1) Montauk Oil Company reports these account balances at December 31, Year 1 Accounts Payable $ 107,000 Land 197,000 Notes Payable 257,000 Equipment 157,000 Cash 77,000 Accounts Receivable 97,000 Buildings 237,000 Capital Stock 337,000 Retained Earnings 67,000 On January 2, Year 2, Montauk Oil collected $47,000 of its accounts receivable and paid $17,000 of its accounts payable. In a trial balance prepared at December 31, Year 1 the total of the debit column is:

Multiple Choice

• $1,005,000.

• $765,000.

• $688,000.

• $1,513,000.

2) Ceramic Products, Incorporated reports these account balances at January 1, Year 2 (shown in alphabetical order):

Accounts Payable	$ 19,000
Accounts Receivable	11,000
Buildings	144,000
Capital Stock	176,000
Cash	4,000
Equipment	11,000
Land	71,000
Notes Payable	15,000
Retained Earnings	40,000

On January 5, Ceramic Products collected $3,000 of its accounts receivable and paid $2,000 on its note payable.

In a trial balance prepared on January 6, Year 2, the total of the credit column is:

Multiple Choice

• $248,000.

• $250,000.

• $252,000.

• $251,000.

3) The following transactions occurred during May, the first month of operations for Hunter Products, Incorporated:

• Issued 55,000 shares of capital stock to the owners of the corporation in exchange for $660,000 cash.
• Purchased a piece of land for $450,000, making a $175,000 cash down payment and signing a note payable for the balance.
• Made a $65,000 cash payment on the note payable from the purchase of land.
• Purchased equipment on credit from BBW, Incorporated for $68,000.

What are total assets of Hunter Products at the end of May?

Multiple Choice

• $870,000

• $938,000

• $1,003,000

• $1,006,000

4) The following transactions occurred during March, the first month of operations for Quality Galleries, Incorporated:

• Capital stock was issued in exchange for $358,000 cash.
• Purchased $176,000 of equipment by making a $58,000 cash down payment and signing a note payable for the balance.
• Made a $34,000 cash payment on the note payable from the purchase of equipment.
• Sold a piece of equipment for cash of $16,000. The equipment was sold at cost, so there is no gain or loss on the sale.

What is the balance in the Cash account at the end of March?

Multiple Choice

• $374,000

• $316,000

• $282,000

• $340,000