2 -

Montauk Oil Company reports these account balances at December 31, Year 1

Accounts Payable	$ 116,000
Land	206,000
Notes Payable	266,000
Equipment	166,000
Cash	86,000
Accounts Receivable	106,000
Buildings	246,000
Capital Stock	346,000
Retained Earnings	76,000

On January 2, Year 2, Montauk Oil collected $56,000 of its accounts receivable and paid $26,000 of its accounts payable.

In a trial balance prepared at January 3, Year 2, the total of the debit column is:

Multiple Choice

• $1,624,000.

• $382,000.

• $784,000.

• $758,000.

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3 -

Wilson Trucking, Incorporated reports these account balances at January 1, Year 2 (shown in alphabetical order):

Accounts Payable	$ 230,000
Accounts Receivable	210,000
Buildings	490,000
Capital Stock	690,000
Cash	170,000
Equipment	330,000
Land	410,000
Notes Payable	530,000
Retained Earnings	160,000

On January 5, Year 2, Wilson Trucking collected $185,000 of its accounts receivable, paid $160,000 on its accounts payable, and paid $21,000 on its note payable.

In a trial balance prepared for Wilson Trucking on January 6, Year 2, the total of the debit column is:

Multiple Choice

• $1,620,000.

• $3,220,000.

• $1,429,000.

• $1,660,000.

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7 -

Wilson Trucking, Incorporated reports these account balances at January 1, Year 2 (shown in alphabetical order):

Accounts Payable	$ 223,000
Accounts Receivable	203,000
Buildings	483,000
Capital Stock	683,000
Cash	163,000
Equipment	323,000
Land	403,000
Notes Payable	523,000
Retained Earnings	146,000

On January 5, Year 2, Wilson Trucking collected $178,000 of its accounts receivable, paid $153,000 on its accounts payable, and paid $14,000 on its note payable.

In a trial balance prepared on January 6, Year 2, the total of the credit column is:

Multiple Choice

• $1,575,000.

• $1,422,000.

• $1,408,000.

• $1,742,000.

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10 -

Ceramic Products, Incorporated reports these account balances at January 1, Year 2 (shown in alphabetical order):

Accounts Payable	$ 34,000
Accounts Receivable	26,000
Buildings	159,000
Capital Stock	191,000
Cash	19,000
Equipment	26,000
Land	86,000
Notes Payable	30,000
Retained Earnings	55,000

On January 5, Year 2, Ceramic Products collected $18,000 of its accounts receivable and paid $17,000 on its note payable. On January 6, Year 2, total liabilities are:

Multiple Choice

• $64,000.

• $293,000.

• $47,000.

• $0.

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12 -

Which of the following best defines an asset?

Multiple Choice

• An economic resource representing cash or the right to receive cash in the near future.

• Something with physical form that is valued at cost in the accounting records.

• Something owned by a business that has a ready market value.

• An economic resource owned by a business and expected to benefit future operations.

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15 -

Ceramic Products, Incorporated reports these account balances at January 1, Year 2 (shown in alphabetical order):

Accounts Payable	$ 26,000
Accounts Receivable	18,000
Buildings	151,000
Capital Stock	183,000
Cash	11,000
Equipment	18,000
Land	78,000
Notes Payable	22,000
Retained Earnings	47,000

On January 5, Ceramic Products collected $10,000 of its accounts receivable and paid $9,000 on its note payable.

In a trial balance prepared on January 6, Year 2, the total of the credit column is:

Multiple Choice

• $279,000.

• $287,000.

• $269,000.

• $278,000.

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18 -

At December 31, Year 1, the accounting records of Braun Corporation contain the following items:

Accounts Payable	$ 20,500	Accounts Receivable	$ 49,000
Land	$ 249,000	Cash	?
Capital Stock	?	Equipment	$ 129,000
Building	$ 189,000	Notes Payable	$ 199,000
Retained Earnings	$ 169,000

If Capital Stock is $269,000, what is the December 31, Year 1 cash balance?

Multiple Choice

• $98,500.

• $41,500.

• $657,500.

• $90,500.

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19 -

At December 31, Year 1, the accounting records of Braun Corporation contain the following items:

Accounts Payable	$ 12,000	Accounts Receivable	$ 32,000
Land	$ 232,000	Cash	?
Capital Stock	?	Equipment	$ 112,000
Building	$ 172,000	Notes Payable	$ 182,000
Retained Earnings	$ 152,000

If Cash at December 31, Year 1, is $58,000, total assets amounts to:

Multiple Choice

• $618,000.

• $758,000.

• $606,000.

• $574,000.

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21 -

If during the current year, liabilities of Corbett's Store increased by $212,000 and owners' equity increased by $156,000, then:

Multiple Choice

• Assets at the end of the year total $56,000.

• Assets increased during the year by $368,000.

• Assets at the end of the year total $368,000.

• Assets decreased during the year by $56,000.