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 ______.
