Question 1

Given the following: Beginning retained earnings $ 70,000
Ending retained earnings $ 48,000
Dividends declared and paid $ 21,000
Calculate net income or net loss.

Accepted Answer

The answer of Given the following: Beginning retained earnings $...

Question 2

Indicate whether each of the following represents an asset, liability, or owner's equity item.

Accepted Answer

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Question 3

a. A vacant lot acquired for $83,000 cash is sold for $127,000 in cash. What is the effect of the sale on the total amount of the seller's (1) assets, (2) liabilities, and (3) stockholders' equity?
b. Assume that the seller owes $52,000 on a loan for the land. After receiving the $127,000 cash in (a), the seller pays the $52,000 owed. What is the effect of the payment on the total amount of the seller's (1) assets, (2) liabilities, and (3) stockholders' equity?

Accepted Answer

The answer of a. A vacant lot acquired for $83,000...

Question 4

The Austin Land Company sold land for $85,000 in cash. The land was originally purchased for $65,000. At the time of the sale, $40,000 was still owed to Regions Bank. After the sale, The Austin Land Company paid off the loan. Explain the effect of the sale and the payoff of the loan on the accounting equation.

Accepted Answer

The answer of The Austin Land Company sold land for...

Question 5

At the end of its accounting period, December 31, 2011, Hsu's Financial Services has assets of $575,000 and stockholders' equity of $335,000. Using the accounting equation and considering each case independently, determine the following amounts.
a. Hsu's liabilities as of December 31, 2011.
b. Hsu's liabilities as of December 31, 2012, assuming that assets increased by $56,000 and stockholders' equity decreased by $32,000.
c. Net income or net loss during 2012, assuming that as of December 31, 2012, assets were $592,000, liabilities were $450,000, and there were no additional capital stock sales or dividends paid in 2012.

Accepted Answer

The answer of At the end of its accounting period,...

Question 6

Collins Landscape Company purchased various landscaping supplies on account to be used for landscape designs for its customers. How will this business transaction affect the accounting equation?

Accepted Answer

The answer of Collins Landscape Company purchased various landscaping supplies...

Question 7

The accountant for Franklin Company prepared the following list of account balances from the company's records for the year ended December 31, 2011:
  Determine the total liabilities at the end of 2011 for Franklin Company.

Accepted Answer

The answer of The accountant for Franklin Company prepared the...

Question 8

The accountant for Franklin Company prepared the following list of account balances from the company's records for the year ended December 31, 2011:
  Based on this information, is Franklin Company profitable? Explain your answer by including net income or loss.

Accepted Answer

The answer of The accountant for Franklin Company prepared the...

Question 9

At December 31, 2011, Martin Consultants has assets of $430,000 and liabilities of $205,000. Using the accounting equation and considering each case independently, determine the following:
a. Total Stockholders' Equity as of December 31, 2011.
b. Total Stockholders' Equity as of December 31, 2012, assuming that assets increased by $12,000 and liabilities increased by $15,000 in 2012.
c. Total Stockholders' Equity as of December 31, 2012, assuming that assets decreased by $8,000 and liabilities increased by $14,000 during 2012.

Accepted Answer

The answer of At December 31, 2011, Martin Consultants has...

Question 10

Indicate how the following transactions affect the accounting equation:
(a) The purchase of supplies on account.
(b) The purchase of supplies for cash.
(c) Cash dividends paid to stockholders.
(d) Revenues received in cash.
(e) Revenues received on account.

Accepted Answer

The answer of Indicate how the following transactions affect the...

Question 11

Shiny Kar Company had the following transactions. For each transaction, show the effect on the accounting equation by putting the amount and direction (plus, minus, or NC for no change) in each box of the table below.

Accepted Answer

The answer of Shiny Kar Company had the following transactions....

Question 12

Use the accounting equation to answer each of the independent questions below.
a. At the beginning of the year, Norton Company assets were $75,000 and its stockholders' equity was $38,000. During the year, assets increased by $18,000 and liabilities increased by $4,000. What was the stockholders' equity at the end of the year?
b. At the beginning of the year, Turpin Industries had liabilities of $44,000 and stockholders' equity of $66,000. If assets increased by $10,000 and liabilities decreased by $5,000, what was the stockholders' equity at the end of the year?

Accepted Answer

The answer of Use the accounting equation to answer each...

