Income Statement For Year Ended 12/31/2021 income is in Retained Earnings, and that your trial balance is in balance. Also, calculate your EPS on the income statement. DR CR 8 Marlow declared and paid a $.10 dividend. Debit Retained Earnings and credit cash. 101 CASH 104 ACCTS RECEIVABLE 106 SUPPLIES 110 EQUIPMENT 112 ACC. DEPR. EQUIP. 201 ACCTS PAYABLE 301 COMMON STOCK 302 RET. EARNINGS Total Revenue Operating Expenses Depreciation Expense Total Expenses Net Income Before Income Tax Income Tax Expense Net Income 9 Create a balance sheet using the format shown below. Earnings Per Share 401 SERVICE REVENUE 501 OPER. EXPENSES 503 ADVERT. EXPENSE 504 SALARY EXPENSE 509 DEPR. EXPENSE 510 INC. TAX EXPENSE TOTALS In Balance: YES Marlow Corporation Balance Sheet 12/31/21 Sort & Filter 0 0 Cash Accts Receivable Equipment -Accum. Depr. Total Assets Accts Payable Total Liab. Common Stock Retained Earnings Total Stockholders' Equity Total Liab & Stockholders' Equity MULTIPLE CHOICE QUESTIONS--INSERT ANSWER IN THE BOX TO THE LEFT--EITHER UPPER OR LOWER CASE OK cursor in answer blank and use dropdown to select your answers. Choose: Claremont Corporation issued 100,000 shares of $1.00 par common stock at a price of $5.00. How would this transaction affect the net income of Claremont Corporation? A. Increases net income B. Decreases net income C. Increases revenue but not net income D. Has no effect on net income 2 Choose: Carmen Corporation made a net income this year of $80,000. At closing, the net income will be closed to which account? A. Carmen Capital B. Retained Earnings C. Dividends Payable D. Paid in Capital in Excess of Par 3 Choose: At what governmental level is a corporation organized? A. Federal level in Washington D.C. B. State level, such as Washington State C. At the city level, such as Seattle D. At the county level, such as King County Choose: When a stock dividend is declared, which value is used to debit Retained Earnings? A. use the par value B. use the earnings per share C. use the market value of the shares to be distributed D. None of these 5 Choose: Which of the following business entitites must pay income taxes? A. Proprietorship B. partnership C. corporation D. all of these entities pay income taxes 6 Choose: Kandahar Corporation issued $1,000,000 of 4% preferred stock and received $1,200,000 cash. What is the dividend requirement for the dividend on this stock? A. $40,000 B. $48,000 C. $1,000,000 D. $36,000 7 Choose: Which of the following is true of preferred stock? A. Preferred stockholders must receive a dividend B. Preferred stockholders receive a dividend after the common shareholders have received a dividend C. Preferred stockholders get a dividend only if the board of directors declares the dividend D. all of these are true 8 Choose: What is the formula to calculate the Earnings Per Share (EPS) assuming there are no preferred shares outstanding? A. EPS = Revenue/Number of Common Shares B. EPS = Net Income / Number of Common Shares C. EPS = Net Income/ Number of Preferred Shares D. None of these 9 Choose: Morgan Corporation issued 100,000 shares of $1.00 par common stock and 4,000 shares of $100-par 4% preferred stock. The board of directors declared a cash dividend of $24,000. How would the dividend be divided between preferred and common stock? A. $16,000 to preferred and $8,000 to common B. All $24,000 to preferred and none to common C. $16,000 to common and $8,000 to preferred D. All $24,000 to common 10 Choose: Which class of stock usually gets a voting right? A. Common B. Preferred C. Both Common and Preferred D. Neither Common nor Preferred 11 Choose: Treasury Stock can be defined as: A. Special shares of stock owned by executives B. Shares that were issued but thon Latorracuired by thecompany that issued thom Another name for Droforrod Stock None ofthose 11 Choose: Treasury Stock can be defined as: A. Special shares of stock owned by executives B. Shares that were issued but then later re-acquired by the company that issued them C. Another name for Preferred Stock D. None of these 12 Choose: Which type of stock has a fixed dividend? A. Common Stock B. Treasury Stock C. All stocks have a fixed dividend D. Preferred Stock 13 Choose: There are three dividend dates. Which dividend date has no journal entry? A. Record date B. Declaration date C. Payment date D. All dividend dates have journal entries 14) Choose: On which corporation statement would you find Income Tax Expense? A. Balance Sheet B. Retained Earnings Statement C. Income Statement D. Both the Balance Sheet and Retained Earnings Statement 15| Choose: Fun Question: go to Yahoo Finance. Using the ticker symbols given in parentheses, look at the current stock price. Here's your question: Which one of the following stocks is trading at over $350,000 per share? Choose one only. A. Alphabet (GOOG) B. Tesla (TSLA) C. Apple (AAPL) D. Berkshire Hathaway (BRK-A) ASSETS INCREASE: DEBIT DECREASE: CREDIT LIABILITIES INCREASE: CREDIT DECREASE: DEBIT OWNER'S EQUITY INCREASE: CREDIT DECREASE: DEBIT 101 CASH H 201 ACCTS PAYABLE 301 COMMON STOCK TRANSACTIONS--ANALYZE EACH ONE AND INSERT THE ENTRIES IN THE T-ACCOUNTS. A TRIAL BALANCE WILL BE GENERATED AUTOMATICALLY. 1 Marlow Corporation issued 100,000 shares of $1.00 par common stock at par, receiving cash. (See footnote below) 2 The company purchased equipment costing $15,000, paying cash. 302 RET, EARNINGS 104 ACCTS RECEIVABLE 3 Operating Expenses were incurred in the amount of $74,000. A total of $22,000 of the expenses were paid in cash; the rest, $52,000, were on account. OPERATIONS 501 OPER. EXPENSES 401 SERVICE REVENUE 4 The company earned service revenue in the amount of $112,000; a total of $42,000 was receive in cash; the rest, $70,000, was on account. 110 EQUIPMENT 5 Depreciation was recorded on the equipment, $1,500. 509 DEPR. EXPENSE 6 Marlow calculates its income taxes at the rate of 25%. The income taxes are paid in cash. . This would be a good moment to prepare the income statement. 112 ACC. DEPR. EQUIP. 510 INCOME TAX EXPENSE XXX 7 Use the following closing process: Service Revenue XXX Operating Expenses Depreciation Expense Income Tax Expense Retained Earnings XXX XXX XXX Marlow Corporation Income Statement For Year Ended 12/31/2021 Check to make sure your revenues and expenses are at zero, your net , income is in Retained Earnings, and that your trial balance is in balance. Also, calculate your EPS on the income statement. DR CR 8 Marlow declared and paid a $.10 dividend. Debit Retained Earnings and credit cash. 101 CASH 104 ACCTS RECEIVABLE 106 SUPPLIES 110 EQUIPMENT 112 ACC. DEPR. EQUIP. 201 ACCTS PAYABLE 201 COMMON STOCK Total Revenue Operating Expenses Depreciation Expense Total Expenses Net Income Before Income Tax Income Tax Synonce 9 Create a balance sheet using the format shown below. a