Please note that the third and fourth pages are together.

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-|- (55 p.) 1. The accounting equation can be expressed as ...- a. Assets + Liabilities - Shareholders' Equity b. Assets - Liabilities - Shareholders' Equity C. Shareholders' Equity - Assets = Liabilities d. Assets = Liabilities - Shareholders' Equity 2. Another name for the balance sheet is the ... a statement to financial position. b. statement of operations. c. statement of cash ows. d. statement of retained earnings. 3.Which account types normally have a credit balance? a. Revenues b. Expenses c. Liabilities d. Both a and 4. r@ktas company paid $ 7,000 cash to the supplier. As a result of this transaction, a assets would increase by $ 7,000 b. revenue would increase by 7,000 c. expense would increase by 7,000 d. liabilities would decrease by $ 7,000 5. Which of the following financial statement elements is found on balance sheet? a Sales revenue b. Rent expense C. Retained earnings d.Foreign exchange loss 6. Assume that r@ktas Inc., sold inventory on account for $ 2,000. How would this transaction affect r@ktas' accounting equation? a. Increase both assets and liabilities by $ 2,000. b. Increase both assets and shareholders' equity by $ 2,000. C. Increase both liabilities and shareholders' equity by S 2,000 d. Increase shareholders' equity $ 72,000. 7. Which of the following accounts is an liability? a. Bank deposit b. Prepaid insurance expense c Account payabled. Short term investment 8. Suppose r@ktas has receivables of $65,000, furniture totaling $205,000, and cash of $52,000. The business has a $109,000 account payable and owes $81,000 on account. How much is r@ktas' stockholders' equity? a $28,000 b. $332,000 $190,000 d $132,000 9. Which financial statement is a snapshot of the financial position of a company at a specific point in time? a. Income statement b. Balance sheet c. Statement of cash flow d. Statement of changes in shareholders' equity 8 2 3 4 5- 10- 10. r@ktas company borrowed $ 7,000 cash from the Trust Bank. As a result of this transaction a. assets would decrease by $ 7,000 b. liabilities would increase by $ 7,000 c. shareholders' equity would increase by 7,000 d. revenue would increase by 7,000 11. What is the normal balance in each of these accounts? (Use the following abbreviations to answer this question; D-Debit, Credit) ....Bank deposit Cash ...Accounts payable Inventory ...Capital ...Prepaid insurance ...Retained earnings Bank loan ...Accounts receivable ...Sales revenue 12. Classify the items listed (1 to 5) under the following balance sheet headings: A- Assets L- Liabilities SE-Shareholders' Equity ..Cash Capital Equipment Accounts payable .Retained earnings -|- (15 p.) 1. The following accounts and balances were taken from the financial statements of r@ktas Inc. Prepare a classified balance sheet as of December 31, 2018 Bank credit $ 40.000 Cash $ 15,000 Short-term investments $ 80.000 Inventory $ 75,000 Accounts payable $ 5.000 Capital Property& Equipment $ 120,000 Prepaid insurance $ 12,000 Retained earnings $ 43,000 r@ktas Inc. Balance Sheet at December 31,2020 2- 3..... 4- ? - 111- (40 p.) Use the following accounts Cash Foreign exchange gain Bank Foreign exchange loss Short-term investments Capital Loss on sale of short-term investment Gain on sale of short-term investment RA established his own company, r@ktas Co. The following transactions are the events that occurred during December 2018, the company's first month Date 12/1 12/5 The owner invested $ 200,000 cash for capital. r@ktas Co., opened deposit account on Don't Trust Bank and put 2.000 Euro (Exchange rate was 1 Euro= 1,5 Dollar) The Company purchased short-term investment with cash for $2,500 The Company sold short-term investment with cash for $2.000 12/10 12/18 Note: Exchange rate was 1 Euro 1,4 Dollar at the end of the period. Requirements: 1. Give the journal entry for each transaction 2- Post each transaction to T accounts. DR CR