51 after months of planning alana opened a natural foods store on april 1 by investi 4352244

51.After months of planning, Alana opened a Natural Foods store on April 1 by investing $15,000 of her own money. She spent $10,000 on furnishings and fixtures that had been delivered and set up the night before. A friend had loaned Alana $5,000 which she used to purchase inventory prior to opening. When Alana opened for business on April 1,  her accounting system should have contained what balances for total assets and total liabilities?

Total Assets        Total Liabilities

a.$20,000                 $0

b.$20,000                  $5,000

c.$15,000                  $5,000

d.$15,000                  $0

52.On October 1, Hanover Trucking started business when Ed and Ralph each contributed $15,000 to the firm. That same day, a $20,000 truck was purchased with a cash down payment of 5,000 and a loan to be paid in the future for $15,000. No other transactions occurred in October. What were total assets equal to immediately after these transactions:

a.$50,000

b.$45,000

c.$30,000

d.$15,000

53.On June 1, Tropical Tours started business when Fernando and Juanita each contributed $8,000 to the firm. That same day, the company borrowed $10,000 to purchase a truck. Immediately after these transactions, total assets equal

a.$18,000

b.$26,000

c.$8,000

d.$16,000

54.Connie started a business by contributing $30,000 cash and a truck worth $34,000. The company then purchased equipment by making a $24,000 down payment (which accounted for half its purchase price) and financed the other half by signing a note payable at the bank. After the above transactions, Connie's company balance sheet is composed of

Assets              Liabilities           Equity

a.$64,000               $0                   $64,000

b.$88,000               $0                   $88,000

c.$88,000               $24,000           $64,000

d.$112,000             $24,000           $88,000

55.Quick Frame Corporation had the following transactions during the month of August:

1.Owners started the company by investing $500,000 in cash.

2.Purchased $100,000 of equipment by making a $50,000 cash down payment and signed a 90-day note payable for the balance.

3.Purchased a building for $220,000, paying $20,000 cash and signing a note payable for the remaining amount.

4.Earned $60,000 of services revenue.

What are total assets for the Quick Frame Corporation at the end of August?

a.$600,000

b.$550,000

c.$750,000

d.$810,000

56.The accounting records of Sonia’s Catering show the following balances at December 31:

Cash                  $    6,000     Notes payable              $   2,000

Equipment             24,000    Owners' investment         10,000

Merchandise           4,000     Revenue from catering    18,000

Owed to Owners     8,000     Expenses                           4,000

Total assets as of December 31 are

a.$24,000

b.$44,000

c.$34,000

d.$38,000

57.Net cash flow is generally NOT thought to be a valid measure of an organization's performance for a period because it

a.is usually smaller than the amount of net income

b.includes the results of activities not related to operations

c.focuses only on the net change in owners' equity

d.violates the periodic measurement concept

58.Harrison, Inc., had the following transactions during the month of August:

1.  sold merchandise for $500,000 cash

2.  paid wages of $30,000

3.  sold equipment for $100,000

4.  paid $60,000 cash for utilities

What was the cash flow from operating activities?

a.$510,000

b.$410,000

c.$470,000

d.$540,000

59.During the first month of operations, Rodriguez Tax Service provided services and billed customers in the amount of $7,000. By the end of the first month, $4,600 had been collected and it was expected that the other $2,400 would be collected during the following month. On Rodriguez' income statement for the first month, what amount of revenue should be reported?

a.$0

b.$2,400

c.$4,600

d.$7,000

60.Blackbeard has the following account balances in its accounting system at year end:

Advertising revenue$1200

Salaries & wages expense680

Rent expense240

Machinery400

Insurance expense140

Interest revenue80

Interest expense100

The net income (or loss) for the period is

a.$520

b.$(280)

c.$120

d.$40

e.$(520)

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