Exam 2: Constructing Financial Statements

Prepare a statement of stockholders' equity for the month ended July 31, 2016 for Bargain Books. Assume no changes in contributed capital during the month. Bargain's account balances for the month ending July 31, 2016 are:

If Howard, Inc. purchased inventory on credit from Roan Company, then the transaction recorded by Howard would include an increase in a liability and an increase in asset.

On December 31, 2016, Sirius Corporation's records show the following selected amounts. Prepare an income statement for Sirius for its year ending December 31, 2016.

On January 1, 2016, Lorraine Company paid a $32,000 cash security deposit to rent office space. Which of the following would be the correct journal entry to record this transaction?

If Foster Toys has a current ratio of 2.5 and working capital of $2,200,000, which of the following will cause both the current ratio and working capital to decrease?

Companies strive to reduce operating cycles (time between paying cash for goods and receiving cash from customers). List 2 ways by which companies can achieve this.

Select from choices of its balance sheet classification. If the item should not appear on the balance sheet, select H. -Machine

Prepare a balance sheet for Bargain Books as of July 31, 2016. Bargain's account balances for the month ending July 31, 2016 are:

What are probable future sacrifices called and how are they reported?

Select from choices of its balance sheet classification. If the item should not appear on the balance sheet, select H. -Common Stock

Which one of the following does not impact retained earnings directly?

Identify the effects of the following transactions in the table below:

An accrual of wages expense would produce what effect on the balance sheet?

Select from choices of its balance sheet classification. If the item should not appear on the balance sheet, select H. -Wages expense

Select from choices of its balance sheet classification. If the item should not appear on the balance sheet, select H. -Utilities payable

Compute the missing amounts in the table below:

The following items and amounts are taken from the 2016 financial records of Retrieval Co.: Prepare a statement of stockholders' equity for Retrieval Co. for the year ending December 31, 2016. Assume no changes in common stock during the year.

Prepare a list of two possible undervalued assets on the balance sheet of a company. Indicate how these items can be undervalued.

Hopewell Industries recorded and paid $1,800 advertising for the current month. Which occurred?

As inventory and PPE assets on the balance sheet are consumed, they are reflected: