Net income appears on the 30 Income Statement and Balance Sheet. Statement of Retained Earnings and Balance Sheet Income Staoment and Statement of Retained Earnings. Balance Sheet and Statement of Cash Flows. 36 Question 2 (1.5 points) Use the following data for this question. Total Assets on Dec 31, 2007 $500,000 Total Liabilities on Dec 31, 2007 $300,000 Total Stockholders' Equity on Dec 31, 2007- $200,000 Total Revenues for year ending Dec 31. 2007-$400,000 Total Expenses for year ending Dec 31, 2007- $350,000 Dividends for year ending Dec 31, 2007- $20.000 What is the Net Income for 20072 8 39 1 42 44 45 $150,000. $100,000. $ 50,000. s 30,000. 47 48 50 Question 33 (1.5 points 29 30 Enochs Sporting Goods made cash sales of merchandise with a retail price of $3,000 on a Saturday and collected a 5% sales tax. The journal entry to record the sales and collection of the sales tax is 132 33 debit Sales Revenue $3,000; debit Sales Tax Payable $150: credit Cash $3,150 debit Sales Revenue $3,150; credit Cash $3.000: credit Sales Tax Payable $150. debit Cash $3,150; credit Sales Revenue $3,000; credit Sales Tax Payable $150. debit Cash $3,000; debit Sales Tax Payable $150; credit Sales Revenue $3,150 4 35 36 7 3839 Question 34 (1.5 points) 0 41 42 If a bond is sold at a discount, the carrying (book) value of a bond is the face value of the bond minus the discount. 43 4445 the face value of the bond plus the discount. 46 47 48 Question 35 (1.5 points) A $1,000 bond quoted at 98.75 is selling for 49 50 $907.75. $908.50 $975.00. 25 2627 In early January 2008, Abbott Manufacturing purchased a $42.000 machine. Abbott plans on using the machine for four years. Expected salvage value is $6,000. Assuming the straight line method, the book value of the asset after recording depreciation for the third year of use is 28 29 30 $14,000. 15,000 $17,000. $18,500 31 32 33 34 35 36 Question 31 (1.5 points) 37 38 39 The Return on Assets Ratio shows the company's ability to use its assets in profitable ways. the ability to pay all liabilities with all assets. the dollars of net sales generated with each dollar of total assets. the ability to borrow cash to finance the purchase of assets. 40 41 42 43 44 45 Question 32 (1.5 points) 46 47 48 On January 1, chastain Corporation sold $1,000,000, 10 year, 8% bonds at face value. The journal entry to record this transaction is 49 50 debit Cash $1,000,000; credit Bonds Payable $1,000,000 debit Cash $1,000,000; credit Interest Expense $1,000,000 debit Bonds Payable $1.000,000; credit Cash $1,000.000