225Practice Test 1SOLUTION

225Practice Test 1SOLUTION - ACCT 225 Fall 2008 Practice...

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ACCT 225 – Fall 2008 Practice Test 1 1. Hammer Corporation had a retained earnings balance of $12,300 on June 30 and $23,800 on July 31. Net income for the month of July was $14,000. What was the cash dividend paid to stockholders during July? C $22,100 $25,500 $ 2,500 $11,500 2. Based on the following information taken from the records of The Delta Company as of December 31, 2005, find the Accounts Receivable balance: Supplies $ 1,000 Accounts Payable 22,000 Common Stock 28,000 Accounts Receivable ? Cash 32,000 Notes Payable 4,000 Land 7,000 Retained Earnings 24,000 Building 10,000 The Accounts Receivable balance at 12/31/05 is : b $-0- $28,000 $50,000 $26,000 3. Precision Maintenance Company purchased a $20,000 machine by paying $5,000 cash and signing a six-month note for the remainder. The journal entry to record this transaction on Precision’s books would include a : A credit to Notes Payable. debit to Cash. credit to Notes Receivable. credit to Machinery. 4. The following information is taken from the records of Low Price Company.
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Given this information, calculate Low Price’s net income for the year ended December 31, 2005.
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