Business: Balance Sheet and Cash

1155 Words Oct 22nd, 2013 5 Pages
BACC 100
Assignment # 1

1. Jellybean Company reported equity of $32,000 on its December 31, 2014 balance sheet. The following information is available for the year ended December 31, 2015:

Revenues
$73,000
Expenses
59,000
Liabilities
11,000

What are the total assets of Jellybean Company at December 31, 2015?
A) $14,000.
B) $25,000.
C) $35,000.
D) $46,000.
E) $57,000.

2. At the end of its first year of operations, Matlocke Company has total assets of $2,000,000 and total liabilities of $1,200,000. The owner originally invested $200,000 in the business, but has not made any further investments or taken any withdrawals. What is the first year 's net income for Matlocke Company?
A) $ 600,000.
B) $
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(2)
Received $1,500 cash from Barbara Hanson, the owner of the business.
(3)
Received $800 from a customer in partial payment of his account receivable which arose as a result of sales during June.
(4)
Rendered photography services to a customer on credit, $500.
(5)
Borrowed $2,500 from the bank by signing a promissory note.
(6)
Received $1,000 from a customer in payment for services to be rendered next year.

How much revenue was earned in July?
A) $1,200.
B) $2,000.
C) $3,000.
D) $5,500.
E) $7,000.

13. Janfer Book Store purchased a new automobile that cost $10,000, made a down payment of $3,000, and signed a note payable for the balance. The entry to record this transaction is:
A) Cash
3,000

Note Payable
7,000

Automobile
10,000

B) Cash
3,000

Automobile
3,000

C) Automobile
10,000

Cash
3,000

Janfer, Capital
7,000

D) Automobile
3,000

Cash
3,000

E) Automobile
10,000

Notes Payable
7,000

Cash
3,000

14. Aimes opened a new business by investing the following assets: cash, $4,000; land, $20,000; building, $80,000. Also, the business will assume responsibility for a note payable of $32,000. Aimes signed the note as part of his payment for the land and building. Which journal entry should be used on the books of the new business to record the investment by Aimes?
A) Assets
104,000

Aimes, Capital
104,000

B) Assets
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