Financial Accounting Test 1

If total assets equal $345400 and total stockholders' equity equal $140400, then total liabilities must equal

$205000

Pharoah's Computer Repair Shop started the year with total assets of $320000 and total liabilities of $201000. During the year, the business recorded $503000 in computer repair revenues, $299000 in expenses, and Pharoah paid dividends of $49100. Stockholders' equity at the end of the year was

$273900

On January 1, 2017, Sunland Inc. purchased equipment for $44700. The company is depreciating the equipment at the rate of $740 per month. At January 31, 2018, the balance in Accumulated Depreciation is

$9620

When three or more accounts are required in one journal entry, the entry is referred to as a

compound entry.

A debit is not the normal balance for which of the following?

Common stock account

What is the order in which assets are generally listed on a classified balance sheet?

Current; long-term investments; property, plant, and equipment; intangible assets

The income statement for the year 2018 of Teal Co. contains the following information: Revenues $69000 Expenses: Salaries and Wages Expense $47200 Rent Expense 11800 Advertising Expense 10200 Supplies Expense 5500 Utilities Expense 2300 Insurance Expense 1800 Total expenses 78800 Net income (loss) $ (9800) After the revenue and expense accounts have been closed, the balance in Income Summary will be

a debit balance of $9800.

Sheffield Company received a cash advance of $710 from a customer. As a result of this event,

assets increased by $710.

An account will have a credit balance if the

credits exceed the debits.

The balance in the Prepaid Rent account before adjustment at the end of the year is $24300, which represents three months' rent paid on December 1. The adjusting entry required on December 31 is to

debit Rent Expense, $8100; credit Prepaid Rent, $8100.

Bramble Company showed the following balances at the end of its first year: Cash $3990 Prepaid insurance 7090 Accounts receivable 4900 Accounts payable 3970 Notes payable 5910 Common stock 1910 Dividends 1030 Revenues 32000 Expenses 25400 What did Bramble Company show as total credits on its trial balance?

$43790

Employees at Sunland Corporation are paid $16100 cash every Friday for working Monday through Friday. The calendar year accounting period ends on Wednesday, December 31. How much salaries and wages expense should be recorded two days later on January 2?

$6440

At October 1, Sheridan Enterprises reported stockholders' equity of $70800. During October, common stock of $3900 was issued and the company earned net income of $14100. If stockholders' equity at October 31 totals $79400, what amount of dividends were paid during the month?

$9400

Under accrual-basis accounting

events that change a company's financial statements are recognized in the period they occur rather than in the period in which cash is paid or received.

Pharoah Company purchased land in 2010 for $299000. In 2018, it purchased a nearly identical parcel of land for $472000. In its 2018 balance sheet, Martin valued these two parcels of land at a combined value of $941000. By reporting the land in this manner, Pharoah Co. has violated the

historical cost principle

Accrued expenses are

incurred but not yet paid or recorded.

The income summary account

is a temporary account.

The assumption that the unit of measure remains sufficiently constant over time is part of the

monetary unit assumption

Equipment is classified in the balance sheet as

property, plant, and equipment.

The two optional steps in the accounting cycle are preparing

reversing entries and a worksheet.