FA08Quiz2Key - 05 . From 1/31/04 - 1/31/05, total...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
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/
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

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? ___________...
View Full Document

This note was uploaded on 01/20/2012 for the course ACCOUNTING 101 taught by Professor Unknown during the Spring '08 term at Carnegie Mellon.

Ask a homework question - tutors are online