#1. A corporation was started on January 3, 2015 with an initial sale of common stock of $160,000. At December 31, 2015, the company had $600,000 in assets and $350,000 in liabilities. During 2015 the corporation paid $40,000 of dividends. What was the companys net income for 2015?

#2. On May 31, Zent Co. borrows $80,000 from a local bank. A note is signed with principal and 6% interest to be paid on May 31 the following year. Select the necessary adjusting journal entry for Zent Co. at December 31 of the current year.

#3. Dillon Co. bought $2,500 supplies at the beginning of the month. At the end of the month $500 of supplies were still on hand. Select the adjusting entry that should be recorded at the end of the accounting period.

#4. At the beginning of the month, Bobcat Boards and Skis received $800 in advance for future services to be performed. At the end of the month, $300 worth of services were still owed to the customer. Select the adjusting entry that should be recorded at the end of the accounting period.

#5. At the end of the month, The Roost had unpaid employee salaries and wages totaling $32,000. What is the correct adjusting journal entry to record unpaid salaries and wages?

#6. Sola Cafe employees worked the last few days of the year and earned $4,000 of wages. Sola will not pay their employees until January. Select the adjusting entry that should be recorded at the end of the year.

#7. How to calculate net income from cash revenues?