6. Determine the net income of a company for which the following information is available for the month of July.

Employee salaries expense	$187,000
Interest expense	17,000
Rent expense	27,000
Consulting revenue	428,000

Multiple Choice

• $197,000.

• $231,000.

• $251,000.

• $428,000.

• $659,000.

7. Zapper has beginning equity of $281,000, net income of $63,000, dividends of $52,000 and stockholder investments of $18,000. Its ending equity is:

Multiple Choice

• $247,000.

• $252,000.

• $292,000.

• $310,000.

• $378,000.

8. A law firm billed a client $2,400 for work performed in the current month. Which of the following general journal entries will the firm make to record this transaction?

Multiple Choice

• Debit Accounts Receivable, $2,400; credit Unearned Legal Fees Revenue, $2,400.

• Debit Cash, $2,400; credit Unearned Legal Fees Revenue, $2,400.

• Debit Legal Fees Revenue, $2,400; credit Accounts Receivable, $2,400.

• Debit Accounts Receivable, $2,400; credit Legal Fees Revenue, $2,400.

• Debit Cash, $2,400; credit Accounts Receivable, $2,400.

9.

J. Brown Consulting immediately paid $860 cash for utilities for the current month. Given the choices below, determine the general journal entry that J. Brown Consulting will make to record this transaction.

Multiple Choice

• Utilities Expense	860
  Cash		860

• Cash	860
  Utilities Expense		860

• Cash	860
  Accounts Payable		860

• Utilities Expense	860
  Accounts Payable		860

• Prepaid Utilities	860
  Accounts Payable		860

10. Andrea Apple opened Apple Photography on January 1 of the current year. During January, the following transactions occurred and were recorded in the company's books:

1. Andrea invested $13,800 cash in the business in exchange for common stock.
2. Andrea contributed $23,000 of photography equipment to the business in exchange for common stock.
3. The company paid $2,400 cash for an insurance policy covering the next 24 months.
4. The company received $6,000 cash for services provided during January.
5. The company purchased $6,500 of office equipment on credit.
6. The company provided $3,050 of services to customers on account.
7. The company paid cash of $1,800 for monthly rent.
8. The company paid $3,400 on the office equipment purchased in transaction #5 above.
9. Paid $305 cash for January utilities.

Based on this information, the amount of total stockholders equity-reported on the Balance Sheet at the end of the month would be:

Multiple Choice

• $35,600.

• $42,800.

• $34,750.

• $43,745.

• $33,845.