1.Ryan & Wang Ltd is a company that commenced business on 1 April 2019. Below are the balances of assets and liabilities accounts at 30 April 2019:

Supplies $560

Unearned revenue 300

Cash 70

Accounts payable 1,800

Inventory 3,500

Accounts receivable 2,400

Vehicles 12,000

Wages payable 960

During April Ryan & Wang Ltd made credit sales of $2,400 (cost of goods sold $1,000); received $300 from a customer for services that will be provided in May 2019; purchased inventory for $4,500, paid $2,700 and the rest will be paid in 30 days; purchased and paid $560 supplies; and expensed $960 in wages.

1. question:Profit according to accrual accounting is:
2. At the end of the financial year, the usual adjusting entry for accrued salaries owed to employees was omitted. Which of the following statements is TRUE?

a. Salary expense for the year was overstated.

b. Net profit for the year was understated.

c. Shareholders' equity at the end of the year was overstated. d. The total of liabilities at the end of the year was overstated. e. Shareholders' equity at the end of the year was understated.

3.

Which of the statements about closing the accounts is TRUE?

a. Revenue and expense accounts are closed to retained profits account.

b. Closing entries is useful to balance permanent accounts.

c. The accounts of the general ledger should be closed before starting a new period. d. Profit in the profit and loss summary account is closed as a debit in the retained profits account.

e. Closing entries prepare the accounting records to begin the next period

4.During 2019 Corleone Ltd declared dividends for $500. Retained profits at 1 January 2019 were $4,000, and at 31 December 2019, $4,400. At 31 December 2019, total assets were $10,000 and share capital $2,000. There were no transfers to reserves in 2019.

Calculate profit for 2019.