On April 28, Joseph Carpenter formed a corporation, Carpenter Printing, to be operated as a printing business.

On April 29, Carpenter Printing issued 2,500 shares of common stock, at $20 per share, to Joseph Carpenter in exchange for cash.

On April 30, Carpenter Printing rented furnished office space, paying the rent in advance for May and June, issuing a check for $10,000.

On May 1, Carpenter Printing issued an additional 3,500 shares of common stock, at $20 per share to Joseph Carpenter in exchange for printing equipment. The Equipment had an estimated residual value of $7,000, and an estimated useful life of 7 years.

On May 2, Carpenter Printing purchased a 12 month umbrella insurance policy, issuing a check for $1,200.

On May 5, Carpenter Printing purchased supplies on account for $15,000.

On May 9, Carpenter Printing printed $18,000 in magazines for the Pierre Company. The magazines were delivered on May 10, along with an invoice for $8,000 due June 10. $6,000 will be invoiced in June and will be due July 10. $4,000 will be invoiced in July and will be due August 10.

On May 20, Cecil Advertising Agency paid Carpenter Printing $16,000 ($9,000 to print advertisements in May and $7,000 to print advertisements in June). On May 30, $9,000 of advertisements were printed and delivered.

On May 31, $1,500 of the supplies purchased on May 5 have not been used.

On May 31, dividends of $1,000 were paid.

Assuming no further transactions, the Depreciation Expense on the Income Statement of Carpenter Printing For the Month Ended May 31 = ?

	a.	1167
	b.	1050
	c.	750
	d.	833

5 points

Question 48

The following text is used in Questions 47-56.

On April 28, Joseph Carpenter formed a corporation, Carpenter Printing, to be operated as a printing business.

On April 29, Carpenter Printing issued 2,500 shares of common stock, at $20 per share, to Joseph Carpenter in exchange for cash.

On April 30, Carpenter Printing rented furnished office space, paying the rent in advance for May and June, and issuing a check for $10,000.

On May 1, Carpenter Printing issued an additional 3,500 shares of common stock, at $20 per share to Joseph Carpenter in exchange for printing equipment. The Equipment had an estimated residual value of $7,000, and an estimated useful life of 7 years.

On May 2, Carpenter Printing purchased a 12 month umbrella insurance policy, issuing a check for $1,200.

On May 5, Carpenter Printing purchased supplies on account for $15,000.

On May 9, Carpenter Printing printed $18,000 in magazines for the Pierre Company. The magazines were delivered on May 10, along with an invoice for $8,000 due June 10. $6,000 will be invoiced in June and will be due July 10. $4,000 will be invoiced in July and will be due August 10.

On May 20, Cecil Advertising Agency paid Carpenter Printing $16,000 ($9,000 to print advertisements in May and $7,000 to print advertisements in June). On May 30, $9,000 of advertisements were printed and delivered.

On May 31, $1,500 of the supplies purchased on May 5 have not been used.

On May 31, dividends of $1,000 were paid.

Assuming no further transactions, the Supplies Expense on the Income Statement of Carpenter Printing For the Month Ended May 31 = ?

	a.	1,350
	b.	15,000
	c.	1,500
	d.	13,500

5 points

Question 49

The following text is used in Questions 47-56.

On April 28, Joseph Carpenter formed a corporation, Carpenter Printing, to be operated as a printing business.

On April 29, Carpenter Printing issued 2,500 shares of common stock, at $20 per share, to Joseph Carpenter in exchange for cash.

On April 30, Carpenter Printing rented furnished office space, paying the rent in advance for May and June, and issuing a check for $10,000.

On May 1, Carpenter Printing issued an additional 3,500 shares of common stock, at $20 per share to Joseph Carpenter in exchange for printing equipment. The Equipment had an estimated residual value of $7,000, and an estimated useful life of 7 years.

On May 2, Carpenter Printing purchased a 12 month umbrella insurance policy, issuing a check for $1,200.

On May 5, Carpenter Printing purchased supplies on account for $15,000.

