16) Please refer to the equity section of the balance sheet shown below:
Preferred stock
|
$100 par, 10,000 shares authorized, 1,000 shares issued
|
$100,000
|
Common stock
|
$1 par, 500,000 shares authorized, 20,000 shares issued
|
20,000
|
Paid-in capital in excess of par
|
|
350,000
|
Retained earnings
|
|
(74,000)
|
Total stockholders' equity
|
|
$396,000
|
The amount shown for Retained earnings would be called a(n):
A) net loss.
B) earnings shortfall.
C) retained earnings deficit.
D) loss on sale of stock.
17) Ajax Company was founded in 2012. Its yearly earnings are shown here:
2012: Net income of $4,000
2013: Net income of $23,000
2014: Net income of $2,000
2015: Net loss of $30,000
No dividends were paid. At the end of the year 2015, what amount would be shown on the balance sheet for Retained earnings?
A) Negative $1,000
B) Positive $29,000
C) Positive $31,000
D) Negative $30,000
18) Beta Company was founded in 20013. Its yearly earnings and dividend payments are shown here:
2013: Net income of $4,000, paid zero dividends
2014: Net income of $20,000, paid $10,000 dividends
2015: Net income of $8,000, paid $5,000 dividends
2016: Net loss of $22,000, paid zero dividends
At the end of 2016, what would be the balance in Retained earnings?
A) Negative $22,000
B) Positive $32,000
C) Negative $5,000
D) Positive $1,000
19) Beta Company was founded in 2012. Its yearly earnings and dividend payments are shown here:
2012: Net income $4,000, paid zero dividends
2013: Net income $20,000, paid $10,000 dividends
2014: Net income of $8,000, paid $5,000 dividends
2015: Net loss of $22,000, paid zero dividends
At the end of 2015, which of the following statements would be accurate?
A) Beta has a cumulative operating loss.
B) Beta has a retained earnings deficit.
C) Beta has retained earnings surplus.
D) Beta has negative contributed capital.
20) A company had $90,000 of Sales revenue and $55,000 of Expenses. Please provide the first of three year-end closing entries.
21) A company had $90,000 of Sales revenue and $55,000 of Expenses. Please provide the second of three year-end closing entries.
22) A company had $90,000 of Sales revenue and $55,000 of Expenses. Please provide the third of three year-end closing entries. (Assume no dividends were paid.)