1. If a company uses $1,350 of its cash to purchase supplies, the effect on the accounting equation would be:

2. Dawson Electronic Services had revenues of $102,000 and expenses of $61,000 for the year. Its assets at the beginning of the year were $411,000. At the end of the year assets were worth $461,000. Calculate its return on assets.

3. A company's balance sheet shows: cash $35,000, accounts receivable $41,000, equipment $72,000, and equity $83,000. What is the amount of liabilities?

4. Alpha Company has assets of $618,000, liabilities of $259,000, and equity of $359,000. It buys office equipment on credit for $84,000. What would be the effects of this transaction on the accounting equation?

5. If the liabilities of a company increased $112,000 during a period of time and equity in the company decreased $38,000 during the same period, what was the effect on the assets?

6. On May 31, the Cash account of Bottle's R US had a normal balance of $6,300. During May, the account was debited for a total of $13,500 and credited for a total of $12,800. What was the balance in the Cash account at the beginning of May?

7. Ralph Pine Consulting received its telephone bill in the amount of $380, and immediately paid it. Pine's general journal entry to record this transaction will include a

8. Gi Gi's Bakery has total assets of $429 million. Its total liabilities are $112 million. Its equity is $317 million. Calculate the debt ratio.

9. At the beginning of the current year, Trenton Company's total assets were $278,000 and its total liabilities were $190,000. During the year, the company reported total revenues of $123,000, total expenses of $91,000 and owner withdrawals of $20,000. There were no other changes in owner's capital during the year and total assets at the end of the year were $290,000. Trenton Company's debt ratio at the end of the current year is:

10. On April 1, a company paid the $1,950 premium on a three-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the year ended December 31?