QUESTION 31

The following is a Trial Balance from a recent year for Island Goods, Inc.. Answer the following questions using the information provided.

Debit Credit

Cash 2,003

Accounts Receivable 146

Buildings 6,719

Salary Payable 1,984

Accounts Payable 991

Notes Payable 2,349

Common Stock 437

Retained Earnings 3,698

Sales Revenue 10,755

Interest Income 15

Rent Expense 7,849

Wage Expense 3,022

Supplies Expense 348

Interest Expense 142

Totals 20,229 20,229

33. What is the ending retained earnings amount (after closing entries)?

1. $3,107

2. $3,698

3. $4,135

4. $0

5. None of the above

QUESTION 32

The following is a Trial Balance from a recent year for Island Goods, Inc.. Answer the following questions using the information provided.

Debit Credit

Cash 2,003

Accounts Receivable 146

Buildings 6,719

Salaries Payable 1,984

Accounts Payable 991

Notes Payable 2,349

Common Stock 437

Retained Earnings 3,698

Sales Revenue 10,755

Interest Income 15

Rent Expense 7,849

Wage Expense 3,022

Supplies Expense 348

Interest Expense 142

Totals 20,229 20,229

34. What type of trial balance is this?

1. Unadjusted Trial Balance

2. Adjusted Trial Balance

3. Post-Closing Trial Balance

4. Clean Trial Balance

5. None of the above.

QUESTION 33

The following is a Trial Balance from a recent year for Island Goods, Inc.. Answer the following questions using the information provided.

Debit Credit

Cash 2,003

Accounts Receivable 146

Buildings 6,719

Salary Payable 1,984

Accounts Payable 991

Notes Payable 2,349

Common Stock 437

Retained Earnings 3,698

Sales Revenue 10,755

Interest Income 15

Rent Expense 7,849

Wage Expense 3,022

Supplies Expense 348

Interest Expense 142

Totals 20,229 20,229

35. Prepared a Balance Sheet, what is the amount that would be shown for total liabilities and Stockholders' Equity?

1. $9,459

2. $8,868

3. $5,761

4. $5,324

5. None of the above

QUESTION 35

38. Which of the following accounts will always have a zero balance at the beginning of an accounting period? 1. Salaries Payable

2. unearned Revenue

3. Sales Revenue

4. Retained Earnings

5. Contributed Capital

QUESTION 36

Tocca Co. collected a $5,000 cash advance from a customer on November 1, 2016 for work to be performed over a six-month period beginning on that date. If the year-end adjustment is properly recorded, what will be the effects of the accrual on Tocca's 2016 financial statements?

1. Increase assets and increase liabilities

2. Increase assets and increase revenues

3. Decrease liabilities and increase revenues

4. No effect

QUESTION 37

If Accounts Payable had a balance of $18,200 at the beginning of the month, and the six amounts shown below were posted to this account, what should be the ending balance? Three debits posted to Accounts Payable this month: $4,700, $11,300, and $14,800. Three credits posted to Accounts Payable this month: $3,600, $ 9,500, and $12,700. 1. $13,200

2. $5,000

3. $23,200

4. $49,000

5. None of the above

QUESTION 38

Which of the following transactions does not involve an accrual? 1. Recording interest earned that will be received in the next period.

2. Recording operating expense incurred but not yet paid.

3. Recording salary expense incurred but not yet paid.

4. Recording the pre-payment of two year's worth of insurance.

QUESTION 39

Revenue on account amounted to $5,000. Cash collections of accounts receivable amounted to $2,300. Expenses for the period were $2,100. Net income for the period was? 1. $200.

2. $350

3. $3,050

4. $2,900

Revenue from the sale of merchandise normally is recognized:

On the date of sale

When the customer pays for the merchandise

At the earlier of the two dates: date on which the sale occurs, or the date on which the customer pays

When the merchandise is sold, if sold for cash; or when the payment is received, if sold on credit.

QUESTION 34 2.5 points Go-Bike Company received $1,350 from a customer for skiing lessons performed last month (G-Ski prepares monthly financial statements.) How would the transaction be recorded? Cash Account Receivable 1,350 $1,350 Cash Account Receivable $1,350 $1,350 Ski Revenue Account Receivable 1,350 $1,350 Cash Ski Revenue $ 400 $400