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1A Assessment Quiz
1. Determine the missing items
| Assets = | Liabilities | + Stockholders’ Equity |
| $82,000 | $59,500 | ______ |
| _________ | $28,700 | $33,300 |
| $84,000 | __________ | $50,000 |
2. Classify each of these items as an asset, liability, or stockholders’ equity.
| Accounts Receivable | |
| Accounts Payable | |
| Common Stock | |
| Supplies | |
| Retained Earnings | |
| Cash | |
| Notes Payable | |
| Equipment |
3. Indicate in the space provided by each item whether it would appear on the income statement, balance sheet, or retained earnings statement:
| Service Revenue | |
| Utilities Expense | |
| Cash | |
| Accounts Payable | |
| Supplies | |
| Salaries and Wages Expense | |
| Accounts Receivable | |
| Common Stock | |
| Equipment | |
| Advertising Expense | |
| Dividends | |
| Notes Payable |
4. Reinhardt’s Carpet Cleaning has the following balance sheet items. Identify which items are assets, liabilities and stockholders’ equity.
| Buildings | |
| Accounts Payable | |
| Cash | |
| Supplies | |
| Accounts Receivable | |
| Notes Payable | |
| Common Stock | |
| Retained Earnings | |
| Equipment |
5. The May transactions of Ayayai Corp. were as follows.
May 4 Paid $600 due for supplies previously purchased on account.
7 Performed advisory services on account for $6,500.
8 Purchased supplies for $800 on account.
9 Purchased equipment for $1,000 in cash.
17 Paid employees $500 in cash.
22 Received bill for equipment repairs of $800.
29 Paid $1,100 for 12 months of insurance policy. Coverage begins June 1.
Journalize the transactions. (If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
| Date | Account Titles and Explanations | Debit | Credit |
| May 4 | Accounts Payable | ||
| Cash | |||
| May 7 | Accounts Receivable | ||
| Service Revenue | |||
| May 8 | Supplies | ||
| Accounts Payable | |||
| May 9 | Equipment | ||
| Cash | |||
| May 17 | Salaries and Wages Expense | ||
| Cash | |||
| May 22 | Maintenance and Repairs Expense | ||
| Accounts Payable | |||
| May 29 | |||
| Cash |
6. The following accounts are taken from the ledger of Wildhorse Co. at December 31, 2017.
| Notes Payable | $23,600 | Cash | $7,100 |
| Common Stock | $29,500 | Supplies | 5,900 |
| Equipment | 89,700 | Rent Expense | 2,400 |
| Dividends | 9,400 | Salaries and Wages Payable | 3,500 |
| Salaries and Wages Expense | 44,800 | Accounts Payable | 10,600 |
| Service Revenue | 101,500 | Accounts Receivable | 9,400 |
Prepare a trial balance.
| Debit | Credit | |
| Cash | ||
| Accounts Receivable | ||
| Supplies | ||
| Equipment | ||
| Notes Payable | ||
| Accounts Payable | ||
| Salaries and Wages Payable | ||
| Common Stock | ||
| Dividends | ||
| Service Revenue | ||
| Salaries and Wages Expense | ||
| Rent Expense | ||
7. The items for the medical practice of Sheridan, MD, are listed below.
| Retained Earnings (October 1) | 12,400 |
| Common Stock | 32,000 |
| Accounts Payable | 6,500 |
| Equipment | 31,500 |
| Service Revenue | 25,000 |
| Dividends | 5,500 |
| Insurance Expense | 3,800 |
| Cash | 10,800 |
| Utilities Expense | 700 |
| Supplies | 2,600 |
| Salaries and Wages Expense | 8,700 |
| Accounts Receivable | 10,100 |
| Rent Expense | 2,200 |
Prepare an income statement for the month of October, 2022.
Prepare a retained earnings statement for the month of October, 2022. (List items that increase retained earnings first.)
Prepare a balance sheet at October 31, 2022. (List Assets in order of liquidity.)
8.
Presented below are the components in determining cost of goods sold. Determine the missing amounts.
| Beginning Inventory | Purchases | Cost of Goods Available for Sale | Ending Inventory | Cost of Goods Sold |
9. Presented here are the components in Crane Company’s income statement. Determine the missing amounts.
| Sales Revenue | Cost of Goods Sold | Gross Profit | Operating Expenses | Net Income |
| $86,000 | $31,000 | $15,000 | ||
| $65,000 | $64,000 | $55,000 | ||
10. The following information is available for Sage Hill Corp. for the year ended December 31, 2022.
| Other revenues and ganis | $23,000 |
| Other expenses and losses | 3,700 |
| Cost of goods sold | 288,000 |
| Sales discounts | 4,400 |
| Sales revenue | 756,000 |
| Operating expenses | 217,000 |
| Sales returns and allowances | 10,400 |
Prepare a multiple-step income statement for Sage Hill Corp. The company has a tax rate of 25%.
11. Crane Chemicals Company acquires a delivery truck at a cost of $20,200 on January 1, 2022. The truck is expected to have a salvage value of $4,200 at the end of its 4-year useful life.
Compute annual depreciation for the first and second years using the straight-line method.
| First Year | Second Year | |
| Annual depreciation under straight-line method | ||
1A Assessment Quiz