1. The accounting equation for Crane Company is as follows:

Assets Liabilities Stockholders' Equity

$118000 = $59000 + $59000

If Crane purchases office equipment on account for $24800, the accounting equation will change to?

Assets Liabilities Stockholders' Equity

Bonita Van Company purchased equipment for $2690 cash. As a result of this event,

total assets increased by $2690.

total assets remained unchanged.

owner's equity decreased by $2690.

owner's equity decreased and total assets increased by $2690

3. The balance in the supplies account on June 1 was $5320, supplies purchased during June were $3650, and the supplies on hand at June 30 were $3080. The amount to be used for the appropriate adjusting entry is

4. Which of the statements below is not true?

An adjusted trial balance is prepared before all transactions have been journalized.

An adjusted trial balance should show ledger account balances.

An adjusted trial balance proves the mathematical equality of debits and credits in the ledger.

An adjusted trial balance can be used to prepare financial statements.

5. The adjusted trial balance is prepared

to prove the equality of total assets and total liabilities.

after adjusting entries have been journalized and posted.

before the trial balance.

after financial statements are prepared.

6. Bonita City College sold season tickets for the 2020 football season for $270000. A total of 8 games will be played during September, October, and November. Assuming all the games are played, the Unearned Ticket Revenue balance that will be reported on the December 31 balance sheet will be

$101250.

$270000.

$168750.

$0.

7. Financial information is presented below:

Operating Expenses $ 90300

Sales Returns and Allowances 26200

Sales Discounts 13000

Sales

293000

Cost of Goods Sold 157900

Gross profit would be?

8. During August 2020, Coronado's Supply Store generated revenues of $61000. The company's expenses were as follows: cost of goods sold of $36500 and operating expenses of $4300. The company also had rent revenue of $1000 and a loss on the sale of a delivery truck of $2500.

Coronado's net income for August 2020 is

9. During July, the following purchases and sales were made by Fast Company. There was no beginning inventory. Fast Company uses a perpetual inventory system.

Purchases Sales

July 3 40 units @ $14

July 13 50 units

11 40 units @ $15

22 20 units

20 20 units @ $16

Under the LIFO method, the cost of goods sold for each sale is:

July 13 July 22

a. $700$280

b. 740320

c. 750300

d. 800320

10. The use of special journals to record transactions......?

a. eliminates the need for a general journal.

b. should only be used if the volume of transactions is small.

c. eliminates the need for a general ledger.

d. can save time in the posting process.

11. A company reports a debit balance in Cash Over and Short as a(n)

a. miscellaneous expense.

b. miscellaneous revenue.

c. Asset.

d. Liability.

12. In 2020, Warehouse 13 had net credit sales of $756000. On January 1, 2020, Allowance for Doubtful Accounts had a credit balance of $16070. In 2020, $28970 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivable basis). If the accounts receivable balance at December 31 was $161000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2020?

13. The financial statements of Sheffield Manufacturing Company reported net sales of $438000 and accounts receivable of $93000 and $27000 at the beginning and end of the year, respectively. What is the average collection period for accounts receivable in days?

14. An analysis and aging of the accounts receivable of Swifty Company on December 31 revealed the following data:

Accounts Receivable $891000

Allowance for Doubtful Accounts per books

before adjustment (Cr.) 49000

Amounts expected to become uncollectible 55900

The cash realizable value of the accounts receivable at December 31, after adjustment, is:

15. On November 1, Sheffield Company received a $3200, 6%, three-month note receivable. The cash to be received by Sheffield Company when the note becomes due is:

16. Bonita Towing Company purchased a tow truck for $175000 on January 1, 2020. It was originally depreciated on a straight-line basis over 10 years with an assumed salvage value of $36000. On December 31, 2022, before adjusting entries had been made, the company decided to change the remaining estimated life to 4 years (including 2022) and the salvage value to $6000. What was the depreciation expense for 2022?

