ACCT 2121 9/18 PAL Session: Chapters 1 & 2

Based on the following information, what is Company A's net income?

Revenue: $17,540

Advertising expense: $1,280

Supplies expense: $465

Insurance expense: $620

Rent Expense: $985

• $16,455

• $14,810

• $15,175

• $14,190

Based on the following information, what is the ending retained earnings for company A?

Dividends: $950

Net income: $1,300

Beginning retained earnings: $1,145

• $795

• $1,495

• $3,395

• $1,105

Based on the following information, what is the net income for Company B?

Beginning retained earnings: $3,460

Dividends: X

Net income: $1,200

Ending Retained earnings: $3,100

• $2,260

• $1,560

• $840

• $5,360

Based on the following information, what is the total assets for Company B?

Cash- $900

Accounts payable: $650

Unearned revenue: $460

Accounts receivable: $280

Common Stock: $880

Supplies: $665

Prepaid rent: $290

Retained Earnings: $515

Prepaid Insurance: $370

• $2,505

• $1,845

• $2,305

• $2,965

Based on the following information, what are the total liabilities for Company B?

Cash- $900

Accounts payable: $650

Unearned revenue: $460

Accounts receivable: $280

Common Stock: $880

Supplies: $665

Prepaid rent: $290

Retained Earnings: $515

Prepaid Insurance: $370

• $1,310

• $1,770

• $1,110

• $1,625

Based on the following information, what is the total stockholder's equity for company B?

Cash- $900

Accounts payable: $650

Unearned revenue: $460

Accounts receivable: $280

Common Stock: $880

Supplies: $665

Prepaid rent: $290

Retained Earnings: $515

Prepaid Insurance: $370

• $1,710

• $1,340

• $1,855

• $1,395

Which of the following is the assumption that the financial activities of a company can be divided into time periods?

• Going concern assumption

• Periodicity Assumption

• Monetary unit assumption

On February 2nd, BOBS Corporation purchased $450 worth of supplies with cash.

What accounting entry would be recorded on February 2nd?

• Accounts payable increases $450, supplies increase $450

• Cash decreases $450, supplies increase $450

• Accounts receivable decreases $450, supplies increase $450

• Accounts receivable increases $450, supplies increase $450

On February 4th, BOBS Corporation purchased a 1-year insurance plan for $3,600.

What accounting entry would be made for this?

• Cash decreases $3,600, prepaid insurance increases $3,600

• Accounts payable increases $3,600, prepaid insurance increases $3,600

• Cash decreases $3,600, insurance expense increases $3,600

• Accounts payable increases $3,600, insurance expense increases $3,600

On January 5th, BOBS Corporation purchased 1 year worth of rent for $5,800.

What adjustment would need to be made for this at the end of the quarter?

• Accounts payable increases $1,450, prepaid rent increases $1,450

• Cash decreases $1,450, rent expense increases $1,450

• Prepaid rent decreases $1,450, rent expense increases $1,450

• Rent expense decreases $1,450, prepaid rent increases $1,450