Corresponds to CLO 1(a) Which of the following interrelationships is not important to understand

Corresponds to CLO 1(a) Which of the following interrelationships is not important to understand when preparing financial statements: (Points : 8)

2.Corresponds to CLO 1(b) Which of the following does not describe the balance sheet? (Points : 8)

3.Corresponds to CLO 1(c) Tulsa Corporation began the year by issuing $50,000 of common stock for cash. The company recorded revenues of $200,000, expenses of $125,000, and paid dividends of $20,000. What was Tulsa's net income for the year? (Points : 8)

4.Corresponds to CLO 1(d) Which of the following is not true about the statement of cash flows? (Points : 8)

5.Corresponds to CLO 2(a) Based on the following account balances, what is the total of the debit and credit columns of this company's adjusted trial balance? Service Revenue…$5,000; Cash…$1,600; Unearned revenue…$3,600; Salary expense…$1,300; Common stock…$1,000; Equipment…$7,000; Prepaid insurance…$1,400; Depreciation expense…$700; Accumulated depreciation…$1,400; Retained earnings…$1,000. (Points : 8)

6.Corresponds to CLO 2(b) Given the following adjusted trial balance amounts, what is the net income for the year?
Debit balances
Cash…$8,000; Accounts receivable…$4,000; Short-term investments…$10,000; Prepaid rent…$500; Property, plant, & equipment…$20,000; Salary expense…$6,000; Depreciation expense…$2,000; Rent expense…$2,500
Credit balances
Accumulated depreciation…$6,000; Accounts payable…$2,600; Unearned revenue…$3,000; Common stock…$8,000; Retained earnings…$12,000; Service revenue…$21,000; Interest revenue…$400. (Points : 8)

7.Corresponds to CLO 2(c) Given the following adjusted trial balance amounts, what is the retained earnings ending balance to be reported on the statement of retained earnings?
Debit balances
Cash…$8,000; Accounts receivable…$12,000; Inventory…$13,000; Property, plant, & equipment…$30,000; Cost of goods sold…$21,000; Salary expense…$4,000; Depreciation expense…$3,000
Credit balances
Accumulated depreciation…$9,000; Accounts payable…$5,000; Common stock…$35,000; Retained earnings…$12,000; Revenue…$30,000. (Points : 8)

8.Corresponds to CLO 2(d) Given the following adjusted trial balance amounts, total assets reported on the balance sheet is?
Debit balances
Cash…$15,000; Accounts receivable…$12,000; Equipment…$60,000; Supplies…$4,000; Expenses…$95,000.
Credit balances
Accumulated depreciation…$6,000; Accounts payable…$5,000; Common stock…$40,000; Retained earnings…$15,000; Revenue…$120,000. (Points : 8)

9.Corresponds to CLO 3(a) Intuition Company provided consulting services and billed the client $4,000. As a result of this transaction, (Points : 8)

10.Corresponds to CLO 3(b) Delbert Industries purchased and received inventory of $15,000 on account. The entry to record this purchase will include: (Points : 8)

11.Corresponds to CLO 3(c) During June 2013, its first month of operations, the owner of Jinx Enterprises invested cash of $25,000 in Jinx Enterprises. Jinx had cash sales of $8,000, bought supplies of $600 on account, and paid expenses of $12,500. Assuming no other transactions impacted the cash account, what is the balance in Cash at June 30. (Points : 8)

12.Corresponds to CLO 3(d) Hemmingway Corporation paid salaries of $5,000 and paid advertising expense of $2,000. Which of the following journal entries correctly records these expenses? (Points : 8)

13.Corresponds to CLO 4(a) Which of the following statements is correct regarding prepaid expenses and accrued expenses, before adjusting entries have been made? (Points : 8)

14.Corresponds to CLO 4(b) Hudson Law Corporation received $5,500 cash for legal services to be rendered in the future. The full amount was credited to the liability account Unearned Service Revenue. At the end of the period, Hudson determines that $2,500 of the legal services have been rendered. The appropriate adjusting journal entry to be made at the end of the period is: (Points : 8)

15.Corresponds to CLO 4(c) Ace Corporation purchased office supplies costing $15,000 and debited Office Supplies inventory for the full amount. At the end of the accounting period, a physical count of office supplies revealed $2,400 still on hand. The appropriate adjusting journal entry to be made at the end of the period is: (Points : 8)

16.Corresponds to CLO 4(d) On September 1, Northgate paid $18,000 to Evans Management Company for 12 months of rent beginning on September 1. The appropriate journal entry was made to record this transaction. If financial statements are prepared for the 9 months ended September 30, the adjusting entry to be made by Northgate is: (Points : 8)

17.Corresponds to CLO 5(a) Lennox Corporation purchased a new delivery truck for 60,000. The sales taxes are $4,800. The logo is painted on the side of the truck for $1,000. The truck's annual license is $250. Annual insurance on the truck is $1,200. What should Lennox record as the cost of the new truck? (Points : 8)

18.Corresponds to CLO 5(b) On October 1, 2013, Ballard Corporation purchased equipment for $65,000. It is estimated that the equipment will have a $5,000 salvage value at the end of its 5 year useful life. If Ballard uses the straight-line method of depreciation, what is the accumulated depreciation at December 31, 2013? (Points : 8)

19.Corresponds to CLO 5(c) Tyree Company purchased equipment with a cost of $90,000 and an estimated salvage value of $18,000. The equipment is expected to produce 120,000 units over its estimated useful life of 10 years. If Tyree uses the units-of-activity method, what is the depreciation cost per unit to be used in calculating depreciation? (Points : 8)

20.Corresponds to CLO 5(d) Kerns Company purchased equipment with a cost of $200,000 and an estimated salvage value of $10,000. The equipment has an estimated useful life of 5 years. If Kerns uses the double-declining balance method, what is the annual depreciation rate to be used in calculating depreciation? (Points : 8)