Mart Maple 1 Which of the follow Coro Partnership Proprietorships dovestor 2 Which of the following is not an advantage of the corporate form of busine Organization? No personal liability Easy to transfer ownership Favorable a treatment Easy to raise funds 3 4 When expenses exceed revenues, which of the following is true? a net loss results ba net income results cassets equal liabilities dassets are increased The relationship between current assets and current liabilities is important in evaluating a company's a profitability b. liquidity c market value d. solvency 5. The usual sequence of steps in the recording process is to a. analyze each transaction, enter the transaction in the journal, and transfer the information to the ledger accounts. b. analyze each transaction, enter the transaction in the ledger, and transfer the information to the journal. c. analyze each transaction, enter the transaction in the book of accounts, and transfer the information to the journal. d. analyze each transaction, enter the transaction in the book of original entry, and transfer the information to the journal. 6. In which of the following sequences are the financial statements usually prepared? a Balance sheet, retained earnings statement, statement of cash flows, and income statement b. Balance sheet, statement of cash flows, income statement and retained earnings statement c. Income statement, retained earnings statement, balance sheet, and statement of cash flows d. Income statement, balance sheet, retained earnings statement, and statement of cash flows 3 7 Dividends appear on the retained earnings statement only the income statement only d the balance sheet only both the retained earning statement and the balance sheet 8. Ir total liabilities decreased by S50,000 and stockholders' equity increased by $10,000 during a period of time, then total assets must change by what amount and direction during that same period $40.000 decrease b. $40,000 increase C S50.000 increase d. $60,000 increase At January 1, 2018 Lowery Company had retained earnings of $2,384,000. During 2018 they issued stock for 598,000, and paid dividends of $34,000. Net income for 2018 was a. $2.752,000 b. S2,016,000 c$2,114,000 d. $2,654,000. 8462,000. The retained earnings balance at December 31, 2018 was . c. Adjusting entries are made to ensure that: in b. revenues are recorded in the period in which the performance obligation is satisfied balance sheet and income statement accounts haver correct balances at the end of an accounting period d. All of these answer choices are correct. Which of the following account is NOT a temporary account? Dividend b. Fees Eamed c. Rent Expense d. Unearned Revenue a. Javier's Tune-Up Sho follows the revenue recognition principle. Javier services a car on August 31 and the customer picks up the vehicle that evening. The customer promises to come by on September 1 and make payment. The customer actually mails payment to Javier on September 5. Javier receives the check in the mail on September 6. When should Javier show that the revenue was earned? a. August 31 b. September 1 c. September 5 d. September 6 8 Dividends appear on the retained earning statement only b. the income statement only both the retained earnings statement and the balance sheet d. the balance sheet only ir total liabilities decreased by 550,000 and stockholders' equity increased by $10,000 during a period of time, then totalt must change by what amount and direction during that same period? $40.000 decrease b. 540.000 increase $50,000 increase d $60,000 increase At January 1, 2018. Lowery Company had retained camines of 52,384,000. During 2018 they issued stock for $98,000, and paid dividends of $34.000. Net income for 2018 was 5402,000. The retained earnings balance at December 31, 2018 was $2,752,000 b. 52,016,000. c. $2,1 14,000 d $2,654,000 10. Adjusting entries are made to ensure that a expense are recognized in the period in which they are incurred. b. revenues are recorded in the period in which the performance obligation is satisfied. c. balance sheet and income statement accounts have correct balances at the end of an accounting period. d. All of these answer choices are correct Which of the following account is NOT a temporary account? a Dividend b. Fees Earned c. Rent Expense d. Unearned Revenue 11 12. Javier's Tune-Up Shop follows the revenue recognition principle. Javier services a car on August 31 and the customer picks up the vehicle that evening. The customer promises to come by on September 1 and make payment. The customer actually mails payment to Javier on September 5. Javier receives the check in the mail on September 6. When should Javier show that the revenue was earned? a. August 31 b. September c. September 5 d. September 6 Part III. Problems (5 plats ia total) eshow your partial L. Analyze the following is very eneral journal form. You may mit the 1. Issued stock to investors for $30,000 2. Purchased supplies on credit for 5700 3. Billed customers $1.000 for services provided cash was not received. 4. Paid for supplies purchased in transaction2 5. Paid utility bill for $100 7 6. Received $500 cash in advance from a customer 7. Paid $3,000 cash to buy equipment. 8. Hires an administrative assistant at an annual salary of $36,000. Will start to work next month II. Prepare adjusting entries for the following transactions. Omit explanations. 9. Services were performed but not yet billed to the clients totaled $700. 10. Office supplies had a $750 debit balance prior to adjustment. By year end, only $250 supplies were on hand