2.Revenue on account amounted to $7,000. Cash collections of accounts receivable amounted to $4,550. Expenses for the period were $3,600. The company paid dividends of $1,200. Net income for the period was

Multiple Choice

• $950.

• $3,400.

• $2,200.

• $3,350.

3. The following account balances were drawn from the financial statements of Grayson Company:

Cash	$	4,800		Accounts payable	$	1,450
Accounts receivable	$	1,900		Common stock		?
Land	$	8,400		Retained earnings, Jan.1	$	3,100
				Revenue	$	9,900
				Expenses	$	7,450

Based on the above information, what is the balance of Common Stock for Grayson Company?

Multiple Choice

• $8,100

• $10,550

• $650

• $10,800

4.Prior to closing, Syracuse Companys accounting records showed the following balances:

Retained earnings	$	6,500
Service revenue		7,850
Interest revenue		900
Salaries expense		4,700
Operating expense		1,450
Interest expense		600
Dividends		1,200

After closing, Syracuses retained earnings balance would be

Multiple Choice

• $6,500.

• $8,500.

• $7,300.

• $9,700.

5. Sheldon Company began Year 1 with $2,200 in its supplies account. During the year, the company purchased $6,500 of supplies on account. The company paid $3,100 on accounts payable by year end. At the end of Year 1, Sheldon counted $3,900 of supplies on hand. Sheldons financial statements for Year 1 would show:

Multiple Choice

• $5,600 of supplies; $1,700 of supplies expense

• $3,900 of supplies; $2,600 of supplies expense

• $3,900 of supplies; $4,800 of supplies expense

• $5,600 of supplies; $6,500 of supplies expense

6. Jason Company paid $7,500 for one years rent in advance beginning on October 1, Year 1. Jasons Year 1 income statement would report rent expense, and its statement of cash flows would report cash outflow for rent, respectively, of

Multiple Choice

• $7,500; $7,500

• $1,875; $1,875

• $1,875; $7,500

• $1,250; $7,500

7.Warren Enterprises had the following events during Year 1:

The business issued $25,000 of common stock to its stockholders.

The business purchased land for $17,000 cash.

Services were provided to customers for $21,000 cash.

Services were provided to customers for $10,000 on account.

The company borrowed $21,000 from the bank.

Operating expenses of $17,000 were incurred and paid in cash.

Salary expense of $1,300 was accrued.

A dividend of $9,000 was paid to the stockholders of Warren Enterprises.

Assuming the company began operations during Year 1, the amount of retained earnings as of December 31, Year 1 would be:

Multiple Choice

• $3,500

• $3,700

• $17,700

• $31,000

8.Nelson Company experienced the following transactions during Year 1, its first year in operation.

1. Issued $9,600 of common stock to stockholders.
2. Provided $5,900 of services on account.
3. Paid $2,500 cash for operating expenses.
4. Collected $3,700 of cash from accounts receivable.
5. Paid a $280 cash dividend to stockholders.

The amount of net income recognized on Nelson Company's Year 1 income statement is:

Multiple Choice

• $3,400.

• $2,480.

• $2,200.

• $3,120.

9.Gomez Company collected $22,500 on September 1, Year 1 from a customer for services to be provided over a one-year period beginning on that date. How much revenue would Gomez Company report related to this contract on its income statement for the year ended December 31, Year 1? How much would it report as cash flows from operating activities for Year 1?

Multiple Choice

• $7,500; $7,500

• $22,500; $22,500

• $7,500; $22,500

• $0; $22,500

10. Which of the following accounts would not appear on a balance sheet?

Multiple Choice

• Service Revenue.

• Salaries Payable.

• Unearned Revenue.

• Neither Service Revenue nor Unearned Revenue would appear on a balance sheet.