QuestionAnswered step-by-step1.As of the end of its accounting period, December 31, Year 1, Great Plains Company has assets of $950,000 and liabilities of $320,000.?During Year 2, stockholders invested an additional $50,000 and received $30,000 in dividends from the business. What is the amount of net income during Year 2, assuming that as of December 31, Year 2, assets were $975,000 and liabilities were $260,000?2.Donner Company is selling a piece of land adjacent to its business premises.?An appraisal reported the market value of the land to be $320,000.?The Focus Company initially offered to buy the land for $207,000.?The companies settled on a purchase price of $312,000.?On the same day, another piece of land on the same block sold for $282,000.?Under the cost concept, at what amount should the land be recorded in the accounting records of Focus Company?3.Match each transaction with its effect on the accounting equation. Each number may be used more than once.Answer options:1.Increase assets, increase liabilities2.Increase liabilities, decrease stockholders’ equity3.Increase assets, increase?tockholders’?quity4.No effect5.Decrease assets, decrease liabilities6.Decrease assets, decrease?tockholders’?quity__ Provided a service to a customer on account__ Received utility bill to be paid next month__ Payment for common stock by stockholder__ Used up supplies that were already on hand__ Received cash for services provided__ Purchased supplies on credit__ Purchased equipment for cash__ Received payment from a customer on account__ Paid part of an amount owed to a creditor__ Received cash for providing services to customers__ Paid wages__ Paid cash for the purchase of a one-year insurance policy__ Contribution of land by stockholder__ Borrowed money from a bank__ Payment of dividends4.Match the type of account (1 – 5) with the business transactions that follow.Answer options:1.Prepaid expense2.Accrued expense3.Unearned revenue4.Accrued revenue5.None of these__ Paid for one year’s insurance policy.__ Paid 6 months of rental payments to the landlord.__ Received payment covering a 6-month magazine subscription.__ Services provided that have not been recorded.__ Provided tutoring for a student that will be invoiced next month.__ Received 6 months of rental payments from a tenant.__ A contract to provide tutoring services beginning next month was signed.__ Annual property taxes that are paid at the end of the year.__Electric bill to be paid next month.__ Annual depreciation on equipment, recorded on a monthly basis.__ Paid for a 6-month magazine subscription.__ Retainer fee received from a client for future legal representation.5.The income statement should be preparedQuestion 5 options:a. after the balance sheet and before the?etained earnings statementb. before the retained earnings statement and balance sheetc. after the?etained earnings statement?nd balance sheetd. after the?etained earnings statement?nd before the balance sheet6.Use the adjusted trial balance for Stockton Company below to determine the Retained Earnings ending balance.?tockton CompanyAdjusted Trial Balance31-DecCash / 7,530 / ________Accounts Receivable / 2,100 / ________?repaid Expenses / 700 / ________Equipment / 13,700 / ________Accumulated Depreciation ________/ 1,100Accounts Payable ________ / 1,900Notes Payable ________ / 4,300Common Stock ________ / 1,000Retained Earnings ________ / 12,940Dividends / 790 / ________Fees Earned ________ / 9,250Wages Expense / 2,500 / ________Rent Expense / 1,960 / ________Utilities Expense / 775? ________Depreciation Expense / 250? ________Miscellaneous Expense / 185? / ________Totals / 30,490 / 30,4907.Use the adjusted trial balance for Stockton Company below to determine Total Current Assets.?tockton CompanyAdjusted Trial Balance31-DecCash / 7,530 / ________Accounts Receivable / 2,100 / ________Prepaid Expenses / 700 / ________Equipment / 13,700 / ________Accumulated Depreciation ________/ 1,100Accounts Payable ________/ 1,900Notes Payable ________ / 4,300Common Stock ________ / 1,000Retained Earnings ________ / 12,940Dividends / 790 / ________Fees Earned ________ / 9,250Wages Expense / 2,500 / ________Rent Expense / 1,960 / ________Utilities Expense / 775 / ________Depreciation Expense / 250 / ________Miscellaneous Expense / 185? / ________Totals / 30,490 / 30,490 8.Use this?nd-of-period spreadsheet to answer the questions that follow.Image transcription textelby Segotta: Attempt 1 U. ULLEquipment 57,000 57,000Accumulated Depr. 18,00… Show moreImage transcription textAdjusted Trial Balance IncomeStatement Balance Sheet AccountTitle Debit Credit Debit Cr… Show more?The entry to close Expenses would be:a. Wages Expense?? 63,000Rent Expense????27,000Depreciation Expense? 15,000????Dividends???????105,000b. Income Summary???05,000????ages Expense????????3,000????ent Expense?????????27,000????epreciation Expense??? 15,000c. Wages Expense????63,000Rent Expense?????7,000Depreciation Expense?15,000????ncome Summary?????105,000d. Expenses????????105,000????ncome Summary?????05,0009.Use this?nd-of-period spreadsheet to answer the questions that follow.Image transcription textAdjusted Trial Balance IncomeStatement Balance Sheet AccountTitle Debit Credit Debit Cr… Show moreImage transcription textEquipment 57,000 57,000 AccumulatedDepr. 