Accounting M1

The contra-asset account, ______, is used to record depreciation on equipment.

Accumulated Depreciation

Which financial statement reports the long-term assets owned?

Balance Sheet

Expenses appear on the ______.

Income Statement

Which financial statement reports the amount of resources used during the period?

Income Statement

If a company borrows money by issuing a note payable at the beginning of the accounting period, as a result, it will report ________.

Interest Expense on the income statement

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

What is the effect on total assets when a company buys a building in exchange for a 20-year note payable?

Total assets will increase.

A transaction may be recorded with an increase in an asset and a decrease in ______.

another asset

A transaction may be recorded with an increase in a liability and a(n) ______.

decrease in a shareholders' equity account

A(n) ______ is a cost of doing business that is necessary to earn ______.

expense; revenue

Whistler Company had retained earnings of $480,000 at the end of Year 1. During Year 2, Whistler had net income of $157,000. Retained earnings were $447,000 at December 31, Year 2. The amount of dividends for Year 2 must have been:

190,000

A financial statement heading states that it was prepared: "For the Year Ended December 31". What types of financial statements could this be? Select all that apply.

-Income Statement -Statement of Shareholders' Equity -Statement of Cash Flows

Which of these events would not be recorded as transactions in an accounting system? (Select all that apply.)

-Receiving supplies in exchange for a promise to pay in the future -Hiring an employee Ordering supplies to be delivered and paid for in the future -Receiving cash in exchange for stock -Receiving supplies in exchange for cash

Dividends are ______. (Select all that apply.)

-company profits that are paid to shareholders -not an expense incurred to earn revenue

Depreciating a long-term asset, such as Equipment, over its useful life records the ______. (Select all that apply.)

-getting use of or service from an asset, Depreciation Expense - giving up some of the asset's usefulness, Accumulated Depreciation

The heading of an income statement should include ______. (Select all that apply.)

-the title "Income Statement" -the accounting period covered by the statement -the name of the business

Whistler Company had retained earnings of $470,000 at the end of Year 1. During Year 2, Whistler had net income of $118,000. Retained earnings were $385,000 at December 31, Year 2. The amount of dividends for Year 2 must have been:

203,000 (To solve for Dividends:Dividends = Beginning Retained Earnings + Net Income - Ending Retained Earnings)

Florist Grump, Inc., had beginning retained earnings of $162,000. During the year, Florist Grump had net income of $73,000 and declared and paid dividends of $17,000. What will be shown for ending retained earnings on Florist Grump's year-end balance sheet?

218,000

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$850Net Income for the year ended December 31, Year 2$370Retained Earnings, December 31, Year 1$280Retained Earnings, December 31, Year 2$360Total Shareholders' Equity at December 31, Year 2$725Total Liabilities at December 31, Year 1$605Total Liabilities at December 31, Year 2$40

$765

At December 31, Year 1, Lord of the Fries, Inc.'s assets were $60,000 and liabilities were $40,000. At December 31, Year 2, its assets are $140,000 and liabilities are $50,000. During the year, it did not issue new stock and did not declare or pay dividends. Calculate net income for Year 2.

70,000

Expenses are ______.

the costs of doing business that are necessary to earn revenue