Reference no: EM131587915
Q1. Mesquite, Inc. engaged in the following transactions during October:
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Performed services for cash
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$1,840
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Performed services on credit
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2,100
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Purchased office supplies on account
|
800
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Paid salaries in cash
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900
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Collected on account
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600
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Paid on account
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400
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What is the amount of cash still to be received?
a. $400
b. $1,500
c. $2,300
d. $1,900
Q2. Use this information to answer the following question.
The trial balance for Nowwick Company appears as follows:
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Nowwick Company Trial Balance December 31, 20x5
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Cash
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$ 240
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|
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Accounts Receivable
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1,000
|
|
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Prepaid Insurance
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100
|
|
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Supplies
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300
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|
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Office Equipment
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800
|
|
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Accumulated Depreciation-Office Equipment
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$ 400
|
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Accounts Payable
|
|
600
|
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Common Stock
|
|
1,200
|
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Service Revenue
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|
1,000
|
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Salaries Expense
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200
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|
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Rent Expense
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400
|
|
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$3,200
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$3,200
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If the estimated depreciation for office equipment were $350, the adjusting entry would contain a
a. debit to Accumulated Depreciation-Office Equipment for $350.
b. credit to Accumulated Depreciation-Office Equipment for $350.
c. credit to Office Equipment for $350.
d. credit to Depreciation Expense-Office Equipment for $350.
Q3. Use this balance sheet and income statement to answer the following question. Use ending balances whenever average balances are required for computing ratios.
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National Textile Balance Sheet December 31, 20x5
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Assets
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Liabilities
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Current assets
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$12,000
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Current liabilities
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$ 8,000
|
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Investments
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2,000
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Long-term liabilities
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2,000
|
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Property, plant, and equipment
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16,000
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Total liabilities
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$ 10,000
|
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Intangible assets
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10,000
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|
|
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Stockholders' Equity
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|
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Common stock
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30,000
|
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Total liabilities and stockholders' equity
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$40,000
|
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Total assets
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$40,000
|
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National Textile Income Statement For the Year Ended December 31, 20x5
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Net sales
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$48,000
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Cost of goods sold
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16,000
|
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Gross margin
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$32,000
|
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Operating expenses
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22,400
|
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Net income
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$ 9,600
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The asset turnover for National Textile is
a. 0.83 times.
b. 1.00 times.
c. 1.33 times.
d. 1.20 times.