Acctg M1 top 20

Suppose a company has the following transactions: 1. Pay cash for utility bill for the current period, $500. 2. Purchase supplies on account, $200. All supplies were used immediately. 3. Pay cash for rent for next period, $600. What is the amount of cash-basis expense to report?

$1,100 Cash for utilities+ cash for rent

A company's balance of cash in its own records is $10,000. The following information is determined after comparing the company's cash records with the bank statement: Bank's balance $13,000 Notes collected $1,600 Deposits Outstanding $1,000 Checks Outstanding $3,000 Bank service fees $100 NSF checks $500 What is the company's correct amount of cash?

$11,000 Own recorded cash+deposits outstanding

A company has the following balance sheet accounts: Cash $20,000 Accounts Receivable? Accounts Payable $2,000 Common Stock $20,000 Retained Earnings $10,000 Notes Payable $5,000 What is the balance of Accounts Receivable?

$17,000 RE+ accounts payable+ notes payable

Given the information below, what was the amount of dividends the company paid in the current period? Beginning Retained Earnings = $120,000 Decrease in Cash = $10,000 Ending Retained Earnings = $140,000 Net Income = $50,000

$30,000 Beginning RE+ Net income-ending RE

For the past three years, a company reported the following annual net income and dividend amounts: Net Income Dividends Year 1 $130,000 $80,000 Year 2 $140,000 $80,000 Year 3 $150,000 $90,000 If the company had Retained Earnings of $200,000 at the end of Year 3, what was the company's Retained Earnings at the beginning of Year 1?

$30,000 X=200,000-[(year 1 NI-Divid)+(year 2 NI-Divid)+(year 3 NI-Divid)]

The beginning balance of the cash account is $10,000. The following transactions occur during the year: 1. Issued 10,000 shares of common stock for 15,000 cash. 2. Purchased land for $12,000, signing a notes payable for the full amount. 3. Purchased office equipment for $1,200 cash. 4. Received cash of $14,000 for services provided to customers during the month. 5. Purchased $300 of office supplies on account. What was the balance of the company's Cash account following these six transactions?

$37,800 Beginning balance+common stock+cash received-equipment expense

A company reports the following balances before closing entries: Cash $12,000 Supplies $4,500 Prepaid Rent $2,000 Salary Expense $4,500 Equipment $65,000 Service Revenue $30,000 Miscellaneous Expenses $20,000 Dividends $3,000 Accounts Payable $5,000 Common Stock $68,000 Retained Earnings $8,000 What amount will be reported for total assets?

$83,500 Cash+supplies+prepaid anything (rent)+equipment

The adjusting entry to record the expiration of rent over the year would include:

A credit to prepaid rent

Which of the following financial statements reports a company's retained earnings?

Balance sheet

The common stock account records:

Cash received by the company from its stockholders

The closing process includes which of the following?

Closing the balances of revenues, expense, and dividend account to zero

The company borrows $10,000 with 8% interest on October 1, 2015, promising to repay the loan and interest one year later. When preparing its financial statements for the year ended December 31, 2015, what adjusting entry is needed?

Debit Interest Expense $200; Credit Interest Payable $200

Which of the following is a possible closing entry?

Debit Service Revenue; credit Retained Earnings.

When cash is paid for insurance coverage in the following year, the appropriate debit and credit are:

Debit prepaid insurance; credit cash

Payment of cash dividends to stockholders is considered a(n):

Financing cash flow

Consider the following list of accounts: Cash Salaries Expense Common Stock Utilities Expense Accounts Receivable Accounts Payable Service Revenue Buildings How many of these accounts will increase with a debit?

Five

The sale of land for cash is considered a(n):

Investing cash flow

When a company incurs a cost used in current operations but has not yet paid cash for that cost in the current period, the accounting equation would be affected as follows:

Liabilities increase and stockholders' equity decreases

An example of an adjusting entry would not include:

Recording the cash received in advance from customers during the year.

Consider the following items: Land Accounts Receivable Notes Payable (due in three years) Accounts Payable Retained Earnings Supplies Unearned Revenue Buildings Notes Payable (due in six months) Equipment How many of the items listed above are generally reported as current assets?

Two