QUESTION 11 Adam Vega\'s Landscaping Company has compiled the following list of

Question

QUESTION 11 Adam Vega's Landscaping Company has compiled the following list of account balances of various a38ets, iablities, rewenues and expenees on December 31, 2016, the end of its first year of operaticns $25,200 5,0OO 9,000 1,600 10,000 17,000 12,600 16.400 35,200 3.200 43.600 1,600 Common stock Accounts payable Selary expenao Repairs expense Notes payable Ceah Supples expense Service revenue Gasoline expensa The net income tor Adam Vaga's Landscaping for the year was: C A. $28,200 B. $11,800 C. S25,600 D. $11,400 QUESTION 12 An income statement: A Reports the results of operaticns for a period CB. Reports on the events causing a change in stackholders' equity duning a period CC. Presents a firm's assots, liabilities, and stcckholders' equity on a given date D. Reports cash inflows and outriows during a period E. None of the sbove QUESTION 13 Caroine Company's balance sheet as of December 31,2016 showed total assets of $170,000, and total labiities of $70,000, and common stock of $84,000. During 2017, the company reported revenues of S84,000, expenses of $50,000, and paid dividends of $16,000 What was the balance in the Retained Eamings account on January 1, 2018? A. S28,000 B. $34,000 C. $58,000 D. S35,000 QUESTION 14 Cash colected on accounte receivable would produce what effect on the balance eheet? C A. Increaee aseets and decrease aesets B. Decrease aeseets and decrease liabilities , Increase liabilities and decrease equity C D. Decrease lablitiee and increa8s equity QUESTION 15 In a double-entry accounting system: CA. A debit entry is recorded on the left side of an account B. uabilties, common stock, and exper se accounts al have normal eedt balances C G.All accounts have nomai debit balance3 C D, A credt entry records n decrease in an account QUESTION 16 Equity financing involvee: A. Selling aherea or stock to inmestors B.Repayment ot principal and intst to a cmdtor C C. Issuing bonds payable C D. Borrowing money from a bank QUESTION 17 The accounting activities carried out by a tr accounting sta" p marly to provide management with accounting data tor decisions elated to a trm'5 operations eter ed to an A. Financial accounting B.Managerial accounting C C. Tax accounting D. Regulatory accounting E. None of the above

Explanation / Answer

Note: There are more than 4 questions. Thus as per rule I am answering first 4 only.

Question – 11;

Answer is option (A) $28200

Explanation;

Service revenue

$43600

Less; Expenses

Salary exepense

($9000)

Repairs expense

($1600)

Supplies expense

($3200)

Gasoline expense

($1600)

Net income

$28200

Question – 12;

Answer is option (A). Reports the results of operations for a period.

Explanation;

As we know that income statement reports the revenues and expenses for a specified period not on a specified date. Hence option (A) is correct answer because income statement reports the results of operations for a period.

Question – 13;

Answer is option (B). $34000

Explanation;

First of all let’s calculate balance of retained earnings on December 31, 2016;

Retained earnings on December 31, 2016 ($170000 - $70000 - $64000)

= $36000

Now, let’s consider results of 2017;

Net income during during 2017 will be;

($64000 – $50000) = $14000

Let’s calculate balance of retained earnings as on January 1, 2018;

Beginning balance of retained earnings

$36000

Add: Net income for the year

$14000

Less: Dividend paid

($16000)

Ending balance of retained earnings

$34000

Question – 14;

Answer is option (A). An increase assets and decrease assets.

Explanation;

As we know that accounts receivable and cash both are part of assets. And at the time of cash collected from accounts receivable balance of cash will increase and balance of accounts receivable will decrease.

Thus option (A) is correct answer because it will result into an increase in assets and an decrease in assets as well.

Service revenue

$43600

Less; Expenses

Salary exepense

($9000)

Repairs expense

($1600)

Supplies expense

($3200)

Gasoline expense

($1600)

Net income

$28200

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