Quiz Solutions

The amount of net income is transferred from ________ to ___

The amount of net income is transferred from ________ to ________. A) the income statement; the statement of retained earnings B) the balance sheet; the statement of cash flows C) the balance sheet; the income statement D) the income statement; the statement of expenditures ANSWER A

Read full post

Date: September 2nd, 2020

Which of the following is the correct order of preparation o

Which of the following is the correct order of preparation of financial statements? A) Income statement ↑ statement of retained earnings ↑ balance sheet ↑ statement of cash flows B) Statement of retained earnings ↑ balance sheet ↑ income statement ↑ statement of cash flows C) Balance sheet ↑ statement of retained earnings ↑ income […]

Read full post

Date: September 2nd, 2020

Prepare an income statement and a statement of retained earn

Prepare an income statement and a statement of retained earnings for the month of June. Also, prepare a balance sheet at June 30 The transactions of Magna Designer Corporation for the first month of their operations are as follows: †¢ On June 1, 2017, Magna Designer Corporation received $25,000 cash from its stockholders and […]

Read full post

Date: September 2nd, 2020

The income statement presents a summary of an entity’s reven

The income statement presents a summary of an entity’s revenues and expenses for a period of time. Which of the following statements is true of an income statement? A) There is net income when total expenses are greater than total revenues. B) There is a net loss when total expenses are less than total revenue. […]

Read full post

Date: September 2nd, 2020

Following is a list of account balances of Morris Mowing Ser

Following is a list of account balances of Morris Mowing Services as of December 31 of the first year of operations Accounts Receivable $6,000 Accounts Payable 7,000 Salaries Expense 6,000 Repairs Expense 900 Truck 12,000 Equipment 9,000 Notes Payable 24,000 Cash 12,000 Supplies Expense 9,000 Service Revenue 24,000 Gasoline Expense 7,100 Salaries Payable 1,500 Calculate […]

Read full post

Date: September 2nd, 2020