Question

The following is random list of the accounts of Critz Co.

Cash 7200

Accounts Recivable 1770

Supplies 420

prepaid Insurance 2400

Land 5000

Accounts Payable 1500

Common stock 1800

Retaind Earnings 7380

Divi 400

Service Revenue 21600

Rent Exp 3600

Salaries Exp 9000

Operating Exp 2500

If this accounts in a tril balance the total of the credit column would equal :

1- 32280

2-32680

3-36220

4-36620

Q2

Flowers Co. experienced the following transactions during 2017, it's first year in operation:

1- Recived 400 cash by issuing common stock

2- paid 300 cash to purches supplies

3- paid 1000 cash for operating Ex

4- provided 1800 of services on accounts

5- paid 100 cash Divd to Stockholders

6- Provided 300 of services for cash

A- the amount of net income recognized and reported on Flowers Co. 2017 income statment is?

Q3 :

Which of the following financial statment Items is colosed to Retained Eranings at the end of an accounting cycle?

A- Advertsing Exp

B- Dividend

C- Both

D-non

plz ASP

Answer 1

• All working forms part of the answer
• Question 1

Accounts Payable	$                                     1,500.00
Common Stock	$                                     1,800.00
Retained Earnings	$                                     7,380.00
Service revenue	$                                   21,600.00
Total of Credit side of Trial Balance	$                                   32,280.00
Correct Answer	Option #1: $ 32,280

• Question 2

Revenues:
4. Service revenue on account	$                                     1,800.00
6. Service revenue for cash	$                                         300.00
Expenses:
3. Operating expenses	$                                     1,000.00
Net Income	$                                     1,100.00

Answer: Amount of Net Income = $ 1,100

• Question 3

The correct answer is Option ‘B’ Dividends. Dividend account is closed by debiting Retained Earnings account.

Advertising expense is not directly closed to Retained earnings.