On May 9, Carpenter Printing printed $18,000 in magazines for the Pierre Company. The magazines were delivered on May 10, along with an invoice for $8,000 due June 10. $6,000 will be invoiced in June and will be due July 10. $4,000 will be invoiced in July and will be due August 10.

On May 20, Cecil Advertising Agency paid Carpenter Printing $16,000 ($9,000 to print advertisements in May and $7,000 to print advertisements in June). On May 30, $9,000 of advertisements were printed and delivered.

On May 31, $1,500 of the supplies purchased on May 5 have not been used.

On May 31, dividends of $1,000 were paid.

Assuming no further transactions, the Total Expenses on the Income Statement of Carpenter Printing For the Month Ended May 31 = ?

	a.	7,350
	b.	7,650
	c.	19,650
	d.	19,350

10 points

Question 50

The following text is used in Questions 47-56.

On April 28, Joseph Carpenter formed a corporation, Carpenter Printing, to be operated as a printing business.

On April 29, Carpenter Printing issued 2,500 shares of common stock, at $20 per share, to Joseph Carpenter in exchange for cash.

On April 30, Carpenter Printing rented furnished office space, paying the rent in advance for May and June, and issuing a check for $10,000.

On May 1, Carpenter Printing issued an additional 3,500 shares of common stock, at $20 per share to Joseph Carpenter in exchange for printing equipment. The Equipment had an estimated residual value of $7,000, and an estimated useful life of 7 years.

On May 2, Carpenter Printing purchased a 12 month umbrella insurance policy, issuing a check for $1,200.

On May 5, Carpenter Printing purchased supplies on account for $15,000.

On May 9, Carpenter Printing printed $18,000 in magazines for the Pierre Company. The magazines were delivered on May 10, along with an invoice for $8,000 due June 10. $6,000 will be invoiced in June and will be due July 10. $4,000 will be invoiced in July and will be due August 10.

On May 20, Cecil Advertising Agency paid Carpenter Printing $16,000 ($9,000 to print advertisements in May and $7,000 to print advertisements in June). On May 30, $9,000 of advertisements were printed and delivered.

On May 31, $1,500 of the supplies purchased on May 5 have not been used.

On May 31, dividends of $1,000 were paid.

Assuming no further transactions, the Total Revenue on the Income Statement of Carpenter Printing For the Month Ended May 31 = ?

	a.	18,000
	b.	27,000
	c.	34,000
	d.	17,000

10 points

Question 51

The following text is used in Questions 47-56.

On April 28, Joseph Carpenter formed a corporation, Carpenter Printing, to be operated as a printing business.

On April 29, Carpenter Printing issued 2,500 shares of common stock, at $20 per share, to Joseph Carpenter in exchange for cash.

On April 30, Carpenter Printing rented furnished office space, paying the rent in advance for May and June, and issuing a check for $10,000.

On May 1, Carpenter Printing issued an additional 3,500 shares of common stock, at $20 per share to Joseph Carpenter in exchange for printing equipment. The Equipment had an estimated residual value of $7,000, and an estimated useful life of 7 years.

On May 2, Carpenter Printing purchased a 12 month umbrella insurance policy, issuing a check for $1,200.

On May 5, Carpenter Printing purchased supplies on account for $15,000.

On May 9, Carpenter Printing printed $18,000 in magazines for the Pierre Company. The magazines were delivered on May 10, along with an invoice for $8,000 due June 10. $6,000 will be invoiced in June and will be due July 10. $4,000 will be invoiced in July and will be due August 10.

On May 20, Cecil Advertising Agency paid Carpenter Printing $16,000 ($9,000 to print advertisements in May and $7,000 to print advertisements in June). On May 30, $9,000 of advertisements were printed and delivered.

On May 31, $1,500 of the supplies purchased on May 5 have not been used.

On May 31, dividends of $1,000 were paid.

Assuming no further transactions, the Net Income on the Income Statement of Carpenter Printing For the Month Ended May 31 = ?

	a.	14,350
	b.	7,650
	c.	10,350
	d.	9,650

5 points (Extra Credit)

Question 52

The following text is used in Questions 47-56.

