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The following information pertains to the next four questions. At the beginning of Year 2, X Company had assets of $300, liabilities of $150, and common stock of $50. During Year 2 the company earned revenue of $400, incurred expenses of $250, and paid dividends of $100. All transactions were cash transactions. 1. What is the amount of retained earnings at the beginning of Year 2? $ 50. $100. $150. a. b. C. d. none of the above.

The following information pertains to the next four questions. At the beginning of Year 2, X Company had assets of $300, liabilities of $150, and common stock of $50. During Year 2 the company earned revenue of $400, incurred expenses of $250, and paid dividends of $100. All transactions were cash transactions. 1. What is the amount of retained earnings at the beginning of Year 2? $ 50. $100. $150. a. b. C. d. none of the above.

Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter1: Introduction To Accounting And Business
Section: Chapter Questions
Problem 2PA: Financial statements The assets and liabilities of Global Travel Agency on December 31, 20Y5, and...
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The following information pertains to the next four questions. At the beginning of Year 2, X Company had assets of $300, liabilities of $150, and common stock of $50. During Year 2 the company earned revenue of $400, incurred expenses of $250, and paid dividends of $100. All transactions were cash transactions. 1. What is the amount of retained earnings at the beginning of Year 2? a. $ 50. b. $100. $150. none of the above. C. d. 2. The amount of net income reported on the Year 2 income statement would be $400. $150. $ 50. a. b. C. d. none of the above. 3. The amount of retained earnings reported on the December 31, Year 2 balance sheet would be $100. $250. $650. a. b. C. d. none of the above. 4. The amount of total assets reported on the December 31, Year 2 balance sheet would be $350. $300. a. b. C. $450. d. $ 50. 5. Z Company borrowed $500 cash from the National Bank. As a result of this transaction, Z Company's assets would increase by $500. liabilities would decrease by $500. a. b. C. equity would increase by S500. d. revenue would decrease by $500.
Transcribed Image Text:The following information pertains to the next four questions. At the beginning of Year 2, X Company had assets of $300, liabilities of $150, and common stock of $50. During Year 2 the company earned revenue of $400, incurred expenses of $250, and paid dividends of $100. All transactions were cash transactions. 1. What is the amount of retained earnings at the beginning of Year 2? a. $ 50. b. $100. $150. none of the above. C. d. 2. The amount of net income reported on the Year 2 income statement would be $400. $150. $ 50. a. b. C. d. none of the above. 3. The amount of retained earnings reported on the December 31, Year 2 balance sheet would be $100. $250. $650. a. b. C. d. none of the above. 4. The amount of total assets reported on the December 31, Year 2 balance sheet would be $350. $300. a. b. C. $450. d. $ 50. 5. Z Company borrowed $500 cash from the National Bank. As a result of this transaction, Z Company's assets would increase by $500. liabilities would decrease by $500. a. b. C. equity would increase by S500. d. revenue would decrease by $500.
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