ACCT6111 - Fall 2022 Assignment 1 (Chapters 2, and 4)

Answer the following nine questions:

1. Bahja Company reported the following information for the year 2021: Cash received from customers $440,000; Revenue earned $300,000; Cash paid for expenses $170,000; Expenses incurred (not including any depreciation) $200,000; Cash paid for the purchase of computers at the beginning of the year $48,000; Proceeds from a bank loan (part of which was used to pay for the computers) $100,000. The computers will be used for 3 years (annual depreciation is $16,000). Based on the accrual basis of accounting, what is Bahja's net income for year 2021?

2. Marwan Company began the year with equity of $225,000. During the year, the company issued additional ordinary shares in exchange for cash of $315,000, recorded expenses of $900,000, and paid dividends of $60,000. At the end of the year, total liabilities was $150,000 and total Assets was $1,500,000. What was the company's revenue for the year?

3. At May 31, 2022, Amwaj Industries had an accounts payable balance of $39,000. During the month, the company made purchases on account of $25,000 and made payments on account of $40,000. What is the accounts payable balance at May 1, 2022?

4. The balance in the Accrued Wages Payable account increased from $13,200 at the beginning of the month to $22,500 at the end of the month. Wages paid during the month totaled $110,000. What is the total wages accrued during the month?

5. A company reported total equity of $145,000 on its December 31, 2020, balance sheet. The following information is available for the year ended December 31, 2021: Revenues $210,000; Expenses $165,000; Paid in capital increased by $350,000; Liabilities decreased by $80,000; Assets increased by $300,000. How much is the dividends distributed by the company in year 2021?

6. Shareholders' equity totaled $59,500 at the end of the year. During the year, net income was $6,000, dividends of $2,500 were declared and paid, and $5,000 of common stock (ordinary shares) was issued at par value. What was the total shareholders' equity at the beginning of the year?

7. During the year, cost of goods sold was $320,000; income from operations was $450,000; income tax expense was $64,000; interest expense was $48,000; and selling, general, and administrative expenses were $176,000. How much is the net sales?

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8. At the beginning of the current fiscal year, the balance sheet of Moon Company showed liabilities of $760,000. During the year, paid-in capital increased by $50,000 to $330,000. Dividends declared and paid during the year were $120,000. At the end of the year, shareholders' equity totaled $804,000. Calculate net income or loss for the year.

9. Using the column headings provided below, show the effect, if any, of the transaction entry or adjusting entry on the appropriate balance sheet category or on the income statement by entering the account name, amount, and indicating whether it is an addition (+) or subtraction (). Column headings reflect the expanded balance sheet equation; items that affect net income should not be shown as affecting stockholders' equity. a) During the month, Supplies Expense was debited $5,200 for supplies purchased. The cost of supplies used during the month was $3,800. Record the adjustment to properly reflect the amount of supplies used and supplies still on hand at the end of the month. b) Independent of transaction (a), assume that during the month, Supplies (asset) was debited $5,200 for supplies purchased. The total cost of supplies used during the month was $3,800. Record the adjustment to properly reflect the amount of supplies used and supplies still on hand at the end of the month. c) Received $3,400 of cash from clients for services provided during the current month. d) Paid $1,900 of accounts payable. e) Received $1,500 of cash from clients for revenues accrued at the end of the prior month. f) Received $800 of interest revenue accrued at the end of the prior month. g) Received $1,650 of interest revenue for the current month. h) Accrued $740 of interest revenue earned in the current month. i) Paid $4,200 of interest expense for the current month. j) Accrued $1,480 of interest expense at the end of the current month. k) Accrued $3,200 of commissions payable to sales staff for the current month. Assets Liabilities Stockholders' Equity Net Income