langstonda
Feb 27, 2006, 05:56 PM
:confused: :( :confused:
Could Someone please help me with these questions. Thank you!
At December 31, 2002, Robinson’s Home Improvement has $100,000 of assets, $40,000 of liabilities, and $60,000 of stockholders’ equity. On January 15, 2003, Robinson’s purchased $30,000 of assets by incurring a liability. Robinson’s total assets, liabilities, and stockholders’ equity at January 15, 2003 (after the purchase) are, respectively, ___, ___, and ___.
a. $130,000; $70,000; $60,000
b. $130,000; $60,000; $70,000
c. $100,000; $40,000; $60,000
d. $100,000; $60,000; $40,000
e. $100,000; $30,000; $70,000
3. Gadsden Lawn and Mowing Service began operations on January 1, 2002. At the company’s inception, Bob Morgan contributed $100,000 of cash and equipment. During the year, Gadsden earned $200,000 of revenue, incurred $100,000 of expenses, and incurred no liabilities. Total owner’s equity at December 31, 2002 is
a. $0.
b. $100,000.
c. $200,000.
d. $300,000.
e. $400,000.
On April 1, 2002, the Pacific Landscaping Company purchased a new lawnmower for $25,000. The lawnmower has an estimated life of four years and a $5,000 salvage value. Pacific Landscaping uses the straight-line method of depreciation. Total depreciation expense for the year ended December 31, 2002, is
a. $3,750.
b. $5,000.
c. $6,250.
d. $20,000.
e. $25,000
Quick Co. showed an account payable to Lars Co. for $15,000. Quick’s accountant misread the amount owed and wrote a check to Lars for $18,000. If Quick immediately prepares a Balance Sheet as adjusted for the error, Quick will show a(an):
a. credit-balanced Account Payable to Lars Co.
b. debit-balanced Account Payable to Lars Co.
c. contra-liability account to Lars Co.
d. debit-balanced Account Receivable from Lars Co.
e. debit-balanced deferred expense from Lars Co.
Georgia Tent Company’s total liabilities on August 31, 2002 were $200,000. On September 1, 2002, the Georgia Tent Company purchased $100,000 of supplies on account from Camper World. On September 25, 2002, Georgia Tent purchased an additional $50,000 of supplies on account from Rural Vendors. Georgia Tent paid $50,000 of outstanding liabilities in September. What were Georgia Tent’s total liabilities at September 30, 2002?
a. $50,000
b. $150,000
c. $200,000
d. $300,000
e. $350,000
13. On May 1, 2002, Pepper Corporation paid a $24,000 premium for insurance coverage spanning May 1, 2002, through April 30, 2003. Which of the following statements is false?
a. Prepaid insurance is a deferred expense and a current asset.
b. When Pepper initially paid the insurance premium, it debited and credited prepaid insurance and cash, respectively, for $24,000.
c. Over the term of the insurance policy, the economic benefit provided by the prepaid insurance will be gradually used up.
d. Pepper should recognize $24,000 of insurance expense in 2002.
e. On April 30, 20032, the balance of the prepaid insurance account will be $0.
14. On October 1, 2002, the Golden Triangle Gazette received $1,400 for newspaper subscriptions spanning October 1, 2002 through April 30, 2003. Throughout 2002 and 2003, the Gazette delivered daily newspapers to individual subscribers. How much revenue should the Gazette recognize in 2002 relative to these subscriptions?
a. $0
b. $600
c. $800
d. $900
e. $1,400
15. On January 1, 2002, Red Airways bought a plane costing $1,000,000. The plane has an estimated salvage value of $100,000 and an estimated useful life of 30 years. Red Airways uses the straight-line method of depreciation. The plane was estimated to have a fair market value of $950,000 at the end of 2002. How much depreciation expense should Red Airlines record in 2002 on this plane on December 31, 2002?
a. $0
b. $25,000
c. $30,000
d. $33,333
e. $50,000
16. Joyner Distributing is estimating its allowance for uncollectible accounts at January 31, 2002, based on the following information:
Accounts Receivable, January 1 $1,375,000
Total Accounts Receivable write-offs during January $200,000
Allowance for Uncollectible Accounts, January 1 $175,000
Total sales for January $10,000,000
Sixty percent of Joyner’s total sales for January 2002 are credit sales. Based on past experience, Joyner estimates that 5% of its credit sales will be uncollectible. What is uncollectible accounts expense for January 2002?
a. $125,000
b. $175,000
c. $200,000
d. $300,000
e. $358,750
On July 10, 2002, Fins and Feathers Pet Shop purchased 100 bags of Koi Chow at $10 each from Far East Distributing Company. On July 11, Fins and Feathers sold 60 bags at $15 each. Fins and Feathers uses a perpetual inventory system. Related to the sale of the 60 bags, the company should recognize, respectively, increases of ___ in sales revenue and in ___ cost of goods sold.
a. $0 and $900
b. $900 and $600
c. $900 and $1,000
d. $1,000 and $600
e. $1,500 and $600
Could Someone please help me with these questions. Thank you!
