Acc 201 Sample Test 1form 2 page 6

Acc 201 Sample Test 1form 2 page 6 - • Purchased $50,000...

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18. Little Blue had the following account balances at 12/31/07 (This is a complete list): Cash 50,000 Accounts Receivable 20,000 Inventory 35,000 Building & Equipment 105,000 Accounts Payable 30,000 Notes Payable-long term 60,000 Contributed Capital 80,000 Retained Earnings 30,000 What is the working capital at 12/31/07? A. $20,000 B. $15,000 C. $45,000 D. $75,000 20. Sabrina’s Seaworthy Ships had the following transactions during the year ending December 31, 2007: Received $200,000 from the sale of common stock.
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Unformatted text preview: • Purchased $50,000 in new LONG TERM equipment, paying $10,000 in cash and signing a note due June 30, 2007 for the remainder. • Gave $75,000 in sailing lessons; $60,000 was received in cash and the remainder will be received in 2008. • Had operating expenses of $35,000 - they were all paid in cash during 2007. What are Sabrina’s accrual net income? Accrual Net Income a. $30,000 b. $240,000 c. $40,000 d. $25,000...
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This note was uploaded on 03/19/2008 for the course ACCT 201 taught by Professor Anothony during the Fall '07 term at Michigan State University.

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