1. The following items are taken from the financial statements of the Postal Ser
ID: 2341666 • Letter: 1
Question
1. The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2013:
Accounts payable
$ 19,000
Accounts receivable
11,000
Accumulated depreciation – equipment
28,000
Advertising expense
21,000
Cash
11,000
Common stock
40,000
Dividends
14,000
Depreciation expense
12,000
Equipment
190,000
Insurance expense
3,000
Note payable, due 6/30/14
70,000
Patents
20,000
Prepaid insurance (12-month policy)
6,000
Rent expense
17,000
Retained earnings (1/1/13)
65,000
Salaries and wages expense
32,000
Service revenue
125,000
Supplies
4,000
Supplies expense
6,000
What is total liabilities and stockholders' equity at December 31, 2013?
$214,000
$194,000
$228,000
$231,000
2.
The following information is for Sunny Day Real Estate:
Sunny Day Real Estate
Balance Sheet
December 31, 2013
Cash
$ 25,000
Accounts Payable
$ 60,000
Prepaid Insurance
30,000
Salaries and Wages Payable
15,000
Accounts Receivable
50,000
Mortgage Payable
85,000
Inventory
70,000
Total Liabilities
$160,000
Land Held for Investment
85,000
Land
120,000
Building
$100,000
Common Sock
$120,000
Less Accumulated
Retained Earnings
250,000
370,000
Depreciation
(20,000)
80,000
Trademark
70,000
Total Liabilities and
Total Assets
$530,000
Stockholders' Equity
$530,000
The total dollar amount of assets to be classified as current assets is
$105,000.
$260,000.
$175,000.
$190,000
3.
The income statement for the year 2013 of Fugazi Co. contains the following information:
Revenues
$70,000
Expenses:
Salaries and Wages Expense
$45,000
Rent Expense
12,000
Advertising Expense
8,000
Supplies Expense
6,000
Utilities Expense
2,500
Insurance Expense
2,000
Total expenses
75,500
Net income (loss)
$(5,500)
The entry to close the expense accounts includes a
credit to Income Summary for $5,500.
debit to Income Summary for $5,500.
debit to Salaries and Wages Expense for $2,500.
debit to Income Summary for $75,500.
Accounts payable
$ 19,000
Explanation / Answer
Question 1. Option No. A.$214,000
Calculation:
Question 3 . Option D. Debit to Income Summary for $75,500
Question 1. Option No. A.$214,000
Calculation:
Income statement Service revenue 1,25,000 Rent expense 17,000 Supplies expense 6,000 Salaries and wages expense 32,000 Insurance expense 3,000 Depreciation expense 12,000 Advertising expense 21,000 Total Expenses 91,000 Operating Profit 34,000 Less: Dividends 14,000 Net Income 20,000 Retained Earnings Statement Retained earnings (1/1/13) 65,000 Add: Net Income 20000 Retained earnings (31/12/13) 85,000 Balance Sheet Assets Accounts receivable 11,000 Supplies 4,000 Cash 11,000 Prepaid insurance (12-month policy) 6,000 Equipment 1,90,000 Accumulated depreciation – equipment -28,000 Patents 20,000 Total Assets 2,14,000 Liabilities and Stockholders' equity Accounts Payable 19,000 Note payable, due 6/30/14 70,000 Common stock 40,000 Retained earnings (12/31/13) 85,000 Total Liabilities and Stockholders' equity 2,14,000Related Questions
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