Week 2 ? Chapters 2 Home / Test

Part 2

• Compute the missing amounts in the table below:

	Year 1	Year 2
Total assets	$85,000	B
Common stock	A	$3,600
Retained earnings	$8,400	$18,800
Total liabilities	$62,600	$36,000
Liabilities and equity	$85,000	$58,400

• Prepare an income statement for the month ended July 31, 2013for Buck?s Books. Buck?s account balances for the month ending July 31, 2013 are:

Cash	$ 1,400	Rent expense	$16,600
Accounts receivable	18,500	Utilities expense	530
Office supplies	3,100	Salaries expense	16,000
Office equipment	29,150	Miscellaneous expenses	145
Land	70,000	Retained earnings, July 1	12,150
Sales	55,000	Common stock	76,125
Cash dividends	2,650	Accounts payable	14,800

• Prepare a statement of stockholders? equity for the month ended July 31, 2013 for Buck?s Books. Buck?s account balances for the month ending July 31, 2013are:

Cash	$ 1,400	Rent expense	$16,600
Accounts receivable	18,500	Utilities expense	530
Office supplies	3,100	Salaries expense	16,000
Office equipment	29,150	Misc. expenses	145
Land	70,000	Retained earnings, July 1	12,150
Sales	55,000	Common stock	76,125
Cash dividends	2,650	Accounts payable	14,800

• Record the effects of each transaction or event in the table below:

Balance Sheet

Income Statement

Transaction

Cash Asset

+

Noncash Assets

=

Liabilities

+

Contrib. Capital

+

Earned Capital

Revenues

-

Expenses

=

Net Income

(1) Purchase $8,000 of inventory on credit

=

=

(2) Employees earn $6,000 in wages that are not paid in cash

=

=

(3) Paid $4,000 cash for rent expense

=

=

(4) Collected $48,000 cash from accounts receivable

=

=

(5) Paid $14,000 cash toward accounts payable

=

=

(6) Received $22,000 from cash sales

=

=

5. The following items and amounts are taken from the 2013 financial records of Digital Co.:

Security deposit????... $ 3,200 Salaries payable??.. $ 6,000

Equipment???????.. 29,000 Common stock??? 10,500

Salaries expense???? 42,000 Supplies expense 4,700

Utilities expense?????. 1,100 Retained earnings, Jan. 1, 2012 12,000

Dividends????????. 7,600 Insurance expense??? 4,400

Accounts payable????? 10,200 Service revenue??? 75,000

Cash?????????? 7,700 Repair expense??? 4,500

Accounts receivable???.. 9,500

Prepare a balance sheet for Digital Co. for the year ending December 31, 2013.

6. At the end of 2013, Sando Company reported the following amounts on its balance sheet:

	Cash	$ 28,100
	Accounts receivable	52,400
	Equipment	46,000
	Land	120,000
Accounts payable	31,500
Common stock	95,000
Retained earnings	120,000

Answer each of the following independent questions:

• Assume that Sando?s stockholders? equity on January 1, 2013 was $132,000. Sando did not issue common stock during the year, but it paid $18,000 cash in dividends. How much is Sando?s net income or loss for 2013?

• Assume that Sando?s stockholders? equity on January 1, 2013 was $118,000, and that Sando issued additional common stock of $35,000 and paid $22,000 in cash dividends before the end of 2013. What was Sando?s net income or net loss for 2013?

7. In the blank space beside each numbered balance sheet item, enter the letter of its balance sheet classification. If the item should not appear on the balance sheet, enter a Z in the blank.

	1. Cash	A. Current assets
	2. Inventory	B. Long-term investments
	3. Land	C. Long-term assets
	4. Machine	D. Intangible assets
	5. Building	E. Current liabilities
	6. Income taxes payable in 30 days		F. Long-term liabilities
	7. Utilities payable		G. Equity
	8. Note receivable due in 30 days
	9. Common Stock
	10. Goodwill
	11. Value of company logo
	12. Wages expense
	13. Value of land in excess of cost
	14. Mortgage payable
	15. Accounts receivable

Week 2 - Chapters 2 Test Part 2 1. Compute the missing amounts in the table below: Year 1 $85,000 Total assets Common stock A Retained earnings Year 2 B $3,600 $8,400 $18,800 Total liabilities $62,600 $36,000 Liabilities and equity $85,000 $58,400 2. Prepare an income statement for the month ended July 31, 2013for Buck's Books. Buck's account balances for the month ending July 31, 2013 are: Cash Accounts receivable Office supplies Office equipment Land Sales Cash dividends $ 1,400 18,500 3,100 29,150 70,000 55,000 2,650 Rent expense Utilities expense Salaries expense Miscellaneous expenses Retained earnings, July 1 Common stock Accounts payable $16,600 530 16,000 145 12,150 76,125 14,800 3. Prepare a statement of stockholders' equity for the month ended July 31, 2013 for Buck's Books. Buck's account balances for the month ending July 31, 2013are: Cash Accounts receivable Office supplies Office equipment Land Sales Cash dividends $ 1,400 18,500 3,100 29,150 70,000 55,000 2,650 Rent expense Utilities expense Salaries expense Misc. expenses Retained earnings, July 1 Common stock Accounts payable $16,600 530 16,000 145 12,150 76,125 14,800 4. Record the effects of each transaction or event in the table below: Balance Sheet Cash Asset Transaction (1) Purchase $8,000 of inventory on credit + Noncas h Assets = Liabilit ies + Income Statement Contri b. Capita l + Earned Capital Revenues - Expenses = = = (2) Employees earn $6,000 in wages that are not paid in cash = = (3) Paid $4,000 cash for rent expense = = (4) Collected $48,000 cash from accounts receivable = = (5) Paid $14,000 cash toward accounts payable = = = = (6) Received $22,000 from cash sales 5. The following items and amounts are taken from the 2013 financial records of Digital Co.: Security deposit...............$ 3,200 Equipment.......................29,000 Salaries expense............42,000 Utilities expense................1,100 Dividends......................... 7,600 Accounts payable...............10,200 Cash.............................. 7,700 Accounts receivable...........9,500 Salaries payable........ Common stock......... Supplies expense Retained earnings, Jan. 1, 2012 Insurance expense......... Service revenue......... Repair expense......... Prepare a balance sheet for Digital Co. for the year ending December 31, 2013. 6. At the end of 2013, Sando Company reported the following amounts on its balance sheet: Cash Accounts receivable Equipment Land Accounts payable Common stock Retained earnings 2 $ 28,100 52,400 46,000 120,000 31,500 95,000 120,000 $ 6,000 10,500 4,700 12,000 4,400 75,000 4,500 Net Income Answer each of the following independent questions: A. Assume that Sando's stockholders' equity on January 1, 2013 was $132,000. Sando did not issue common stock during the year, but it paid $18,000 cash in dividends. How much is Sando's net income or loss for 2013? B. Assume that Sando's stockholders' equity on January 1, 2013 was $118,000, and that Sando issued additional common stock of $35,000 and paid $22,000 in cash dividends before the end of 2013. What was Sando's net income or net loss for 2013? 7. In the blank space beside each numbered balance sheet item, enter the letter of its balance sheet classification. If the item should not appear on the balance sheet, enter a Z in the blank. 1. Cash 2. Inventory 3. Land 4. Machine 5. Building 6. Income taxes payable in 30 days 7. Utilities payable 8. Note receivable due in 30 days 9. Common Stock 10. Goodwill 11. Value of company logo 12. Wages expense 13. Value of land in excess of cost 14. Mortgage payable 15. Accounts receivable A. Current assets B. Long-term investments C. Long-term assets D. Intangible assets E. Current liabilities F. Long-term liabilities G. Equity