Question 13

The total assets and the total liabilities of a business at the beginning and at the end of the year appear below. During the year, the company paid $60,000 in cash dividends and issued an additional $45,000 of capital stock.
  Calculate the net income for the year.

Accepted Answer

The answer of The total assets and the total liabilities...

Question 14

The accountant for Franklin Company prepared the following list of account balances from the company's records for the year ended December 31, 2011:
  Determine the total assets at the end of 2011 for Franklin Company.

Accepted Answer

The answer of The accountant for Franklin Company prepared the...

Question 15

There are four transactions that affect stockholders' equity.
(a) What are the two types of transactions that increase stockholders' equity?
(b) What are the two types of transactions that decrease stockholders' equity?

Accepted Answer

The answer of There are four transactions that affect stockholders'...

Question 16

The following selected transactions were completed by Daniels Company during May:
   Note: Each transaction has two entries.

Accepted Answer

The answer of The following selected transactions were completed by...

Question 17

Simpson Auto Body Repair purchased $20,000 of machinery. The company paid $8,000 in cash at the time of the purchase and signed a promissory note for the remainder to be paid in four monthly installments.
(a) How will the purchase affect the accounting equation?
(b) How will the payment of the first monthly installment affect the accounting equation?

Accepted Answer

The answer of Simpson Auto Body Repair purchased $20,000 of...

Question 18

Ramierez Company received its first electric bill in the amount of $60 which will be paid next month. How will this transaction affect the accounting equation?

Accepted Answer

The answer of Ramierez Company received its first electric bill...

Question 19

Amos Moving Services' account balances at March 31, 2011, the end of the current year, are listed below. The Retained Earnings balance was $180,000 at April 1, 2010, the beginning of the current year.
  Based on the data provided for Amos Moving Services, prepare an income statement for the year ended March 31, 2011.

Accepted Answer

The answer of Amos Moving Services' account balances at March...

Question 20

On July 1 of the current year, the assets and liabilities of John Wong, DVM, Inc., are as follows: Cash, $15,000; Accounts Receivable, $12,300; Supplies, $3,100; Land, $35,000; Accounts Payable, $8,700. What is the amount of stockholders' equity as of July 1 of the current year?

Accepted Answer

The answer of On July 1 of the current year,...

Quiz 1: Introduction to Accounting and Business

Given the following: Beginning retained earnings $ 70,000 Ending retained earnings $ 48,000 Dividends declared and paid $ 21,000 Calculate net income or net loss.

Indicate whether each of the following represents an asset, liability, or owner's equity item.

Collins Landscape Company purchased various landscaping supplies on account to be used for landscape designs for its customers. How will this business transaction affect the accounting equation?

The accountant for Franklin Company prepared the following list of account balances from the company's records for the year ended December 31, 2011: Determine the total liabilities at the end of 2011 for Franklin Company.

The accountant for Franklin Company prepared the following list of account balances from the company's records for the year ended December 31, 2011: Based on this information, is Franklin Company profitable? Explain your answer by including net income or loss.

Indicate how the following transactions affect the accounting equation: (a) The purchase of supplies on account. (b) The purchase of supplies for cash. (c) Cash dividends paid to stockholders. (d) Revenues received in cash. (e) Revenues received on account.

Shiny Kar Company had the following transactions. For each transaction, show the effect on the accounting equation by putting the amount and direction (plus, minus, or NC for no change) in each box of the table below.

The total assets and the total liabilities of a business at the beginning and at the end of the year appear below. During the year, the company paid $60,000 in cash dividends and issued an additional $45,000 of capital stock. Calculate the net income for the year.

The accountant for Franklin Company prepared the following list of account balances from the company's records for the year ended December 31, 2011: Determine the total assets at the end of 2011 for Franklin Company.

There are four transactions that affect stockholders' equity. (a) What are the two types of transactions that increase stockholders' equity? (b) What are the two types of transactions that decrease stockholders' equity?

The following selected transactions were completed by Daniels Company during May: Note: Each transaction has two entries.

Ramierez Company received its first electric bill in the amount of $60 which will be paid next month. How will this transaction affect the accounting equation?

On July 1 of the current year, the assets and liabilities of John Wong, DVM, Inc., are as follows: Cash, $15,000; Accounts Receivable, $12,300; Supplies, $3,100; Land, $35,000; Accounts Payable, $8,700. What is the amount of stockholders' equity as of July 1 of the current year?