References
Multiple Choice Learning Objective: 01-04 Show
how business events affect the
accounting equation.
Difficulty: 1 Easy Learning Objective: 01-07
Prepare an income statement, a
statement of changes in
stockholders equity, and a
balance sheet.
Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions:
1) issued stock for $40,000
2) borrowed $25,000 from its bank
3) provided consulting services for $39,000 cash
4) paid back $15,000 of the bank loan
5) paid rent expense for $9,000
6) purchased equipment for $12,000 cash
7) paid $3,000 dividends to stockholders
8) paid employees' salaries of $21,000
What is Yowell's notes payable balance at the end of Year 1?
$0
$25,000
($15,000)
$10,000
Beginning notes payable balance of $0 + Loan of $25,000 − Repayment of loan of $15,000 = Ending notes payable balance of $10,000.
References
Multiple Choice Learning Objective: 01-04 Show
how business events affect the
accounting equation.
Difficulty: 1 Easy Learning Objective: 01-07
Prepare an income statement, a
statement of changes in
stockholders equity, and a
balance sheet.
79.
Award: 1.00 point
80.
Award: 1.00 point
Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions:
1) issued stock for $74,000
2) borrowed $42,000 from its bank
3) provided consulting services for $73,000 cash
4) paid back $32,000 of the bank loan
5) paid rent expense for $17,500
6) purchased equipment for $29,000 cash
7) paid $4,700 dividends to stockholders
8) paid employees' salaries of $38,000
What is Yowell's net income for Year 1?
$17,500
$33,300
$12,800
$55,500
Net income = Revenues of $73,000 − Rent expense of $17,500 − Salaries expense of $38,000 = $17,500
References
Multiple Choice Learning Objective: 01-04 Show
how business events affect the
accounting equation.
Difficulty: 2 Medium Learning Objective: 01-07
Prepare an income statement, a
statement of changes in
stockholders equity, and a
balance sheet.
Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions:
1) issued stock for $40,000
2) borrowed $25,000 from its bank
3) provided consulting services for $39,000 cash
4) paid back $15,000 of the bank loan
5) paid rent expense for $9,000
6) purchased equipment for $12,000 cash
7) paid $3,000 dividends to stockholders
8) paid employees' salaries of $21,000
What is Yowell's net income for Year 1?
$9,000
$30,000
$18,000
$6,000
Net income = Revenues of $39,000 − Rent expense of $9,000 − Salaries expense of $21,000 = $9,000
References
Multiple Choice Learning Objective: 01-04 Show
how business events affect the
accounting equation.
Difficulty: 2 Medium Learning Objective: 01-07
Prepare an income statement, a
statement of changes in
stockholders equity, and a
balance sheet.
81.
Award: 1.00 point
82.
Award: 1.00 point
Packard Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.)
1) Acquired $1,250 cash from the issue of common stock.
2) Borrowed $720 from a bank.
3) Earned $900 of revenues cash.
4) Paid expenses of $310.
5) Paid a $110 dividend.
During Year 2, Packard engaged in the following transactions. (Assume all transactions are cash transactions.)
1) Issued an additional $625 of common stock.
2) Repaid $430 of its debt to the bank.
3) Earned revenues of $1,050 cash.
4) Incurred expenses of $480.
5) Paid dividends of $160.
What is the amount of Packard Company's net cash flow from financing activities for Year 2?
Net outflow of $430.
Net outflow of $590.
Net inflow of $35.
Net inflow of $465.
Net inflow from financing activities = Inflow from stock issuance of $625 − Outflow for loan repayment of $430 − Outflows for dividends of $160 = $35
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-08 Prepare a statement of cash flows.
Packard Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.)
1) Acquired $950 cash from the issue of common stock.
2) Borrowed $420 from a bank.