,000 - €1,000 = €9,000.

Question 20

Le Bateau Company began operations on March 1, 2011.During March, Le Bateau sold ordinary shares for €4,500,000 and incurred a net loss of €610,000.Equity at the end of March is

Accepted Answer

At the end of March, Le Bateau has equity of €4,500,000 (from selling shares) - €610,000 (net loss) = €3,890,000. Option B is the only choice that matches this value.

Quiz 1: Accounting in Action

During January, Bruni Corporation earned revenue of €45,000, incurred expenses of €22,000, and paid dividends of €3,000.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 W110,000,000, and paid dividends of W27,000,000.Equity at the end of July is

During July, its first period of operations, Aju inc.sold ordinary shares for W960,000,000, earned net income of W110,000,000, and paid dividends of W27,000,000.Retained earnings at the end of July is

Use the following information for questions O' Hara Company began operations on December 1,2011 . Presented below is selected information related to O' Hara Company at December 31, $2011 .$ -At December 31, 2011, assets total

During June, Sing Tao Inc.sold ordinary shares for HK$11,450,000, earned revenue of HK$2,020,000, incurred expenses of HK$1,030,000, and paid dividends of HK$30,000.Net income for June is

Mica inc.began operations in October, 2011.During October, Mica sold ordinary shares for €200,000, earned revenue of €22,000, incurred expenses of €12,000, and paid dividends of €1,000.Equity at the end of the month is

Bruni corporation began operations on January 1, 2011.During January, Bruni earned revenue of €45,000, incurred expenses of €22,000, and paid dividends of €3,000.Retained earnings at the end the month is

Use the following information for questions O' Hara Company began operations on December 1,2011 . Presented below is selected information related to O' Hara Company at December 31, $2011 .$ -At December 31, 2011, liabilities total

Nigiri inc.began operations on October 1, 2011.During October, Nigiri sold ordinary shares for ¥220,000,000, earned net income of ¥32,000,000, and paid dividends of ¥989,000.Equity at the end of October is

Sing Tao inc.began operations on June 2, 2011.During June, Sing Tao sold ordinary shares for HK$11,450,000, earned Revenue of HK$2,020,000, incurred expenses of HK$1,030,000, and paid dividends of HK$30,000.Equity at the end of June is

Sing Tao inc.began operations on June 2, 2011.During June, Sing Tao sold ordinary shares for HK$11,450,000, earned revenue of HK$2,020,000, incurred expenses of HK$1,030,000, and paid dividends of HK$30,000.Retained earnings at June 30, 2011

Mica inc.began operations in October, 2011.During October, Mica sold ordinary shares for €200,000,earned revenue of €22,000, incurred expenses of €12,000, and paid dividends of €1,000.Retained earnings at the end the month is

During May, Brunhilde Company earned revenue of €53,000, incurred expenses of €34,000, of which €24,000 were on account, and paid dividends of €8,000.Net income (loss) for the month is

During 2011, Li& Fung Corporation earned revenue of HK6,150,000, incurred expenses of expenses of HK4,630,000,and paid dividends of HK420,000.Net income for the 2011 is

Nigiri inc.began operations on October 1, 2011.During October, Nigiri sold ordinary shares for ¥220,000,000, earned net income of ¥32,000,000, and paid dividends of ¥989,000.Retained earnings at the end of October is

During March, Bindi Company earned revenue of €135,000 on account of which €89,000 had been collected by the end of the month.The company incurred expenses of 78,000.The company paid all of its expenses in cash as well as paying dividends of €23,000.Net income (loss) for the month is

Use the following information for questions O' Hara Company began operations on December 1,2011 . Presented below is selected information related to O' Hara Company at December 31, $2011 .$ -Net income for the month of December is

At October 1, Smithson Enterprises reported equity of $70,000.During October, capital shares of $10,000 were issued and the company posted a net loss of $6,000.If equity at October 31 totals $70,000, what amount of dividends were paid during the month?

