Accounting chap 1-4
A company's balance sheet contained the following information: common stock $24,000, total assets $352,000, account payable $128,000, retained earnings $56,000. If Note payable is the only other item on the balance sheet, note payable must equal A company's balance sheet contained the following information: common stock $24,000, total assets $352,000, account payable $128,000, retained earnings $56,000. If Note payable is the only other item on the balance sheet, note payable must equal
$144,000 ((352,000)= L (account payable 128,000+ notes payable x)+ SE (RETAINED EARN 56,000+ COMMON STOCK 24,000) 352,000 = 128,000 + x+56,000 + 24,000 352,000 = 208,000 + x 352,000-208,000=x 144,000=x)
Total assets are $4,000,000. Total stockholders' equity is $1,5,00,000. what is the missing amount for total liabilities
$2,500,000
During December 2010, company A performs cleaning service and earned revenue $1000. The client does not pay the company until January 2011. Under the accrual basis of accounting, how much revenue should be reported in Dec 2010?
1000 R = provided goods/service ≠ cash received R=1000
The adjusting journal entry to record the use of supplies would include: - A debit to supply expense and a credit to supplies - A debit to supplies and a credit to revenue - A debit to supplies and a credit to expenses - A credit to supplies and a debit to cash
A debit to supply expense and a credit to supplies
which of the following is a current liability? Cash - Account payable - Note payable due in three years - Buildings and equipment
Account payable (current liability: payable + <1yr)
Liabilities would include which of the following? - Account receivable, cash, revenue - Common stock, retained earnings and - - - - revenue - Account payable, notes payable and wage - payable - Inventory, supply, account receivables - Liabilities = payable
Account payable, notes payable and wage payable
If Company A had $24 million in revenue and net income of $6 million, then its
Expense = 18 million (Net income (6)= revenue (24) - expense (x) 6+x=24 X=24-6=18)
Net income is
Revenue - expenses=NET INCOME
What is the classification and normal balance of the retained earnings? - Stockholders' equity, credit - Liability, credit - Asset, debit - Stockholders' equity, debit
Stockholders' equity, credit (Normal balance = DR/CR for the "+" side of an account => +retained earnings=CR)
If total liabilities increased by $50,000 and stockholders' equity decreased by $10,000 during a period of time, then total assets must change by what amount and direction during the same time period?
$40,000 A= L + SE -> ∆A= ∆L (+50,000) +∆SE (-10,000)=+40,000 ∆: CHANGE
What are the three basic elements of the balance sheet
Assets, liabilities, stockholders' equity
which of the following is non-current assets? A - Cash B - Inventory C- Supplies D- Buildings and equipment
Buildings and equipment (NON--current assets: > 1 YR)
Company XYZ issued stock $1000 to stockholders and received $1000. Which of the following statement is true? A. Cash decreases by $1,000 and common stock decreases by $1,000 B. Cash decreases by $1,000 and common stock increases by $1,000 C. $1,000 debit to cash and $1,000 credit to common stock. D. $1,000 credit to cash and $1,000 debit to common stock.
C. $1,000 debit to cash and $1,000 credit to common stock.
which of the following is NOT true? A - Assets = liabilities + stockholders' equity B- Liabilities - stockholders' equity= assets C- (correct should be "+", NOT "-") D- Liabilities = Assets - stockholders' equity E- Stockholders equity + liabilities - assets=0
Liabilities - stockholders' equity= assets (correct should be "+", NOT "-")
