Mid Term #1 Flashcards
Cosmo Corp reports the following amounts for the fiscal year:
- Depreciation expense: $18,000
- Sales revenues: $200,000
- Other expenses: $5,000
- Gain on sale of equipment: $4,000
- Marketing expense: $8,000
- Tax expense: $22,000
- Cost of goods sold: $140,000
Compute net income for Cosmo Corp for the fiscal year.
$11,000
Compute end retained earnings:
- Capital Stock: $30,000
- Unearned revenue: $18,000
- Dividends: $6,500
- Retained earnings (Beginning): $31,000
- Inventory: $100,000
- Cash: $20,000
- Net income: $12,000
- Sales: $175,000
$36,500
Using the following information, compute total assets.
Equipment . . . . . . . . . . . . . . . $15,000
Accounts payable . . . . . . . . . . 1,800
Capital stock. . . . . . . . . . . . . . 3,800
Accrued liabilities . . . . . . . . . . 4,100
Cash . . . . . . . . . . . . . . . . . . . 1,700
Loan payable . . . . . . . . . . . . . 9,000
Wages payable . . . . . . . . . . . . 900
Accounts receivable . . . . . . . . 4,000
Retained earnings . . . . . . . . . . 5,700
Inventory . . . . . . . . . . . . . . . . 5,500
$26,200
Find net income:
- Cash: $11,200
- Supplies expense: $1,500
- Dividends: $2,600
- Service revenue: $23,500
- Prepaid rent: $4,300
- Salaries expense: $8,200
- Accounts payable: $12,700
- Land: $36,900
$13,800
Following are transactions of Ena, Inc., a new company, during the month of January:
- Issued 10,000 shares of common stock for $15,000 cash.
- Purchased land for $12,000, signing a note payable for the full amount.
- Purchased office equipment for $1,200 cash.
- Received cash of $14,000 for services provided to customers during the month.
- Purchased $300 of office supplies on account.
- Paid employees $10,000 for their first month’s salaries.
What was the balance of Ena’s Cash account following these six transactions?
$17,800
Cash = ($15,000 − $1,200 + $14,000 − $10,000) = $17,800
- Land: $170,000
- Equipment: $66,000
- Salaries Payable: $44,000
- Notes Payable:
$88,000 - Supplies: $14,000
- Cash: $26,000
- Common Stock: $90,000
- Retained Earnings: $50,000
- Accounts Payable: ?
-Prepaid Rent: $12,000
Find the accounts payable:
$16,000
On July 1, 2024, Unga Co. paid $27,000 to WorkPlace Properties for rent covering 18 months from July 2024 through December 2025. What adjusting entry should Unga Co. record on December 31, 2024?
2024 Rent Expense = ($27,000/18 months) × 6 months = $9,000.
On June 1st, Hill & Sons received an order for 500 cupcakes. Hill delivered the cupcakes to the client on June 25th. A $50 deposit was received on June 5th and the remaining $450 was paid on June 30th. Hill likely would recognize revenue on:
June 25th
On November 1, 2024, Rockwood Co. signed a one-year contract to provide handyman services on an as-needed basis to King Associates, with the contract to start immediately. King agreed to pay Rockwood $4,800 for the one-year period. Rockwood is confident that King will pay that amount, but payment is not scheduled to occur until 2025. Rockwood should recognize revenue in 2024 in the amount of
$800
- Cash: $12,000
- Supplies: $4,500
- Prepaid Rent: $2,000
- Salaries Expense: $4,500
- Equipment: $65,000
- Service Revenue: $30,000
- Miscellaneous Expense: $20,000
- Dividends: $3,000
- Accounts Payable: $5,000
- Common Stock: $68,000
- Retained Earnings: $8,000
What is the net income?
Revenues ($30,000) − Expenses ($4,500 + $20,000) = $5,500
Detmer company has beginning inventory for the year of $12,000. During the year, the company purchases inventory for $150,000 and ends the year with $20,000 of inventory. The company will report cost of goods sold equal to:
$142,000
A company has net sales of $200,000, cost of goods sold of $120,000, selling expenses of $6,000, and nonoperating expenses of $2,000. What is the company’s gross profit?
$80,000
How much will $25,000 grow to in seven years, assuming an interest rate of 12% compounded annually?
$55,267
During its first year of operations, a company has credit sales of $250,000 and cash sales of $100,000. By the end of the year, cash collections on credit sales total $180,000, and the company estimates uncollectible accounts to be 6% of accounts receivable. The amount to record to establish an allowance for uncollectible accounts would be:
($250,000 − $180,000) × 6% = $4,200
A company has beginning inventory for the year of $12,000. During the year, the company purchases inventory for $150,000 and ends the year with $20,000 of inventory. The company will report cost of goods sold equal to:
$142,000
