Reference no: EM132228129

Questions -

Q1. Annapolis Corporation's trial balance included debits to expense accounts of $125,000, credits to revenue accounts of $231,000, and debits to the Dividends account of $50,000. Based on this information, what is the amount of the company's net income or loss? Enter a loss as a negative number.

Q2. Baltimore Company reports total assets and total liabilities of $251,000 and $110,000, respectively, at the conclusion, of its first year of business. The company earned $81,500 during the first year, and distributed $27,000 to shareholders as dividends. How much did shareholders initially invest in the business?

Q3. During June, Bravo Magazine sold for cash six advertising spaces for $400 each to be run in the July through December issues. On that date, Bravo properly recognized Unearned Revenue. The adjusting entry to record on July 31 includes:

(a) a credit to Revenue for $2,000.

(b) a debit to Unearned Revenue for $400.

(c) a credit to Unearned Revenue for $400.

(d) a debit to Cash for $2,000.

Q4. On January 7, Bravo purchased supplies on account for $1,000, and recorded this purchase to the Supplies account. At the end of January, Bravo had $600 of these supplies still on hand. The proper adjusting journal entry at January 31 would:

(a) include a credit to Supplies for $400.

(b) include a debit to Accounts Payable for $400.

(c) include a debit to Supplies Expense for $600.

(d) include a debit to Supplies for $1,000.