31 Dec Match the financial

Question 1

Record the transaction below.

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

Common Stock Retained 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

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

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

Question 4

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

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

Question 6

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

Question 7

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

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

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

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

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

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

Question 13

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

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

Question 15

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

The balance sheet reports the ______.

Question 17

Match the financial statement that reports each of the following.

Question 18

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

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

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