30. Which account appears on the After-Closing Trial Balance? A) Service Revenue

Question

30. Which account appears on the After-Closing Trial Balance? A) Service Revenue. B) Unearned Revenue. C) Dividends D) Retained Earnings, Beginning of Year. 31. The basic purpose of bookkeeping is to: A) Provide financial information about an economic entity B) Develop the types of information best-suited to specific managerial decisions C) Record the financial transactions of an economic entity D) Determine the taxable income of individuals and business entities 32. Land is purchased for $165,000. Additional costs include a $6,300 fee to a broker, a survey fee of S1,200, $1,750 to construct a fence and a legal fee of $7,500. What is the cost of the land? A) $178,800 B) $165,000 C) $181,750 D) $180,000 33. Decreases in owners' equity are caused by: A) Purchases of assets and payment of liabilitics. B) Purchases of assets and incurrence of liabilities. C) Payment of liabilities and unprofitable operations. D) Distributions of assets to the owner and unprofitable operations. Use the following to answer questions 34-35 The following transactions occurred during May, the first month of operations for Braun Products, Inc.: Issued 50,000 shares of capital stock to the owners of the corporation in exchange for $600.000 cash Purchased a piece of land for $400,000, making a $150,000 cash down payment and signing a note payable for the balance. Made a $60,000 cash payment on the note payable from the purchase of land " Purchased equipment on credit from LLT, Inc. for $63,000.

Explanation / Answer

30. Retained earnings account appear in the after-closing trail balance. so option D is correct.

31. the basic purpose of bookkeeping is to record the financial transactions of an economic activity. Option C is correct

32. while calculating cost of land all costs related to acquisition will form part of the cost of land, except cost of fence

so, cost of land = 165,000+6,300+1,200+7,500 = 180,000 Option D is correct

33. Decrease in owner's equity is caused by distribution of assets to the owner. Option D is correct.

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