Question 1                                                                                                                                          0 out of 1.5 points

 

Record the transaction below.

 

The following event took place in the month of May.      Assets   Liabilities              Shareholders’ Equity

 

Common StockRetained Earnings

 

Hot Diggity Dog, Inc., paid $10 of May’s interest on the note payable, plus it paid off the $2,000 note payable.     $______                $______              $______              $______

 

TO RECEIVE CREDIT FOR THE QUESTION, AN ANSWER MUST BE SELECTED FOR EACH COLUMN (ASSETS, LIABILITIES, COMMON STOCK, & RETAINED EARNINGS) EVEN IF THERE IS NO EFFECT. IF THERE IS NO EFFECT, SELECT “0 NO EFFECT.”

 

Question 2                                                                                                                          1.5 out of 1.5 points

 

How many of the following line items are on the Statement of Shareholders’ Equity?

 

Supplies Expense

 

Beginning Retained Earnings

 

Notes Payable

 

Dividends

 

Common Stock Issued

 

Proceeds from Loans

 

Question 3                                                                                                                                          1.5 out of 1.5 points

 

 

 

What is the effect on total shareholders’ equity when a company purchases a cash register for a cash payment of $1,200?

 

Question 4                                                                                                                                          0.5 out of 1.5 points

 

Identify what a company gives and gets when it invests in equipment by paying cash and signing a two-year note. (Select all that apply.)

 

Question 5                                                                                                                                          1.5 out of 1.5 points

 

Which of the following will result in a decrease to assets and shareholders’ equity? (Select all that apply.)

 

 

 

 

 

 

 

 

 

Question 6                                                                                                                                          0 out of 1.5 points

 

 

 

Indicate whether each activity for Anudu Hair Salon would be classified as an operating, investing, or financing activity.

 

Question 7                                                                                                                                          1.5 out of 1.5 points

 

 

 

Record the transaction below.

 

Assets  Liabilities              Shareholders’ Equity

 

Jim’s Jambs, Inc., recorded $150 of depreciation on its equipment for the month.             $______              $______                $______

 

TO RECEIVE CREDIT FOR THE QUESTION, AN ANSWER MUST BE SELECTED FOR EACH COLUMN (ASSETS, LIABILITIES, SHAREHOLDERS’ EQUITY) EVEN IF THERE IS NO EFFECT. IF THERE IS NO EFFECT, SELECT “0 NO EFFECT.”

 

Question 8                                                                                                                                          0 out of 1.5 points          

 

During its first month of business, Purses, Inc., purchased 5 purses at $50 each and sold 3 purses for $80 each. Purses’ Inventory balance on the balance sheet at the end of the month equals $______.

 

 

 

Question 9                                                                                                                                          0 out of 1.5 points          

 

Lawn & Order borrowed cash from a bank by issuing a $10,000 promissory note. The effect on Lawn & Order’s accounting equation is as follows:

 

Question 10                                                                                                                                       0 out of 1.5 points

 

 

 

At December 31, Year 1, Lord of the Fries, Inc.’s assets were $60,000 and liabilities were $40,000. At December 31, Year 2, its assets are $110,000 and liabilities are $50,000. During the year, it did not issue new stock and did not declare or pay dividends. Calculate net income for Year 2.

 

 

 

 

 

 

 

 

 

Question 11                                                                                                                                       1.5 out of 1.5 points

 

Purses, Inc., sold 8 purses that cost $40 each to its customers for a price of $80 each. The Gross Profit amount on the income statement will equal $______. Do not include $ in your answer.

 

Question 12                                                                                                                                       1.5 out of 1.5 points

 

If a company’s total assets equals $80,000 and its shareholders’ equity equals $20,000, then its liabilities must equal $______.

 

Question 13                                                                                                                                       0 out of 1.5 points

 

How many of the following accounts are found on the Balance Sheet?

 

Supplies Expense

 

Retained Earnings

 

Notes Payable

 

Depreciation Expense

 

Common Stock

 

Equipment

 

Question 14                                                                                                                                       1.5 out of 1.5 points

 

Classify the Balance Sheet accounts listed below as an Asset, Liability, or Shareholders’ Equity.

 

Question 15                                                                                                                                       0 out of 1.5 points

 

Determine the missing amounts.

 

December 31

 

Cash      $ 14,000                Accounts Payable            $ 4,000

 

Accounts Receivable      13,000   Notes Payable     10,000

 

Inventory            1.  ___?___        Common Stock  47,000

 

Buildings (net of accumulated depreciation)        20,000   Retained Earnings               5,000

 

Total Assets                $____           Total Liabilities and Shareholders’Equity                $66,000

 

After determining the missing amounts ($______) in the above Balance Sheet, calculate and type in the December 31 amount of Inventory  1.____?_____.

 

 

 

 

 

 

 

Question 16                                                                                                                                       0 out of 1.5 points

 

 

 

The balance sheet reports the ______.

 

 

 

 

 

Question 17                                                                                                                                       0 out of 1.5 points

 

 

 

Match the financial statement that reports each of the following.

 

Question 18                                                                                                                                       1.5 out of 1.5 points

 

 

 

Whistler Company had retained earnings of $472,000 at the end of Year 1. During Year 2, Whistler had net income of $100,000. Retained earnings were $485,000 at December 31, Year 2. The amount of dividends for Year 2 must have been:

 

 

 

 

 

Question 19                                                                                                                                       1.5 out of 1.5 points

 

 

 

Cycle Path, Inc., sold 100 bikes to its customers at $400 each. The bikes cost $250. The entry to record this sale includes a ______. (Select all that apply.)

 

Question 20                                                                                                                                       1.5 out of 1.5 points

 

 

 

Which financial statement reports how much cash was collected from customers?