18,000 18,000 Accounts Payable25,000 25,000 Wages Pa… Show more?The entry to close Income Summary would be:a. debit Common Stock, $50,000; credit Income Summary, $50,000b. debit Income Summary, $50,000; credit Retained Earnings, $50,000c. debit Income Summary, $155,000; credit Common Stock, $155,000d. debit Common Stock, $9,000; credit Income Summary, $9,00010.Using the following information, what is the amount of gross profit??Purchases / $43,000Merchandise inventory, September 1 / 6,600Selling expense / 1,450Merchandise inventory, September 30 / 6,500Sales / 90,000Interest expense / 1,240Administrative expense / 1,310Rent revenue / 1,40011.The following units of an inventory item were available for sale during the year:?nit/ Unit CostBeginning inventory 12 / $55First purchase 25/ 60Second purchase34 /65Third purchase19 /70The firm uses the periodic inventory system.?During the year, 63 units of the item were sold.The value of ending inventory using FIFO is:12.The following units of an inventory item were available for sale during the year: ?nit/Unit CostBeginning inventory10/$55First purchase27 / 60Second purchase35/65Third purchase 18/ 70The firm uses the periodic inventory system.?During the year, 61 units of the item were sold.The value of ending inventory using LIFO is:13.The following units of an inventory item were available for sale during the year:?nit / Unit CostBeginning inventory12$ /55First purchase 30/ 60Second purchase31/ 65Third purchase18/70The firm uses the periodic inventory system.?During the year, 62 units of the item were sold.The value of ending inventory rounded to nearest dollar?sing average cost is:14.Addison, Inc. uses a perpetual inventory system.?The following is information about one inventory item for the month of September:Sep.?Inventory 20 units at $204Sold10 units???10 Purchased30 units at $25???17Sold20 units???30Purchased 10 units at $30?f Addison uses FIFO, the cost of the ending merchandise inventory on September 30 is:a. $800b. $650c. $750d. $70015.Addison, Inc. uses a perpetual inventory system.?The following is information about one inventory item for the month of September:Sep.?Inventory 20 units at $20????4 Sold10 units???10 Purchased 30 units at $25???17 Sold 20 units???30Purchased10 units at $30?If Addison uses LIFO, the cost of the ending merchandise inventory on September 30 is:a. $800b. $650c. $750d. $70016.Assign the number to indicate whether the following items would be added or subtracted from the company’s books or the bank statement during the construction of a bank reconciliation.Answer Options:1.added to the company’s books2.bubtracted from the company’s books3.added to the bank statement balance4.subtracted from the bank statement balance__ interest revenue earned by the note above__ outstanding checks__ bank service charge__ EFT deposit from a customer__ a $1,000 note from one of your customers was collected by the bank__ deposit in transit__ NSF check__ charges for some other company’s safe deposit box were posted to your account17.Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $390,000 and credit sales are $1,300,000. An aging of accounts receivable shows that approximately 5% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,500 before adjustment?a. Bad Debt Expense???????22,000??llowance for Doubtful Accounts??????22,000b. Bad Debt Expense???????19,500??llowance for Doubtful Accounts??????19,500c. Bad Debt Expense???????65,000??llowance for Doubtful Accounts??????65,000d. Bad Debt Expense???????17,000??llowance for Doubtful Accounts??????17,00018.A building with an appraisal value of $159,000 is made available at an offer price of $176,000.?The purchaser acquires the property for $49,000 in cash, a 90-day note payable for $54,000, and a mortgage amounting to $84,000.?The cost basis recorded in the buyer’s accounting records to recognize this purchase is:19.Classify each of the following costs associated with long-lived assets as one of the following:Answer options:1.Land improvements2.Buildings3.Land4.Machinery and equipment__ Outdoor lighting at new business location__ Paved parking areas at new business location__ Cost of grading and leveling land to be used for a new business site__ Cost of installing new equipment__ Supplies (materials) used to test new equipment__ Modifying a building purchased for new business location__ Fences around land at new business location__ Cost of removing an existing building to ready land for use as a new business site__ Walkways to surround new business location__ Cost assessed by city for paving a public street that borders land on which a new business location will be constructed20.Based on the following data, what is the quick ratio, rounded to one decimal point?Accounts payable$33,000Accounts receivable60,000Accrued liabilities6,000Cash 33,000Intangible assets52,000Inventory 76,000Long-term investments84,000Long-term liabilities100,000Marketable securities38,000Fixed assets 680,000Prepaid expenses7,000AccountingBusinessFinancial AccountingACCT 220Share Question
