TEST BANK FOR Financial Accounting 11th Edition Robert Libby, Patricia Libby, Frank Hodge Answers are at the end of each Chapter Chapter 1 Student name:__________ 1) Determine the missing amounts for each independent case below. Assume the amounts shown are at the end of the company's first year of operation. Company Name
Total Revenue
Randolph
$ 600,00 0 $ 105,00 0
Newman
Wiseman
Martin
VanTasse l
$ 180,00 0
Total Assets $ 450,00 0
$ 190,00 0 $ 215,00 0
Total Total Net Income Stockholders Expenses Liabilitie (Loss) ' Equity s $ $ 350,00 130,000 0 $ $ $ 75,000 80,000 10,000 $ 70,000 $ 115,00 0 $ 55,000
$(30,000 )
$ 100,000
$ 19,000
$ 79,000
$ 75,000 $ 75,000
Question Details AACSB : Knowledge Application AICPA : BB Critical Thinking AICPA : FN Measurement Bloom's : Apply Difficulty : 2 Medium Learning Objective : 01-01 Recognize the information conveyed in each of the four basic financial sta Topic : Distinguish different financial statements Type : Static Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : manual
2) Frank’s Flower Company, a small retail store that sells flowers, started business on January 1, 2022. At the end of January 2022, the following information was available: Sales of flowers for cash Sales of flowers for credit (not yet collected) Cost of flowers which were sold and paid for during January
$ 150,000 30,000 90,000
Expenses during January incurred, and paid for, during January unless otherwise noted: Salaries Telephone Office supplies (all used) Electricity Rent on the store for January, 2022 (will not be paid until February, 2022)
$ 10,000 500 300 600 2,000
Required:A.Using the above information, prepare the income statement for Frank’s Flower Company for the month ended January 31, 2022. B.What is the amount of cash flows provided by operating activities to be presented on the statement of cash flows?
Question Details AACSB : Knowledge Application AICPA : BB Critical Thinking AICPA : FN Measurement Bloom's : Apply Learning Objective : 01-01 Recognize the information conveyed in each of the four basic financial sta Topic : Distinguish different financial statements Type : Static Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Difficulty : 3 Hard Gradable : manual
3) Indicate on which financial statement you would expect to find each of the following. If an item can be found on more than one statement, list each statement. Example: Cash Notes payable Salaries expense Cost of goods sold Sales revenue Inventory Income tax expense Dividends declared Retained earnings Accounts payable Equipment
Balance Sheet and Statement of Cash Flows ___________blank ___________blank ___________blank ___________blank ___________blank ___________blank ___________blank ___________blank ___________blank ___________blank
Question Details AICPA : BB Critical Thinking AICPA : FN Measurement Learning Objective : 01-01 Recognize the information conveyed in each of the four basic financial sta Topic : Distinguish different financial statements Type : Static AACSB : Reflective Thinking Difficulty : 1 Easy Bloom's : Remember Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : manual
4) For each of the following items that appear on the balance sheet, identify each as an asset (A), liability (L), or element of stockholders' equity (SE). For any item that would not appear on the balance sheet, write the letter, N. Retained earnings Accounts payable Selling expense Common stock Accounts receivable Income tax expense Dividends Property and equipment
___________blank ___________blank ___________blank ___________blank ___________blank ___________blank ___________blank ___________blank
Question Details AICPA : BB Critical Thinking AICPA : FN Measurement Learning Objective : 01-01 Recognize the information conveyed in each of the four basic financial sta Type : Static AACSB : Reflective Thinking Difficulty : 1 Easy Bloom's : Remember Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Topic : Financial statements-Balance sheet Gradable : manual
5) Rose Corporation began operations on January 2, 2022. During 2022, Rose made cash and credit sales totaling $500,000 and collected $420,000 in cash from its customers. Rose purchased inventory costing $250,000, paid $15,000 for dividends and the cost of goods sold was $210,000. Also, the corporation incurred the following expenses during 2022: Salary expense Interest expense Insurance expense Supplies expense Income tax expense
$ 80,000 5,000 4,000 6,000 34,000
Required:1.Prepare an income statement showing revenues, expenses, income before income taxes, income tax expense, and net income for the year ended December 31, 2022. 2.Based on the above information, what is the amount of accounts receivable on the balance sheet prepared as of December 31, 2022? 3.Based on the above information, what is the amount of retained earnings on the balance sheet prepared as of December 31, 2022?