161.The following items (in thousands) are taken from the financial statements of Huang Company for the year ending December 31, 2014:
Accounts payable¥ 54,000
Accounts receivable33,000
Accumulated depreciation – equipment84,000
Advertising expense63,000
Cash45,000
Share capital-ordinary126,000
Dividends42,000
Depreciation expense36,000
Equipment630,000
Insurance expense9,000
Note payable, due 6/30/15210,000
Prepaid insurance (month policy)18,000
Rent expense51,000
Retained earnings (1/1/14)180,000
Salaries and wages expense96,000
Service revenue399,000
Supplies12,000
Supplies expense18,000
What is the balance that would be reported for equity at December 31, 2014?
a.¥306,000
b.¥390,000
c.¥432,000
d.¥474,000
Accounts payable¥ 54,000
Accounts receivable33,000
Accumulated depreciation – equipment84,000
Advertising expense63,000
Cash45,000
Share capital-ordinary126,000
Dividends42,000
Depreciation expense36,000
Equipment630,000
Insurance expense9,000
Note payable, due 6/30/15210,000
Prepaid insurance (month policy)18,000
Rent expense51,000
Retained earnings (1/1/14)180,000
Salaries and wages expense96,000
Service revenue399,000
Supplies12,000
Supplies expense18,000
Multiple Choice 162.
(Cont.)
What are total current assets at December 31, 2014?
a.¥78,000
b.¥96,000
c.¥108,000
d.¥654,000
Accounts payable¥ 54,000
Accounts receivable33,000
Accumulated depreciation – equipment84,000
Advertising expense63,000
Cash45,000
Share capital-ordinary126,000
Dividends42,000
Depreciation expense36,000
Equipment630,000
Insurance expense9,000
Note payable, due 6/30/15210,000
Prepaid insurance (month policy)18,000
Rent expense51,000
Retained earnings (1/1/14)180,000
Salaries and wages expense96,000
Service revenue399,000
Supplies12,000
Supplies expense18,000
What is the book value of the equipment at December 31, 2014?
a.¥714,000
b.¥630,000
c.¥546,000
d.¥510,000
Accounts payable¥ 54,000
Accounts receivable33,000
Accumulated depreciation – equipment84,000
Advertising expense63,000
Cash45,000
Share capital-ordinary126,000
Dividends42,000
Depreciation expense36,000
Equipment630,000
Insurance expense9,000
Note payable, due 6/30/15210,000
Prepaid insurance (month policy)18,000
Multiple Choice 164.
(Cont.)
Rent expense51,000
Retained earnings (1/1/14)180,000
Salaries and wages expense96,000
Service revenue399,000
Supplies12,000
Supplies expense18,000
What are total current liabilities at December 31, 2014?
a.¥54,000
b.¥210,000
c.¥264,000
d.¥0
Accounts payable¥ 54,000
Accounts receivable33,000
Accumulated depreciation – equipment84,000
Advertising expense63,000
Cash45,000
Share capital-ordinary126,000
Dividends42,000
Depreciation expense36,000
Equipment630,000
Insurance expense9,000
Note payable, due 6/30/15210,000
Prepaid insurance (month policy)18,000
Rent expense51,000
Retained earnings (1/1/14)180,000
Salaries and wages expense96,000
Service revenue399,000
Supplies12,000
Supplies expense18,000
What are total non-current liabilities at December 31, 20114?
a.¥0
b.¥210,000
c.¥264,000
d.¥270,000
Accounts payable¥ 54,000
Accounts receivable33,000
Accumulated depreciation – equipment84,000
Advertising expense63,000
Cash45,000
Share capital-ordinary126,000
Dividends42,000
Depreciation expense36,000
Equipment630,000
Insurance expense9,000
Note payable, due 6/30/15210,000
Prepaid insurance (month policy)18,000
Rent expense51,000
Retained earnings (1/1/14)180,000
Salaries and wages expense96,000
Service revenue399,000
Supplies12,000
Supplies expense18,000
What is total equity and liabilities at December 31, 2014?
a.¥528,000
b.¥570,000
c.¥654,000
d.¥696,000
Accounts payable¥ 54,000
Accounts receivable33,000
Accumulated depreciation – equipment84,000
Advertising expense63,000
Cash45,000
Share capital-ordinary126,000
Dividends42,000
Depreciation expense36,000
Equipment630,000
Insurance expense9,000
Note payable, due 6/30/15210,000
Prepaid insurance (month policy)18,000
Rent expense51,000
Retained earnings (1/1/14)180,000
Salaries and wages expense96,000
Service revenue399,000
Supplies12,000
Supplies expense18,000
Multiple Choice 167.
(Cont.)
The sub-classifications for assets on the company’s classified statement of financial position would include all of the following except
a.Current Assets.
b.Property, Plant, and Equipment.
c.Intangible Assets.
d.Long-term Assets.
Accounts payable¥ 54,000
Accounts receivable33,000
Accumulated depreciation – equipment84,000
Advertising expense63,000
Cash45,000
Share capital-ordinary126,000
Dividends42,000
Depreciation expense36,000
Equipment630,000
Insurance expense9,000
Note payable, due 6/30/15210,000
Prepaid insurance (month policy)18,000
Rent expense51,000
Retained earnings (1/1/14)180,000
Salaries and wages expense96,000
Service revenue399,000
Supplies12,000
Supplies expense18,000
The current assets should be listed on Huang’s statement of financial position in the following order
a.accounts receivable, prepaid insurance, equipment, cash.
b.accounts receivable, prepaid insurance, supplies, cash.
c.prepaid insurance, supplies, accounts, receivable, cash.
d.equipment, supplies, prepaid insurance, accounts receivable, cash.
169.Which statement about long-term investments is not true?
a.They will be held for more than one year.
b.They are not currently used in the operation of the business.
c.They include investments in shares of other companies and land held for future use.
d.They can never include cash accounts.
170.What is the order in which assets are generally listed on a classified statement of financial position?
a.Current and long-term.
b.Intangible assets; long-term investments; property, plant, and equipment; current.
c.Long-term investments; property, plant, and equipment; intangible assets; current
d.Intangible assets; property, plant, and equipment; long-term investments; current.