Question 1 1.5 out of 1.5 points

Use the following information for Equitable, Inc., for the year ended December 31, Year 2. Assume no new common stock was issued during the year.

Revenue for the year ended, December 31, Year 2 $39,000

Expenses for the year ended, December 31, Year 2 15,000

Total Assets at December 31, Year 1 35,000

Total Assets at December 31, Year 2 60,000

Total Shareholders’ Equity at December 31, Year 1 25,000

Dividends for the year ended December 31, Year 2 7,000

What is total Shareholders’ Equity at December 31, Year 2?

Question 2 1.5 out of 1.5 points

Sew Chic, Inc., purchased $500 of supplies on account during May. Sew Chic paid $200 of the $500 it owed for its supplies. At May 31, Sew Chic only had $50 of supplies left. Which of the following statements is true about the May financial statements?

Cash Paid for Supplies on the ______.

Question 3 1.5 out of 1.5 points

Record the transaction below.

Assets Liabilities

Shareholders’ Equity

February 1: Wursthaus, Inc., paid $600 cash for three months of insurance coverage that begins February 1. $______ $______ $______

TO RECEIVE FULL CREDIT FOR THE QUESTION, AN ANSWER MUST BE SELECTED FOR EACH COLUMN (ASSETS, LIABILITIES, COMMON STOCK, & RETAINED EARNINGS) EVEN IF THERE IS NO EFFECT. IF THERE IS NO EFFECT, SELECT “0 NO EFFECT.”

Question 4 1.5 out of 1.5 points

When a business makes a sale on account, the asset created is a(n) ______?

Question 5 1.5 out of 1.5 points

During the year, A Salt & Buttery, Inc., had revenue of $89,000 of which $17,000 was collected from customers. It also had expenses of $32,000 of which $3,000 was paid. The owners were paid $20,000 in dividends. Net income for the year equals ______.