Using the following accounts and their amounts, prepare in good format a balance sheet for Bright Futures Company for the month ended August 31. $\begin{array}{lr} \text { Tel ephone expense } & 1,150 \\ \text { Cash } & 3,000 \\ \text { Accounts payable } & 1,540 \\ \text { Dividends } & 800 \\ \text { Fees earned } & 15,700 \\ \text { Rent expense } & 1,400 \\ \text { Supplies } & 140 \\ \text { Accounts receivable } & 1,500 \\ \text { Computer equipment } & 17,600 \\ \text { Common stock } & 10,000 \\ \text { Retained earnings (August } 1 \text { ) } & 4,320 \\ \text { Wages expense } & 4,800 \\ \text { Utilities expense } & 750 \\ \text { Office expense } & 420 \end{array}$ ?

\(\begin{array}{c} \text {Bright Future

The accountant for Scott Industries prepared the following list of account balances from the company's records for the year ended December 31. Use this information to answer the question that follows. $\begin{array}{lrlr} \text { Fees earned } & \$ 165,000 & \text { Cash } & \$ 30,000 \\ \text { Accounts receivable } & 16,000 & \text { Selling expenses } & 44,000 \\ \text { Equipment } & 64,000 & \text { Common stock } & 47,000 \\ \text { Accounts payable } & 12,000 & \text { Interest revenue } & 3,000 \\ \text { Salaries \& wages expense } & 40,000 & \text { Income taxes expense } & 18,000 \\ \text { Income taxes payable } & 5,000 & \text { Rent expense } & 20,000 \end{array}$ -Based on this information, is Scott Industries profitable? Explain your answer.

($165,000 Fees earned + $3,000 Interest

A) increases assets, increases stockholders' equity B) increases assets, decreases stockholders' equity C) increases one asset, decreases another asset D) decreases assets, increases liabilities A) increases assets, increases stockholders' equity B) increases assets, decreases stockholders' equity C) increases one asset, decreases another asset D) decreases assets, increases liabilities

Given the following data: $\begin{array}{lrr}&\text { Dec. } 31 \text {, Year } 2&\text { Dec. } 31 \text {, Year } 1\\ \text { Total liabilities } & \$ 128,250 & \$ 120,000 \\ \text { Total stockholders' equity } & 95,000 & 80,000 \end{array}$ Compute the ratio of liabilities to stockholders' equity for each year. Round to two decimal places.

A) 1.50 and 1.07, respectively B) 1.35 and 1.50, respectively C) 1.07 and 1.19, respectively D) 1.19 and 1.35, respectively A) 1.50 and 1.07, respectively B) 1.35 and 1.50, respectively C) 1.07 and 1.19, respectively D) 1.19 and 1.35, respectively

For each of the following companies, identify whether they are a service, retail, or manufacturing business. \[\begin{array} { | l | l | } \hline \text { A. } & \text { Kohl's } \\ \hline \text { B. } & \text { Time Warner Cable } \\ \hline \text { C. } & \text { General Motors } \\ \hline \text { D. } & \text { Regal Cinemas } \\ \hline \text { E. } & \text { Applebee's } \\ \hline \text { F. } & \text { Sony } \\ \hline \text { G. } & \text { Best Buy } \\ \hline \text { H. } & \text { Banana Republic } \\ \hline \text { I. } & \text { H\&R Block } \\ \hline \end{array}\]

The answer of For each of the following companies, identify...

The assets and liabilities of Bennett Designs at December 31, the end of the current year, and its revenue and expenses for the year are listed below. What were the total assets on December 31? \[\begin{array} { l r l r } \text { Accounts payable } & \$ 42,000 & \text { Miscellaneous expense } & \$ 1,030 \\ \text { Accounts receivable } & 10,340 & \text { Office expense } & 1,240 \\ \text { Cash } & 21,420 & \text { Supplies } & 1,670 \\ \text { Fees earned } & 73,450 & \text { Wages expense } & 23,550 \\ \text { Land } & 47,000 & \text { Dividends } & 16,570 \\ \text { Building } & 157,630 & & \end{array}\]

A) $238,060 B) $236,390 C) $309,840 D) $33,430 A) $238,060 B) $236,390 C) $309,840 D) $33,430

Exam 1: Accounting and Business

Using the following accounts and their amounts, prepare in good format a balance sheet for Bright Futures Company for the month ended August 31. Tel ephone expense 1,150 Cash 3,000 Accounts payable 1,540 Dividends 800 Fees earned 15,700 Rent expense 1,400 Supplies 140 Accounts receivable 1,500 Computer equipment 17,600 Common stock 10,000 Retained earnings (August 1 ) 4,320 Wages expense 4,800 Utilities expense 750 Office expense 420 ?

(Essay)

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Question 81

The accountant for Scott Industries prepared the following list of account balances from the company's records for the year ended December 31. Use this information to answer the question that follows. Fees earned \ 165,000 Cash \ 30,000 Accounts receivable 16,000 Selling expenses 44,000 Equipment 64,000 Common stock 47,000 Accounts payable 12,000 Interest revenue 3,000 Salaries \& wages expense 40,000 Income taxes expense 18,000 Income taxes payable 5,000 Rent expense 20,000 -Based on this information, is Scott Industries profitable? Explain your answer.

(Essay)

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Question 82

Which of the following is a manufacturing business?

