FINANCIAL QUIZ 2 The following information related to questions 1 through 3 on t
ID: 2534556 • Letter: F
Question
FINANCIAL QUIZ 2 The following information related to questions 1 through 3 on the next page: Off-Road Partners offers ATV rebuilding services and has been operating for one year (2015). At the start of 2016, its income statement accounts had zero balances and its balance sheet account balances were as follows Cash Accounts Receivable 19000 Prepaid 8000 aid Insurance 32500 Equipment Land 27000 20700 Accounts payable Unearned Revenue 58000 1500 e. Received a $21,700 deposit from a customer for services that will be performed in February f. Paid $15,300 in wages to employees in January Notes payable g. Paid $17,000 to supplier on account Common Stock 100700 Retained Earnings 21000 21500 1. Net income for January 2016 is a. $33,800 b. $29,900 c. $18,900 d. $24,600 Service Revenue Wage Expense Utility Expense 2. Retained earnings at the end of January 2016 is a. $40,600 b. $32,400 c. $51,400 d. $21,500 During January of 2016, Off-Road had the following transactions a. Rebuilt and cleaned ATVs for customers who paid a total of $53,000 in cash b. Received $10,700 from customers as payment on their accounts c. Received electric, phone and gas bills for $7,800 to be paid in February d. Purchased new equipment costing $25,400 by paying $9,000 down and signing a noteb. Total assets at the end of January 2016 js MADE WITH $216,200 $230,10o for the balance. c. $180,400 d. $228,900 BPICJOINTERExplanation / Answer
(1) Net Income for January 2016 :-
Rebuilt & cleaned ATV
53000
(-) Electric, pjone, gas bill
7800
(-) Wages
15300
Net Income for January 2016
29900
(2) Retained earning at the end of January 2016 :-
Opening Balance
21500
(+) Net income for January
29900
Retained Earning
51400
(3) Total Asset at the end of January 2016 :-
Opening Balance
165200
(+) Cash for ATV received
53000
(+) Received cash from customer
10700
(-) Decrease A/c Receivable
10700
(-) Electric,gas phone bill
7800
(+) Purchase Equipment
25400
(-) Cash for downpayment of equipment
9000
(+) Received deposit from customer
21700
(-) Wages paid
15300
(-) Paid to supplier
17000
Total Asset at the end of January
216200
Rebuilt & cleaned ATV
53000
(-) Electric, pjone, gas bill
7800
(-) Wages
15300
Net Income for January 2016
29900
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.