Hi everyone

here test andI'm interest in earning bonus points, please (1) rework the test (is attached); and (2) the attached answer sheets, place your answers on the answer sheets

ACCT 5100 - Test 1 ANSWERS SHEET Name (print) __________________________________ Part 1. Transaction Analysis: HP Company provides consulting services and sells building merchandise. In the space provided determine the immediate and the ultimate economic impact of each of the listed transaction on company's financial statements. \"Ultimate impact\" means the impact after preparing financial statements. Use actual numbers in each box affected. Example: +10000 or 0 or -10000. Business Transactions 1. Provided $10,000 services, collected $2,000 and the rest was on account. 2. Paid $2500 to bank on a loan of which $500 was for interest and rest for principal 3. Recorded $2,000 depreciation on equipment. 4. Borrowed $10,000 from bank by signing a 6%, 5-year note. Income Statement Revenue Expense Net Income Balance Sheet Asset Liability Statement of Cash Flows Op Act Inv. Act Fin Act SE Part 2. Multiple Choice Questions 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Part 3. Problems P1. P2. P3. P4. P5. P6. P7. P8. P9. P10. P11. P12. P13. P14. P15. Part 4. Journal Entries Provide journal entry for recording each of the following transactions in the space provided in front of each transaction. If you wish, you may abbreviate some of the accounts e.g., A/R, A/P, N/P Transaction 1. Provided $10,000 services, collected $2,000 and the rest was on account. 2. Paid $2500 to bank on a loan of which $500 was for interest and rest for principal 3. Recorded $2,000 depreciation on equipment. 4. Borrowed $10,000 from bank by signing a 6%, 5-year note. 5. Recorded $800 used up supplies. Accounts General Journal Debit Credit ACCT 5100 - Test 1-Bonus Assignment Part 2. Multiple Choice Questions: Select the best answer for each question 1. The common characteristic possessed by all assets is A) Long life. B) Great monetary value C) Tangible nature. D) Future economic benefit. 2. The liability created by a business when it purchases inventory on credit from suppliers is termed a(n) A) Account payable. B) Account receivable. C) Revenue. D) Expense. 3. Net income results when A) Assets are greater than Liabilities. B) Revenues are equal to Expenses. C) Revenues are greater than Expenses. D) Revenues are less than Expenses. 4. The balance sheet A) summarizes the changes in retained earnings for a specific period of time. B) reports the changes in assets, liabilities, and stockholders' equity over a period of time. C) reports the assets, liabilities, and stockholders' equity at a specific date. D) presents the revenues and expenses for a specific period of time. 5. The retained earnings statement A) summarizes the changes in retained earnings for a specific period of time. B) reports the changes in assets, liabilities, and stockholders' equity over a period of time. C) reports the assets, liabilities, and stockholders' equity at a specific date. D) presents the revenues and expenses for a specific period of time. 6. Which financial statement would best indicate whether the company relies on debt or stockholders' equity to finance its assets? A) Statement of cash flows B) Retained earnings statement C) Income statement D) Balance sheet 7. The primary purpose of the statement of cash flows is to report A) a company's investing transactions. B) a company's financing transactions. C) information about cash receipts and cash payments of a company. D) the net increase or decrease in cash. 8. The best definition of assets is the A) cash owned by the company. B) collections of resources belonging to the company and the claims on these resources. C) owners' investment in the business. D) resources belonging to a company that have future benefit to the company. 9. Why should the income statement be prepared first? A) Net income from the income statement flows into the retained earnings statement. The ending retained earnings balance then flows into the balance sheet. B) The statement of cash flows should be prepared first because it determines the sources of cash. That information is then used in preparing the income statement. C) The income statement does not have to be prepared first. Financial statements can be prepared in any order. D) None of these answer choices are correct. 