a. the net income from the income statement is used in the retained earnings statement.
b. the ending retained earnings from the retained earnings statement is used in the stockholder's equity section of the balance sheet.
c. the cash on the balance sheet should be equal to the cash at the end of the period on the statement of cash flows.
d. all of the payments on the balance sheet should be equal to the cash payments for operating activities on the statement of cash flows.
Ans: D, LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: None, IMA: Reporting
161. Marvin Services Corporation had the following accounts and balances:
Accounts payable
$30,000
Equipment
$35,000
Accounts receivable
5,000
Land
35,000
Buildings
?
Unearned service revenue
10,000
Cash
15,000
Total stockholders' equity
?
If the balance of the Buildings account was $70,000 and $5,000 of Accounts Payable were paid in cash, what would be the balance of the total stockholders' equity?
a. $135,000
b. $120,000
c. $170,000
d. $130,000
Ans: B, LO: 3, Bloom: AN, Difficulty: Medium, Min: 3, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: Problem Solving, IMA: Reporting
Solution: ($5,000 + $70,000 + $10,000 + $35,000 + $35,000) - ($25,000 + $10,000) = $120,000
[A/R + Bldg. bal. + (cash bal. – A/P pd.) + equip. + land] – [(A/P bal – A/P pd.) + un. ser. rev.]
162. Marvin Services Corporation had the following accounts and balances:
Accounts payable
$30,000
Equipment
$35,000
Accounts receivable
5,000
Land
35,000
Buildings
?
Unearned service revenue
10,000
Cash
15,000
Total stockholders' equity
?
If the balance of the Buildings account was $40,000 and $10,000 of Accounts Payable were paid in cash, what would be the total liabilities and stockholders' equity?
a. $90,000
b. $78,000
c. $80,000
d. $120,000
Ans: D, LO: 3, Bloom: AN, Difficulty: Medium, Min: 3, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: Problem Solving, IMA: Reporting
Solution: $5,000 + $40,000 + $5,000 + $35,000 + $35,000 = $120,000
[A/R + Bldg. bal. + (Cash bal. – A/P pd.) + equip. + land]
163. Marvin Services Corporation had the following accounts and balances:
Accounts payable
$30,000
Equipment
$35,000
Accounts receivable
5,000
Land
35,000
Buildings
?
Unearned service revenue
10,000
Cash
15,000
Total stockholders' equity
?
If total stockholder's equity was $95,000, what would be the balance of the Buildings Account?
a. $35,000
b. $135,000
c. $145,000
d. $45,000
Ans: D, LO: 3, Bloom: AN, Difficulty: Medium, Min: 3, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: Problem Solving, IMA: Reporting
Solution: ($30,000 + $10,000 + $95,000) - ($5,000 + $15,000 + $35,000 + $35,000) = $45,000
(A/P + un. ser. rev. + tot. st. eq.) – (A/R + cash + equip. + land)
164. Marvin Services Corporation had the following accounts and balances:
Accounts payable
$30,000
Equipment
$35,000
Accounts receivable
5,000
Land
35,000
Buildings
?
Unearned service revenue
10,000
Cash
15,000
Total stockholders' equity
?
If the balance of the Buildings account was $75,000 and the equipment was sold for $35,000, what would be the total of stockholders' equity?
a. $65,000
b. $90,000
c. $115,000
d. $125,000
Ans: D, LO: 3, Bloom: AN, Difficulty: Medium, Min: 3, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: Problem Solving, IMA: Reporting
Solution: $5,000 + $75,000 + $50,000 + $35,000 - ($30,000 + $10,000) = $125,000
(A/R + Bldg. + cash + equip. + land) - (A/P + un. ser. rev.)