mba 560 test 1

Problem 1. At the beginning of 2010, Gonzales Company's accounting records had the general ledger accounts and balances shown in the table below. During 2010, the following transactions occurred:
 1. received $80,000 cash for providing services to customers
 2. paid rent expense, $10,000
 3. purchased land for $9,000 cash
 4. paid $5,000 on note payable
 5. paid operating expenses, $52,000
 6. paid cash dividend, $6,000
 
 Required:
 1) Record the transactions in the appropriate general ledger accounts. Record the amounts of revenue, expense, and dividends in the Retained Earnings column, providing appropriate titles for these accounts in the last column of the table.
 
  

  
 
 2) What is the amount of total assets as of December 31, 2010?
 3) What is the amount of total stockholders' equity as of December 31, 2010?  

Problem 2. Given are the amounts of assets, liabilities, owner’s equity, revenues, and expenses of AQUA Inc. at 12/31/10. The beginning amount of Retained Earnings at 1/1/10 was $20,000, and during the year Dividends of $60,000 were taken out by the owners of Aqua Inc. Prepare the yearend Balance Sheet and Income Statement for AQUA LLP at the end of the year.

 (Include Correct Headings)

Accounts Payable                                            $59,000                    Land                                                      $78,000

Accounts Receivable                           15,000                  Unearned Revenue                              45,000

Advertising Expense                           13,000                  Utilities Expense                                     5,000

Building                                              160,000                    Rent Expense                                        13,000

Cash                                                    140,000                    Operating Expenses                             23,000

Supplies                                                 10,000                  Common Stock                                   240,000                

Salary payable                                       2,000                   Accumulated Depreciation                                  10,000

Prepaid Insurance Expense                20,000                  Service Revenue                                  170,000

Interest Expense                                    9,000                   Retained Earnings                                         ?  

Income Statement

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Balance Sheet

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