Acct 201 Final

Carson Company on July 15 sells merchandise on account to Tayler Co. for $2,000, terms 2/10, n/30. On July 20, Tayler Co. returns merchandise worth $800 to Carson Company. On July 24 payment is received from Tayler Co. for the balance due. What is the amount of cash received?

$1,176

Langston company began the year by issuing $90,000 of common stock for cash. The company recorded revenues of $825,000, expenses of $720,000, and paid dividends of $45,000. What was Lankston's net income for the year?

$105,000

During 2014, its first year of operations, Jane;s Bakery had revenues if $65,000 and expenses of $33,000. The business paid cash dividends of $18,000. What is the balance in Retained Earnings at December 31, 2014?

$14,000 credit

in the first month of operations, the total of the debit entries to the Cash account amounted to $1,200 and the total of the credit entries to the Cash account amounted to $900. The Cash account has a

$300 debit balance

Kathy's Blooms purchased a delivery van with a $50,000 list price. The company was given a $5,000 cash discount by the dealer, and paid $2,500 sales tax. Annual insurance on the van is $1,250. As a result of the purchase, by how much will Kathy's Blooms increase its van account?

$47,000

a company purchases inventory as follows: 200 units at $5.00 300 units at $5.50 the average unit cost for inventory is

$5.30

Accounts included in the post-closing trial balance

Accumulated Depreciation, Retained Earnings, Supplies

if a company buys a $700 machine on credit, this transaction will affect the

balance sheet only

declaring a cash dividend will

decrease retained earnings

the payment of a liability

decreases assets and liabilities

A paid dividend

decreases assets and stockholders' equity

an expense

decreases stockholders' equity

in preparing a bank reconciliation, outstanding checks are

deducted from the balance per bank

recording depreciation each period is necessary in accordance with the

expense recognition principle

deposits in transit

have been recorded on the company's books but not yet by the bank

On a classified balance sheet, companies usually list current assets

in the order in which they are expected to be converted into cash

to show how successfully your business performed during a period of time, you would report its revenues and expenses in the

income statement

issuing new shares of common stock will

increase common stock

interest is usually associated with

notes receivable

Net income will result if gross profit exceeds

operating expenses

Which account will have a zero balance after closing entries have been journalized and posted?

service revenue

when collection is made on Accounts Receivable

total assets will remain the same

an accounting record that includes a list of accounts and their balances at a given time is called a

trial balance

Reporting a net income of $95,000 will

increase retained earnings

collection of a $600 accounts receivable

increases an asset $600; decreases an asset $600

a credit to a liability account

indicates an increase in the amount owed to creditors

the factor which determines whether or not goods should be included in a physical count of inventory is

legal title

On January 15, Nifty Company sells merchandise on account to Martinez Associates for $3,000 with terms 3/10, n/30. On January 20, Martinez returns merchandise worth $600 to Nifty. On January 24, payment is received from Martinez for the balance due. What is the amount of cash received?

$2,328

Jamal Company began the year with $84,000 in its common stock account and a debit balance in retained earnings of $36,000. During the year, the company earned net income of $18,000 and declared and paid $6,000 of dividends. In addition, the company sold common stock amounting to $22,000. Based on this information, what should the transaction analysis show for the ending total of all stockholders' equity accounts?

$82,000

the right of the corporation to receive money in the future is called

account receivable

The liability created by a business when it purchases coffee beans and coffee cups on credit from suppliers is termed

accounts payable

A check written by the company for $167 is incorrectly recorded by a bank as $176. On the bank reconciliation, the $9 error should be

added to the balance per books

the balance in the Accumulated Depreciation account represents the

amount charged to expense since the acquisition of the plant asset

if a company issues common stock for $40,000 and uses $30,000 of the cash to purchase equipment

assets will be increased by $40,000

If the estimated depreciation for equipment were $800, the adjusting entry would contain a

credit to Accumulated Depreciation, Equipment for $800

The retained earnings statement shows all of the following except

the time period following the one shown for the income statement