(Multiple Choice)

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Question 83

Match the following business types with each business listed below. Each may be used more than once. -A health club and spa

(Multiple Choice)

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Question 84

Earning revenue

(Multiple Choice)

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Question 85

The role of accounting is to provide many different users with financial information to make economic decisions.

(True/False)

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Question 86

The liabilities and stockholder's equity of a company are $132,000 and $244,000, respectively. Assets should equal

(Multiple Choice)

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Question 87

Given the following data: Dec. 31 , Year 2 Dec. 31 , Year 1 Total liabilities \ 128,250 \ 120,000 Total stockholders' equity 95,000 80,000 Compute the ratio of liabilities to stockholders' equity for each year. Round to two decimal places.

(Multiple Choice)

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Question 88

On May 20, White Repair Service extended an offer of $108,000 for land that had been priced for sale at $140,000. On May 30, White Repair Service accepted the seller's counteroffer of $115,000. On June 20, the land was assessed at a value of $95,000 for property tax purposes. On July 4, White Repair Service was offered $150,000 for the land by a national retail chain. At what value should the land be recorded in White Repair Service's records?

(Multiple Choice)

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Question 89

The financial statements of a proprietorship should include the owner's personal assets and liabilities.

(True/False)

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Question 90

As of the end of its accounting period, December 31, Year 1, Great Plains Company has assets of $940,000 and liabilities of $300,000. During Year 2, stockholders invested an additional $73,000 and received $33,000 in dividends from the business. What is the amount of net income during Year 2, assuming that as of December 31, Year 2, assets were $995,000 and liabilities were $270,000?

(Multiple Choice)

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Question 91

Two factors that typically lead to ethical violations are relevance and timeliness of accounting information.

(True/False)

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Question 92

Identify which of the following accounts would appear on a balance sheet. (a) Cash (b) Fees earned (c) Common stock (d) Wages payable (e) Rent expense (f) Supplies (g) Land

(Short Answer)

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Question 93

The business entity assumption means that

(Multiple Choice)

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Question 94

Determine the missing amount "X" for each of the following: Assets Liabilities Stockholders' Equity (a) \ 78,500 \ 37,600 X (b) X \ 53,280 \ 145,000 c) \ 49,500 X \ 34,000

(Essay)

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Question 95

For each of the following companies, identify whether they are a service, retail, or manufacturing business. A. Kohl's B. Time Warner Cable C. General Motors D. Regal Cinemas E. Applebee's F. Sony G. Best Buy H. Banana Republic I. H\&R Block

(Short Answer)

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Question 96

The assets and liabilities of Bennett Designs at December 31, the end of the current year, and its revenue and expenses for the year are listed below. What were the total assets on December 31? Accounts payable \ 42,000 Miscellaneous expense \ 1,030 Accounts receivable 10,340 Office expense 1,240 Cash 21,420 Supplies 1,670 Fees earned 73,450 Wages expense 23,550 Land 47,000 Dividends 16,570 Building 157,630

(Multiple Choice)

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Question 97

Companies like Enron, HealthSouth, and Xerox Corporation have been caught in the midst of ethical lapses that led to fines, firings, and criminal and/or civil prosecution. List and briefly describe two factors that are responsible for what went wrong in these companies.

(Essay)

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Question 98

Which of the following items relates to separating the reporting of business and personal economic transactions?

(Multiple Choice)

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Question 99

The basic difference between manufacturing and retail companies is the completion level of the products they purchase for resale to customers.

(True/False)

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Question 100

Which of the following is a manufacturing business?

Match the following business types with each business listed below. Each may be used more than once. -A health club and spa

Earning revenue

The role of accounting is to provide many different users with financial information to make economic decisions.

The liabilities and stockholder's equity of a company are $132,000 and $244,000, respectively. Assets should equal

Given the following data: Dec. 31 , Year 2 Dec. 31 , Year 1 Total liabilities \ 128,250 \ 120,000 Total stockholders' equity 95,000 80,000 Compute the ratio of liabilities to stockholders' equity for each year. Round to two decimal places.

The financial statements of a proprietorship should include the owner's personal assets and liabilities.

Two factors that typically lead to ethical violations are relevance and timeliness of accounting information.

Identify which of the following accounts would appear on a balance sheet. (a) Cash (b) Fees earned (c) Common stock (d) Wages payable (e) Rent expense (f) Supplies (g) Land

The business entity assumption means that

Determine the missing amount "X" for each of the following: Assets Liabilities Stockholders' Equity (a) \ 78,500 \ 37,600 X (b) X \ 53,280 \ 145,000 c) \ 49,500 X \ 34,000

For each of the following companies, identify whether they are a service, retail, or manufacturing business. A. Kohl's B. Time Warner Cable C. General Motors D. Regal Cinemas E. Applebee's F. Sony G. Best Buy H. Banana Republic I. H\&R Block

Companies like Enron, HealthSouth, and Xerox Corporation have been caught in the midst of ethical lapses that led to fines, firings, and criminal and/or civil prosecution. List and briefly describe two factors that are responsible for what went wrong in these companies.

Which of the following items relates to separating the reporting of business and personal economic transactions?

The basic difference between manufacturing and retail companies is the completion level of the products they purchase for resale to customers.

Double-Entry Accounting

Adjustments: Accruals and Deferrals

The Accounting Cycle

Accounting for Retail Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current, Installment Notes, and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, Stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Investments

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