Question 14 (2 points) The statement of cash flows and the statement of financial position are interrelated because the ending amount of cash on the statement of cash flows must agree with the amount in the statement of changes in equity. both disclose the corporation's net income. the ending amount of cash on the statement of cash flows must agree with the amount in the statement of financial position. the ending amount of cash on the statement of cash flows must agree with the amount on the income statement. Question 15 (2 points) Plumbers-on-the-Go Ltd. started the year with total assets of $120,000 and total liabilities of $75,000. During the year, the business recorded $82,000 in service revenues, $45,000 in expenses, and paid dividends of $2,500. Shareholders' equity at the end of the year was $82,000. $77,000. $45,000. $79,500. Question 16 (2 points) If total liabilities increased by $18,000 and shareholders' equity increased by $21,000 during a period of time, then total assets must change by what amount and direction (increase or decrease) during that same period? $39,000 decrease $21,000 increase $18,000 increase $39,000 increase Question 2012 points) The total dollar amount in the contra asset accounts is $60,000 $85,000 $235,000 $210,000 Question 21 (2 points) Which of the following journal entries is recorded correctly in the basic format (ignoring explanations)? 600 Salaries Expense Cash Advertising Expense 1,350 750 Salaries Expense Advertising Expense. 600 750 Cash 1,350 Salaries Expense Advertising Expense Cash..... 600 750 1,350 1,350 Cash Salaries Expense Advertising Expense 600 750 Question 22 (2 points) A $50,000 machine is purchased by paying $35,000 cash and signing a bank loan payable for the balance. The journal entry should include a debit to Cash, $35,000 credit to Accounts Receivable, $15,000 credit to Bank Loan Payable, $15,000 credit to Machinery, $50,000 Question 23 (2 points) ABC company received $350 cash in advance for work to be performed. How will this transaction affect the accounts? Unearned Revenue will increase by $350 and Cash will increase by $350. Cash will increase by $350 and Service Revenue will increase by $350. Cash will decrease by $350 and Service Revenue will increase by $350. Service Revenue will increase by $350 and Unearned Revenue will decrease by $350