A transaction has been recorded in the journal of Davis Company as follows: Account Title Debit Credit Interest Expense 800 Interest Payable Which of the following describes the effect of this transaction on the company's financial statemen Multiple Choice O O O O Increases Stockholders' Equity Increases Liabilities Decreases Assets Decreases Liabilities 800

A transaction has been recorded in the journal of Davis Company as follows: Account Title Debit Credit Interest Expense 800 Interest Payable Which of the following describes the effect of this transaction on the company's financial statemen Multiple Choice O O O O Increases Stockholders' Equity Increases Liabilities Decreases Assets Decreases Liabilities 800

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which one of the following elements of financial statement helps in understanding the financial performance of the business? Expense, Asset and Income Incomes and expenses Liability, Income and Equity Asset, Equity and Liability zull lis usI TOSHIBA PRTSC SYSRO S11 F12
3. construct the following financial statements on each sheets provided- • income statement • statement of changes in equity • statement of cash flow • statement of financial position using the following accounts information: Inventory - 570,000 Accounts Receivable - 118,800 Accounts Payable - 22,000 Loans Receivable - 48,000 Allowance for Doubtful Accounts - 9,000 Interest Receivable - 2,800 Common Stock - 720,000 Credit Sales - 660,000 Cash Sales - 240,000 Cost of Goods Sold - 540,000 Interest Income - 2,800 Selling and Admin Expense - 134,000 Bad Debts Expense - 6,200 Retained Earnings - 222,600 Collection of Receivables - 706,000 Loan Granted - 48,000 Current Liabilities Paid - 540,000 Beginning Cash - 118,000
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4. On its Balance Sheet, a company reports Total Assets of $480 million, Retained Earnings of $160 million and Common Stock of $140 million. What amount is reported on the balance sheet for Total Liabilities? a. $340 million b. $180 million c. $320 million d. $300 million 5. Which of the following accounts is classified as a LIABILITY on the balance sheet? Rent Expense b. Wages Payable c. Prepaid Insurance а. d. Retained Earnings 6. A company purchased supplies on account. What is the effect of this transaction on the accounting equation? a. increase assets and decrease liabilities. b. increase liabilities and increase stockholders' equity. increase assets and increase liabilities. с. d. decrease assets and increase liabilities.
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Subject :"-Accounting