The following is random list of the accounts of Critz Co. Cash 7200 Accounts Rec
ID: 2340904 • Letter: T
Question
The following is random list of the accounts of Critz Co.
Cash 7200
Accounts Recivable 1770
Supplies 420
prepaid Insurance 2400
Land 5000
Accounts Payable 1500
Common stock 1800
Retaind Earnings 7380
Divi 400
Service Revenue 21600
Rent Exp 3600
Salaries Exp 9000
Operating Exp 2500
If this accounts in a tril balance the total of the credit column would equal :
1- 32280
2-32680
3-36220
4-36620
Q2
Flowers Co. experienced the following transactions during 2017, it's first year in operation:
1- Recived 400 cash by issuing common stock
2- paid 300 cash to purches supplies
3- paid 1000 cash for operating Ex
4- provided 1800 of services on accounts
5- paid 100 cash Divd to Stockholders
6- Provided 300 of services for cash
A- the amount of net income recognized and reported on Flowers Co. 2017 income statment is?
Q3 :
Which of the following financial statment Items is colosed to Retained Eranings at the end of an accounting cycle?
A- Advertsing Exp
B- Dividend
C- Both
D-non
plz ASP
Explanation / Answer
Answer
Accounts Payable
$ 1,500.00
Common Stock
$ 1,800.00
Retained Earnings
$ 7,380.00
Service revenue
$ 21,600.00
Total of Credit side of Trial Balance
$ 32,280.00
Correct Answer
Option #1: $ 32,280
Revenues:
4. Service revenue on account
$ 1,800.00
6. Service revenue for cash
$ 300.00
Expenses:
3. Operating expenses
$ 1,000.00
Net Income
$ 1,100.00
Answer: Amount of Net Income = $ 1,100
The correct answer is Option ‘B’ Dividends. Dividend account is closed by debiting Retained Earnings account.
Advertising expense is not directly closed to Retained earnings.
Accounts Payable
$ 1,500.00
Common Stock
$ 1,800.00
Retained Earnings
$ 7,380.00
Service revenue
$ 21,600.00
Total of Credit side of Trial Balance
$ 32,280.00
Correct Answer
Option #1: $ 32,280
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