Accounting 209 Test 1

What annual report would the company's total revenue for the period

Income statement

Identify the financial statement (or statements) in which each of the following items would appear: income statement (IS), statement of stockholders' equity (SSE), balance sheet (BS), or statement of cash flows (SCF). Net change in cash

Net change in cash is on the statement of cash flows (SCF)

True or False: On November 1, a company paid $6,000 for 6 months of insurance, to cover the period November 1 - April 30. The company's December 31st balance sheet should include Prepaid Insurance of $2,000.

false

A major purpose of closing entries is to: Select one: a. zero out the Retained Earnings account b. adjust the asset accounts to their current balances c. transfer the net income and dividends of the period to Retained Earnings d. close out the accounts payable account e. none of the above

c. transfer the net income and dividends of the period to Retained Earnings

Which of the following accounts would show a balance in a post-closing trial balance? Select one: a. Dividends b. Rent Expense c. Sales Revenue d. Accumulated Depreciation e. None of the above

d. Accumulated Depreciation

Is accounts receivable debit or credit?

debit

Is administrative expenses debit or credit?

debit

Is cash debit or credit?

debit

Is dividends credit or debit?

debit

The stockholders' equity of a corporation that has assets of $600,000 and liabilities of $306,000.

$600,000-$306,000= $294,000

What annual report would the sources of cash during the period

Statement of cash flows

Income stamens include

Total Revenue - Total Expenses = Net Income

Paul Company has total liabilities of $170,000 and total stockholders' equity of $105,000. How much total assets does the company have?

$275,000

Land is an asset or liability?

Asset

What annual report would the company's total liabilities

Balance sheet

Stockholders equity on a balance sheet includes

Common stock and retained earnings

True or False: All accounts must be adjusted at the end of the period

false

Assets equation

liabilities + stockholders equity

True or False: Every adjusting entry will affect both the Income Statement and the Balance Sheet.

true

Floyd Company had beginning-of-the-year total assets of $320,000 and total liabilities of $180,000. If during the year total assets increased by $15,000 and total liabilities increased by $40,000, what is the end-of-year total stockholders' equity?

$115,000

Floyd Company had beginning-of-the-year total assets of $320,000 and total liabilities of $180,000. If during the year total assets increased by $60,000 and total liabilities decreased by $5,000, what is the end-of-year total stockholders' equity?

$205,000

Floyd Company had beginning-of-the-year total assets of $320,000 and total liabilities of $180,000. If during the year total liabilities increased by $40,000 and total stockholders' equity increased by $35,000, what are the end-of-year total assets?

$395,000

Hawkins Company has total assets of $150,000 and total liabilities of $110,000. How much is the company's total stockholders' equity?

$40,000

The net income reported on the ABC Co.'s income statement is $150,000. However, adjusting entries were not recorded at the end of the period for depreciation on fixed assets of $8,000, supplies used of $2,000, unearned gift card revenue EARNED during the period of $6,000, and for accrued salaries of $1,200. The correct amount of net income is

150,000 - 8,000 - 2,000 + 6,000 - 1,2000 --------- = $144,800

Accounts RECEIVABLE is an asset or liability?

Asset

Cash is an asset or liability?

Asset

Equipment is an asset or liability?

Asset

Supplies is an asset or liability?

Asset

Stockholder's equity equation

Assets - Liabilities

Identify the financial statement (or statements) in which each of the following items would appear: income statement (IS), statement of stockholders' equity (SSE), balance sheet (BS), or statement of cash flows (SCF). Assets

Assets are on the Balance Sheet (BS)

The assets of a corporation that has liabilities of $250,000, common stock of $125,000, and retained earnings of $85,000.

Assets= $250,000+($125,000+$85000)=$435,000. [equity=common stock+retained earnings].

