Financial Accounting-
1. The Rose Corporation has total assets of $94,000 and total liabilities of $67,000. What is the amount of its owners' equity?
2. The Barney Corporation started July with assets of $150,000 and liabilities of $80,000. During the month of July, stockholders' equity increased by $24,000 and liabilities increased by $10,000. What is the amount of total assets at the end of July?
3. Using the following information, compute NET INCOME.
|
Cost of Goods Sold
|
$5,000
|
|
Interest Expense
|
1,100
|
|
Selling and Administrative Expense
|
750
|
|
Cash
|
400
|
|
Sales
|
10,000
|
|
Wages Payable
|
250
|
|
Dividends
|
700
|
|
Retained Earnings (beginning)
|
1,000
|
|
Income Tax Expense
|
1,200
|
4. The following items were taken from the records of Anasonic Corporation for the month of October.
Using the data compute net income for the month of October.
|
Sales revenue
|
$620,000
|
|
Salaries expense
|
80,000
|
|
Capital stock issued
|
140,000
|
|
Cost of goods sold
|
335,000
|
|
Service revenues
|
55,000
|
|
Rental expense
|
45,000
|
|
Repairs and maintenance expense
|
54,000
|
|
Retained earnings, October 1
|
230,000
|
|
Accounts payable
|
40,000
|
|
Taxes expense
|
31,000
|
|
Dividends declared and paid
|
13,000
|
5. The New Company's assets equal $124,000, and its stockholders' equity totals $48,000. What is the amount of its liabilities?
6. Thomson Company started business on January 1 of Year 1. On December 31 of Year 1, Thomson had the following account balances:
Accounts receivable: $145,000
Sales revenues: $991,000
Income taxes payable: $29,000
Loan payable: $60,000
Cost of goods sold: $627,000
Cash: $80,000
Inventory: $33,000
Operating expenses: $235,000
Income tax expense: $30,000
Accounts payable: $60,000
Property, Plant, and Equipment: $166,000
Prepaid Rent: $60,000
Bonds Payable: $150,000
Capital Stock: $90,000
Given these data, what is the total amount of Thomson's Stockholders' Equity as of December 31 of Year 1?
7. On December 31, 20X1, Grantsville Company had the following account balances.
Accounts receivable $15,000
Sales revenues 845,000
Retained earnings (beginning of year, January 1, 20X1) 120,000
Income taxes payable 25,000
Loan payable 30,000
Cost of goods sold 650,000
Cash 65,000
Inventory 20,000
Common stock 41,000
Operating expenses 196,000
Income tax expense 25,000
Unearned revenue 55,000
Property, plant, and equipment 150,000
Prepaid rent 40,000
Bonds payable 40,000
Given these data, what are Grantsville's TOTAL ASSETS as of December 31, 20X1?
8. The following data relate to Company A.
Retained earnings 500
Paid-in capital 200
Long-term liabilities 1,000
Current assets 400
Current liabilities 600
Given these data, compute Company A's TOTAL LONG-TERM ASSETS.
9. During Year 1, Knight Company recorded the following information on its Income Statement.
Sales revenue $500,000
Interest expense 10,000
Interest income 15,000
Gross Profit 300,000
Selling and administrative expenses 75,000
Income tax expense 12,000
What is Knight Company's cost of goods sold for Year 1?
10. Use the following information to compute NET INCOME. The income tax rate is 40%.
Cost of Goods Sold $ 4,000
Interest Expense 1,100
Selling and Administrative Expense 2,000
Sales 10,000
Dividends 700
11. Yokum Company had the following transactions for 20X1.
- Payments of dividends - $11,250
- Depreciation expense - $22,500
- Income taxes paid - $27,000
- Proceeds received from sale of equipment - $225,000
- Utilities paid - $6,750
- Interest paid on note to local bank - $5,000
- Proceeds from issuance of common stock - $56,250
- Collections on accounts receivable - $337,500
- Payments on inventory - $168,750
- Payments for wages and salaries - $78,750
Using the transactions above, compute the net cash flow from operating activities.
