Accounting 1.2

You're A Star is a motivational consulting business. At the end of its accounting period, December 31, 2015, You're A Star has assets of $800,000 and liabilities of $350,000. What is the amount of equity?

$450,000

Balance Sheet

A list of the assets, liabilities, and stockholders' equity as of a month or a year.

Stockholders' Equity

A source of the company's assets. Sometimes referred to as the "book value" of the company, because owner's equity is equal to the reported asset amounts minus the reported liability amounts. This includes common stock, retained earnings, and treasury stock.

Statement of Cash Flows

A summary of the cash receipts and cash payments for a specific period of time, such as a month or a year.

Coca-Cola has the following balances: Assets - $79,974 Liabilities - $48,339 Equity - ? A. $31,635 B. $36,651 C. $45,987 D. $68,213

A. $31,635

The revenues and expenses of Sentinel Travel Service for the year ended August 31, 2016, follow: Fees earned $750,000 Office expense 295,000 Miscellaneous expense 12,000 Wages expense 450,000 What is the Net Income? A. (7000) B. 242 C. 12000 D. 295000

A. (7000)

From the following list of selected items taken from the records of Bobcat Appliance Service as of a specific date, identify those that would appear on the balance sheet: 1. Accounts Receivable 2. Cash 3. Common Stock 4. Fees Earned 5. Land 6. Supplies 7. Supplies Expense 8. Utilities Expense 9. Wages Expense 10. Wages Payable A. 1,2,3,5,6,10 B. 1-10 C. 5 D. 7,8,9,10

A. 1,2,3,5,6,10

The revenues and expenses of Chickadee Travel Service for the year ended April 30, 2016, follow: Fees Earned - 263,200 Misc Expense - 12,950 Office Expense - 63,000 Wages Expense - 131,700 Prepare an Income Statement for this period (Net Income). A. 55,550 B. 65,231 C. 55 D. 87,693

A. 55,550

Liability accounts have a ___ normal balance A. Credit B. Debit C. Good D. Bad

A. Credit

Asset accounts have a ___ normal balance A. Debit B. Credit C. Bad D. Good

A. Debit

The order in which a financial statement is stated is: A. Name of Business, Title of Statement, Date/Period B. Name of Business, Date/Period, Title of Statement C. Title of Statement, Name of Business, Date/Period D. Date/Period, Title of Statement, Name of Business

A. Name of Business, Title of Statement, Date/Period

Net income or net loss reported on the income statement is also reported on the ___ as either an addition (net income) to or deduction (net loss) from the beginning retained earnings. A. Retained Earnings Statement B. Balance Sheet C. Income Statement D. Statement of Cash Flows

A. Retained Earnings Statement

The Retained Earnings Statement is prepared AFTER the Income Statement because the Net Income or Net Loss for the period must be reported in the statement. A. True, the Retained Earnings Statement is prepared AFTER the Income Statement B. False, the Retained Earnings Statement is NOT prepared AFTER the Income Statement

A. True, the Retained Earnings Statement is prepared AFTER the Income Statement

The Statement of Cash Flows consists of: 1. operating activities 2. investing activities 3. financing activities A. True, the Statement of Cash flows consists of these activities B. False, the Statement of Cash flows doesn't consist of these activities

A. True, the Statement of Cash flows consists of these activities

Salvo Delivery Service paid creditors on account, $1,800. What is the journal entry for this transaction?

Accounts Payable - Debit $1,800 Cash - Credit $1,800

NetSolutions paid creditors on account, $950 What is the journal entry for this transaction?

Accounts Payable - Debit $950 Cash - Credit $950

Salvo Delivery Service billed customers for delivery services on account, $11,250 What is the journal entry for this transaction?

Accounts Receivable - Debit $11,250 Revenue - Credit $11,250

Liabilities

Amounts owed to creditors. This includes accounts payable, notes payable, wages payable, and unearned revenues.

The accounting equation is defined as ___

Assets = Liabilities + Stockholders' Equity

DuPont has the following balances: Assets - ? Liabilities - $39,648 Equity - $10,088 A. $53,533 B. $49,736 C. $92,136 D. $50,565

B. $49,736

Dream-It LLC is a motivational consulting business. At the end of its accounting period, December 31, 2015, Dream-It has assets of $780,000 and liabilities of $150,000. Using the accounting equation, determine the Stockholders' equity as of December 31, 2015 A. $450,000 B. $630,000 C. $150,000 D. $780,000

B. $630,000

The revenues and expenses of Ousel Travel Service for the year ended November 30, 2016, follow: Fees earned $1,475,000 Office expense 320,000 Miscellaneous expense 28,000 Wages expense 885,000 What is the Net Income? A. 28,000 B. 242,000 C. 42 D. 885,000

B. 242,000

Retained earnings at the end of the period reported on the retained earnings statement is also reported on the ___ as retained earnings A. Retained Earnings Statement B. Balance Sheet C. Income Statement D. Statement of Cash Flows

B. Balance Sheet

Items on the Income statement is listed in the following order: A. Expenses Less Total Expenses Less Taxes = Net Income Sales/Revenue Less Cost of Goods Sold = Gross profit B. Sales/Revenue Less Cost of Goods Sold = Gross profit Expenses Less Total Expenses Less Taxes = Net Income

B. Sales/Revenue Less Cost of Goods Sold = Gross profit Expenses Less Total Expenses Less Taxes = Net Income

Since NetSolutions has been in operation for only one month, it has no retained earnings at the beginning of November. For December, however, there is a beginning balance—the balance at the end of November. A. False, NetSolutions will have a beginning balance in November B. True, NetSolutions will have a beginning balance in December

B. True, NetSolutions will have a beginning balance in December

Be-The-One is a motivational consulting business. At the end of its accounting period, December 31, 2015, Be-The-One has assets of $395,000 and liabilities of $97,000. Using the accounting equation, determine the Stockholders' equity as of December 31, 2016, assuming that assets decreased by $65,000 and liabilities increased by $36,000 during 2016. A. $97,000 B. $33 C. $197,000 D. $395,000

C. $197,000

Ebay has the following balances: Assets - $37,074 Liabilities - ? Equity - $20,865 A. $74 B. $8,636 C. $16,209 D. $17,555

C. 16,209

From the following list of selected items taken from the records of Bobcat Appliance Service as of a specific date, identify those that would appear on the income statement: 1. Accounts Receivable 2. Cash 3. Common Stock 4. Fees Earned 5. Land 6. Supplies 7. Supplies Expense 8. Utilities Expense 9. Wages Expense 10. Wages Payable A. 9 B. 1-10 C. 4,7,8,9 D. 3,4,5

C. 4,7,8,9

Dream-It LLC is a motivational consulting business. At the end of its accounting period, December 31, 2015, Dream-It has assets of $780,000 and liabilities of $150,000. Using the accounting equation, determine the Stockholders' equity as of December 31, 2016, assuming that assets increased by $90,000 and liabilities increased by $25,000 during 2016. A. $950,000 B. $90,000 C. $695,000 D. $45,000

C. 695,000

Chris Clark deposited $25,000 in a bank account in the name of NetSolutions in exchange for shares of common stock in the corporation. What is the journal entry for this transaction?

Cash - Debit $25,000 Common Stock - Credit $25,000

Salvo Delivery Service received cash from owner as additional investment in exchange for common stock, $35,000 What is the journal entry for this transaction?

Cash - Debit $35,000 Common Stock - Credit $35,000

Salvo Delivery Service received cash from customers on account, $6,740 What is the journal entry for this transaction?

Cash - Debit $6,740 Accounts Receivable - Credit $6,740

NetSolutions received cash of $7,500 for providing services to customers. What is the journal entry for this transaction?

Cash - Debit $7,500 Fees Earned - Credit $7,500

If Chris invests $25,000 in cash to his company, he will be issued $25,000 in ___

Common Stock

Be-The-One is a motivational consulting business. At the end of its accounting period, December 31, 2015, Be-The-One has assets of $395,000 and liabilities of $97,000. Using the accounting equation, determine the Stockholders' equity as of December 31, 2015 A. $97,000 B. $333,000 C. $395,000 D. $298,000

D. $298,000

Stockholders' Equity accounts have a ___ normal balance A. Good B. Debit C. Bad D. Credit

D. Credit

The order in which financial statements are prepared are: A. Balance Sheet, Retained Earnings Statement, Income Statement B. Retained Earnings Statement, Income Statement, Balance Sheet C. Balance Sheet, Income Statement, Retained Earnings Statement D. Income Statement, Retained Earnings Statement, Balance Sheet

D. Income Statement, Retained Earnings Statement, Balance Sheet

The cash reported on the balance sheet is also reported as the end-of period cash on the ___ A. Retained Earnings Statement B. Balance Sheet C. Income Statement D. Statement of Cash Flows

D. Statement of Cash Flows

Salvo Delivery Service paid dividends, $1,000. What is the journal entry for this transaction?

Dividends - Debit $1,000 Cash - Credit $1,000

Paid dividends, $2,000 What is the journal entry for this transaction?

Dividends - Debit $2,000 Cash - Credit $2,000

NetSolutions paid $20,000 for the purchase of land as a future building site. What is the journal entry for this transaction?

Land - Debit $20,000 Cash - Credit $20,000

When revenues exceed expenditures/expenses, it is referred to as ___

Net income, Net profit, or earnings

When expenditures/expenses exceed revenues, it is referred to as ___

Net loss

Common stock is shares of ___ distributed to investors of a corporation. It represents the portion of stockholders' equity contributed by investors

Ownership

NetSolutions purchased supplies for $1,350 and agreed to pay the supplier in the near future. What is the journal entry for this transaction?

Supplies - Debit $1,350 Accounts Payable - Credit $1,350

Chris Clark (NetSolutions) determined that the cost of supplies on hand at the end of the month was $550. The beginning balance was $1,350. What is the journal entry for this transaction?

Supplies Expense - Debit $800 Supplies - Credit $800

NetSolutions paid the following expenses during the month: wages, $2,125; rent, $800; utilities, $450; and miscellaneous, $275. What is the journal entry for this transaction?

Wages Expense - Debit $2,125 Rent Expense - Debit $800 Utilities Expense - Debit $450 Misc Expense - Debit $275 Cash - Credit $3,650

Asset

a resource owned by a business. This includes cash, land, buildings, and equipment.

Retained earnings statement

a summary of the changes in the retained earnings that have occurred during a specific period of time, such as a month or a year

Income Statement

a summary of the revenue and expenses for a specific period of time, such as a month or a year

All business transactions can be stated in terms of changes in the elements of the ___

accounting equation