Smiles Entertainment had the following accounts and balances December 31 37 Account Credit Debit $11,400 2.200 1,280 counts Receivable Prepaid Insurance Supplies Mont Payable Common Stock Retained Earnings Service Sevence salaries Expanse Utilities Expense Totals $ 5.700 4.700 1.040 8.400 GLO $19.040 519,840 Using the information in the table, calculate the company's reported income for the period. Maple Choice O O 1.04 37 Common Stock Retained terninge Service Revenue Salaries Expense Utilities tpense Totala 1.280 $19.800 91.1 Using the formation in the calculate the company's reported net income for the period Murple chees O 40 SS.COM 38 High Step Shoes had annual revenues of $193,000, expenses of $107700, and dividends of $21200 during the current year. The retained earnings account before closing had a balance of $305.000. The entry to close the income Summary account at the end of the year after revenue and expense accounts have been closed, is 00:33 Multiple Choice o Debt Retained earns $85.000 credit Income Summary 5.300 Det nederings 04:00 Credit Income Sumay 564300 O Debt Retained earrings $30.000, credit income Summary 30.000 O Debit Income Summary 55.300, credit and caring 505,300 0 Debit income Summary $64.800, credit Retained casting 554100 The following information is available for the Noir Detective Agency. After closing entries are posted, what will be the balance in the Retained earnings account? 40 Net Loss Retained earnings Dividends $ 21,600 291,000 33,600 00:2920 Multiple Choice $257,400 $300.000 $291000 1270,000 $235.000 If a company uses $1,500 of its cash to purchase supplies, the effect on the accounting equation would be: 41 Multiple Choice 00:20:36 Assets increase $1,500 and abilities decrease $1500. Assets decrease $4500 and equity increases $1500. Aseta de create $1500 and equity decreases $15.00 Assets increase $1500 and liabilities increase $1500 One se increases $1.500 and another asset decreases $1500, causing no effect 42 On September 12, Vander Company sold merchandise in the amount of $6.200 to Jepson Company, with credit terms of 3/10, 1/30. The cost of the items sold is $4,400, Vander uses the periodic inventory system and the gross method of accounting for sales. The journal entry or entries that ander will make on September 12 : Multiple Choice Recounts receivable Sales 4,4001 4,400 6.200 6.200 Sales Accounts receivable Coat of poods sold Merchandise Taventos 4.400 6,400 6.200 Accounts receivable 6,20 6,200 Accounts receivable Sala Coat of de sold Merchandise lwentat 4.40 6.200 Accorato receivable Sales 6.200 43 a company is considering the purchase of a parcel of land that was acquired by the seller for $99,000, is offered for sale at $178,000, is assessed for tax purposes at $109,000, is recognized by the purchaser as easily being worn $68,000, and is purchased for $165,000, the land should be recorded in the purchaser's books at Multe Choice o $100.000 5178.000 5966.500 O 510.000 Determine the net income of a company for which the following information is available for the month of July 44 Employee salaries expense Interest expense Rent expense Consulting revenue $192,000 22,000 32,000 448.000 Mtipe Code O $200.000 o $260.000 o 094.000 O $245.000 $448.000 If a check correctly written and paid by the bank for $838 is incorrectly recorded in the company's books for $883, how should this error be treated on the bank reconciliation? 45 Multle Choice 02120 Add $45 to the bank's balance Subtract 45 from the banks balance Add $45 to the book blance, Sut $45 from the book blanc O Subtract $45 from the banks balance and add $45 to the book's balance On September 12, Vander Company sold merchandise in the amount of $1.900 to Jepson Company, with credit terms of 2/10, 1/30. The cost of the items sold is $1310. Vander uses the periodic inventory system and the gross method of accounting for sales. On September 14, Jepson returns some of the merchandise. The selling price of the merchandise is $165 and the cost of the merchandise retumed is $115. Jepson pays the invoice on September 18, and takes the appropriate discount. The Journal entry that Vander makes on September 99 is 46 Multiple Choice Casa Balea din Accounts receivable 1.100.30 36.70 1.310.00 Recente recevable Ants receivable 34. TE Bales discount Accounts receivable O Avale 47 On February 3, Smart Company sold merchandise in the amount of $1,800 to Truman Company with credit terms of 1/10, 1/30. The cost of the items sold is $1,240. Smart uses the perpetual inventory system and the gross method. Truman pays the invoice on February 8, and takes the appropriate discount. The journal entry that Smart makes on February Multiple Choice sales discounts Accounts receivable 1,800 1.800 Cash Accounts receivable 1.720 canh Sales discounts Recounts receivable O 1.16 Cash Rount receivable O 1.240 Cash counts receivable 1,240