Solution 176 (5 min.)
a . O d . I
b . F e . O
c . F f . I
Be. 177
Use the following information to calculate for the year ended December 31, 2014 (a)
... [Show More] net income
(net loss), (b) ending retained earnings, and (c) total assets.
Supplies $ 1,500 Service revenue $19,000
Other operating expenses 10,000 Cash 15,000
Accounts payable 11,000 Dividends 6,000
Accounts receivable 4,000 Notes payable 1,000
Common stock 10,000 Equipment 9,500
Retained earnings (beginning) 5,000
Ans: N/A, LO: 4,5, Bloom: AP, Difficulty: Medium, Min: 5, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC:
Problem Solving, IMA: Reporting
Solution 177 (5 min.)
(a) $9,000 (b) $8,000 (c) $30,000
Be. 178
Use the following information to calculate for the year ended December 31, 2014 (a) net income
(net loss), (b) ending retained earnings, and (c) total assets.
Supplies $ 1,000 Service revenue $18,000
Other operating expenses 12,000 Cash 15,000
Accounts payable 9,000 Dividends 1,000
Accounts receivable 3,000 Notes payable 1,000
Common stock 9,000 Equipment 13,000
Retained earnings (beginning) 5,000
Ans: N/A, LO: 4,5, Bloom: AP, Difficulty: Medium, Min: 5, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC:
Problem Solving, IMA: Reporting
Solution 178 (5 min.)
(a) $6,000 (b) $10,000 (c) $32,000
FOR INSTRUCTOR USE ONLY
Test Bank for Accounting: Tools for Business Decision Making, Fifth Edition
Be. 179
Listed below in alphabetical order are the balance sheet items of Nolan Company at December
31, 2014. Prepare a balance sheet and include a complete heading.
Accounts payable $ 11,000
Accounts receivable 15,000
Buildings 65,000
Cash 11,000
Common stock 80,000
Land 31,000
Equipment 10,000
Retained earnings 41,000
Ans: N/A, LO: 5, Bloom: AP, Difficulty: Medium, Min: 5, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC:
Problem Solving, IMA: Reporting
Solution 179 (5 min.)
NOLAN COMPANY
Balance Sheet
December 31, 2014
ASSETS
Cash $ 11,000
Accounts receivable 15,000
Equipment 10,000
Buildings 65,000
Land 31,000
Total assets $132,000
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Accounts payable $ 11,000
Stockholders’ equity
Common stock $80,000
Retained earnings 41,000 121,000
Total liabilities and stockholders’ equity $132,000
FOR INSTRUCTOR USE ONLY
1-38
Full file at https://testbankscafe.eu/
Be. 180
Indicate in the space provided by each item whether it would appear on the income statement
(IS), balance sheet (BS), or retained earnings statement (RE):
a. ______ Service Revenue g. ____ Accounts Receivable
b. ______ Utilities Expense h.____ Common Stock
c. ______ Cash i._____ Equipment
d. ______ Accounts Payable j._____ Advertising Expense
e. ______ Supplies k.____ Dividends
f. ______ Salaries and Wages Expense l._____ Notes Payable
Ans: N/A, LO: 4,5, Bloom: C, Difficulty: Medium, Min: 5, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC: None,
IMA: Reporting
Solution 180 (5 min.)
a. IS g. BS
b. IS h. BS
c. BS i. BS
d. BS j. IS
e. BS k. RE
f. IS l. BS
Be. 181
Cesar Ruiz was reviewing his company’s activities at the end of the year (2014) and decided to
prepare a retained earnings statement. At the beginning of the year his assets were $530,000,
liabilities were $140,000, and common stock was $120,000. The net income for the year was
$250,000. Dividends of $220,000 were paid during the year.
Prepare a retained earnings statement in good form.
Ans: N/A, LO: 4, Bloom: AP, Difficulty: Medium, Min: 5, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC:
Problem Solving, IMA: Reporting
FOR INSTRUCTOR USE ONLY
Test Bank for Accounting: Tools for Business Decision Making, Fifth Edition
Solution 181 (5 min.)
CESAR RUIZ.COMPANY
Retained Earnings Statement
For the Year Ended December 31, 2014
Retained Earnings, Beginning $270,000
Add: Net Income 250,000
520,000
Less: Dividends 220,000
Retained Earnings, Ending $300,000
Be. 182
From the following list of selected accounts taken from the records of Schmidt Clinic, identify
those that would appear on the balance sheet.
a. Common Stock f. Accounts Payable
b. Service Revenue g. Cash
c. Land h. Advertising Expense
d. Salaries and Wages Expense i. Supplies
e. Notes Payable j. Utilities Expense
Ans: N/A, LO: 5, Bloom: K, Difficulty: Easy, Min: 5, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC: None, IMA:
Reporting
Solution 182 (5 min.)
a, c, e, f, g, i
Be. 183
Determine the missing items.
Assets = Liabilities + Stockholders’ Equity
$80,000 $56,000 (a)
(b) $28,000 $34,000
$84,000 [Show Less]