Assume the November transactions for Camindo Co. are as follows:

Received cash of $60,000 from investors in exchange for capital stock.

Provided services of $16,300 on account.

Purchased supplies on account $750.

Received cash of $11,800 from clients for services previously billed.

Received $6,250 for services provided from clients who paid cash.

Paid $600 on account for supplies that had been purchased.

Paid $3,380 for a one-year insurance policy.

Paid the following expenses: wages, $7,800; utilities, $1,000; rent, $3,750.

Paid dividends of $2,300 to stockholders.

Record the transactions, using the integrated financial statement framework that follows:

Assets =					Liabilities + Stockholders' Equity
	Cash	Accounts Receivable	Supplies	Prepaid Insurance	Accounts Payable	Capital Stock	Retained Earnings
a.	$					$
b.		$					$
c.			$		$
d.	$	$
e.	$						$
f.	$				$
g.	$			$
h.	$						$
i.	$						$
Bal	$	$	$	$	$	$	$

Calculate the November 30 cash balance and the amount of net income for November for Hoover Co.

Ending cash balance

$

Net income

$

Prepare a multiple-step income statement for Surry Co. from the following data for the year ended December 31, 2016.

Sales	$915,000
cost of merchandise sold	$670,000
administrative expenses	$30,000
interest expense	$12,000
rent revenue	$19,000
sales returns and allowances	$55,000
selling expenses	$120,000

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Multiple-step income statement

Surry Co.
Income Statement
For the Year Ended December 31, 2016
Revenue from sales:
Administrative expenses Cost of merchandise sold Gross profit Income from operations Sales Selling expenses Correct 5		$ Correct 6
Gross profit Income from operations Interest expense Less: Sales returns and allowances Rent revenue Selling expenses Correct 7		Correct 8
Net sales				$ Correct 10
Administrative expenses Cost of merchandise sold Income from operations Interest expense Less: Sales returns and allowances Rent revenue Correct 11				Correct 12
Administrative expenses Gross profit Income from operations Rent revenue Sales Selling expenses Correct 13				$ Correct 14
Operating expenses:
Cost of merchandise sold Gross profit Less: Sales returns and allowances Rent revenue Sales Selling expenses Correct 16		$ Correct 17
Administrative expenses Cost of merchandise sold Gross profit Income from operations Rent revenue Sales Correct 18		Correct 19
Total operating expenses				Correct 21
Administrative expenses Cost of merchandise sold Gross profit Income from operations Interest expense Rent revenue Correct 22				$ Correct 23
Other income:
Administrative expenses Cost of merchandise sold Gross profit Rent revenue Sales Selling expenses Correct 25		$ Correct 26
Other expense:
Administrative expenses Interest expense Less: Sales returns and allowances Rent revenue Sales Selling expenses Correct 28		Correct 29		Correct 30
Net income				$

Given the following list of accounts, calculate Total Assets:

Accounts Receivable

$ 10,000

Capital Stock

20,000

Cash

25,300

Equipment

16,800

Fees Earned

44,400

Miscellaneous Expense

17,800

Rent Expense

3,250

Retained Earnings

7,850

Salaries Expense

15,400

Wages Expense

15,000

a. $54,600

b. $40,050

c. $52,100

d. $55,300

Use the following information to determine Total Stockholders' Equity:

Total Assets	$ 45,000
Total Liabilities	18,000
Total Stockholders' Equity	x
Total Retained Earnings	5,000

a. $27,000

b. $58,000

c. $40,000

d. $32,000

summary of the cash receipts and cash payments for a specific period of time is a(n):

a. income statement.

b. balance sheet.

c. statement of cash flows.

d. retained earnings statement.

During 2015, Trinder Corporation had an increase in total assets of $80,000 and an increase in total liabilities of $60,000. Assuming that capital stock increased by $8,000 and no dividends were paid, calculate Trinder's net income or net loss for 2015.

a. Net income of $72,000

b. Net income of $12,000

c. Net loss of $20,000

d. Net income of $28,000

Which of the following is true about the cost principle?

a. It reports the revenues earned by a company for a period with the expenses incurred in generating the revenues.

b. It assumes that a company will continue in business indefinitely.

c. It initially records assets in the accounting records at their purchase price.

d. It limits the economic data recorded in an accounting system to data related to the activities of that company.

The payment of $20,000 for expenses was incorrectly recorded by Elite Co. as an increase in cash of $20,000 and a decrease in retained earnings of $20,000. What is the effect of this error on the accounting equation?

a. Total assets will exceed total liabilities and stockholders' equity by $40,000.

{C}

b. Total assets will exceed total liabilities and stockholders' equity by $20,000.

c. The error will not affect the accounting equation.

d. Total assets will be less than total liabilities and stockholders' equity by $40,000.