12. Chen Corporation had the following cash flows during 20X3.
Cash paid to purchase building........................................ $45,000
Cash paid for insurance............................................................. 750
Cash paid for dividends....................................................... 14,500
Cash paid to purchase land................................................. 15,000
Cash receipt from the issuance of stock........................... 10,000
Cash received from customers............................................ 15,000
Interest received on long-term investments........................ 8,000
Cash paid for wages................................................................ 9,000
Given this information, net cash inflow (outflow) from financing activities is:
13. Using the following information, compute the ENDING cash balance for the year.
Cash balance, beginning $1,500
Cash paid for dividends 800
Cash paid for income taxes 1,320
Cash paid to purchase machinery 1,950
Cash paid to purchase inventory 10,800
Cash paid to repay a loan 1,000
Cash collected from customers 9,000
Cash received from issuance of new shares of common 1,200
Cash received from sale of a building 5,600
Cash paid for interest 450
14. Malone Enterprises performed a physical inventory count on December 31, 20X1. The value of the inventory was computed at $216,540. As of December 31, 20X1, the following inventory was in transit:
Shipped Terms Cost Date Arrived
To Malone FOB Destination $ 8,500 January 3, 20X2
From Malone FOB Shipping Point 6,250 January 2, 20X2
From Malone FOB Destination 11,780 January 4, 20X2
To Malone FOB Shipping Point 4,680 January 3, 20X2
What is the correct amount at which Malone should report its inventory as of December 31, 20X1?
15. At the beginning of Year 1, the company's inventory level was stated correctly. At the end of Year 1, inventory was overstated by $4,000. Reported net income was $7,000 in Year 1. The correct amount of net income in Year 1 is
16. The company reported the following inventory data for the year:
Cost Per
Units Unit
Beginning Inventory 300 $17.50
Purchases:
March 23 900 18.00
September 16 1,200 18.25
Units Remaining at Year End: 400
Compute cost of Both Cost of Good Sold and Ending Inventory assuming average cost inventory valuation. Assume that ALL sales occurred on December 31.
17. The Violet Store shows the following information relating to one of its products.
Inventory, May 1 150 units @ $35.00
Purchases, May 15 500 units @ $36.00
Purchases, May 20 600 units @ $36.50
Sales, May 24 1,000 units
The company uses LIFO. Compute ENDING INVENTORY for May.
18. On December 31, 20X1, Ryan Company had the following account balances.
Accounts receivable $15,000
Sales revenues 845,000
Gain on sale of equipment 14,000
Retained earnings (beginning of year, January 1, 20X1) 20,000
Accounts payable 25,000
Loan payable 45,000
Cost of goods sold 650,000
Cash 6,000
Inventory 11,000
Common stock 41,000
Operating expenses 210,000
Dividends 34,000
Unearned revenue 5,000
Property, plant, and equipment 45,000
Prepaid rent 50,000
Bonds payable 26,000
Given these data, what are Ryan's TOTAL LIABILITIES as of December 31, 20X1?
19. Use the following information to compute the CURRENT RATIO (current assets / current liabilities).
Accounts Payable $ 1,100
Paid-in Capital 1,750
Cash 400
Sales 10,000
Accrued Wages Payable 250
Inventory 4,000
20. On January 1, Company E has total assets of $300,000 and total liabilities of $200,000. On January 2, Company E entered into the following three transactions.
a. Sold inventory costing $105,000 to customers for $150,000. The customers paid $100,000 in cash and the remaining $50,000 was put on the customers' accounts.
b. Paid employee wages totaling $28,000. These wages had not been previously recorded.
c. Borrowed $85,000 cash with a long-term bank loan.
After these three transactions, compute Company E's TOTAL OWNERS' EQUITY.