If beginning capital was $28,000, ending capital is $65,000, and the owner's withdrawals were $31,000, the amount of net income or net loss was:

1. If beginning capital was $28,000, ending capital is $65,000, and the owner's withdrawals were $31,000, the amount of net income or net loss was:

1. The balance in the prepaid rent account before adjustment at the end of the year is $15,000, which represents five months' rent paid on October 1.  The adjusting entry required on December 31 is:

1. The balance in the office supplies account on June 1 was $7,000, supplies purchased during June were $5,500, and the supplies on hand at June 30 were $2,000.  The amount to be used for the appropriate adjusting entry is:

1. A business pays weekly salaries of $55,000 on Friday for a five-day week ending on that day.  The adjusting entry necessary at the end of the fiscal period ending on Wednesday is:

1. The net income reported on the income statement is $68,000.  However, adjusting entries have not been made at the end of the period for supplies expense of $2,100 and accrued salaries of $3,000.  Net income, as corrected, is:

1. If total assets decreased by $29,000 during a period of time and owner's equity increased by $23,000 during the same period, then the amount and direction (increase or decrease) of the period's change in total liabilities is:

1. Equipment with an estimated market value of $47,000 is offered for sale at $53,000. The equipment is acquired for $7,000 in cash and a note payable of $35,000 due in 30 days.  The amount used in the buyer's accounting records to record this acquisition is

1. If total liabilities decreased by $20,000 during a period of time and owner's equity increased by $40,000 during the same period, the amount and direction (increase or decrease) of the period's change in total assets is

1. The unearned rent account has a balance of $37,000.  If $6,000 of the $37,000 is unearned at the end of the accounting period, the amount of the adjusting entry is

1. The total assets and the total liabilities of a business at the beginning and at the end of the year appear below.  During the year, the owner had withdrawn $65,000 for personal use and had made an additional investment of $40,000 in the business.

                                        Assets                Liabilities

Beginning of year       $305,000                  $195,000

End of year                   350,000                    240,000

         The amount of net income for the year was

11.       Presently the dominant body in the development of accounting principles is the:

12.       Name three different transactions that affect owner's equity, e.g., owner’s withdrawals:

13.       Is signing a contract for future services considered to be a transaction?

14.       Is rendering services considered to be a transaction?

15.       An entity that is organized according to state or federal statutes and in which ownership is divided into shares of stock is a:

16.       On which financial statement are liabilities reported:

17.       The total assets and the total liabilities of a business at the beginning and at the end of the year appear below.  During the year, the owner had withdrawn $10,000 for personal use and had made an additional investment of $35,000 in the business.

                                       Assets             Liabilities

Beginning of year          $300,000         $190,000

End of year                    495,000           220,000

            The amount of net income for the year was:

18.       A debt to equity ratio of .50 indicates:

19.       The debt created by a business when it makes a purchase on account is referred to as a(n):

20.       Goods purchased for future use in the business, such as supplies, are called:

21.       If total assets decreased by $50,000 during a period of time and owner's equity increased by $30,000 during the same period, then the amount and direction (increase or decrease) of the period's change in total liabilities is:

22.       What is the normal balance of the fees earned account?

23.       Are decreases recorded by credits to a liability account or an expense account?

24.       A increases recorded by credits to a revenue or a drawing account?

25.       The verification that the total dollar amount of the debits equals the total dollar amount of the credits in the ledger is called a:           

26.       Write the journal entries to record the owner taking cash from the company for personal use:     

27.       A chart of accounts is:             

28.       Is Salaries Expense an asset account?

29.       Is Accounts Receivable an asset account?

30.       What is the normal balance of any asset account?

31.       What are accounts?

32.       A group of related accounts that comprise a complete unit is called a(n):
              

33.       Write the journal entries to record the receipt of cash for three months' rent?

34.       The cash was received in advance of providing the service. Supplies purchased on account were incorrectly recorded as Office Equipment.  The correcting entry would be:

35.       What is the proper adjusting entry at June 30, the end of the fiscal year, based on a supplies account balance before adjustment, $10,000, and supplies inventory on June 30, $1,000?

36.       A business pays weekly salaries of $50,000 on Friday for a five-day week ending on that day.  The adjusting entry necessary at the end of the fiscal period ending on Thursday is:

37.       The supplies account has a balance of $1,000 at the beginning of the year and was debited during the year for $4,000, representing the total of supplies purchased during the year.  If $500 of supplies are on hand at the end of the year, the supplies expense to be reported on the income statement for the year would be:

38.       Prepaid advertising, representing payment for the next quarter, would be reported on the balance sheet as a(n):

39.       What is the proper adjusting entry at April 30, the end of the fiscal year, based on a prepaid insurance account balance before adjustment, $12,000 and unexpired amounts per analysis of policies, $4,000?  

40.       Accrued revenues would appear on the balance sheet as:

41.       At the end of the fiscal year, the usual adjusting entry for accrued salaries owed to employees was omitted. Was net income for the year overstated or understated? Why?

42.       At the end of the fiscal year, the usual adjusting entry for depreciation on equipment was omitted.  Will assets for the year be overstated or understated?