Accounting 200 LO 1-4, 1-5, 1-6

Alexis Company was started in Year 1. At the end of Year 1 the Company's had the following accounting equation. Cash: 600 land 2200 notes payable 1000 common stock 1400 retained earnings 400 During Year 2, the company experienced the following accounting events. • Paid of $500 of its note payable. • Earned $700 of cash revenue. • Paid $400 of cash expenses. • Paid a $100 cash dividend. Based on this information alone, what percent of the company's assets at the end of Year 2 were provided by creditors?

20%

Alexis Company was started in Year 1. At the end of Year 1 the Company's had the following accounting equation. Cash: 600 land 2200 notes payable 1000 common stock 1400 retained earnings 400 During Year 2, the company experienced the following accounting events. • Paid of $500 of its note payable. • Earned $700 of cash revenue. • Paid $400 of cash expenses. • Paid a $100 cash dividend. Based on this information alone, what percent of the company's assets at the end of Year 2 were provided by earnings?

24%

Smokey Enterprises began operations by receiving $100,000 cash from its sole owner Jessica Jones. During its first year of operations, the business earned $20,000 in cash from operations and paid $15,000 in cash expenses during the year. During its first year of operations, Smokey Enterprises would report net income of

5,000

The accounting records of Coastal Company contained the following account balances: Cash: 500 Land: 800 Notes Payable: 200 Common Stock: 400 The records also contained an account titled Retained Earnings. What is the balance for RE?

700

Kay Company recorded a transaction that had the following effects on its financial statements. Assets: +/- And everything else N/A. What does this mean

An asset exchange transaction

The following accounting equation represents the financial position of Qualtro Company Cash: 400 Land: 2,200 Notes Payable: 800 Common Stock: 1,200 Retained Earnings: 600 Based on this equation, Qualtro

Can pay a 300 cash dividend

Certain transactions entered into the accounting equation will cause the equation not to balance. This statement is

False

Companies maintain accounting records that show assets at the amount of their market value because that information is more relevant than the historical cost. This statement is

False

Wig Wam Inc. experienced a business event that had the following effect on its accounting equation, Assets: 50,000 Liabilities: 50,000 Common Stock: NA Retained Earnings: NA

Loan from a creditor

Financial position of Bentley Company Cash: 600 Land: 2,200 Notes Payable: 1,000 Common Stock: 1,400 Retained Earnings: 400 Based on this equation, Bentley

None of these answers are correct

Maria Company began Year 2 with $85,000 in its Land account. During Year 2 the company made two separate purchases of land. The first purchase of land cost $52,000. The second purchase of land cost $94,000. Based on this information the company's accounting records will have

One land account Two land accounts Tree land accounts *All answers are possibilities*

Fen Company paid a $300 cash dividend. Which of the following shows how this event will affect the company's accounting equation?

Option A: Assets -300 Liabilities (NA) Common Stock (NA) Retained Earnings 300

Daemon Company paid cash to purchase land. Which of the following shows how this event will affect the company's accounting equation?

Option B: Assets (-+) Liabilities (NA) Common Stock (NA) Retained Earnings (NA)

Ocean Breeze Co. paid $500 cash for expenses related to advertising for the period. Which of the following shows how this event will affect the company's accounting equation?

Option B: Assets: (500) Liabilities: NA Common Stock: NA Retained Earnings: (500)

Which of the following statements models shows the effects of an asset use transaction?

Option B: Assets: - Liabilities: NA Equity: - Rev: NA Exp.: + Net Income: - Statement of cash flows: - OA

Juarez Company acquired $1,200 from the issue of common stock. Which of the following shows how this event will affect the company's accounting equation?

Option C: $1,200= NA + $1,200 + NA

The land that Martin Co. paid $75,000 to purchase in the prior year had an appraised market value of 100,000 at the end of the current reporting period. Which of the following shows how the change in market value will affect the company's accounting equation?

Option C: Assets: NA Liabilities: NA Common Stock: NA Retained Earnings: NA

Morrison Company experienced a business event that had the following effect on its accounting equation. Assets (25000) = Liabilities (25000) + Common Stock (n/a) + Retained Earnings (n/a)

Paid off debt

Which of the following is an asset source event?

Received cash from the issue of stock Borrowed cash from creditors Earned cash revenue *All of these answers**

Alexis Company was started in Year 1. At the end of Year 1 the Company's had the following accounting equation. Cash: 600 land 2200 notes payable 1000 common stock 1400 retained earnings 400 If at the end of Year 1 an appraiser provides a certified opinion that the market value of the land is 2,800 of the company would continue to list on its books at 2,200. This statement is

True

Simpson Company paid cash to purchase land. This event is

an asset exchange transaction

Sims Company earned cash revenue by providing services to its customers. This event is

an asset source transaction

Sims Company received cash from the issue of a note payable to a bank. This event is

an asset source transaction

Sims Company received cash from the issue of common stock. This event is

an asset source transaction

Barnett Company paid a cash dividend. This event is

an asset use transaction

Emerald Company was established in January, Year 1. During Year 1 the company experienced the following events • Collected $50,000 cash from the issue of common stock. • Borrowed $45,000 cash from the state bank. • Earned $120,000 of cash revenue. • Paid $180,000 cash expenses. The company was liquidated at the end of Year 1. Based on this information

the creditor (the bank) would receive 35,000

Watt Company was established in January, Year 1. During Year 1 the company experienced the following events. • Collected $6,000 cash from the issue of common stock. • Borrowed $3,000 cash from the state bank. • Earned $4,000 of cash revenue. • Paid $2,000 cash expenses. The company was liquidated at the end of Year 1. Based on this information

the stockholders would receive 8,000