The retained earnings account had a beginning credit balance of $26,600. During the period, the business had a net loss $12,600, and the company paid dividends of $8,700. The ending balance in the retained earnings account is:

$5,300.

$39,200.

$14,000.

$30,500.

2. Stimpleton Company engages in the following cash payments:

Purchase equipment	$3,700
Pay rent	700
Repay loan to the bank	5,100
Pay workers salaries	1,250

What is the total amount of cash paid for operating activities?

$8,800

$3,700

$1,950

$6,350

3.

On January 1, Gucci Brothers Inc. started the year with a $695,000 balance in retained earnings and a $596,000 balance in common stock. During the year, the company earned net income of $94,000, paid a dividend of $14,700, and issued more common stock for $23,500. What is total stockholders' equity at the end of the year?

$1,291,000

$1,423,200

$1,393,800

$1,346,800

4.

Below is balance sheet information for five independent situations. Calculate the answer to each.

5.	A company reports total assets of $1,770 and total liabilities of $970. What is the amount of stockholders' equity? (Omit the "$" sign in your response.)

Stockholders' equity

$

6.	A company reports total liabilities of $2,100 and stockholders' equity of $1,600. What is the amount of total assets? (Omit the "$" sign in your response.)

Total assets

$

7.	A company reports total assets of $1,900 and total stockholders' equity of $320. What is the amount of total liabilities? (Omit the "$" sign in your response.)

Total liabilities

$

8.	A company reports an increase in assets of $2,460 and an increase in liabilities of $720. What is the amount of the change in stockholders' equity? (Decreases should be indicated by a minus sign. Omit the "$" sign in your response.)

Change in stockholders' equity

$

9.	A company reports an increase in liabilities of $180 and a decrease in stockholders' equity of $1,590. What is the amount of the change in total assets? (Decreases should be indicated by a minus sign. Omit the "$" sign in your response.)

Change in total assets

$

10.

Riley Incorporated reports the following amounts at the end of the year:

Cash	$	57,700		Service revenue	$	93,400
Buildings		53,000		Salaries expense		60,800
Accounts payable		8,600		Equipment		70,000
Interest expense		3,700		Supplies		5,400
Advertising expense		11,100		Notes payable		52,000

In addition, the company had common stock of $79,000 at the beginning of the year and issued an additional $6,400 during the year. The company also had retained earnings of $24,200 at the beginning of the year and paid dividends of $1,900 during the year. Prepare the income statement, statement of stockholders' equity, and balance sheet.

a.	Income statement. (Input all amounts as positive values. Omit the "$" sign in your response.)

RILEY INCORPORATED Income Statement For the year ended December 31
Revenues:
(Click to select)DeliverySalariesCashCost of goods soldService revenue		$
Expenses:
(Click to select)AdvertisingService revenueInterestDeliverySalaries	$
(Click to select)SalariesService revenueAdvertisingDeliveryInterest
(Click to select)AdvertisingInterestService revenueSalariesDelivery
Total expenses
(Click to select)Net incomeNet loss		$

b.	Statement of stockholders' equity. (Amounts to be deducted should be indicated with a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

RILEY INCORPORATED Statement of Stockholders' Equity For the year ended December 31
	Common Stock	Retained Earnings	Total Stockholders' Equity
(Click to select)Investment by ownerBalance at end of the yearBalance at beginning of the yearWithdrawals by ownerIssuance of common stock	$	$	$
(Click to select)Add: Withdrawals by ownerBalance at beginning of the yearLess: Withdrawals by ownerIssuance of common stockAdd: Investment by owner
(Click to select)Less: Net loss for the yearAdd: Net income for the year
(Click to select)Add: DividendsLess: Dividends
(Click to select)Balance at end of the yearIssuance of common stockInvestment by ownerWithdrawals by ownerBalance at beginning of the year	$	$	$

c.	Classified balance sheet. (Be sure to list the assets and liabilities in order of their liquidity. Omit the "$" sign in your response.)

RILEY INCORPORATED Balance Sheet December 31
Assets		Liabilities
	$		$
		Total liabilities
		Stockholders' Equity
		Total stockholders' equity
Total assets	$	Total liabilities and stockholders' equity	$

11.

Rite Shoes was involved in the transactions described below. Record each transaction. (Leave no cells blank. If no entry is required, select "No journal entry required" in the account field and enter zero (0) in the amount field. Omit the "$" sign in your response.)

(a)	Purchased $8,400 of supplies on account.
(b)	Paid weekly salaries, $900.
(c)	Provide services to customers: Cash: $7,900; On account: $5,600.
(d)	Paid for supplies purchased in (a) above.
(e)	Placed an order for $6,200 of supplies.

Transaction

General Journal

Debit

Credit

12.

Clement Company paid an account payable related to a previous utility bill of $950. This transaction should be recorded as follows on the payment date:

debit cash $950, credit utilities expense $950.

debit accounts payable $950, credit cash $950.

debit utilities expense $950, credit cash $950.

debit cash $950, credit accounts payable $950.

13.

Summer Leasing received $10,400 for 24 months rent in advance. How should Summer record this transaction?

debit rent expense; credit cash

debit cash; credit unearned revenue

debit cash; credit service revenue

debit prepaid rent; credit rent expense

15.

A company received a utility bill of $600 but did not pay it. Indicate the amount of increases and decreases in the accounting equation. (Leave no cells blank - be certain to enter "0" wherever required. Decreases should be indicated by a minus sign. Omit the "$" sign in your response.)

Assets

=

Liabilities

+

Stockholders' Equity

$

=

$

+

$

16.

A company pays $840 of dividends to stockholders. Indicate the amount of increases and decreases in the accounting equation. (Leave no cells blank - be certain to enter "0" wherever required. Decreases should be indicated by a minus sign. Omit the "$" sign in your response.)

Assets	=	Liabilities	+	Stockholders' Equity
$	=	$	+	$

17.

Prepare adjusting journal entries, as needed, for the following items. (Omit the "$" sign in your response.)

a.	The Supplies account shows a balance of $540, but a count of supplies reveals only $220 on hand at year-end.

b.	The company initially records the payments of all insurance premiums as prepaid insurance. The unadjusted trial balance at year-end shows a balance of $570 in Prepaid Insurance. A review of insurance policies reveals that $200 of insurance is unexpired.

c.	Employees work Monday through Friday, and salaries of $3,000 per week are paid each Friday. The company's year-end falls on Tuesday.

d.	At year-end, the company received a utility bill for December's electricity usage of $240 that will be paid in early January.

Event

General Journal

Debit

Credit

18.

For each transaction below, calculate the amount of revenue to be recognized in the current period using accrual-basis accounting (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response):

a.	Performed $22,000 of services during the month and received full cash payment from customers at the time of service.

Revenue to be recognized

$

b.	Performed $8,500 of services during the month and billed customers. Customers are expected to pay next month.

Revenue to be recognized

$

c.	Received $11,000 cash from customers for services to be provided next month.

Revenue to be recognized

$

19.

The following financial information is from Bronco Company. All debt is due within one year unless stated otherwise.

Retained Earnings	$70,600
Supplies	37,700
Equipment	74,000
Accounts Receivable	10,600
Unearned Revenue	6,000
Accounts Payable	13,600
Common Stock	24,400
Notes Payable due in 18 months	26,000
Interest Payable	5,500
Cash	23,800

What is the amount of current liabilities?

$13,600

$51,100

$19,100

$25,100

20.

The retained earnings account had a beginning credit balance of $26,600. During the period, the business had a net loss $12,600, and the company paid dividends of $8,700. The ending balance in the retained earnings account is:

$5,300.

$30,500.

$39,200.

$14,000.