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Transmute Company paid or collected during the current year the following items: Insurance premium paid 15,400

Interest collected

30,900

Salaries paid

135,200

The following balances have been excerpted from Transmute's balance sheet:

December 31

January 1

Prepaid insurance

 1,200

 1,500

Interest receivable

 3,700

 2,900

Salaries payable

12,300

10,600

1)      The insurance expense on the income statement for the current year was

A.

18,100

 

B.

15,700

C.

15,100

D.

12,700

2)      The interest revenue on the income statement for the current year was

A.

37,500

 

B.

31,700

C.

30,100

D.

24,300

3)      The salary expense on the income statement for the current year was

A.

158,100

 

B.

136,900

C.

133,500

D.

112,300



4)      Under the accrual basis, rental income of Lion's Pride Company for the current calendar year is P60,000. Additional information regarding rental income are:

Accrued rental income, December 31

4,000

Accrued rental income, January 1

3,000

Unearned rental income, December 31

7,500

Unearned rental income, January 1

5,000

How much actual cash rental was received by Lion's Price Company in the current year?

A.

65,500

 

B.

62,500

C.

61,500

D.

58,500

5)      The following data are from a comparison of the balance sheets of Obliterate Company as of December 31, 2016 and December 31, 2015:

Accounts receivable

Increase

7,600

Inventory

Decrease

4,500

Accounts payable

Increase

2,400

The following data are from Obliterate's 2016 income statement:                      

Sales

200,000

Cost of goods sold

110,000

How much cash was paid for inventory purchases?

A.

116,900

 

B.

112,100

C.

107,900

D.

103,100

Use the following information for the next three (3) questions:

Kinesis Company paid or collected during 2013 the following items:

Insurance premiums paid

25,450

Salaries paid

116,300

Interest collected

53,750

The following balances were from Kinesis Company's balance sheets:

December 31, 2012

December 31, 2013

Prepaid insurance

 2,400

 1,700

Interest receivable

 4,700

 3,200

Salaries payable

12,300

10,600

6)      The insurance expense on the income statement for 2013 was

A.

26,150

 

B.

25,750

C.

24,750

D.

23,750

7)      The interest revenue on the income statement for 2013 was

A.

55,250

 

B.

53,750

C.

52,250

D.

50,550

8)      The salary expense on the income statement for 2013 was

A.

118,000

 

B.

116,300

C.

114,600

D.

105,700

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