10. Which of the following is not an advantage of the corporate form of business organization? A) No personal liability B) Easy to transfer ownership C) Favorable tax treatment D) Easy to raise funds 11. Jack and Jill form a partnership. Jack runs the business in New York, while Jill vacations in Hawaii. During the time Jill is away from the business, Jack increases the debts of the business by $20,000. Which of the following statements is true regarding this debt? A) Only Jack is personally liable for the debt, since he has been the managing partner during that time. B) Both Jack and Jill are personally liable for the business debt. C) Only Jill is personally liable for the debt of the business, since Jack has been working and she has not. D) Neither Jack nor Jill is personally liable for the business debt, since the partnership is a separate legal entity. 12. Which of the following is not a liability? A) Unearned Service Revenue B) Accounts Payable C) Accounts Receivable D) Interest Payable 13. In a study session, a classmate makes this statement \"Dividends are listed as expenses on the income statement.\" What is your best response to this statement? A) I've been struggling with that concept and I feel that dividends should be shown on the balance sheet as assets. B) You are right. Revenues and expenses are shown on the income statement. Dividends are a cost of generating revenues and that makes them an expense. Why else would a corporation pay dividends? C) Dividends represent a portion of corporate profits that are paid to the shareholders. They belong on the retained earnings statement. D) Dividends are deducted from retained earnings on the balance sheet. 14. Which of the following correctly identifies normal balances of accounts? A) Assets Liabilities Owners Equity Revenues Expenses Debit Credit Credit Debit Credit B) Assets Liabilities Owners Equity Revenues Expenses Debit Credit Credit Credit Credit C) Assets Liabilities Owners Equity Revenues Expenses Credit Debit Debit Credit Debit D) Assets Liabilities Owners Equity Revenues Expenses Debit Credit Credit Credit Debit 15. Accrued expenses are A) Paid and recorded in an asset account before they are used or consumed. B) Paid and recorded in an asset account after they are used or consumed. C) Incurred but not yet paid or recorded. D) Incurred and already paid or recorded. Part 3. Problems: Data for the next 9 questions: You are provide with the following information for Trent Company, effective as of its Dec. 31, 2015, year-end. Service revenue Buildings Long-term debt Equipment Cost of goods sold Land Accumulated Depreciation-Building Retained earnings, as of Jan. 1st (beginning) Accounts payable Long-term Investment Merchandise inventory Common stock 1. 2. 3. 4. 5. 6. 7. 8. 9. $14,400 9,405 5,250 4,500 3,750 2,400 2,194 2,081 1,926 1,800 1,450 1,350 Accounts receivable Accumulated Depreciation-Equip Cash Salaries and wages expense Dividends paid during the year Salaries and wages payable Interest expense Depreciation expense Selling expenses Income taxes payable Income tax expense Prepaid rent Compute total expenses for the year. Compute total profit (net income) for the year. Compute the balance of Retained Earnings account as of December 31st (ending)? Compute the amount of the accounts shown to be classified as current assets on December 31st: Compute the amount of the accounts shown to be classified as Property, Plant, & Equipment on December 31st. Compute total assets as of December 31st. Compute the amount to be classified as current liabilities on December 31st. Compute total liabilities as of December 31st. Compute the total amount of Stockholders' Equity as of Dec. 31st? $1,214 1,170 1,155 1,050 712 650 600 502 465 400 398 20 Data for the next 3 questions: Chen Corporation had the following cash flows during 2015. Cash balance as of Jan. 1, 2015 was $15,000. Paid to purchase building Additional cash put in the business by the owners/shareholders Collections from customers Paid for wages Paid dividends to Chen Corporation's shareholders Collection of interest on bank account Interest paid to bank because loan Paid for insurance Sold some of the existing equipment at cost $144,000 120,000 72,000 28,800 14,400 4,800 3,600 2,400 2,400 10. Compute net cash flows from operating activities 11. Compute net cash flows from investing activities 12. Compute net cash flows from financing activities 13. Marvin Services Corporation had the following accounts and balances: Accounts payable Accounts receivable Buildings Cash $24,000 ? 50,000 9,000 Equipment Land Unearned service revenue Total stockholders' equity $30,000 21,000 6,000 100,000 What is the balance of the Accounts Receivable? 14. At the beginning of the year, Gant Company had total assets of $700,000 and total liabilities of $300,000. If total assets decreased $60,000 and stockholders' equity increased $150,000 during the year, what is the amount of total liabilities at the end of the year? 15. Henson Company began the year with retained earnings of $400,000. During the year, the company recorded revenues of $550,000, paid dividends of $50,000. Retained earnings at the end of the year was $435,000. What was total expenses for the year