Financial Accounting Chpt 3 Probs

The following financial information is from Shovels Construction Company. Accounts payable$14,000 Buildings $81,000 Cash $11,100 Accounts receivable $10,000 Sales tax payable $4,500 Retained earnings $47,100 Supplies $41,000 Notes payable (due in 18 months) $31,000 Interest payable $2,300 Common stock $44,200 What is the amount of current assets, assuming the accounts above reflect normal activity?

$62,100 Cash + Accounts Receivable + Supplies

The following table contains financial information for Trumpeter Inc. before closing entries: Cash $12,900 Supplies $5,900 Prepaid Rent $3,500 Salaries Expense $4,800 Equipment $66,000 Service Revenue $30,000 Miscellaneous Expenses $21,700 Dividends $3,000 Accounts Payable $4,600 Common Stock $66,500 Retained Earnings $16,700 What is the amount of Trumpeter's total assets?

$88,300 Cash + Supplies + Prepaid Rent + Equipment

The following data are taken from the cash-basis accounting records of Myerson Company for the year ended December 31, 2018: Selected Data as of December 31, 2018 Customers billed in 2018 for services provided$400,000 Cash collections in 2018 for accounts billed in 2017 21,000 Cash collections in 2018 for accounts billed in 2018 220,000 Cash paid for supplies purchased in 2018 10,000 Supplies remaining at the end of 2018 2,500 Cash paid for salaries in 2018 12,500 Cash paid for annual rent on March 1, 2018 27,000 Calculate the amount of revenues and expenses for 2018 under accrual-basis accounting.

Accrual-basis revenues $400,000 (Services provided only) Accrual-basis Expenses $42,500 ($10k supplies - $2.5k remaining) + salaries + (rent $27,000 * (10/12))

During the year, Cheng Company paid salaries of $23,900. In addition, $8,100 in salaries has accrued by the end of the year but has not been paid. The year-end adjusting entry would include which one of the following?

Credit to salaries payable for $8,100

At the beginning of December, Global Corporation had $2,400 in supplies on hand. During the month, supplies purchased amounted to $3,900, but by the end of the month the supplies balance was only $2,800. What is the appropriate month-end adjusting entry?

Debit supplies expense $3,500, credit supplies $3,500

Frosty Inc. has the following balances on December 31 prior to closing entries: Revenues$41,600 Retained Earnings, Jan. $10,000 Cash $8,400 Expenses $24,800 Accounts Payable $2,700 Dividends $2,500 Supplies $18,600 Based upon the balances above, what net adjustment would be made to Retained Earnings due to closing entries?

Increase of $14,300 Revenues- ( Expenses + Dividends)

The retained earnings account had a beginning credit balance of $26,550. During the period, the business had a net loss $12,500, and the company paid dividends of $8,350. The ending balance in the retained earnings account is:

$5,700

The ending retained earnings balance of Juan's Mexican Restaurant chain increased by $8.2 million from the beginning of the year. The company declared a dividend of $1.5 million during the year. What was the net income earned during the year?

$9.7 million

The following financial information is from Bronco Company. All debt is due within one year unless stated otherwise. Retained Earnings$69,200 Supplies $38,500 Equipment $73,300 Accounts Receivable $9,600 Deferred Revenue $4,300 Accounts Payable $14,100 Common Stock $23,800 Notes Payable (due in 18 months) $27,000 Interest Payable $6,700 Cash $23,700 What is the amount of current liabilities?

$25,100 Deferred Rev + Accounts Payable + Interest Payable

Eve's Apples opened for business on January 1, 2018, and paid for two insurance policies effective that date. The liability policy was $36,000 for eighteen-months, and the crop damage policy was $26,400 for a two-year term. What was the balance in Eve's Prepaid Insurance account as of December 31, 2018?

$25,200 ($36,000 * (6/18)) + ($26,400 * (12/24))

A company purchases one year of flood insurance in advance on May 1, paying $27,000 ($2,250/month). Record the adjusting entry on December 31.

$27,000 * (8/12) = $18,000

The following table contains financial information for Trumpeter Inc. before closing entries: Cash$13,500 Supplies $6,500 Prepaid Rent $2,600 Salary Expense $6,500 Equipment $65,600 Service Revenue $28,100 Miscellaneous Expenses $21,200 Dividends $4,300 Accounts Payable $4,800 Common Stock $66,100 Retained Earnings $21,200 What is Trumpeter's net income?

$400 Service Revenue - Expenses $28,100 - ($6,500 + $21,200)