3 2 FBLA Accounting I W S * backspace 2000 NLC The balance sheet for Feist Company appears below. Use it to answer questions 40 - 42. Consider each question independently. Assets Cash $5,000 Accounts Receivable 1,500 Equipment 6,000 Land 12,000 Building Total Assets 2 ? FEIST COMPANY BALANCE SHEET DECEMBER 31, 1999 Liabilities Accounts Payable $7,000 Owner's Equity John Feist, Captial Total Liabilities and Owner's Equity ? ? 41) A) $17,500 B) $10,500 C) $7,500 (D) $2,500 42) 5000 +1500 + 6000 +12000 24500 total If the balance in the John Feist, Capital, account were $20,000, what would be the amount of the Building account? total liabilities 1000 24500-7000=17500 ssets 20000-24 43) If the balance sheet showed an amount in the Building account of $20,000 and if the equipment were sold for $6,000, what would be the balance of John Feist's Capital account? A) $35,000 B) $37,500 C) $44,500 D) $38,500 If the balance sheet showed an amount in the Building account of $15,000, and if $4,000 of Accounts Payable were paid from the cash balance, what would be the total liabilities and owner's equity? A) $25,500 B) $42,500 C) $28,500 D) $35,500 EXAM CONTINUES ON NEXT PAGE FBLA Accounting I G backspace 2000 NLC Use the following data to answer 43 & 44. For the two UNRELATED situations below, compute the unknown amounts indicated by the letters (a) and (b). Beginning: Assets Liabilities Ending: Assets Situation (1) $15,000 5,000 Situation (2) $19,000 6,400 Liabilities $20,500 $28,000 4,500 (b) During the Year: Capital contributed 1,000 2,000 Revenue (a) 18,000 Capital withdrawn 1,500 1,200 Expenses 4,000 9,500 The correct amount for letter (a) is 43) A) $8,500 B) $12,500 C) $10,500 D) $15,500 The correct amount for letter (b) is 44) A) $21,900 B) $6,100 C) $1,600 45) D) $22,900 John Caviness, a CPA, owns his own business. His company records show an account, Accounting Fees Earned, with a balance of $65,000. This account should be extended as a A) credit to the Income Statement columns of the work sheet. B) debit to the Income Statement columns of the work sheet. C) credit to the Balance Sheet columns of the work sheet. D) debit to the Balance Sheet columns of the work sheet. The accountant for American Packing Company is completing the work sheet for 2000. The subtotals of the Income Statement columns show debits of $240,000 and credits of $220,000. This information indicates that A) the company incurred a net loss of $20,000. B) the company earned a net income of $20,000. C) an error has been made since the columns do not balance. D) a net income cannot be calculated from the information available. 46) Page 8