accounting-i-final-question-and-answer1

accounting-i-final-question-and-answer1 - Accounting I...

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Unformatted text preview: Accounting I Final Question and Answers: Which of the following is not a step in providing accounting information to stakeholders? prepare accounting surveys Equipment with an estimated market value of $45,000 is offered for sale at $65,000. The equipment is acquired for $10,000 in cash and a note payable of $40,000 due in 30 days. The amount used in the buyer's accounting records to record this acquisition is ________. $50,000 The assets and liabilities of the company are $155,000 and $60,000 respectfully. Owner’s equity should equal ________. $95,000 If total liabilities decreased by $25,000 during a period of time and owner's equity increased by $30,000 during the same period, the amount and direction (increase or decrease) of the period's change in total assets is ________. $5,000 increase If total assets decreased by $47,000 during a period of time and owner's equity increased by $24,000 during the same period, then the amount and direction (increase or decrease) of the period's change in total liabilities is ________. $71,000 decrease The Kennedy Company sold land for $60,000 in cash. The land was originally purchased for $40,000, and at the time of the sale, $15,000 was still owed to First National Bank on that purchase. After the sale, The Kennedy Company paid off the loan to First National Bank. What is the effect of the sale and the payoff of the loan on the accounting equation? assets increase $5,000; liabilities decrease $15,000; owner's equity increases $20,000 Which of the following applications of the rules of debit and credit is true? increase Supplies Expense with a debit and the normal balance is a debit XYZ Hospital purchased X-ray equipment for $3,000, paid $750 down, with the remainder to be paid later. The correct entry would be __________. Equipment 3,000 Accounts Payable 2,250 Cash 750 June 23 Cash 6,000 Able, Capital 6,000 Invest cash in Able, Co. The journal entry will _________. Increase Cash and increase Capital July 14 Accounts Payable 1,000 Cash 1,000 Paid creditors on account Decrease accounts payable, decrease cash June 26 Equipment 14,000 Cash 4,000 Notes Payable 10,000 ????????? Purchased equipment, paid cash of $4,000, with the remainder to be paid in payments The accounts in the ledger of Mickeys Park Co. are listed below. All accounts have normal balances. Accounts Payable 500 Fees Earned 2,000 Accounts Receivable 800 Insurance Expense 300 Common Stock 1,000 Land 2,000 Cash 1,600 Wages Expense 400 Withdrawals 200 Retained Earnings 1,800 The total of all the assets is: 4,400 The accounts in the ledger of Mickeys Park Co. are listed below. All accounts have normal balances....
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This note was uploaded on 05/18/2010 for the course AC ACCOUNTING taught by Professor Jgh during the Spring '10 term at Kaplan University.

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accounting-i-final-question-and-answer1 - Accounting I...

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