____ b. Issuance of common stock for cash.
____ c. Payment of cash dividends.
____ d. Cash purchase of equipment.
____ e. Cash payments to suppliers.
____ f. Sale of old machine for cash.
Ans: N/A, LO: 2, Bloom: C, Difficulty: Medium, Min: 5, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: None, IMA: Reporting
Solution 188
a. O d. I
b. F e. O
c. F f. I
Be. 189
Use the following information to calculate for the year ended December 31, 2022 (a) net income (net loss), (b) ending retained earnings, and (c) total assets.
Supplies $ 1,500 Service revenue $19,000
Other operating expenses 10,000 Cash 15,000
Accounts payable 11,000 Dividends 6,000
Accounts receivable 4,000 Notes payable 1,000
Common stock 10,000 Equipment 9,500
Retained earnings (beginning) 5,000
Ans: N/A, LO: 3, Bloom: AP, Difficulty: Medium, Min: 5, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: Problem Solving, IMA: Reporting
Solution 189
(a) $9,000 (b) $8,000 (c) $30,000
(Ser. rev. – Oper. exp.) (Beg. ret. earn. + Net inc. – dividends) (Sup. + Acc. rec. + Cash + Equip.)