1- A company's January 1, 2014 balance sheet reported total assets of $151,000 and total liabilities of $60,500. During January 2014, the company completed the following transactions: (A) paid a note payable using $10,500 cash (no interest was paid); (B) collected a $9,500 accounts receivable; (C) paid a $5,100 accounts payable; and (D) purchased a truck for $5,100 cash and by signing a $20,500 note payable from a bank. The company's January 31, 2014 balance sheet would report which of the following?

AssetsLiabilitiesStockholders' Equity

$171,500$101,700$69,800

$151,000$60,500$90,500

$161,000$75,900$85,100

$155,900$65,400$90,500

2- When a company buys equipment for $159,000 and pays for two thirds in cash and the other one third is financed by a note payable, which of the following are the effects on the accounting equation?

Total liabilities decrease $106,000.

Total liabilities increase $159,000.

Total assets increase$159,000.

Total assets increase $53,000.

3- ABC Company's total stockholders' equity at the beginning of the year was $375,000. During the year

ABC reported the following:

Net loss of $56,250.

Stock issued in exchange for land totaling $150,000.

Collections of accounts receivable $75,000.

Dividends declared and paid totaling $3,750.

What is ABC's total stockholders' equity at the end of the year?

$652,500.

$315,000.

$465,000.

$540,000.

4- Which of the following journal entries is correct when a business entity purchases land costing $32,000 by signing a one-year note payable?

Land32,000

Accounts payable32,000

Notes payable32,000

Land32,000

Land32,000

Notes payable32,000

Cash32,000

Notes payable32,000