QUESTION 16 Ranger Pool Company received cash of $40,000 and issued common stock. Which of the following accounts will be credited? Common Stock Accounts Receivable Cash Accounts Payable QUESTION 16 The total assets and the total liabilities of Atlas Financial Services are shown below. The company issued no common stock and paid no dividends during the year. What was the amount of net income for the year? Beginning of year End of year Total Assets Total Liabilities $405,000 $295.000 455,000 305.000 550.000 560.000 $40.000 $10.000 QUESTION 17 On September 1, 2018, Real Estate Professionals, Inc. paid $7.000 in advance for an eight month rental space covering the period of September 1, 2018 through April 30, 2019. The deferred expense was initially recorded as an asset. The company makes adjusting entries once a year at year-end. The adjusting entry on December 31, 2018 would include a credit of $3,500 to Rent Expense debit of $3,500 to Rent Expense debit of $7,000 to Cash credit of $7,000 to Prepaid Rent QUESTION 18 2 The accountant of Newton Legal Services failed to make an adjusting entry for supplies that had been used for the year. Assume the supplies were initially recorded as an asset Which of the following statements is true? The total assets will be overstated The equity will be understated The total assets will be understated The total liabilities will be overstated. QUESTION 19 Converse Florists & Co reported total liabilities of $550 and total equity of 5450. What is its debt ratio? (Round your percentage answer to two decimal places) 100.00% 5500% 60.00% 45.00% QUESTION 20 Which of the following accounts would appear on the post-closing trial balance? Advertising Expense Service Revenue Dividends Retained Earnings