Question 1 (7 points)
Baltimore Company’s complete assets and liabilities are Accounts Receivable $800, Equipment $10,000, Accounts Payable $4,650, Prepaid Rent $2,000, Supplies $400, Bank Loan $3,950, and Tools $300. Baltimore’s total liabilities are: (All account balances are normal.)
Your Answer:
Question 2 (7 points)
Baltimore Company’s complete assets and liabilities are Accounts Receivable $1,950, Equipment $8,200, Accounts Payable $5,500, Prepaid Rent $1,500, Supplies $725, Bank Loan $4,450, and Tools $535. Baltimore’s total equity is: (All account balances are normal.)
Your Answer:
Question 3 (7 points)
Baltimore Company experienced a total increase in stockholders’ equity of $24,000 during the current year. Stockholders’ equity was increased by additional issuances of $43,000 capital stock during the year. No dividends were paid. Expenses incurred during the year were $88,000. How much was Baltimore’s revenue for the year?
Your Answer:
Question 4 (7 points)
Baltimore Company experienced an increase in total assets of $20,500 during the current year. During the same time period, total liabilities increased $3,600. Shareholders made no investments during the year and no dividends were paid. How much was Baltimore’s net income
Your Answer:
Question 5 (7 points)
Annapolis Corporation’s trial balance included debits to expense accounts of $105,000, credits to revenue accounts of $225,000, and debits to the Dividends account of $50,000. Based on this information, what is the amount of the company’s net income or loss. Enter a loss as a negative number.
Your Answer:
Question 6 (7 points)
Baltimore Company reports total assets and total liabilities of $276,000 and $110,000, respectively, at the conclusion, of its first year of business. The company earned $67,500 during the first year, and distributed $28,000 to shareholders as dividends. How much did shareholders initially invest in the business?
Your Answer:
Question 7 (7 points)
During June, Bravo Magazine sold for cash six advertising spaces for $400 each to be run in the July through December issues. On that date, Bravo properly recognized Unearned Revenue. The adjusting entry to record on July 31 includes:
Question 7 options:
|
a credit to Revenue for $2,000 |
|
a debit to Cash for $2,000 |
|
a credit to Unearned Revenue for $400 |
|
a debit to Unearned Revenue for $400 |
Question 8 (7 points)
On January 7, Bravo purchased supplies on account for $1,000, and recorded this purchase to the Supplies account. At the end of January, Bravo had $600 of these supplies still on hand. The proper adjusting journal entry at January 31 would:
Question 8 options:
|
include a credit to Supplies for $400 |
|
include a debit to Supplies Expense for $600 |
|
include a debit to Supplies for $1,000 |
|
include a debit to Accounts Payable for $400 |
Question 9 (7 points)
On January 1, 20X1, Bravo Company borrowed $26,000 to purchase equipment. The loan is to be repaid plus interest of 10% per year, on December 31, 20X2. Prepared the general journal adjusting entry (without explanation) needed for December 31, 20X1. If no entry is required then write “No Entry Required.”
Question 9 options:
Question 9 (7 points)
On January 1, 20X1, Bravo Company borrowed $26,000 to purchase equipment. The loan is to be repaid plus interest of 10% per year, on December 31, 20X2. Prepared the general journal adjusting entry (without explanation) needed for December 31, 20X1. If no entry is required then write “No Entry Required.”
Question 9 options:
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Question 10 (7 points)
On Tuesday March 31, 20X1 the Bravo Company had accrued wages of $1,000. Friday, April 3, Bravo paid employee wages of $2,500 for the week. Prepared the general journal entry (without explanation) needed for March 31, 20X1. If no entry is required then write “No Entry Required.”
ANSWER
Question 11 (7 points)
During 2018, Towson Company had credit sales of $40,000 and cash sales of $14,000. In 2018 Towson collected $31,000 of accounts receivable resulting from sales on credit. Towson incurred operating expenses of $47,000; of this amount, $42,900 was paid in 2018, and the remaining balance represented a liability at year-end. In addition to these operating expenses, Towson also purchased for cash a three-year insurance policy on January 1, 2018. The cost of this policy was $3,000. What is Towson’s 2018 accrual basis net income or loss? Enter a loss as a negative number.
Your Answer:
Question 12 (16 points)
The following is the Frederick Company’s adjusted Trial Balance.
| Frederick Company |
| Adjusted Trial Balance |
| December 31, 2018 |
| Account Title |
Debit |
Credit |
| Cash |
$85,150 |
|
| Accounts Receivable |
229,140 |
|
| Supplies |
16,955 |
|
| Equipment |
395,285 |
|
| Accumulated Depreciation |
|
$221,260 |
| Accounts Payable |
|
74,235 |
| Capital Stock |
|
220,000 |
| Retained Earnings |
|
101,145 |
| Service Revenue |
|
893,105 |
| Interest Income |
|
1,500 |
| Dividends |
2,000 |
|
| Rent Expense |
58,500 |
|
| Wages Expense |
527,260 |
|
| Supplies Expense |
42,520 |
|
| Utilities Expense |
8,595 |
|
| Depreciation Expense |
145,840 |
________ |
| Totals |
$1,522,565 |
$1,522,565 |
Use this information to prepare the classified Balance Sheet for the fiscal year. There are additional lines in the classified Balance Sheet form to allow for authorized alternate presentations. Hint: you must close out temporary accounts to arrive at adjusted retained earnings balance.
Question 13 (7 points)
A partial list shows that Charles Corporation’s adjusted trial balance included the following items (all account balances are normal):
Accounts payable $47,000, Accounts receivable $54,000, Capital stock $100,000, Cash $46,000, Dividends $10,000, Interest expense $4,000, Interest payable $5,000, Inventory $32,000, Prepaid expenses $5,000, Property, plant & equipment $123,000, Retained earnings $46,000, Rent expense $18,000, Revenues $101,000, and Salary expense $60,000. How much is Charle’s current ratio? (Round your answer to two decimal places.)
Your Answer:
