1.

Question 1 options:

A firm has an ROI of 15%, turnover of 3, and sales of $6 million. Calculate the firm's margin. Enter your answer as a percentage. For example, if your answer is 9%, then enter in the box below 9%. 

2.

For each item below, indicate whether a debit or credit is appropriate by entering the number corresponding to your answer in the box provided.

Question 2 options:

	a decrease to accounts payable
	an increase to inventory
	an increase to cost of goods sold
	a decrease to cash
	an increase to sales revenue
	an increase to retained earnings

1.	debit
2.	credit

3.

Question 3 options:

Franklin Co. borrowed $40,000 from a bank on September 1, 2007 and agreed to pay it back in seven months at an interest rate of 15% per year. Calculate the amount of interest expense related to this loan reported in Franklin Co.'s 2008 income statement. Do not use decimals in your answer. 

4.

Question 4 options:

ABC Company began operations on August 1, 2013 and entered into the following transactions during 2013: 

1. On August 1, ABC Company sold common stock to owners in the amount of $200,000 and borrowed 100,000 from the local bank on a 10-month, 12% note payable 

2. On September 1, ABC Company purchased a parcel of land costing $80,000 by paying $20,000 in cash and agreeing to pay the remainder within six months 

3. On October 1, ABC Company received $50,000 cash from a customer for services to be performed over the next 10 months 

4. On November 15, ABC Company paid its stockholders a dividend totaling $3,000 cash 5. On December 1, ABC Company paid $10,000 of the amount owed for the land purchased on September 1 

Calculate the amount of net income that ABC Company would report in its 2013 income statement after all the above transactions are recorded and all necessary adjusting entries are made. Do not use decimals in your answer. 

5.

Question 5 options:

ABC Company began operations on August 1, 2013 and entered into the following transactions during 2013: 

1. On August 1, ABC Company sold common stock to owners in the amount of $200,000 and borrowed 100,000 from the local bank on a 10-month, 12% note payable 

2. On September 1, ABC Company purchased a parcel of land costing $80,000 by paying $20,000 in cash and agreeing to pay the remainder within six months 

3. On October 1, ABC Company received $50,000 cash from a customer for services to be performed over the next 10 months 

4. On November 15, ABC Company paid its stockholders a dividend totaling $3,000 cash 5. On December 1, ABC Company paid $10,000 of the amount owed for the land purchased on September 1 

Calculate the amount of total assets that ABC Company would report in its December 31, 2013 balance sheet after all the above transactions are recorded and all necessary adjusting entries are made. Do not use decimals in your answer. 

6.

Question 6 options:

ABC Company began operations on August 1, 2013 and entered into the following transactions during 2013: 

1. On August 1, ABC Company sold common stock to owners in the amount of $200,000 and borrowed 100,000 from the local bank on a 10-month, 12% note payable 

2. On September 1, ABC Company purchased a parcel of land costing $80,000 by paying $20,000 in cash and agreeing to pay the remainder within six months 

3. On October 1, ABC Company received $50,000 cash from a customer for services to be performed over the next 10 months 

4. On November 15, ABC Company paid its stockholders a dividend totaling $3,000 cash 5. On December 1, ABC Company paid $10,000 of the amount owed for the land purchased on September 1 

Calculate the amount of total liabilities that ABC Company would report in its December 31, 2013 balance sheet after all the above transactions are recorded and all necessary adjusting entries are made. Do not use decimals in your answer. 

Accounting