What annual report would an opinion about whether the financial statements are fairly stated

Auditor's report

Aggie Fitness began business in College Station, TX on June 1, 2018. At that time, the company collected $6,000 in advance payments from customers for 12-month gym memberships. At December 31, 2018, after the adjusting entries are recorded and posted, the balances in Unearned Revenue and Membership Revenue should be, respectively

Balance in unearned revenue account = 6000*5/12 = $2500 Balance in membership revenue = 6000*7/12 = $3500 So answer is b) $2500, $3500

Identify the financial statement (or statements) in which each of the following items would appear: income statement (IS), statement of stockholders' equity (SSE), balance sheet (BS), or statement of cash flows (SCF). Cash flow from investing activities

Cash flow from investing activities are on the statement of cash flows (SCF)

Identify the financial statement (or statements) in which each of the following items would appear: income statement (IS), statement of stockholders' equity (SSE), balance sheet (BS), or statement of cash flows (SCF). Expenses

Expenses is on the income statement (IS)

Identify the financial statement (or statements) in which each of the following items would appear: income statement (IS), statement of stockholders' equity (SSE), balance sheet (BS), or statement of cash flows (SCF). Liabilities

Liabilities are on the balance;ance sheet (BS)

At the end of the fiscal year, the usual adjusting entry to update Prepaid Rent for the portion of the benefit that was used up / expired was accidentally omitted.

Net Income for the year will be overstated.

Identify the financial statement (or statements) in which each of the following items would appear: income statement (IS), statement of stockholders' equity (SSE), balance sheet (BS), or statement of cash flows (SCF). Net income

Net income is on the income statement (IS) and the statement of stockholders' equity (SSE)

What annual report would the information regarding accounting methods used

Notes to the financial statements

The following information appears in the records of Becker Corporation at year-end: Accounts Receivable $32,000 Retained Earnings $ ? Accounts Payable $12,000 Supplies $8,000 Cash $7,000 Equipment, net $145,000 Common Stock $115,000 a. Calculate the balance in Retained Earnings at year-end.

Retained earnings = Total assets - Total liabilities - Common stock (Cash+Accounts Receivable+Supplies+Equipment)-(Accounts Payable)-(Common Stock) (7,000+32,000+8,000+145,000)-(12,000)-(115,000) $65,000

What annual report would the amount of dividends that are distributed to a company's stockholders

Statement of Stockholders' Equity

Identify the financial statement (or statements) in which each of the following items would appear: income statement (IS), statement of stockholders' equity (SSE), balance sheet (BS), or statement of cash flows (SCF). Stockholders' equity

Stockholder equity is on the balance sheet (BS) and the statement of stockholder's equity (SSE)

Is accounts payable debit or credit?

credit

Is common stock credit or debit?

credit

Is sales revenue debit or credit?

credit

Is equipment debit or credit?

debit

Is utilities expenses debit or credit?

debit

True or False: Prepaid Insurance and Unearned Revenue are accounts that generally do not need to be adjusted at the end of the accounting period.

false

If Black Company's total assets increased by $35,000 during the year, and its total liabilities decreased during the same year by $20,000, what was the change in the company's total stockholders' equity?

$55,000 increase

Retained Earnings Equation

Retained earnings = Total assets - Total liabilities - Common stock

The following information appears in the records of Becker Corporation at year-end: Accounts Receivable $32,000 Retained Earnings $ ? Accounts Payable $12,000 Supplies $8,000 Cash $7,000 Equipment, net $145,000 Common Stock $115,000 b. If the amount of the retained earnings at the beginning of the year was $38,000 and $13,000 in dividends is paid during the year, calculate net income for the year.

Retained earnings at the end of the year = retained earnings at the beginning of the year + net income - dividends Therefore net income = Retained earnings at the end - retained earnings at the beginning + dividends 65,000-38,000+13,000

Identify the financial statement (or statements) in which each of the following items would appear: income statement (IS), statement of stockholders' equity (SSE), balance sheet (BS), or statement of cash flows (SCF). Revenues

Revenues are on the income statement (IS)

Dallas Company's current ratio is 4 to 3. The company is negotiating a loan, and the company's management understands that a higher (i.e., better) current ratio will reduce the company's cost of borrowing (interest rate). Which of the following transactions will improve Houston Company's current ratio? Select one: a. making a payment on a long-term debt b. using cash to pay current liabilities c. purchasing inventory on account d. collecting on some of the company's accounts receivable e. none of the above

b. using cash to pay current liabilities

On a balance sheet assets are equal to:

liabilities + stockholder equity

Accounts PAYABLE is an asset or liability?

liability

Notes payable is an asset or liability?

liability

Stockholders Equity is an asset or liability?

liability