At December 31, 2002, Robinson’s Home Improvement has $100,000 of assets, $40,000 of liabilities, and $60,000 of stockholders’ equity. On January 15, 2003, Robinson’s purchased $30,000 of assets by incurring a liability. Robinson’s total assets, liabilities, and stockholders’ equity at January 15, 2003 (after the purchase) are, respectively, ___, ___, and ___.
a. $130,000; $70,000; $60,000
b. $130,000; $60,000; $70,000
c. $100,000; $40,000; $60,000
d. $100,000; $60,000; $40,000
e. $100,000; $30,000; $70,000
3. Gadsden Lawn and Mowing Service began operations on January 1, 2002. At the company’s inception, Bob Morgan contributed $100,000 of cash and equipment. During the year, Gadsden earned $200,000 of revenue, incurred $100,000 of expenses, and incurred no liabilities. Total owner’s equity at December 31, 2002 is
a. $0.
b. $100,000.
c. $200,000.
d. $300,000.
e. $400,000.
On April 1, 2002, the Pacific Landscaping Company purchased a new lawnmower for $25,000. The lawnmower has an estimated life of four years and a $5,000 salvage value. Pacific Landscaping uses the straight-line method of depreciation. Total depreciation expense for the year ended December 31, 2002, is
a. $3,750.
b. $5,000.
c. $6,250.
d. $20,000.
e. $25,000
Quick Co. showed an account payable to Lars Co. for $15,000. Quick’s accountant misread the amount owed and wrote a check to Lars for $18,000. If Quick immediately prepares a Balance Sheet as adjusted for the error, Quick will show a(an):
a. credit-balanced Account Payable to Lars Co.
b. debit-balanced Account Payable to Lars Co.
c. contra-liability account to Lars Co.
d. debit-balanced Account Receivable from Lars Co.
e. debit-balanced deferred expense from Lars Co.
Georgia Tent Company’s total liabilities on August 31, 2002 were $200,000. On September 1, 2002, the Georgia Tent Company purchased $100,000 of supplies on account from Camper World. On September 25, 2002, Georgia Tent purchased an additional $50,000 of supplies on account from Rural Vendors. Georgia Tent paid $50,000 of outstanding liabilities in September. What were Georgia Tent’s total liabilities at September 30, 2002?
a. $50,000
b. $150,000
c. $200,000
d. $300,000
e. $350,000
13. On May 1, 2002, Pepper Corporation paid a $24,000 premium for insurance coverage spanning May 1, 2002, through April 30, 2003. Which of the following statements is false?
a. Prepaid insurance is a deferred expense and a current asset.
b. When Pepper initially paid the insurance premium, it debited and credited prepaid insurance and cash, respectively, for $24,000.
c. Over the term of the insurance policy, the economic benefit provided by the prepaid insurance will be gradually used up.
d. Pepper should recognize $24,000 of insurance expense in 2002.
e. On April 30, 20032, the balance of the prepaid insurance account will be $0.
14. On October 1, 2002, the Golden Triangle Gazette received $1,400 for newspaper subscriptions spanning October 1, 2002 through April 30, 2003. Throughout 2002 and 2003, the Gazette delivered daily newspapers to individual subscribers. How much revenue should the Gazette recognize in 2002 relative to these subscriptions?
a. $0
b. $600
c. $800
d. $900
e. $1,400
15. On January 1, 2002, Red Airways bought a plane costing $1,000,000. The plane has an estimated salvage value of $100,000 and an estimated useful life of 30 years. Red Airways uses the straight-line method of depreciation. The plane was estimated to have a fair market value of $950,000 at the end of 2002. How much depreciation expense should Red Airlines record in 2002 on this plane on December 31, 2002?
a. $0
b. $25,000
c. $30,000
d. $33,333
e. $50,000
16. Joyner Distributing is estimating its allowance for uncollectible accounts at January 31, 2002, based on the following information:
Accounts Receivable, January 1 $1,375,000
Total Accounts Receivable write-offs during January $200,000
Allowance for Uncollectible Accounts, January 1 $175,000
Total sales for January $10,000,000
Sixty percent of Joyner’s total sales for January 2002 are credit sales. Based on past experience, Joyner estimates that 5% of its credit sales will be uncollectible. What is uncollectible accounts expense for January 2002?
a. $125,000
b. $175,000
c. $200,000
d. $300,000
e. $358,750
On July 10, 2002, Fins and Feathers Pet Shop purchased 100 bags of Koi Chow at $10 each from Far East Distributing Company. On July 11, Fins and Feathers sold 60 bags at $15 each. Fins and Feathers uses a perpetual inventory system. Related to the sale of the 60 bags, the company should recognize, respectively, increases of ___ in sales revenue and in ___ cost of goods sold.
a. $0 and $900
b. $900 and $600
c. $900 and $1,000
d. $1,000 and $600
e. $1,500 and $600