1. If total assets equal $270,000 and total liabilities equal $202,500, what is total owners' equity?
2. What are the three primary financial statements?
3. On June 18, Baltic Arena paid $6,600 to Marvin Maintenance, Inc. for cleaning the arena following a monster truck show. Prepare the journal entry.
4. Which financial statement is primarily concerned with reporting the financial position of a business at a particular time?
5. Name 3 external users of financial information. Name 2 internal users of financial information.
6. Suppose a number of your friends have organized a company to develop and sell a new software product. They have asked you to loan them $8,000 to help get the company started, and they have promised to repay your $8,000 plus 10% interest in one year. What is the return on your investment (ROI)?
7. Paddle, Inc. purchased equipment for $14,760 on February 1, 2018. The equipment has a useful life of 3 years. What is the journal entry to record depreciation expense in June 2018?
8. If sales are $270,000, expenses are $220,000 and dividends are $30,000, Income Summary?