1.Vittorio started a landscaping business on 1 July 2016 and purchased a Ute Toyota for $46,000. He estimated the useful life of 4 years and an estimated residual value of $6,000 at the end of its useful life. Calculate the accumulated depreciation on 30 June 2019 if using straight line method of depreciation (assume financial year 1 July - 30 June)

a. None of the options is correct

b. $30,000

c. $34,500

d. $10,000

e. $11,500

2.Credit sales

Cash received from equipment sold

Rent paid in advance

Purchased supplies on credit

Cost of sales

Cash sales

Collections from accounts receivable

Beginning cash balance

18,000

4,500

840

1,200

21,000

12,000

11,200

800

Purchase of new computers

Proceeds from bank loan

Salaries paid

Rent expense

Suppliers paid

Depreciation expense

Dividends paid

Ending cash balance

18,600

5,000

6,800

420

960

1,800

6,000

300

The effect on profits from these transactions is

a. $11,180

b. $(6,820)

c. Unable to be calculated from the information given

d. $14,600

e. $(20)

3.Credit sales

Cash received from equipment sold

Rent paid in advance

Purchased supplies on credit

Cost of sales

Cash sales

Collections from accounts receivable

Beginning cash balance

18,000

4,500

840

1,200

21,000

12,000

11,200

800

Purchase of new computers

Proceeds from bank loan

Salaries paid

Rent expense

Suppliers paid

Depreciation expense

Dividends paid

Ending cash balance

18,600

5,000

6,800

420

960

1,800

6,000

300

The net cash flow from investing activities of the statement of cash flows prepared from the above information is

a. $(8,100)

b. $4,500

c. $(18,600)

d. $(14,100)

e. $(1,000)

4.Cash drawings

Loss on sale of equipment

Insurance expense

Bank loan paid

Cost of sales

Inventory purchased for cash

Collections from accounts receivable

Beginning cash balance

2,200

900

100

4,500

15,000

8,000

16,400

400

Insurance paid in advance

Cash paid for equipment purchased

Credit sales

Wages paid

Accounts payable paid

Depreciation expense

Cash sales

Ending cash balance

1,200

10,000

18,000

3,800

450

1,400

23,000

9,650

The net cash flow from investing activities of the statement of cash flows prepared from the above information is

a. $(10,900)

b. $(18,000)

c. $10,000

d. Unable to be calculated from the information given

e. $(10,000)

5.Credit sales

Cash received from equipment sold

Rent paid in advance

Purchased supplies on credit

Cost of sales

Cash sales

Collections from accounts receivable

Beginning cash balance

18,000

4,500

840

1,200

21,000

12,000

11,200

800

Purchase of new computers

Proceeds from bank loan

Salaries paid

Rent expense

Suppliers paid

Depreciation expense

Dividends paid

Ending cash balance

18,600

5,000

6,800

420

960

1,800

6,000

300

The net cash flow from financing activities of the statement of cash flows prepared from the above information is

a. $(1,000)

b. $(6,000)

c. $5,000

d. $(500)

e. Unable to be calculated from the information given

6.What is the effect on the accounting equation of the following transaction: "Paid the current month's mobile phone bill of $350"?

a. Decrease assets and increase owners' equity

b. Increase assets and decrease liabilities

c. Increase assets and increase liabilities

d. Decrease assets and increase liabilities

e. Decrease assets and decrease owners' equity