On April 28, Joseph Carpenter formed a corporation, Carpenter Printing, to be operated as a printing business.

On April 29, Carpenter Printing issued 2,500 shares of common stock, at $20 per share, to Joseph Carpenter in exchange for cash.

On April 30, Carpenter Printing rented furnished office space, paying the rent in advance for May and June, and issuing a check for $10,000.

On May 1, Carpenter Printing issued an additional 3,500 shares of common stock, at $20 per share to Joseph Carpenter in exchange for printing equipment. The Equipment had an estimated residual value of $7,000, and an estimated useful life of 7 years.

On May 2, Carpenter Printing purchased a 12 month umbrella insurance policy, issuing a check for $1,200.

On May 5, Carpenter Printing purchased supplies on account for $15,000.

On May 9, Carpenter Printing printed $18,000 in magazines for the Pierre Company. The magazines were delivered on May 10, along with an invoice for $8,000 due June 10. $6,000 will be invoiced in June and will be due July 10. $4,000 will be invoiced in July and will be due August 10.

On May 20, Cecil Advertising Agency paid Carpenter Printing $16,000 ($9,000 to print advertisements in May and $7,000 to print advertisements in June). On May 30, $9,000 of advertisements were printed and delivered.

On May 31, $1,500 of the supplies purchased on May 5 have not been used.

On May 31, dividends of $1,000 were paid.

Assuming no further transactions, the Total Assets on the Balance Sheet of Carpenter Printing As of May 31 = ?

	a.	149,400
	b.	153,750
	c.	154,500
	d.	148,650

10 points

Question 53

The following text is used in Questions 47-56.

On April 28, Joseph Carpenter formed a corporation, Carpenter Printing, to be operated as a printing business.

On April 29, Carpenter Printing issued 2,500 shares of common stock, at $20 per share, to Joseph Carpenter in exchange for cash.

On April 30, Carpenter Printing rented furnished office space, paying the rent in advance for May and June, and issuing a check for $10,000.

On May 1, Carpenter Printing issued an additional 3,500 shares of common stock, at $20 per share to Joseph Carpenter in exchange for printing equipment. The Equipment had an estimated residual value of $7,000, and an estimated useful life of 7 years.

On May 2, Carpenter Printing purchased a 12 month umbrella insurance policy, issuing a check for $1,200.

On May 5, Carpenter Printing purchased supplies on account for $15,000.

On May 9, Carpenter Printing printed $18,000 in magazines for the Pierre Company. The magazines were delivered on May 10, along with an invoice for $8,000 due June 10. $6,000 will be invoiced in June and will be due July 10. $4,000 will be invoiced in July and will be due August 10.

On May 20, Cecil Advertising Agency paid Carpenter Printing $16,000 ($9,000 to print advertisements in May and $7,000 to print advertisements in June). On May 30, $9,000 of advertisements were printed and delivered.

On May 31, $1,500 of the supplies purchased on May 5 have not been used.

On May 31, dividends of $1,000 were paid.

Assuming no further transactions, the Total Liabilities on the Balance Sheet of Carpenter Printing As of May 31 = ?

	a.	15,000
	b.	24,000
	c.	22,000
	d.	31,000

5 points

Question 54

The following text is used in Questions 47-56.

On April 28, Joseph Carpenter formed a corporation, Carpenter Printing, to be operated as a printing business.

On April 29, Carpenter Printing issued 2,500 shares of common stock, at $20 per share, to Joseph Carpenter in exchange for cash.

On April 30, Carpenter Printing rented furnished office space, paying the rent in advance for May and June, and issuing a check for $10,000.

On May 1, Carpenter Printing issued an additional 3,500 shares of common stock, at $20 per share to Joseph Carpenter in exchange for printing equipment. The Equipment had an estimated residual value of $7,000, and an estimated useful life of 7 years.

On May 2, Carpenter Printing purchased a 12 month umbrella insurance policy, issuing a check for $1,200.

On May 5, Carpenter Printing purchased supplies on account for $15,000.

