During 2009, Sigma Company earned service revenues amounting to $700,000, of which
$630,000 was collected in cash; the balance will be collected in January 2010.
income statement of the company should report the following amount for service
E) None of the above is correct.
When a company buys equipment for $60,000 and pays for one third in cash and the
other two thirds is financed by a note payable, which of the following is the effect on the
A) Cash decreases by $20,000
B) Equipment increases by $60,000
C) Liabilities increase by $40,000
D) Total assets increase by $40,000
E) All of the above effects occur on the equation
Abrahams Corporation reported the following amounts at the end of the first year of
operations, December 31, 20A: contributed capital $50,000; sales revenue $200,000; total
assets $150,000; $10,000 dividends; and total liabilities $80,000.
Retained earnings and
total expenses would be
A) retained earnings $20,000 and expenses $170,000
B) retained earnings $30,000 and expenses $160,000