Question : 21) Which of the following increases retained earnings? A) issuance of : 1253095

 

 

21) Which of the following increases retained earnings?

A) issuance of stock

B) revenues

C) purchase of inventory

D) dividends

 

22) Mia Hero, Inc. had a retained earnings balance of $7,000 on December 31, 2011. For the year 2012, sales revenues are $15,000 and expenses are $13,000. If no dividend is declared or paid in 2012, retained earnings at December 31, 2012 equals ________.

A) $9,000

B) $10,000

C) $35,000

D) some other amount

23) Team Shirts, Inc. had the following balances on its balance sheet;

 

AssetsLiabilities

December 31, 2011$300,000$250,000

December 31, 2012$400,000$320,000

 

During 2012, Team Shirts had revenues of $500,000 and expenses of $420,000. No new stock was issued. The amount of dividends for 2012 was ________.

A) $130,000

B) $50,000

C) $10,000

D) $80,000

 

24) Team Shirts, Inc. had the following balances on its balance sheet;

 

AssetsLiabilities

December 31, 2011$500,000$300,000

December 31, 2012$700,000$400,000

 

During 2012, Team Shirts had revenues of $500,000, expenses of $420,000, and issued $20,000 of new stock. The amount of dividends for 2012 was ________.

A) $130,000

B) $50,000

C) $0

D) $60,000

 

25) Team Shirts, Inc. had the following balances on its balance sheet;

 

AssetsLiabilities

December 31, 2011$500,000$300,000

December 31, 2012$700,000$400,000

 

During 2012, Team Shirts issued $20,000 of new stock and paid $10,000 of dividends. The amount of net income for 2012 was ________.

A) $290,000

B) $310,000

C) $90,000

D) $10,000

26) Tim’s Tots, Inc.

September 30, 2012

Cash

$ 5,000

  Accounts Payable

$3,200

Accounts receivable

$ 3,500

  Notes payable

$6,500

Inventory

________

  Common stock

$5,000

Equipment

$10,500

  Retained earnings

$7,300

Total assets

________

  Total liabilities & shareholders’ equity

________

 

What is the name of the financial statement above?

A) income statement

B) balance sheet

C) statement of cash flows

D) statement of changes in shareholders’ equity

 

27) Tim’s Tots, Inc.

September 30, 2012

Cash

$ 5,000

  Accounts Payable

$3,200

Accounts receivable

$ 3,500

  Notes payable

$6,500

Inventory

________

  Common stock

$5,000

Equipment

$10,500

  Retained earnings

$7,300

Total assets

________

  Total liabilities & shareholders’ equity

________

 

Using the above financial statement, calculate the missing amount of Inventory.

A) $3,000

B) $19,000

C) $22,000

D) $1,500

28) The Mane Event, Inc. began by selling $200,000 of common stock to its owners in exchange for cash. The effect of this transaction on the accounting equation is;

 

A) Total shareholders’ equity

 

Total assets

Total liabilities

Contributed capital

Retained earnings

 

Increase

No effect

Increase

No effect

 

B) Total shareholders’ equity

 

Total assets

Total liabilities

Contributed capital

Retained earning

 

Decrease

No effect

No effect

Decrease

 

C) Total shareholders’ equity

 

Total assets

Total liabilities

Contributed capital

Retained earning

 

No effect

Decrease

No effect

Increase

 

D) Total shareholders’ equity

 

Total assets

Total liabilities

Contributed capital

Retained earnings

 

Increase

No effect

Increase

No effect

 

 

29) Daily Grind, Inc. began by selling $15,000 of common stock to its owners in exchange for cash. The effect of this transaction on the accounting equation is;

 

A) Total shareholders’ equity

 

Total assets

Total liabilities

Contributed capital

Retained earnings

 

15,000 cash

No effect

No effect

15,000 revenue

 

B) Total shareholders’ equity

 

Total assets

Total liabilities

Contributed capital

Retained earnings

 

15,000 cash

No effect

15,000 common stock

No effect

 

C) Total shareholders’ equity

 

Total assets

Total liabilities

Contributed capital

Retained earnings

 

No effect

15,000 cash

15,000 cash

No effect

 

D) Total shareholders’ equity

 

Total assets

Total liabilities

Contributed capital

Retained earnings

 

15,000 cash

15,000 cash

No effect

Increase

 

30) Mercy, Inc. purchased a truck for $50,000 cash. The effect of this transaction on the accounting equation is;

 

A) Total shareholders’ equity

 

Total assets

Total liabilities

Contributed capital

Retained earnings

 

Increase

No effect

No effect

Increase

 

B) Total shareholders’ equity

 

Total assets

Total liabilities

Contributed capital

Retained earnings

 

Decrease

No effect

No effect

Decrease

 

C) Total shareholders’ equity

 

Total assets

Total liabilities

Contributed capital

Retained earnings

 

No effect

No effect

No effect

No effect

 

D) Total shareholders’ equity

 

Total assets

Total liabilities

Contributed capital

Retained earnings

 

Increase

No effect

Increase

No effect

 

 

 

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