17. During 2021, Sheffield Corporation reported net sales of $2700000, net income of $1215000, and depreciation expense of $99400. Sheffield also reported beginning total assets of $1006000, ending total assets of $1494000, plant assets of $802000, and accumulated depreciation of $513000. Sheffield's asset turnover is

18. Losses on an exchange of plant assets that has commercial substance are___?

19. A change in the estimated useful life of equipment requires______

20. The entry to record the payment of an interest-bearing note at maturity after all interest expense has been recognized is_________

21. Any balance in an unearned revenue account is reported as a(n)___?

22. When recording payroll,_____?

23. Amount of interest due on a $10,000, 8%, 90-day note at maturity is__?

24.Brian and Sandy are forming a partnership. Brian will invest a truck with a book value of $9700 and a fair value of $13200. Sandy will invest land and a building with a book value of $30600 and a fair value of $41900 with a mortgage of $14200. What amount should be recorded in Sandy's capital account?

25. How many closing entries are required for a partnership?

26. The first step in the liquidation of a partnership is to____?

27. Use the following account balance information for Granobfin Partnership with income ratios of 2:4:4 for Granger, Noble, and Finn, respectively.

Assets Liabilities and Owner's Equity

Cash $54800 Accounts payable $125700

Accounts Granger, Capital 137300

receivable 131200 Noble, Capital 48300

Inventory 438300 Finn, Capital 313000

$624300

$624300

Assume that, as part of liquidation proceedings, Granobfin sells its non-cash assets for $360400. As a result, one of the partners has a capital deficiency which that partner decides not to repay. The amount of cash that would ultimately be distributed to Finn would be

PART TWO

1. Cisco and Ollinger are partners who share profits and losses equally and have capital balances of $280200 and $245800, respectively. Parks is admitted into the partnership by investing $245800 for a 30% capital interest. The account balance of Ollinger, Capital after the admission of Parks would be_____?
2. Alex, Bob, and Ciera are partners, sharing income 2:1:2. After selling all of the assets for cash, dividing gains and losses on realization, and paying liabilities, the balances in the capital accounts are as follows: Alex, $9000 Cr; Bob, $9000 Cr; and Ciera, $30700 Cr. How much cash should be distributed to Alex?
3. Which of the following would not be considered an expense of a partnership in determining income for the period?
4. Todd is investing in a partnership with Joseph. Todd contributes equipment that originally cost $41000, has a book value of $19200, and a fair value of $25900. The entry that the partnership makes to record Todd's initial contribution includes a _____?
5. When a partner invests noncash assets in a partnership, the assets should be recorded at their_____?
6. A general partner in a partnership____?
7. Leno joins the partnership of Kingsley and McCaffrey by paying $95,000 in cash. If the net assets of the partnership are still the same amount after Leno has been admitted as a partner, then Leno
8. Elkins and Landry are partners who share income and losses in the ratio of 3:2, respectively. On August 31, their capital balances were: Elkins, $134000, and Landry, $124000. On that date, they agreed to admit Neumark as a partner with a one-third capital interest. If Neumark invests $93000 in the partnership, what is Elkins's capital balance after Neumark's admittance?
9. The liquidation of a partnership____?
10. Motts is admitted to a partnership with a 25% capital interest by a cash investment of $89000. If the total capital of the partnership is $395000 before admitting Motts, the bonus to Motts is
11. In liquidation, balances prior to the distribution of cash to the partners are Cash $204500; Paley, Capital $112900; Stengel, Capital $104600, and King, Capital $13000 deficiency. The income ratio is 6:2:2, respectively. How much cash should be distributed to Stengel if King does not pay his deficiency?
12. The total column of the Partners' Capital Statement for Vaughn Company is as follows:

Capital, January 1 $593000

Additional investment 232000

Drawings 354000

Net income 722000

The partnership has three partners. The first two partners have ending capital balances that are equal. The ending balance of the third partner is half of the ending balance of the first partner. What is the ending capital balance of the third partner?