Match the following accounting principles, accounting assumptions, and qualitative characteristics with their descriptions.
For each account listed below, choose its classification:
Account | Classification | |
---|---|---|
1 | Accounts Payable | |
2 | Accounts Receivable | |
3 | Advertising Expense | |
4 | Bonds Payable | |
5 | Building | |
6 | Capital Stock | |
7 | Cash | |
8 | Common Stock | |
9 | Cost of Goods Sold | |
10 | Depreciation Expense | |
11 | Dividends | |
12 | Service Fees Earned | |
13 | Income Tax Expense | |
14 | Interest Expense | |
15 | Interest Payable | |
16 | Interest Revenue | |
17 | Inventory | |
18 | Investments | |
19 | Land | |
20 | Notes Payable | |
21 | Notes Receivable | |
22 | Preferred Stock | |
23 | Prepaid Advertising | |
24 | Prepaid Insurance | |
25 | Prepaid Rent | |
26 | Rent Expense | |
27 | Retained Earnings | |
28 | Salaries Payable | |
29 | Sales Revenue | |
30 | Service Revenue | |
31 | Supplies | |
32 | Unearned Revenue | |
33 | Utilities Payable | |
34 | Wages Expense |
December 31 | Total Assets | Total Liabilities |
---|---|---|
Year 1 | 135,000 | 88,000 |
Year 2 | 177,000 | 92,000 |
Determine Net Income (or Loss) for Year 2 assuming that dividends paid during the year amounted to $3,000.
A company had the following account balances at the end of its first year of operations. Find the missing amounts.
Net Income | 560 | Common Stock | 1,600 |
Accounts Payable | 500 | Retained Earnings | 550 |
Inventory | ? | Revenue | ? |
Equipment | 1,200 | Expenses | 1,760 |
Accounts receivable | 700 | Cash | 1,000 |
Dividends | ? | Wages Payable | 900 |
At the end of Year 2, a company has a retained earnings balance of 5,700. Compute the missing amounts in the following table.
Year 1 | Year 2 | |
---|---|---|
Beginning retained earnings | 4,500 | A |
Revenues for the year | 16,300 | 15,200 |
Expenses for the year | B | 13,300 |
Dividends declared | 1,000 | 1,500 |
(B) Year 1 Expenses | (A) Year 2 Beginning retained earnings | |
---|---|---|
1. | 13,700 | 2,300 |
2. | 14,500 | 5,300 |
3. | 17,500 | 5,700 |
4. | 19,500 | 6,100 |
5. | None of the above |