Alexis Company was started in Year 1. At the end of Year 1, the Company had the following accounting equation. Cash 730 Assets + Liabilities Stockholders Equity Land 2,330 Notes Payable 1,260 Common Stock Retained Earnings 1,140 660 During Year 2, the company experienced the following accounting events. Paid off $630 of its note payable Earned $830 of cash revenue. ⚫ Paid $530 of cash expenses. Paid a $230 cash dividend. Based on this information alone, what percent of the company's assets at the end of Year 2 was provided by earnings? Multiple Choice 25.2% 29.2% O O 61.2% Some other percentage

Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter8: Revenue Recognition, Receivables, And Advances From Customers
Section: Chapter Questions
Problem 42P
icon
Related questions
Question
Alexis Company was started in Year 1. At the end of Year 1, the Company had the following accounting equation.
Cash
730
Assets
+
Liabilities
Stockholders
Equity
Land
2,330
Notes Payable
1,260
Common Stock
Retained Earnings
1,140
660
During Year 2, the company experienced the following accounting events.
Paid off $630 of its note payable
Earned $830 of cash revenue.
⚫ Paid $530 of cash expenses.
Paid a $230 cash dividend.
Based on this information alone, what percent of the company's assets at the end of Year 2 was provided by earnings?
Multiple Choice
25.2%
29.2%
O
O
61.2%
Some other percentage
Transcribed Image Text:Alexis Company was started in Year 1. At the end of Year 1, the Company had the following accounting equation. Cash 730 Assets + Liabilities Stockholders Equity Land 2,330 Notes Payable 1,260 Common Stock Retained Earnings 1,140 660 During Year 2, the company experienced the following accounting events. Paid off $630 of its note payable Earned $830 of cash revenue. ⚫ Paid $530 of cash expenses. Paid a $230 cash dividend. Based on this information alone, what percent of the company's assets at the end of Year 2 was provided by earnings? Multiple Choice 25.2% 29.2% O O 61.2% Some other percentage
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
Finance
ISBN:
9781285595047
Author:
Weil
Publisher:
Cengage
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College