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Unformatted text preview: states how the company will treat the payment
of salaries when payment is made on the Friday of that week?
a Decrease cash by $10,000, increase salaries expense by $10,000.
b Decrease cash by $6,000, increase salaries expense by $6,000.
c Decrease cash by $6,000, decrease salaries payable by $10,000, increase salaries expense by $6,000.
d Decrease cash by $10,000, decrease salaries payable by $4,000, increase salaries expense by $6,000.
e Decrease cash by $10,000, decrease salaries payable by $4,000, decrease salaries expense by $6,000. 8 The inventory account for Maxwell Company increased by $3,500 from the beginning to the ending of the period. Cost of goods sold
increased by $2,000 to $46,000. How much were purchases during the period?
e None of the above 9 If Cokins Corp. paid $60,000 for three years of attorney fees on April 1, 2009, what will be the balance of prepaid attorney fees on
the balance sheet on December 31, 2012?
e None of the above d Miflin e None of the above Use the following information, taken from four of Maple's year-end financial statements, to answer question 10 and 11:
$ 19,000 2009
$ 6,000 2010
$ 12,000 10 What were the cash flows from investing activities in 2009, if the only transaction was the sale of land, and there was a gain on the
sale of $2,000?
a $17,000 b $2,000 c $15,000 11 What was the net book value of the buildings at December 31, 2009?
c $22,000 d $6,000 e None of the above d $18,000 e None of the above 12 Cream & Crimson began business on January 1, 2010. At the end of the first month, the company had purchased $10,000 of inventory,
paying $4,500 in cash and the balance was on account. What was the impact of this transaction on total assets?
a Increased by $5,500
b Increased by $4,500
c Increased by $10,000
d Total assets did...
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This note was uploaded on 09/11/2012 for the course BUS 100 taught by Professor Mo during the Spring '08 term at Indiana.
- Spring '08