During October, Mica Inc.sold ordinary shares for €200,000, earned revenue of €22,000, incurred expenses of €12,000, and paid dividends of €1,000.Net income for the month is

Le Bateau Company began operations on March 1, 2011.During March, Le Bateau sold ordinary shares for €4,500,000 and incurred a net loss of €610,000.Equity at the end of March is

Quiz 1: Accounting in Action

During January, Bruni Corporation earned revenue of €45,000, incurred expenses of €22,000, and paid dividends of €3,000.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 W110,000,000, and paid dividends of W27,000,000.Equity at the end of July is

During July, its first period of operations, Aju inc.sold ordinary shares for W960,000,000, earned net income of W110,000,000, and paid dividends of W27,000,000.Retained earnings at the end of July is

Use the following information for questions O' Hara Company began operations on December 1,2011 . Presented below is selected information related to O' Hara Company at December 31, 2011. 2011 . 2011. -At December 31, 2011, assets total

During June, Sing Tao Inc.sold ordinary shares for HK$11,450,000, earned revenue of HK$2,020,000, incurred expenses of HK$1,030,000, and paid dividends of HK$30,000.Net income for June is

Mica inc.began operations in October, 2011.During October, Mica sold ordinary shares for €200,000, earned revenue of €22,000, incurred expenses of €12,000, and paid dividends of €1,000.Equity at the end of the month is

Bruni corporation began operations on January 1, 2011.During January, Bruni earned revenue of €45,000, incurred expenses of €22,000, and paid dividends of €3,000.Retained earnings at the end the month is

Use the following information for questions O' Hara Company began operations on December 1,2011 . Presented below is selected information related to O' Hara Company at December 31, 2011. 2011 . 2011. -At December 31, 2011, liabilities total

Nigiri inc.began operations on October 1, 2011.During October, Nigiri sold ordinary shares for ¥220,000,000, earned net income of ¥32,000,000, and paid dividends of ¥989,000.Equity at the end of October is

Sing Tao inc.began operations on June 2, 2011.During June, Sing Tao sold ordinary shares for HK$11,450,000, earned Revenue of HK$2,020,000, incurred expenses of HK$1,030,000, and paid dividends of HK$30,000.Equity at the end of June is

Sing Tao inc.began operations on June 2, 2011.During June, Sing Tao sold ordinary shares for HK$11,450,000, earned revenue of HK$2,020,000, incurred expenses of HK$1,030,000, and paid dividends of HK$30,000.Retained earnings at June 30, 2011

Mica inc.began operations in October, 2011.During October, Mica sold ordinary shares for €200,000,earned revenue of €22,000, incurred expenses of €12,000, and paid dividends of €1,000.Retained earnings at the end the month is

During May, Brunhilde Company earned revenue of €53,000, incurred expenses of €34,000, of which €24,000 were on account, and paid dividends of €8,000.Net income (loss) for the month is

During 2011, Li& Fung Corporation earned revenue of HK6,150,000, incurred expenses of expenses of HK4,630,000,and paid dividends of HK420,000.Net income for the 2011 is

Nigiri inc.began operations on October 1, 2011.During October, Nigiri sold ordinary shares for ¥220,000,000, earned net income of ¥32,000,000, and paid dividends of ¥989,000.Retained earnings at the end of October is

During March, Bindi Company earned revenue of €135,000 on account of which €89,000 had been collected by the end of the month.The company incurred expenses of 78,000.The company paid all of its expenses in cash as well as paying dividends of €23,000.Net income (loss) for the month is

Use the following information for questions O' Hara Company began operations on December 1,2011 . Presented below is selected information related to O' Hara Company at December 31, 2011. 2011 . 2011. -Net income for the month of December is

At October 1, Smithson Enterprises reported equity of $70,000.During October, capital shares of $10,000 were issued and the company posted a net loss of $6,000.If equity at October 31 totals $70,000, what amount of dividends were paid during the month?

During October, Mica Inc.sold ordinary shares for €200,000, earned revenue of €22,000, incurred expenses of €12,000, and paid dividends of €1,000.Net income for the month is

Le Bateau Company began operations on March 1, 2011.During March, Le Bateau sold ordinary shares for €4,500,000 and incurred a net loss of €610,000.Equity at the end of March is

Use the following information for questions O' Hara Company began operations on December 1,2011 . Presented below is selected information related to O' Hara Company at December 31, $2011 .$ -At December 31, 2011, assets total

Use the following information for questions O' Hara Company began operations on December 1,2011 . Presented below is selected information related to O' Hara Company at December 31, $2011 .$ -At December 31, 2011, liabilities total

Use the following information for questions O' Hara Company began operations on December 1,2011 . Presented below is selected information related to O' Hara Company at December 31, $2011 .$ -Net income for the month of December is