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FA08Quiz2Key

FA08Quiz2Key - 05 From total liabilities increased by \$4...

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Introduction to Accounting Quiz 2 Name: Key Fall, 2008 1. (2 points) During 20x1, the ABC company issued 25 shares of \$1 par stock for \$100, paid \$100 in cash for inventory, sold that inventory for \$150 on account (to be collected next year). During 20x2, the \$150 credit sale was collected and a dividend of \$150 (\$6 per share) was declared and paid. a. 20x1 cash basis net income = ___________ b. 20x2 cash basis net income = ___________ c. 20x1 accrual basis net income = ___________ d. 20x2 accrual basis net income = ___________ 2. (1 point) In W’s annual report, the balance sheet states that total assets = \$33 as of 1/31/
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Unformatted text preview: 05 . From 1/31/04 - 1/31/05, total liabilities increased by \$4, and total shareholders’ equity increased by \$2. What were total assets as of 1/31/ 04 ? ___________ 3. (1 point) At the end of its first year, E Company reported total assets of \$100, total liabilities of \$50, and paid-in capital of \$40. As of the end of this first year, total shareholders’ equity = paid-in capital of \$40 plus retained earnings of \$10, or \$50 in total. All of these numbers were \$0 as of the beginning of the year. Dividends declared and paid during the first year were \$5. What was net income for the year? ___________...
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