Question 1

Assuming that Hardin engaged in no transactions during the year other than those listed above,what was the amount of net income or loss for the year?

Accepted Answer

A)   $19,000 net income
B)   $15,000 net income
C)   $12,000 net income
D)   $11,000 net loss B

Question 2

Ling Corporation paid a $3,000 cash dividend to its owners.

Accepted Answer

(D)(N)(D)(N)(N)(N)(D/FA)

Question 3

At the beginning of the year,Gonzales Company's accounting records had the general ledger accounts and balances shown in the table below.During the year,the following transactions occurred:
1.received $80,000 cash for providing services to customers
2.paid rent expense,$10,000
3.purchased land for $9,000 cash
4.paid $5,000 on note payable
5.paid operating expenses,$52,000
6.paid cash dividend,$6,000
Required:
a)Record the transactions in the appropriate general ledger accounts.Record the amounts of revenue,expense,and dividends in the Retained Earnings column,providing appropriate titles for these accounts in the last column of the table.  b)What is the amount of total assets as of the end of the year?
c)What is the amount of total stockholders' equity as of the end of the year?

Accepted Answer

a)  b)Total assets = $14,000 + 49,000 = $63,000 c)Total stockholders' equity = $32,000 + $26,000 = $58,000

Question 4

Dare Company paid $5,000 to one of its creditors to reduce the amount of the obligation.

Accepted Answer

The answer of Dare Company paid $5,000 to one of...

Question 5

Bond Company experienced an accounting event that affected its financial statements as indicated below:  Which of the following accounting events could have caused these effects on Bond's financial statements?

Accepted Answer

A)   paid a cash dividend
B)   earned cash revenue
C)   borrowed money from a bank
D)   none of these

Question 6

Which of the following items would appear on a balance sheet?

Accepted Answer

A)   Notes Payable
B)   Dividends
C)   Expenses
D)   Revenues

Question 7

Wave Company borrowed $10,000 cash from a bank.

Accepted Answer

The answer of Wave Company borrowed $10,000 cash from a...

Question 8

The following transactions apply to Copeland's Fitness Center for 2012.
1)Started the business by issuing $18,000 of common stock for cash
2)Provided services to clients and received $28,000 cash
3)Borrowed $6,500 from the bank for the business
4)Paid $4,500 for rent of equipment
5)Paid $6,000 of salary expense
6)Cash dividends of $11,500 were paid to the stockholders
Required:
a)What are the total assets of the business at the end of 2012?
b)Prepare a Statement of Cash Flows for 2012.

Accepted Answer

The answer of The following transactions apply to Copeland's Fitness...

Question 9

Taos Corporation earned cash revenues of $52,000.

Accepted Answer

The answer of Taos Corporation earned cash revenues of $52,000....

Question 10

A stockholder in a corporation would use ___ to learn about the company.

Accepted Answer

A)   financial accounting information
B)   managerial accounting information
C)   not-for-profit accounting information
D)   both A and C

Question 11

During the year,STU Company earned $6,000 of cash revenue and paid $4,100 of cash expenses and $300 in dividends to the company's owners.Enter each of these three events into the horizontal financial statements model,below.Indicate dollar amounts of increases and decreases.For cash flows,show whether they are operating activities (OA),investing activities (IA),or financing activities (FA).

Accepted Answer

The answer of During the year,STU Company earned $6,000 of...

Question 12

Investors in a business expect to receive a share of the income earned by the business.

Accepted Answer

A) True 
 B)False

Question 13

A business can obtain resources through its earnings activities.

Accepted Answer

A) True 
 B)False

Question 14

Reno Company experienced the following events during the year:
1.issued common stock for cash
2.purchased land by paying cash
3.borrowed cash
4.provided services to customers for cash
5.repaid part of the cash borrowed in event 3
6.paid operating expenses with cash
7.paid a dividend to stockholders
Required:
Indicate how each of these events affects the accounting equation by writing the letter I for increase,the letter D for decrease,and NA for no effect under each of the components of the accounting equation.The first is done for you as an example.

Accepted Answer

The answer of Reno Company experienced the following events during...

Question 15

What does the statement of cash flows tell you about a company?

Accepted Answer

The answer of What does the statement of cash flows...

Question 16

A business's creditors have a priority claim to its assets in the event of liquidation.

Accepted Answer

A) True 
 B)False

Question 17

What was the cash flow from operating activities?

Accepted Answer

A)   an inflow of $4,000
B)   an inflow of $19,000
C)   an inflow of $11,000
D)   an inflow of $15,000

Question 18

Lynn Corporation paid $40,000 to purchase equipment.

Accepted Answer

The answer of Lynn Corporation paid $40,000 to purchase equipment....

Question 19

The following events occurred for Rez Company during its first year in operation:
1.issued stock to investors for $35,000 cash
2.borrowed $15,000 cash from the local bank
3.provided services to its customers and received $22,000 cash
4.paid expenses of $18,000
5.paid $12,000 cash for land
6.paid dividend of $2,000 to stockholders
7.repaid $2,000 of the loan listed in item 2
Required:
Show the effects of the above transactions on the accounting equation,below.Include dollar amounts of increases and decreases.The first is done for you.After entering all the events,calculate the total amounts of assets,liabilities,and equity at the end of the year.

Accepted Answer

The answer of The following events occurred for Rez Company...

Question 20

Issuance of common stock is an asset use transaction.

Accepted Answer

A) True 
 B)False

Exam 1: An Introduction to Accounting

Assuming that Hardin engaged in no transactions during the year other than those listed above,what was the amount of net income or loss for the year?

Ling Corporation paid a $3,000 cash dividend to its owners.

Dare Company paid $5,000 to one of its creditors to reduce the amount of the obligation.

Bond Company experienced an accounting event that affected its financial statements as indicated below: Which of the following accounting events could have caused these effects on Bond's financial statements?

Which of the following items would appear on a balance sheet?

Wave Company borrowed $10,000 cash from a bank.

Taos Corporation earned cash revenues of $52,000.

A stockholder in a corporation would use ___ to learn about the company.

Investors in a business expect to receive a share of the income earned by the business.

A business can obtain resources through its earnings activities.

What does the statement of cash flows tell you about a company?

A business's creditors have a priority claim to its assets in the event of liquidation.

What was the cash flow from operating activities?

Lynn Corporation paid $40,000 to purchase equipment.

Issuance of common stock is an asset use transaction.