Tiptoe Shoes, had annual revenues of $185,000, expenses of $103,700, and paid dividends of $18,000 during the current year. The retained earnings account before closing had a balance of $297,000. The ending retained earnings balance after closing is:

Multiple Choice

• $378,300

• $360,300

• $81,300

• $185,000

• $63,300

On July 1, a company paid the $2,400 premium on a one-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the first year ended December 31?

Multiple Choice

• $400.

• $1,400.

• $1,000.

• $2,400.

• $1,200.

The adjusting entry to record the salaries earned due to employees for services provided but unpaid at the end of the accounting period affects the accounts in which of the following ways?

Multiple Choice

• Debit Cash and credit Salaries Expense.

• Debit Salaries Payable and credit Salaries Expense.

• Debit Salaries Expense and credit Cash.

• Debit Salaries Expense and credit Salaries Payable.

• Debit Accrued Salaries and credit Salaries Payable.

On May 1, Sellers Marketing Company received $1,500 from Franco Marcelli for a marketing campaign effective from May 1 this year to April 30 of the following year. The Cash receipt was recorded as unearned fees and at year-end on December 31, $1,000 of the fees had been earned. Assuming adjustments are only made at year-end, the adjusting entry on December 31 would be:

Multiple Choice

• A debit to Unearned Fees and a credit to Fees Earned for $1,000.

• A debit to Fees Earned and a credit to Cash for $1,000.

• A debit to Fees Earned and a credit to Cash for $500.

• A debit to Unearned Fees and a credit to Cash for $500.

Identify the account below that is classified as a liability account:

Multiple Choice

• Equipment

• Common Stock

• Accounts Payable

• Cash

• Salaries Expense

Identify the account below that impacts the Equity of a business:

Multiple Choice

• Accounts Receivable

• Accounts Payable

• Cash

• Unearned Revenue

• Utilities Expense

Determine the net income of a company for which the following information is available for the month of September.

Service revenue	$	300,000
Rent expense		48,000
Utilities expense		3,200
Salaries expense		81,000

Multiple Choice

• $432,200.

• $171,000.

• $167,800.

• $252,000.

• $263,800.