16. A company has 2018 Revenues of $2312 and 2018 expenses of $1212. Its retained earnings on January 1, 2018 were $500. Dividends declared during the year were $400. After the closing entries on December 31 2018, what would be the new value of retained earnings? A) S1200 B) $1600 C) $2000 D) There is not enough information to say 17. A trial balance prepared after the closing entries have been posted would show a zero balance in which one of the following accounts? A Inventory . Accounts receivable C. Accumulated depreciation D. Income tax expense 18. A company purchased a computer, office furniture, and office supplies by issuing a check for $5,000 and a note payable for $19,500. The list price of the items was $26,300. The total recorded value of the items is: A) $26,300 B) $19,500 C) $31,300 D) $24,500 19. Theseus Sparta Corporation has provided the following information for its most recent year of operation: Revenues earned were $97,000, of which $9,000 were uncollected at the end of the year. Operating expenses incurred were $39,000, of which $7,000 were unpaid at the end of the year. Dividends declared were $11,000, of which $3,000 were unpaid at the end of the year Income tax expense is 30% of pretax income. How much net income was reported on Sparta's income statement? A . C. D. $40,600 $39,300 $33,600 $32,900 20. A corporation has provided the following information about one of their products: Date 1/1 6/5 Transaction Beginning Inventory Purchase Purchase Number of Units 200 400 100 Cost per Unit $140 $160 $200 11/10 During the year, 400 units were sold. What is ending inventory using the average cost method? . $48,000 . $64,000 C. $50,000 D $62,000 21. Cassie Corporation (a retailer) has provided the following information for its most recent month of operation: sales $32,000, beginning inventory $8,000, purchases $16,000 and gross profit $20,000. How much was Cassie's ending inventory? A B. C D. $4,000 $8,000 $6,000 $12,000 Use the information about Flyer Company to answer the next TWO questions, Flyer Company has provided the following information: Cash sales, $150,000 Credit sales, $450,000 Selling and administrative expenses, $110,000 Sales returns and allowances, $30,000 Gross profit, $290,000 Accounts receivable, $110,000 Allowance for doubtful accounts credit balance (pre-adjustment), $1,200 22 Under the percentage of credit sales method, how much is Flyer's bad debt expense, assuming that 1.5% of credit sales have historically been uncollectible. A $7,950 B. $6,750 C. $5,550 D. $7,800 23. Under the aging analysis method, how much is Flyer's bad debt expense? An analysis of the company's receivables has suggested $6,750 will be uncollectible A $7,950 . $6,750 C. $5,550 D. $7,800
