Question

1.Owner's equity for our company is $500,000, and total liabilities are $250,000. The company paid $50,000 in dividends during the year. What do our total assets equal?

$250,000

$300,000

$700,000

$750,000

2.The net income for our company this year is $20,000. The beginning and ending retained earnings balances were $46,000 and $52,000, respectively. The company issued no common stock. Calculate the amount of dividends paid by the company this year.

$14,000

$54,000

$60,000

$106,000

3.Which of the following accounts is increased with a credit?

cash

prepaid insurance

salaries expense

unearned revenue

4.On August 21, we paid four months' rent in advance, which totaled $3,200. What account would we credit when we journalize this entry?

rent expense

cash

prepaid rent

account payable

5.On September 5, we received an $11,400 payment on account. What account would we debit when we journalize this entry?

accounts payable

cash

accounts receivable

fees earned

6.On September 11, we performed $5,750 of service and billed our customer. What account would we credit when we journalize this entry?

service revenue

cash

accounts receivable

retained earnings

7.On September 22, we purchased supplies on account for $1,150. What account would we debit when we journalize this entry?

supplies

cash

accounts payable

supplies expense

Answer 1