Adams, Inc. recorded the following journal entry on March 2, 2018.

Cash	7,500
Unearned Revenue		7,500

From the journal entry above, identify the transaction on March 2, 2018.

A.

Adams sold goods for

$7,500

cash.

B.

Adams received

$7,500

for services to be performed in a later period.

C.

Adams paid

$7,500

for services to be received at a later date.

D.

Adams purchased goods worth

$7,500

and signed a

oneyear

note for the same amount.

A company has

$110,000

in current assets;

$550,000

in total assets;

$80,000

in current liabilities, and

$120,000

in total liabilities. Calculate the current ratio of the company. (Round your answer to two decimal places.)

A.

0.92

B.

1.77

C.

1.73

D.

The balances of select accounts of Sandra, Inc. as of December 31, 2018 are given below:

	Debit	Credit
Building	$110,000
Cash	8,000
Office Supplies	700
Furniture	4,000
Prepaid Insurance	600
Accumulated DepreciationFurniture		$1,000
Land	30,000
Accumulated DepreciationBuilding		4,500
Accounts Receivable	2,300

The insurance has been prepaid until June 30, 2019. Determine the amount of total current assets reported on the balance sheet at December 31, 2018.

A.

$14,300

B.

$11,600

C.

$8,700

D.

The following are selected current month's balances for Morgan, Inc.

Accounts Payable	$10,000
Revenue	9,000
Cash	4,150
Expenses	1,100
Furniture	12,000
Accounts Receivable	15,000
Common Stock	9,250
Notes Payable	4,000

Based on this information, calculate the total amount of credits for the trial balance.

A.

$32,250

B.

$23,250

C.

$23,000

D.

$22,250

The following Office Supplies account information is available for Nabors, Inc.

Beginning balance	$1,500
Office Supplies expensed	6,000
Ending balance	1,000

From the above information, calculate the amount of office supplies purchased.

A.

$6,000

B.

$5,500

C.

$1,500

D.

$1,000

The net income of Hendley, Inc. for the year is

$30,000.

The dividends declared during the year were

$36,000.

Which of the following statements is true?

A.

Retained Earnings account increases by

$36,000.

B.

Retained Earnings account decreases by

$30,000.

C.

Retained Earnings account decreases by

$6,000.

D.

Retained Earnings will remain the same.

The Accounts Payable account of Waterford, Inc. has the following postings:

Accounts Payable
14,000	27,000
7,000	13,000

Calculate the ending balance of the account.

A.

$19,000

credit

B.

$19,000

debit

C.

$7,000

debit

D.

$13,000

credit

Watson Tax Planning Service has the following plant assets: Communications Equipment: Cost,

$7,200

with useful life of eight years; Furniture: Cost,

$21,600

with useful life of 12 years; and Computer: Cost,

$12,000

with useful life of four years. (Assume residual value of all the assets is zero.) Watson's monthly depreciation expense calculated using the

straightline

method is ________. (Round any intermediate calculations to two decimal places, and your final answer to the nearest cent.)

A.

$250.00

B.

$150.00

C.

$475.00

D.

Ten years ago a corporation purchased a building for

$150,000.

At that time, the corporation felt that the building was worth

$175,000.

The current market value of the building is

$470,000.

The building has been assessed at

$445,000

for property tax purposes. At which amount should the corporation record the building in its accounting records?

A.

$150,000

B.

$470,000

C.

$175,000

D.

A business purchases equipment by paying

$5,487

in cash and issuing a note payable of

$12,574.

Which of the following occurs?

A.

Cash is debited for

$5,487,

Equipment is credited for

$12,574,

and Notes Payable is debited for

$7,087.

B.

Cash is credited for

$5,487,

Equipment is credited for

$18,061,

and Notes Payable is debited for

$12,574.

C.

Cash is debited for

$5,487,

Equipment is debited for

$12,574,and

Notes Payable is credited for

$18,061.

D.

Cash is credited for

$5,487,

Equipment is debited for

$18,061,

and Notes Payable is credited for

$12,574.