d. will never show a debit balance at this stage in the accounting cycle 6.An aging of a company's accounts receivable indicates that $8,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,100 credit balance, the adjustment to record bad debts for the period will require a a. debit to Bad Debts Expense for $8,000. b. debit to Allowance for Doubtful Accounts for $6,900. c. debit to Bad Debts Expense for $6,900 d. credit to Allowance for Doubtful Accounts for $8,000. 7.On January 1, 2012, two individuals invested $200,000 each to form Reiner Corporation. Reiner had total revenues of $20,000 during 2012 and $50,000 during 2013. Total expenses for the same periods were $12,000 and $36,000 respectively. Cash dividends paid out to stockholders totaled $6,000 in 2012 and $10,000 in 2013. What was Reiner's total stockholders' equity at the end of 2012 and 2013? A) $402,000 and $406,000 respectively. B) $8,000 and $14,000 respectively. C) $8,000 and $22,000 respectively. D) $402,000 and $404,000 respectively. 8.The Sigma Corporation had 2016 revenues of $200,000, expenses of $140,000, and an income tax rate of 30 percent. Net income after taxes would be A) $60,000. B) $18,000. C) $42,000. D) $48,000. 9 Abrahams Corporation reported the following amounts at the end of the first year of operations, December 31, 2013: contributed capital $50,000; sales revenue $200,000; total assets $150,000: $10,000 dividends; and total liabilities $80,000. Retained earnings and total expenses would be A) retained eamings $20,000 and expenses $170,000 B) retained earnings $30,000 and expenses $160,000. C) retained eamings $70,000 and expenses $120,000. D) retained earnings $80,000 and expenses $110,000 10.The financial statement that reports the financial position of a business is the A) income statement B) balance sheet C) statement of cash flows. D) footnotes to the financial statements. 11.If Andrew Yang Corporation recently purchased goods from you on account, which of Andrew Yang's financial statements would you look at to determine whether Andrew Yang will be able to pay for the goods when payment is due in 30 days? A) Income Statement B) Balance Sheet C) Statement of Retained Earnings. D) Statement of Cash Flows. 12 Michaelsom Company owes you $800 on account due within 15 days. Which of the following amounts on its balance sheet would help you to determine the likelihood that you will be paid in full and on time? A) Cash and accounts receivable. B) Cash and property and equipment C) Cash and inventory. D) Contributed capital and retained earnings
