Assignment: Sectional Exam 1-4 Ch 2 MC

MC Qu. 93 Stride Rite has total assets of...

Stride Rite has total assets of $575 million. Its total liabilities are $185 million. Its equity is $390 million. Calculate the debt ratio.

	67.83%
	14.74%
	47.44%
	32.2%
	15.7%

$185 / $575 = 32.2%

MC Qu. 89 These transactions were completed by the art...

These transactions were completed by the art gallery opened by Zed Bennett.

  

a.	Bennett started the gallery, Artery, by investing $54,500 cash and equipment valued at $19,450 in exchange for common stock.
b.	Purchased $215 of office supplies on credit.
c.	Paid $1,925 cash for the receptionist's salary.
d.	Sold a painting for an artist and collected a $4,885 cash commission on the sale.
e.	Completed an art appraisal and billed the client $345.

  

What was the balance of the cash account after these transactions were posted?

	$12,770
	$57,460
	$57,590
	$77,040
	$12,425

$54,500 − $1,925 + $4,885 = $57,460

MC Qu. 94 A company has total liabilities of...

A company has total liabilities of $660 million and total equity of $311 million. Calculate this company's debt ratio.

→	68.0%
	47.1%
	2.12 to 1
	100%
	The debt ratio cannot be determined without additional information.

$660 / ($660 + $311) = 68.0%

MC Qu. 120 What would be the account balance in Accounts...

What would be the account balance in Accounts Receivable after the following transactions, assuming a zero beginning balance?

  

Performed services and left a bill.	$6,000
Performed services and collected immediately.	$4,400
Performed services and billed customer.	$2,650
Performed services on account.	$8,700
Received partial payment on account.	$1,950

	$3,350
	$15,400
	$19,800
	$23,700
	$6,750

$6,000 + $2,650 + $8,700 − $1,950 = $15,400

MC Qu. 141 Given the trial balance amounts below...

Given the trial balance amounts below, compute net income.

Common stock	$188,400	Accounts payable	$39,250
Cash	$183,140	Accounts receivable	$34,800
Supplies	$2,450	Office equipment	$36,600
Prepaid rent	$5,100	Unearned revenue	$6,280
Service revenue	$31,400	Utilities expense	$650
Beginning retained earnings	$47,100	Shaving equipment	$49,690

	$27,570
	$33,200
	$77,850
	$38,370
	$30,750

$31,400 – $650 = $30,750

MC Qu. 139 What are the total assets shown on the trial...

What are the total assets shown on the trial balance below?

  

Common stock	$181,200	Accounts payable	$37,750
Cash	$176,140	Accounts receivable	$33,500
Supplies	$2,350	Office equipment	$35,200
Prepaid rent	$4,900	Unearned revenue	$6,056
Service revenue	$30,200	Utilities expense	$626
Retained earnings	$45,300	Shaving equipment	$47,790

	$300,506
	$440,090
	$299,880
	$334,630
	$328,030

$176,140 + $2,350 + $4,900 + $33,500 + $35,200 + $47,790 = $299,880

MC Qu. 104 On April 30, Holden Company had an Accounts...

On April 30, Holden Company had an Accounts Receivable balance of $22,200. During the month of May, total credits to Accounts Receivable were $62,500 from customer payments. The May 31 Accounts Receivable balance was $16,150. What was the amount of credit sales during May?

	$68,550
	$62,500
	$56,450
	$6,050
	$38,350

Normal balance = debit

$22,200 − $62,500 + credit sales = $16,150

Credit sales = $56,450

MC Qu. 88 The following transactions occurred during...

The following transactions occurred during July:

  

a.	Received $1,650 cash for services provided to a customer during July.
b.	Received $2,950 cash investment from Barbara Hanson, the owner of the business.
c.	Received $1,125 from a customer in partial payment of his account receivable, which arose from sales in June.
d.	Provided services to a customer on credit, $750.
e.	Signed a promissory note for a $9,000 bank loan.
f.	Received $1,625 cash from a customer for services to be rendered next year.

  

What was the amount of revenue for July?

	$16,350
	$1,650
	$5,150
	$4,025
	$2,400

1,650 + 750 = 2,400