Exam 3: Reporting Operating Results on the Income Statement

During 2011, a company provided services for cash of $21, 000 and services on credit of $15,000. The company collected accounts receivable of $8,000 and incurred operating expenses of $22,700, $14,000 of which were paid during the year. The amount of net income(loss) for the year is

During June, the Grass is Greener Company mows 100 lawns a week and is paid in July by those customers. The company uses the accrual basis of accounting. How will these events affect the company's financial statements?

Which of the following is true of income statement accounts?

Which of the following is not true about the financial statements of Dudley Do-Right Repair Shop?

Which of the following is not true of the unadjusted trial balance?

In January, a company pays for advertising space in the local paper for ads to be run during the months of January, February, and March at $1,500 a month. The payment would be recorded in January as a:

How many of the following statements regarding the debit/credit processing of revenues and expenses are true? Debits reduce expenses. The total credits recorded in revenue accounts must equal the total debits recorded in expense accounts. Across all revenue accounts, the total value of all debits must equal the total value of all credits.

In October, your company prepays rent of $7,000 for November and December. Which of the following describes the effects of this transaction in October?

If contributed capital was $100,000 at the beginning of the year, what was the amount at the end of the year?

Second's Best Retail Store receives and immediately pays a $3,500 utility bill from the City Gas & Electric Company. The entry by the City Gas & Electric Company to record receipt of this payment would include a:

West Corporation issued a $1,000 gift certificate. What journal entry will West Corporation record?

Which of the following is an expense of this period?

When expenses exceed revenues in a period, stockholders' equity will be increased.

Which of the following would not be reported on the Income Statement?

Which of the following would most likely be reported as an asset?

What is the amount of Total Assets at December 31?

Sparkling Pools received a bill for $1,200 for running newspaper ads during the last two weeks of July; the bill will be paid on August 1. Advertising expense should be:

A credit of $500 to Equipment was mistakenly credited to Revenue. What is the effect of this error?

Trudy's Café paid employees $50,000 in September for work done that month. What journal entry will Trudy's record in September, assuming Trudy's did not owe any amounts to employees at the end of August?

The Rainbow House Painting Company has been contracted to strip, repair, prime and paint a house for $3,600 to be paid in installments as phases of the work are completed. Rainbow should recognize the revenue When