1. Which of the following elements are found on the income statement?

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Hugh McDowell
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1 ACCT 301 Pre-Course Assignment for Extra Credit (15 questions -15 Extra Credit Points) Please submit your answers (a Word file with one answer highlighted for each question) to the assignment submission folder in the course website before 8 am on Monday August 27. Course website will be available on August 22. Late submissions will not be accepted. Name: 1. Which of the following elements are found on the income statement? a. Cash b. Accounts receivable c. Common stock d. Retained earnings e. Salaries expense 2. Which of the following elements are found on the balance sheet? a. Service revenue. b. Net income. c. Operating activities. d. Utilities expense. e. Retained earnings. 3. A collection of all accounts showing a list of transactions affecting each account and account balance for each account is called a: a. Journal b. T- Account c. Income statement d. Trial balance e. General ledger 4. Of the following accounts, which account will increase with a credit: a. Cash b. Office Equipment c. Sales Salaries Payable d. Dividends e. Sales Salaries Expense 1

2 5. An account used to record the owners' investments in the business is called: a. Dividends b. Common Stock c. Revenue d. Expense e. Liability 6. Unearned revenues are: a. Revenues that have been earned and received in cash. b. Revenues that have been earned but not yet collected in cash. c. Liabilities created when a customer pays in advance for products or services before the revenue is earned. d. Recorded as an asset in the accounting records. e. Increases to retained earnings. 7. Which of the following is the appropriate journal entry if a company hires a new employee? a. Debit to Cash, credit to Wages Revenue. b. No entry should be made. c. Debit to Wages Expense, credit to Cash. d. Debit to Cash, credit to Wages Expense. e. Debit to Wages Payable, credit to Wages Expense. 8. These transactions were completed by the art gallery opened by Zed Bennett. 1. Bennett started the gallery, by investing $40,000 cash and equipment valued at $18,000 in exchange for common stock. 2. Purchased $70 of office supplies on credit. 3. Paid $1,200 cash for the receptionist's salary. 4. Sold a painting for an artist and collected a $4,500 cash commission on the sale. 5. Completed an art appraisal and billed the client $200. What was the balance of the cash account after these transactions were posted? a. $12,230 b. $12,430 c. $43,300 d. $43,430 e. $61,430 2

3 9. Management Services, Inc. provides services to clients. On May 1, a client prepaid Management Services $60,000 for a six-month contract in advance. Management Services' journal entry to record this transaction on May 1 will include a: a. Debit to Unearned Management Fees (Unearned revenue) for $60,000. b. Credit to Management Fees Earned (Revenue) for $60,000. c. Credit to Cash for $60,000. d. Credit to Unearned Management Fees (Unearned revenue) for $60,000. e. Debit to Management Fees Earned (Revenue) for $60, If beginning retained earnings was $184,300, net income for the period was $200,000 and ending retained earnings was $322,000, what was the total amount of dividend distributed for the period? a. $62,300 b. $306,300 c. $337,700 d. $706,300 e. $137, The assets of a company total $700,000; the liabilities, $200,000. What are the total claims of the owners? a. $900,000 b. $700,000 c. $500,000 d. $200,000 e. It is impossible to determine unless the amount of owners' investment is known. 12. When cash payments are made to stockholders, what is the effect on the company's accounts? a. Cash decreases and dividends increase. b. Cash increases and dividends decrease. c. Cash decreases and common stock decreases. d. Cash increases and common stock increases. e. Cash decreases and equity increases 13. Receiving cash from customers before services are performed results in: a. Prepaid Assets. b. Service Revenue. c. Deferred Revenues. d. Accounts Receivable. e. Accounts Payable 3

4 14. Providing services on account would be recorded with a: a. Debit to Service Revenue. b. Credit to Accounts Receivable. c. Credit to Accounts Payable. d. Debit to Accounts Receivable. e. Credit to Unearned Revenue 15. Xenon Corporation borrows $75,000 from First Bank. Xenon Corporation records this transaction with a: a. Debit to Investments. b. Credit to Retained Earnings. c. Credit to Notes Payable. d. Credit to Interest Expense. e. Credit to Cash 4

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ACC 301 -S Extra Credit (20 points)

ACC 301 -S Extra Credit (20 points) ACC 301 -S1 2018 Extra Credit (20 points) Please review the ACC 213 material before completing this assignment. You can earn a total of 20 points for this assignment and these points will be counted as