Question :
81.Refer to the information above. If the Cash balance at : 1237541
81.Refer to the information above. If the Cash balance at December 31, 2014 is $67,500, the Notes Payable balance is:
A.$118,750.
B.$47,500.
C.$137,500.
D.$140,000.
Cash ($67,500) + A/R ($18,750) + Land ($30,000) + Building ($31,250) + Equipment ($40,000) = $187,500A/P ($2,500) + N/P (?) + Capital Stock ($12,500) + R.E. ($125,000) = $187,500Notes Payable = $47,500
82.Refer to the information above. If the Cash balance at December 31, 2014 is $62,500 then Total Liabilities amounts to:
A.$42,500.
B.$140,000.
C.$45,000.
D.$182,500.
Cash ($62,500) + A/R ($18,750) + Land ($30,000) + Building ($31,250) + Equipment ($40,000) = $182,500A/P ($2,500) + N/P (?) + Capital Stock ($12,500) + R.E. ($125,000) = $182,500$2,500 (Accounts Payable) + $42,500 (Notes Payable) = $45,000Total Liabilities = $45,000
83.Which of the following is correct if at the end of Crystal Imports’ first year of operations, Assets are $800,000 and Owners’ Equity is $720,000?
A.The owner(s) must have invested $800,000 to start the business.
B.The business must be operating profitably.
C.Liabilities are $80,000.
D.Liabilities are $1,520,000.
$800,000(Assets) – $720,000(Owners’ Equity) = $80,000 (Liabilities)
84.During the current year, the assets of Wheatley’s increased by $362,000, and the liabilities increased by $260,000. The owners’ equity in the business must have:
A.Decreased by $102,000.
B.Decreased by $622,000.
C.Increased by $102,000.
D.Increased by $622,000.
$362,000 – $260,000 = $102,000
85.The total liabilities of Hogan’s Company on the balance sheet are $270,000; this amount is equal to three-fourths of the total assets. What is the amount of owners’ equity?
A.$202,500.
B.$90,000.
C.$360,000.
D.$630,000.
¾ Assets = $270,000Assets = $360,000; Owners’ Equity = ($360,000) Assets – ($270,000) Liabilities = $90,000
86.Thirty percent of the total assets of Shanahan Corporation have been financed through borrowing. The total liabilities of the company are $600,000. What is the amount of owners’ equity?
A.$180,000.
B.$2,000,000.
C.$1,400,000.
D.$2,600,000.
30% Assets = $600,000Assets = $2,000,000; Owners’ Equity = ($2,000,000) Assets – ($600,000) Liabilities = $1,400,000
87.A transaction caused a $60,000 increase in both assets and total liabilities. This transaction could have been which of the following?
A.Purchase for office equipment for $60,000 cash.
B.Purchase of office equipment for $120,000, paying $60,000 cash and issuing a note payable for the balance.
C.Repayment of a $60,000 bank loan.
D.Investment of $60,000 cash in the business by the owner.
88.If $9,600 cash and a $31,000 note payable are given in exchange for some office machines to be used in a business:
A.Total assets are increased.
B.Total liabilities are decreased.
C.Total assets are decreased.
D.The owners’ equity is increased.
89.If during the current year, liabilities of Corbett’s Store increased by $220,000 and owners’ equity increased by $160,000, then:
A.Assets at the end of the year total $380,000.
B.Assets at the end of the year total $60,000.
C.Assets increased during the year by $380,000.
D.Assets decreased during the year by $60,000.
$220,000 + $160,000 = $380,000
90.If during the current year, liabilities of Hayden Travel decreased by $50,000 and owners’ equity increased by $75,000, then:
A.Assets at the end of the year total $125,000.
B.Assets at the end of the year total $25,000.
C.Assets increased during the year by $25,000.
D.Assets decreased during the year by $125,000.
$75,000 – $50,000 = $25,000
