Sectional Exam 1-4 Ch 01 MC

MC Qu. 145 Determine the net income of a company for...

Determine the net income of a company for which the following information is available:

Employee salaries expense	$ 187,000
Interest expense	17,000
Rent expense	27,000
Consulting revenue	470,000

	$258,000
	$470,000
	$239,000
	$231,000
	$701,000

Expenses: $187,000 + $17,000 + $27,000 = $231,000

Net income = $470,000 - $231,000 = $239,000 Beginning assets were $442,600, beginning liabilities were $264,560, common stock issued during the year totaled $47,000, revenue for the year was $418,250, expenses for the year were $282,000, dividends declared was $24,700, and ending liabilities is $$355,000.What is net income for the year? $336,590 $619,560 $707,160 $178,040 $136,250 418,250 – 282,000 = 136,250 MC Qu. 149 Use the following information as of December... Use the following information as of December 31 to determine equity.   Accounts payable $900     Accounts receivable 800     Cash 2,500     Wages expense 9,400     Wages payable 1,320   $11,620 $5,520 $3,300 $10,480 $1,080 Assets: $800 + $9,400 = $3,300 Liabilities: $900 + $1,320 = $2,220 Equity: $3,300 – $2,220 = $1,080 MC Qu. 164 Beginning assets were... Beginning assets were $718,000, beginning equity was $234,000, revenue for the year was $541,000, common stock issued during the year totaled $356,000, expenses for the year were $401,000, ending equity is $691,000, and ending assets are $981,000. What were the total dividends declared? $140,000 $1,025,000 $185,000 $39,000 $317,000 691,000 + 401,000 – 541,000 – 356,000 - 234,000 = 39,000 MC Qu. 123 If the assets of a business increased... If the assets of a business increased $16,400 during a period of time and its equity decreased $4,700 during the same period, liabilities in the business must have: Decreased $21,100 Increased $11,700 → Increased $21,100 Decreased $11,700 Increased $78,080 Change in assets = Change in liabilities + Change in equity +$16,400 = x – $4,700 x = +$21,100 MC Qu. 96 If equity is... If equity is $304,000 and liabilities are $196,000, then assets equal: $304,000 $196,000 $804,000 $108,000 $500,000 Assets = Liabilities + Equity            = $196,000 + $ 304,000            = $500,000 MC Qu. 113 A company has twice as much owner's equity as it does... A company has twice as much owner's equity as it does in liabilities. If total liabilities are $57,000, what amount of assets are owned by the company? $57,000 $114,000 → $171,000 $228,000 Assets cannot be determined from the given information. Owners' equity = 2 (57,000) = 114,000 Assets = Liabilities 57,000 + Owners' equity 114,000 MC Qu. 169 Ending liabilities are... Ending liabilities are 69,250, beginning equity was $87,900, common stock issued during year totaled $30,100, expenses for the year were $20,200, dividends declared totaled $11,650, ending equity for the year is $172,000, and beginning assets for the year were $226,500.What was revenue for the year? $85,850 $50,300 $138,600 $157,150 $157,250 172,000 + 11,650 + 20,200 – 30,100 – 87,900 = 85,850