Question

1. Given the information below about Thomas Corporation, what was the amount of dividends the company paid in the current period?

Beginning retained earnings	$	54,000
Ending retained earnings	$	117,000
Decrease in cash	$	9,900
Net income	$	91,000
Change in stockholders’ equity	$	13,000

2. The ending Retained Earnings balance of Boomer Inc. decreased by $1.9 million from the beginning of the year. The company declared a dividend of $4.7 million during the year. What was the net income for the year?

3. When a company pays utilities of $1,710 in cash, the transaction is recorded as:

4. When a company pays $2,100 dividends to its stockholders, the transaction should be recorded as:

5. A company received a bill for newspaper advertising services, $460. The bill will be paid in 10 days. How would the transaction be recorded today?

6. On March 3, Cobra Inc. purchased a desk for $350 on account. On March 22, Cobra purchased another desk for $415 also on account, and then on March 24, Cobra paid $470 on account. At the end of March, what amount should Cobra report for desks (assuming these two desks were the only desks they had)?

7.

Use the following information to prepare a trial balance.

Cash	$	6,100
Deferred revenue		1,500
Prepaid insurance		1,600
Accounts payable		1,900
Retained earnings		1,300
Utilities expense		3,100
Dividends		1,000
Salaries expense		2,500
Accounts receivable		3,200
Common stock		6,700
Service revenue		7,000
Maintenance expense		900

8. At the beginning of December, Global Corporation had $1,800 in supplies on hand. During the month, supplies purchased amounted to $3,000, but by the end of the month the supplies balance was only $1,400. What is the appropriate month-end adjusting entry?

9.

The following table contains financial information for Trumpeter Inc. before closing entries:

Cash	$	12,400
Supplies		5,100
Prepaid Rent		2,000
Salaries Expense		4,700
Equipment		65,100
Service Revenue		28,500
Miscellaneous Expenses		20,000
Dividends		3,000
Accounts Payable		3,200
Common Stock		66,400
Retained Earnings		14,200

What is Trumpeter's net income?

Answer 1

1. Given the information below about Thomas Corporation, what was the amount of dividends the company paid in the current period?
Beginning retained earnings	54,000
Ending retained earnings	1,17,000
Decrease in cash	9,900
Net income	91,000
Change in stockholders’ equity	13,000
Ending retained earnings	1,17,000
Less:
Beginning retained earnings	54,000
Net income	91,000
Less: Ending retained earnings	1,17,000
Dividend Paid	28,000
2. The ending Retained Earnings balance of Boomer Inc. decreased by $1.9 million from the beginning of the year. The company declared a dividend of $4.7 million during the year. What was the net income for the year?
Beginning Retained Earnings + Net Income − Dividends = Ending Retained Earnings
0 + NI - $4.7 = -$1.9 Millions
NI = -1.9 + 4.7 Millions	$         2.80	Millions
3. When a company pays utilities of $1,710 in cash, the transaction is recorded as:
Debit utilities expense $1,710, credit cash $1,710.
4. When a company pays $2,100 dividends to its stockholders, the transaction should be recorded as:
Debit Dividends $2100, Credit Cash $2100