On May 9, Carpenter Printing printed $18,000 in magazines for the Pierre Company. The magazines were delivered on May 10, along with an invoice for $8,000 due June 10. $6,000 will be invoiced in June and will be due July 10. $4,000 will be invoiced in July and will be due August 10.

On May 20, Cecil Advertising Agency paid Carpenter Printing $16,000 ($9,000 to print advertisements in May and $7,000 to print advertisements in June). On May 30, $9,000 of advertisements were printed and delivered.

On May 31, $1,500 of the supplies purchased on May 5 have not been used.

On May 31, dividends of $1,000 were paid.

Assuming no further transactions, the Total Stockholders Equity on the Balance Sheet of Carpenter Printing As of May 31 = ?

	a.	122,750
	b.	126,650
	c.	130,500
	d.	134,400

5 points (Extra Credit)

Question 55

The following text is used in Questions 47-56.

On April 28, Joseph Carpenter formed a corporation, Carpenter Printing, to be operated as a printing business.

On April 29, Carpenter Printing issued 2,500 shares of common stock, at $20 per share, to Joseph Carpenter in exchange for cash.

On April 30, Carpenter Printing rented furnished office space, paying the rent in advance for May and June, and issuing a check for $10,000.

On May 1, Carpenter Printing issued an additional 3,500 shares of common stock, at $20 per share to Joseph Carpenter in exchange for printing equipment. The Equipment had an estimated residual value of $7,000, and an estimated useful life of 7 years.

On May 2, Carpenter Printing purchased a 12 month umbrella insurance policy, issuing a check for $1,200.

On May 5, Carpenter Printing purchased supplies on account for $15,000.

On May 9, Carpenter Printing printed $18,000 in magazines for the Pierre Company. The magazines were delivered on May 10, along with an invoice for $8,000 due June 10. $6,000 will be invoiced in June and will be due July 10. $4,000 will be invoiced in July and will be due August 10.

On May 20, Cecil Advertising Agency paid Carpenter Printing $16,000 ($9,000 to print advertisements in May and $7,000 to print advertisements in June). On May 30, $9,000 of advertisements were printed and delivered.

On May 31, $1,500 of the supplies purchased on May 5 have not been used.

On May 31, dividends of $1,000 were paid.

Assuming no further transactions, the Increase (Decrease) in Retained Earnings on the Retained Earnings Statement of Carpenter Printing For the Month Ended May 31 = ?

	a.	14,350
	b.	6,650
	c.	8,650
	d.	9,350

5 points (Extra Credit)

Question 56

The following text is used in Questions 47-56.

On April 28, Joseph Carpenter formed a corporation, Carpenter Printing, to be operated as a printing business.

On April 29, Carpenter Printing issued 2,500 shares of common stock, at $20 per share, to Joseph Carpenter in exchange for cash.

On April 30, Carpenter Printing rented furnished office space, paying the rent in advance for May and June, and issuing a check for $10,000.

On May 1, Carpenter Printing issued an additional 3,500 shares of common stock, at $20 per share to Joseph Carpenter in exchange for printing equipment. The Equipment had an estimated residual value of $7,000, and an estimated useful life of 7 years.

On May 2, Carpenter Printing purchased a 12 month umbrella insurance policy, issuing a check for $1,200.

On May 5, Carpenter Printing purchased supplies on account for $15,000.

On May 9, Carpenter Printing printed $18,000 in magazines for the Pierre Company. The magazines were delivered on May 10, along with an invoice for $8,000 due June 10. $6,000 will be invoiced in June and will be due July 10. $4,000 will be invoiced in July and will be due August 10.

On May 20, Cecil Advertising Agency paid Carpenter Printing $16,000 ($9,000 to print advertisements in May and $7,000 to print advertisements in June). On May 30, $9,000 of advertisements were printed and delivered.

On May 31, $1,500 of the supplies purchased on May 5 have not been used.

On May 31, dividends of $1,000 were paid.

Assuming no further transactions, the Total Debits on the Adjusted Trial Balance of Carpenter Printing at the close of business on May 31 = ?

	a.	162,850
	b.	209,550
	c.	169,750
	d.	208,050