1. Warren Company began the accounting period with a $26,000 debit balance in its accounts receivable account. During the accounting period, the company recorded revenue on account amounting to $64,000. The accounts receivable account at the end of the accounting period contained a $13,000 debit balance. Based on this information, what is the amount of cash collected from customers during the period?

2. The trial balance of Barger Company at the end of the accounting period, immediately prior to recording closing entries, showed the following:

	Debit	Credit
Cash	19,000
Land	36,000
Notes Payable		22,400
Common Stock		12,000
Retained Earnings		12,800
Service Revenue		49,000
Expenses	39,900
Dividends	1,300
Total	$96,200	$96,200

What will the balance of the retained earnings account be after the closing entries are recorded?

3. What effect will the following closing entry have on the retained earnings account?

Account Title	Debit	Credit
Service Revenue	22,600
Interest Expense		1,700
Operating Expenses		17,400
Retained Earnings		3,500

4. Nelson Company began operations on December 1, Year 1. The following transactions and adjustments were recorded in December and posted to the companys ledger accounts:

1) Acquired $3,800 cash from the issue of common stock to its stockholders.

2) Provided services on account for $3,300.

3) Paid $1,900 cash for land.

4) Owed $1,400 of salaries expenses to employees for work done in December that will be paid during January.

5) Purchased $500 of supplies on account to be used in January.

6) Collected $1,700 from customers.

What is the total of the debit account balances that will be reported on the company's adjusted trial balance at December 31, Year 1?

5. The following is a trial balance of Barnhart Company as December 31, Year 1:

Account Title:	Debit	Credit
Cash	14,100
Accounts Receivable	4,050
Accounts Payable		3,600
Common Stock		8,200
Retained Earnings		4,660
Service Revenue		9,050
Operating Expenses	6,700
Dividends	660
Totals	25,510	25,510

What is the total amount of assets that will be reported on the balance sheet prepared as of December 31, Year 1?

6. The following is a random list of the adjusted account balances of Wyoming Company as of the end of the current accounting period:

Cash	17,100	Accounts Receivable	4,800
Accounts Payable	3,800	Service Revenue	17,300
Land	24,100	Retained Earnings	16,300
Operating Expenses	11,500	Common Stock	20,100

What is the total of the credit account balances that will be shown on the adjusted trial balance?

7. Kincaid Company provided consulting services of $6,400 to a customer who paid $3,100 and promised to pay the remainder next month. Which of the following journal entries correctly records this transaction?

Multiple Choice

Account Title	Debit	Credit
Cash	3,100
Consulting Revenue		3,100

Account Title	Debit	Credit
Cash	3,100
Accounts Receivable	3,300
Consulting Revenue		6,400

Account Title	Debit	Credit
Cash	3,100
Accounts Payable	3,300
Consulting Revenue		6,400

Account Title	Debit	Credit
Consulting Revenue	6,400
Cash		3,100
Accounts Receivable		3,300

8. Wichita, Incorporated reported the following amounts on its financial statements prepared as of the end of the current accounting period:

Revenues	$236,000
Expenses	192,480
Net Income		$43,520
Current Assets	$68,000
Long-term Assets	204,000
Total Assets		$272,000
Current Liabilities	$50,000
Long-term Liabilities	98,000
Total Liabilities		148,000
Common Stock	$58,000
Retained Earnings	66,000
Total Stockholders Equity		124,000
Total Liabilities and Stockholders Equity		$272,000

What is the companys return-on-assets ratio?

9. Chestnut, Incorporated reported the following balances on its balance sheet at December 31, Year 1:

Total Assets		$246,000
Total Liabilities		$85,000
Common Stock	81,000
Retained Earnings	80,000
Total Stockholders Equity		161,000
Total Liabilities and Stockholders Equity		$246,000

On January 1, Year 2, Chestnut purchased equipment for $56,000 on account. What is the companys debt-to-assets ratio immediately after the purchase of the equipment?

10. On August 1, Year 1, Bellisa Company issued a $30,000 7%, 1-year note to Citizens Bank. Which of the following entries reflects the adjustment required as of December 31, Year 1?

Multiple Choice

Account Title	Debit	Credit
Interest Payable	2,100
Interest Expense		2,100

Account Title	Debit	Credit
Interest Expense	2,100
Interest Payable		2,100

Account Title	Debit	Credit
Interest Expense	875
Notes Payable		875

Account Title	Debit	Credit
Interest Expense	875
Interest Payable		875