Partial list of account balances

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Reference no: EM13743344

Question 1: Below is a partial list of account balances:

Cash $12,000
Prepaid rend $ 1,300
Accound Receivable $7,000
Account Payable $5,000
Notes Payable $9,000
Common Stock $22,000
Dividends $2,000
Revenues $45,000
Expenses $35,000

What is the total debits?

Question 2: Equipment was purchased for $85,000 freight charges amounted to $2,550 and there was a cost of $10,000 for building a foundation and istalling the equipment. It is estimated that the equipment will have a $5,000 salavage valueat the end of its 6 year useful life. Depreciation expense each year using the straight line method will be?

Question 3: When the market rate of interest is equal to the states rate of interest on the bond, the bond will require:

  • A debit to discount on bonds payable
  • A credit to discount on bonds payable
  • A credit to Bonds Payable
  • A Debit to bonds payable

Question 4: which of the following is typically analyzed via financial statement ratio analysis?

  • The design of a new product
  • The internal control failure rate
  • The leverage of the firm
  • The effectiveness of a marketing campaign

Reference no: EM13743344

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