Question

In: Accounting

Q1： The total assets and the total liabilities of a business at the beginning and at...

Q1：

The total assets and the total liabilities of a business at the beginning and at the end of the year appear below. During the year, the corporation paid cash dividends of $24,000 and the stockholders made an additional investment of $15,000.

Assets Liabilities

Beginning of year $395,000 $190,000

End of year 555,000 320,000

The amount of net income or net loss for the year was

Group of answer choices

net income of $54,000.

net income of $30,000.

net loss of $15,000.

net income of $39,000.

net income of $69,000.

Q2：

Marsh Company does not ring up sales taxes separately on the cash register. Total receipts for February were $14,310. If the sales tax rate is 6%, what amount must be remitted to the state for February's sales taxes?

Group of answer choices

$ 810.00

$858.60

cannot be determined

Q3：

Machinery was purchased for $50,000, has an estimated scrap value of $6,000 and has a current carrying value of $33,000. Its depreciable cost is

Group of answer choices

$19,000.

$11,000.

$44,000.

$17,000.

$27,000.

$1,013.40

$807.08

Solutions

Expert Solution

1	Correct Answer : Option D - net income of 39000

Working Notes:
	(A)	(B)	(A) - (B)
	Assets	Liabilities	Stockholder's Equity
Beginning of year	395000	190000	205000
End of year	555000	320000	235000


	Beginning stockholder's equity	205000
	Add: Common Stock issued	15000
	Less : Dividend Paid	-24000
		196000
	Net Income	39000
	Ending stockholder's equity	235000

2	Correct Answer : Option A - 810.00

	Working Notes:

	Total Receipts	14310
	Sales Tax (14310/106*6)	810


3	Correct Answer: Option C - 44000

	Working Notes:

	Machinery Purchased	Scrap Value	Depreciable Cost
	50000	6000	44000	(50000-6000)

ekkarill92 answered 1 year ago

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