ACG Lab Chp 1 Quiz

Charlie's Chocolates stockholders made investments of $78,000 and received dividends of $34,000. The company has revenues of $111,000 and expenses of $78,000. Calculate its net income.

$33,000

A company reported total equity of $171,000 at the beginning of the year. The company reported $236,000 in revenues and $178,000 in expenses for the year. There were no stockholder investments or dividends during the year. Liabilities at the end of the year totaled $105,000. What are the total assets of the company at the end of the year?

$334,000

A company reported total equity of $177,000 at the beginning of the year. The company reported $242,000 in revenues and $181,000 in expenses for the year. There were no stockholder investments or dividends during the year. Liabilities at the end of the year totaled $108,000. What are the total assets of the company at the end of the year?

$346,000

A company's balance sheet shows: cash $33,000, accounts receivable $39,000, equipment $68,000, and equity $81,000. What is the amount of liabilities?

$59,000

Determine the net income of a company. Employees salaries expense - $187,000 Interest Expense - $17,000 Rent Expense - $27,000 Consulting Revenue - $428,000

Add all Revenues Add all Expenses Then, Revenue - Expenses = Net Income 428,000 - 231,000 = 197,000

If a company receives $10,200 from its sole stockholder to establish a corporation, the effect on the accounting equation would be:

Assets increase $10,200 and equity increases $10,200.

If a company receives $10,800 from its sole stockholder to establish a corporation, the effect on the accounting equation would be:

Assets increase $10,800 and equity increases $10,800.

Saddle back Company paid off $37,000 of its accounts payable in cash. What would be the effects of this transaction of the accounting equation?

Assets, $37,000, decrease; liabilities, $37,000 decrease.

If a company uses $1,390 of its cash to purchase supplies, the effect on the accounting equation would be:

One asset increases $1,390 and another asset decreases $1,390, causing no effect.

If Houston Company billed a client for $12,000 of consulting work completed, the accounts receivable asset increases by $12,000 and:

Revenue increases $12,000.