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hey all I need help with these questions. thank you! 1) Company A received cash and issued stock to a new stockholder. In recording this
hey all I need help with these questions. thank you!
1) Company A received cash and issued stock to a new stockholder. In recording this transaction: A) Common Stock would be debited. B) Cash would be debited. C) Retained Earnings would be credited. D) Cash would be credited. 2) The accounting assumption that states that the business, rather than its owners, is the reporting unit is the A) historical cost assumption. B) entity assumption. C) going concern assumption. D) stable-monetary-unit assumption. 3) Under accrual-basis accounting, if a company fails to record a sale on account: A) revenue will be understated. B) assets will be understated. C) net income will still be correct. D) A and B. 4) Kolander Company has the following accounts and balances at the end of the year: Long-Term Notes Payable Accounts Receivable Accounts Payable Building Cash and Cash Equivalents Common Stock Interest Payable Land Short-term Notes Receivable Income Taxes Payable Equipment Supplies $60,000 $30,000 $39,000 $57,000 $84,000 $123,000 $1500 $43,000 $7000 $13,000 $64,500 $5000 What is the amount of Retained Earnings at the end of the year? A) $177,000 B) $167,500 C) $113,500 D) $54,000 5) Which of the following entities pays federal income taxes? A) limited liability partnership C) corporation B) limited liability company D) general partnershipStep by Step Solution
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