1-During the year 2014 a company paid cash for their employees salaries amounting to $90,000. The year-end balances in the salaries payable account were $22,000 at December 31, 2013 and $20,000 at December 31, 2014. Determine the amount of "Salary Expense" the company would report on its 2014 Income Statement:

$90,000

$88,000

$92,000

$110,000

2-Which of the following best describes the Retained Earnings account?

profits earned by the company over its entire life, less the dividends distributed to stockholders.

the profits earned by the company since it began operations.

the amount of assets not yet distributed to stockholders

the amount of cash the company has available for dividends

3-Solar Products purchased a computer for $13,000 on July 1, 2014. The company intends to depreciate it over 4 years using the straight-line method. Salvage value is $1,000. Depreciation expense for 2014 is

$2,000

$4,00

$3,000

$1,500