Midterm Sunday Prep Qs Flashcards
Total assets are $237,000, total liabilities are $181,000 and common stock is $18,000, what is retained earnings?
Retained Earnings 38,000 $
What type of transactions are these: Operating, Investing or Financing? - Sale of common stock
Financing
What type of transactions are these: Operating, Investing or Financing? - Sales to customers
Operating
What type of transactions are these: Operating, Investing or Financing? - Purchase of land
Investing
What type of transactions are these: Operating, Investing or Financing? - Repayment of principal on a loan from a bank
Financing
What type of transactions are these: Operating, Investing or Financing? - Payment of dividends
Financing
What type of transactions are these: Operating, Investing or Financing? - Payment of employee salaries
Operating
What type of transactions are these: Operating, Investing or Financing? - Proceeds from sale of warehouse equipment
Investing
What is one example of a type of company that would have COGS and Gross Profit shown on their income statement? And, what is a type of company that would not?
Ford Motor Company (any company that sells physical product), KPMG (public accounting firm)
The following information has been provided by Walter Company: … How much were Walter’s operating expenses in deriving operating income?
$ 34,000
Mabel Corporation makes fancy dog biscuits. A key customer, Pets Unlimited, has paid $2,000 in advance for 200 packages of the Halloween biscuits, expected to be delivered before the spooky season. On October 25, 2022 Mabel delivers 137 packages to Pets Unlimited. What is the amount of revenue Mabel has earned from this transaction in October? What is the value of the biscuit revenue she still has yet to earn?
Earned 1,370 $, Unearned 630 $
On August 1, 2022, Larry Company paid $2,800 for nine months of rent with the office building landlord. As of December 31, 2022, what would the account balances be for Prepaid Rent and Rent Expense if all proper adjusting entries had been made?
Prepaid 1,244 $, Expense 1,556 $
How does the payment of dividends impact the accounting equation?
Assets (cash) decreases, Equity (retained earnings) decreases
On November 15, 2021, Crescent Company signed a $150,000, 9 percent note payable. The principal and interest will be paid on May 15, 2022. How much interest expense should be reported on the income statement for the year ended December 31, 2021?
Expense 1,688 $
What is the ending allowance for uncollectible account balance at December 31, 2020 and bad debt expense for 2020?
Allowance Needed 5,265