Business: Balance Sheet and Cash

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BACC 100
Assignment # 1

1. Jellybean Company reported equity of $32,000 on its December 31, 2014 balance sheet. The following information is available for the year ended December 31, 2015:

Revenues
$73,000
Expenses
59,000
Liabilities
11,000

What are the total assets of Jellybean Company at December 31, 2015? A) $14,000.
B) $25,000.
C) $35,000.
D) $46,000.
E) $57,000.

2. At the end of its first year of operations, Matlocke Company has total assets of $2,000,000 and total liabilities of $1,200,000. The owner originally invested $200,000 in the business, but has not made any further investments or taken any withdrawals. What is the first year's net income for Matlocke Company? A) $ 600,000.

B) $ 800,000.
C) $1,000,000.
D) $3,000,000.
E) $3,200,000.

3. Annie's Attic has the following account balances for the dates given:

Cash, Sept 1
$40,000
Cash, Sept 30
60,000
Accounts receivable, Sept 1
10,000
Accounts receivable, Sept 30
14,000
Capital, Sept 1
?
Capital, Sept 30
?
Supplies, Sept 1
30,000
Supplies, Sept 30
24,000
Accounts payable, Sept 1
6,000
Accounts payable, Sept 30
?
Net income for September
20,000

What would equity be on September 1 and September 30?
A) $86,000; $ 4,000.
B) $86,000; $106,000.
C) $74,000; $ 94,000.
D) $74,000; $ 4,000.
E) None of these answers is correct.

4. Double-entry accounting is:
A) An accounting system that disregards the accounting equation, A = L + E. B) An accounting system that records the effects of transactions and other events in at least two accounts with equal debits and credits. C) An accounting system in which each transaction affects and is recorded in two or more accounts with unequal debits and equal credits. D) An accounting system in which the sum of the debit account balances never equals the sum of the credit account balances. E) An accounting system in which errors never occur.

5. Of the following accounts, the one that normally has a debit balance is: A) Accounts Payable.
B) Accounts Receivable.
C) Ted Neal, Capital.
D) Sales Revenue.
E) Unearned Revenue.

6. Of the following accounts, the one that normally has a credit balance is: A) Cash.
B) Office Equipment.
C) Sales Salaries Payable.
D) Ted Neal, Withdrawals.
E) Sales Salaries Expense.

7. A debit entry:
A) Increases asset and expense accounts.
B) Decreases liability and equity accounts.
C) Increases the owner's withdrawals account.
D) Decreases revenue accounts.
E) All of these answers are correct.

8. A credit entry:
A) Increases asset and expense accounts, or decreases liability, equity, and revenue accounts. B) Is recorded on the left side of a T-account.
C) Decreases asset and expense accounts, or increases liability, equity, and revenue accounts. D) Decreases asset, expense and revenue accounts.
E) Increases the withdrawals account.

9. On April 30, Hal Company had an Accounts Receivable balance of $37,000. During the month of May, total credits to Accounts Receivable were $24,000, which resulted from customer payments. The May 31 Accounts Receivable balance was $32,000. What was the amount of credit sales during May? A) $19,000.

B) $29,000.
C) $32,000.
D) $45,000.
E) $56,000.

10. On September 30, the Cash account of Blue Company had a normal balance of $2,300. During September, the account was debited for a total of $5,400 and credited for a total of $3,900. What was the balance in the Cash account on September 1? A) A $-0- balance.

B) An $800 debit balance.
C) An $800 credit balance.
D) A $3,800 debit balance.
E) A $3,800 credit balance.

11. During the month of February, Hal Company had cash receipts of $6,500 and paid out $8,000 for expenses. The February 28 cash balance was $4,300. What was the cash balance on February 1? A) $1,500.

B) $2,800.
C) $4,300.
D) $5,800.
E) $7,300.

12. The following transactions occurred during...
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