acc 201 module 1 homework 2

Annual, Inc., had beginning retained earnings of $109,000. During the year, Annual, Inc. had net income of $73,000 and declared and paid dividends of $11,000. What will be shown for ending retained earnings on Annual's year-end balance sheet?

171,000

Show the effect of the transaction: Hot Diggity Dog, Inc., paid $10 of May's interest on the note payable, plus it paid off the $2,000 note payable. retained earnings:

(10) interest expense

Show the effect of the transaction: Hot Diggity Dog, Inc., paid $10 of May's interest on the note payable, plus it paid off the $2,000 note payable. liabilities:

(2,000) note payable

Morris Lest, Inc., obtained a bid of $3,000 from a supplier for equipment. Show the effect of the liability.

0 no effect

Morris Lest, Inc., obtained a bid of $3,000 from a supplier for equipment. Show the effect of the shareholders' equity.

0 no effect

Show the effect of the transaction: Hot Diggity Dog, Inc., paid $10 of May's interest on the note payable, plus it paid off the $2,000 note payable. stock:

0 no effect

Identify what a company gives and gets when it invests in equipment by paying cash and signing a two-year note.

it gives a promissory note, it gives cash, it gets equipment

The cost of a noncurrent asset, such as Equipment, is expensed ______.

over its useful life

Which financial statement reports how much cash was paid for its inventory?

statement of cash flows

the financial statement that reports investing activities

statement of cash flows

Which financial statement reports the activity in stock and retained earnings during the period?

statement of shareholders equity

Pete Zah invested $30,000 in Last Piece, Inc., in exchange for its stock. Last Piece now has ______.

stock (See Module 1 LO 5.1.1 Recording the Issuance of Stock. The company gets Cash (+A) and gives Stock (+SE).)

Over Armour, Inc., sold 5 shirts that cost $6 each to its customer for $10 each. Over Armour should record a total of $______ as an expense for the cost of the goods sold.

30

During its first month of business, Purses, Inc., purchased 5 purse(s) at $10 each and sold 1 purses for $80 each. Purses' Inventory balance on the balance sheet at the end of the month equals $______.

40

Show the effect of the transaction: Hot Diggity Dog, Inc., paid $10 of May's interest on the note payable, plus it paid off the $2,000 note payable. assets:

(2,010) cash (See Module 1 - 5.4.2 Recording Interest Owed. The company gets $10 of service, Interest Expense (-SE), and gets its $2,000 IOU back, Notes Payable (-L) and gives $2,010 of Cash (-A).)

Morris Lest, Inc., obtained a bid of $3,000 from a supplier for equipment. Show the effect of the assets.

0 no effect (See Module 1 LO 5.3.1. An exchange of a promise to deliver an asset in the future for a promise to pay in the future is not a transaction. To be a transaction, an event must include an exchange of something of value, not just exchanges of promises.)

At December 31, Year 1, Sea the World Cruises, Inc.'s assets were $60,000 and liabilities were $40,000. At December 31, Year 2, its assets are $130,000 and liabilities are $50,000. During the year, it did not issue new stock, and it declared and paid $100 dividend. Calculate net income for Year 2.

60,100 (See Module 1 LO 6.5. First, determine the beginning and ending Shareholders' Equity (SE): Assets - Liabilities = SE Second, determine the change in SE. Remember REDS: R = Revenues (increase SE), E = Expenses (decrease SE), D = Dividends (decrease SE), and S = new Stock (increase SE). Beginning SE + R - E - D + S = Ending SE Third, Net Income (NI) = R - E Lastly, solve for NI: Beginning SE + NI - D + S = Ending SE; NI = Ending SE - Beginning SE + D - S)

Using the following information for Morris Lest Co. for the year ended December 31, Year 2 and assuming no new stock was issued during the year, Total Assets at December 31, Year 2 equals _______. Revenues for the year ended December 31, Year 2 $850 Net Income for the year ended December 31, Year 2 $370 Retained Earnings, December 31, Year 1 $280 Retained Earnings, December 31, Year 2 $360 Total Shareholders' Equity at December 31, Year 2 $725 Total Liabilities at December 31, Year 1 $605 Total Liabilities at December 31, Year 2 $40

765

Purses, Inc., sold 4 purse(s) that cost $40 each to its customers for a price of $60 each. The Gross Profit amount on the income statement will equal $______.

80

Determine the missing Retained Earnings balance. Cash - $20,000 Supplies - 5,000 Inventory - 30,000 Land Buildings, Net of Accumulated Depreciation - 20,000 Total Assets - $100,000 Notes Payable - $10,000 Stock - 10,000 Retained Earnings - Total Liabilities & Shareholders' Equity -

80,000

Total assets appears on the ______.

balance sheet

the financial statement that reports assets

balance sheet

the financial statement that reports net income

income statement

What is the effect on total assets when a company purchases a cash register for a cash payment of $1,200?

no effect

The heading of an income statement should include ______.

the name of the business, the accounting period covered by the statement, the title "income statement"