*** MODULE 1 QUIZ ***
The equity of Lime Company is $180,000 and the total liabilities are $80,000.
The total assets are ________. - ANSWER Assets = Liabilities + Equity
= 180,000 + 80,000
= 260,000
Grapefruit Services started the year with total assets of $90,000 and total
liabilities of $40,000. The company is a sole proprietorship. The revenues and
the expenses for the year amounted to $130,000 and $50,000, respectively.
During the year, there were no new capital contributions and the owner
withdrew $40,000.
What is the amount of owner's equity at the end of the year? - ANSWER Owner,
Capital, Ending Balance = Owner, Capital (Beg. Balance) - Owner, Withdrawals +
Revenues - Expenses
= (90000 - 40000) - 40000 + 130000 - 50000
= 90,000
The following transactions for the month of March have been journalized and
posted to the proper accounts of a sole proprietorship.
Mar. 1 - The business received $10,000 cash from the owner of the business,
Lemon. The business gave capital to Lemon.
Mar. 2 - Paid the first month's rent of $800.
Mar. 3 - Purchased equipment by paying $2500 cash and executing a note
payable for $7000.
Mar. 4 - Purchased office supplies for $700 cash.
Mar. 5 - Billed a client for $10,000 of design services completed.
Mar. 6 - Received $7500 on account for the services previously recorded.
What is the balance in Cash on March 6? - ANSWER Cash is increased by the
March 1 transaction of $10,000 and the March 6 amount of $7500 and decreased
by the March 2 payment of $800, March 3 payment of $2500, and March 4
payment of $700 for a final cash balance of $13,500.
, Peach Corp. is preparing its statement of cash flows using the indirect method.
It provides the following information about transactions for the year:
Plant assets, net—beginning balance: $108,000
Plant assets, net—ending balance: $146,000
Equipment was purchased for $67,000 with cash.
Equipment with a net asset value of $12,000 was sold for $20,000.
Depreciation Expense of $14,400 was recorded during the year.
What was the amount of net cash provided by (used for) investing activities? -
ANSWER 67,000 - 20,000
= 47,000
Orange Corp. uses the indirect method to prepare its statement of cash flows.
Refer to the following information for the year:
1. Long-Term Notes Payable, beginning balance, $81,000
2. Long-Term Notes Payable, ending balance, $75,000
3. Common Stock, beginning balance, $3600
4. Common Stock, ending balance, $27,000
5. Retained Earnings, beginning balance, $78,000
6. Retained Earnings, ending balance, $119,000
7. Treasury Stock, beginning balance, $6000
8. Treasury Stock, ending balance, $10,100
9. No stock was retired
.10. No treasury stock was sold.
11. During the year, the company repaid $38,000 of long-term notes payable.
12. During the year, the company borrowed $32,000 on new long-term notes
payable.
13. Net income for the year was $51,000
.14. Assume all dividends declared during the year were paid.
What is the net cash provided by financing activities? - ANSWER Long-term
Notes Payable repaid: (38,000)
Long-term Notes Payable borrowed: 32,000
Issued Common Stock: 23,400
Dividends paid: ($78,000 + $51,000 - $119,000) (10,000)
Purchased Treasury Stock: (4100)
Net Cash from Financing Activities: $3300
The following Office Supplies account information is available for Avocado
Company.
Beginning balance: $2000
The equity of Lime Company is $180,000 and the total liabilities are $80,000.
The total assets are ________. - ANSWER Assets = Liabilities + Equity
= 180,000 + 80,000
= 260,000
Grapefruit Services started the year with total assets of $90,000 and total
liabilities of $40,000. The company is a sole proprietorship. The revenues and
the expenses for the year amounted to $130,000 and $50,000, respectively.
During the year, there were no new capital contributions and the owner
withdrew $40,000.
What is the amount of owner's equity at the end of the year? - ANSWER Owner,
Capital, Ending Balance = Owner, Capital (Beg. Balance) - Owner, Withdrawals +
Revenues - Expenses
= (90000 - 40000) - 40000 + 130000 - 50000
= 90,000
The following transactions for the month of March have been journalized and
posted to the proper accounts of a sole proprietorship.
Mar. 1 - The business received $10,000 cash from the owner of the business,
Lemon. The business gave capital to Lemon.
Mar. 2 - Paid the first month's rent of $800.
Mar. 3 - Purchased equipment by paying $2500 cash and executing a note
payable for $7000.
Mar. 4 - Purchased office supplies for $700 cash.
Mar. 5 - Billed a client for $10,000 of design services completed.
Mar. 6 - Received $7500 on account for the services previously recorded.
What is the balance in Cash on March 6? - ANSWER Cash is increased by the
March 1 transaction of $10,000 and the March 6 amount of $7500 and decreased
by the March 2 payment of $800, March 3 payment of $2500, and March 4
payment of $700 for a final cash balance of $13,500.
, Peach Corp. is preparing its statement of cash flows using the indirect method.
It provides the following information about transactions for the year:
Plant assets, net—beginning balance: $108,000
Plant assets, net—ending balance: $146,000
Equipment was purchased for $67,000 with cash.
Equipment with a net asset value of $12,000 was sold for $20,000.
Depreciation Expense of $14,400 was recorded during the year.
What was the amount of net cash provided by (used for) investing activities? -
ANSWER 67,000 - 20,000
= 47,000
Orange Corp. uses the indirect method to prepare its statement of cash flows.
Refer to the following information for the year:
1. Long-Term Notes Payable, beginning balance, $81,000
2. Long-Term Notes Payable, ending balance, $75,000
3. Common Stock, beginning balance, $3600
4. Common Stock, ending balance, $27,000
5. Retained Earnings, beginning balance, $78,000
6. Retained Earnings, ending balance, $119,000
7. Treasury Stock, beginning balance, $6000
8. Treasury Stock, ending balance, $10,100
9. No stock was retired
.10. No treasury stock was sold.
11. During the year, the company repaid $38,000 of long-term notes payable.
12. During the year, the company borrowed $32,000 on new long-term notes
payable.
13. Net income for the year was $51,000
.14. Assume all dividends declared during the year were paid.
What is the net cash provided by financing activities? - ANSWER Long-term
Notes Payable repaid: (38,000)
Long-term Notes Payable borrowed: 32,000
Issued Common Stock: 23,400
Dividends paid: ($78,000 + $51,000 - $119,000) (10,000)
Purchased Treasury Stock: (4100)
Net Cash from Financing Activities: $3300
The following Office Supplies account information is available for Avocado
Company.
Beginning balance: $2000
