PART A: SHORT ANSWERS NO PARTIAL CREDIT (SON, 10 Points each 1. Accounts Receiva

Question

PART A: SHORT ANSWERS NO PARTIAL CREDIT (SON, 10 Points each 1. Accounts Receivable has a normal Debit or Credit_ 2. The asset account, Office Supplies had a beginning balance of AD 5,000 balance During the accounting perid office supplies were purchased, on account, for AED 5,500 A physical count, on the lest day of the accounting period, shows AED 3,500 of office supplies on hand What is the amount of Supelies Expense for the accounting period? AED_ 3. Murphy, Inc prepaid AED 7,200 on October 1, 2018 for a one-year insurance contract Coverage bg October 1. On January 1, 2019 (after December 31 adjustmentsl, the Prepaid nurance account wil a debit balance of AED final answer to the nearest whole number) (Round any intermediate calculations to two decimal places, and your 4. Dynamic Production Services started the year with total assets of AED 150,000 and total liabilities of AED 55,000. The revenues and the expenses for the year amounted to AED 120,000 and AED 80,000, respectively. During the year, the company did not issue any common stock, but it distributed dividends of AED 50,000. Calculate Dynamic's net income for the year AED 5. Metropolitan Casting Services started the year with total assets of $135,000 and total lBabilities of $45,000. The revenues and the expenses for the year amounted to $130,000 During the year, the company did not issue any common stock, but it distributed dividends of $60,000 Calculate the amount of change in stockholders' equity for the year

Explanation / Answer

1 Accounts receivable has a normal debit balances. AED 2 Begnning Balance              5,000 Add: Purchase              5,500 Total available            10,500 Less: Ending Balance              3,500 Supplies Expense              7,000 AED 3 Oct 1, Prepaid Insurance              7,200 Less: Insurance expense              1,800 (7200*3/12) Jan 1, Prepaid Insurance              5,400 AED 4 Revenue 120,000 Less: Expenses          (80,000) Net Income 40,000 5 Total Assets $135,000 Less: Total Liabiilities          (45,000) Stockholders equity $90,000 Beginning Balance Revenue 130,000 Less: Expenses          (50,000) Net Income 80,000 Stockholders equity beginning $90,000 add: Net Income 80,000 $170,000 Less: Dividend            60,000 Stockholders equity ending          110,000 Change in equity $        20,000 (110000-90000)

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