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Net income, adjusting entry, resources and distributions

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Fundamental Accounting Principles

Determine the net income of a company for which the following information is available for the month of May.

Employee salaries expense $180,000
Interest expense $10,000
Rent Expense $20,000
Consulting revenue $400,000

Answer
Question 5 answers
$190,000
$210,000
$230,000
$400,000

Prior to recording adjusting entries, the Office Supplies account had a $359 debit balance. A physical count of the supplies showed $105 of unused supplies available. The required adjusting entry is:

Answer
Question 6 answers
debit Office Supplies $105 and credit Office Supplies Expense $105.
debit Office Supplies Expense $105 and credit Office Supplies $105.
debit Office Supplies Expense $254 and credit Office Supplies $254.
debit Office Supplies $254 and credit Office Supplies Expense $254.

Resources owned or controlled by a company that are expected to yield benefits are:

Answer
Question 8 answers
assets.
revenues.
liabilities.
owner's equity.

Use the following information as of December 31 to determine equity.
Liabilities $141,000
Cash $57,000
Equipment $206,000
Buildings $175,000

Answer
Question 9 answers
$57,000
$141,000
$297,000
$438,000

Distributions by a business to its owners are called:

Answer
Question 10 answers
withdrawals.
expenses.
retained earnings.
net Income.

What is a trial balance? What is its purpose? APA.

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Solution Summary

The expert determines the net income of a company for which information is available.

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See attached file for trial balance exampe.

Q 5 :
Consulting revenue $400,000
Less: Expenses:
Employee salaries expense $180,000
Interest expense $10,000
Rent Expense $20,000 $210000

Net Income $ 190000

Q 6: Debit Office Supplies Expense 254
Credit Office Supplies. 254

Q 8 Assets

Q 9 Cash $57,000
Equipment $206,000
Buildings $175,000
Total Assets: $438000
Less: Liabilities $141,000
Equity (Net Worth) $297000

Q 10 Drawing

Answer to Long question on Trial Balance:

Meaning of a Trial ...

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