Reference no: EM131125062
Accounting Question HELP!!!
1. During 2007 the assets of Inspiring Sky increased by $30,000, and the liabilities increased by $15,000. If the ownersA????1 equity in Blue Sky is $84,000 at the end of 2007, the ownersA????1 equity at the beginning of 2007 must have been:
2. Sea Coast Potters purchased a kiln on February 1 for $48,000 which is guaranteed to have a useful life of 10 years. Assuming adjusting entries are prepared monthly, what is the book value of the kiln on June 30?
3. The adjusting entry to recognize interest owed by Tiger, Inc., to the bank for May was omitted in month-end procedures. As a result of this error, TigerA????1s
a. May net income is understated and May 31 liabilities overstated.
b. May expenses are overstated and May 31 assets overstated.c. May expenses are understated and May 31 ownersA????1 equity understated.
d. May net income is overstated and May 31 liabilities overstated.
e. none of the above
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