31) Mercy, Inc. purchased equipment for $5,000 cash. The effect of this transaction on the accounting equation is; A) Total shareholders' equity Total assets Total liabilities ...

31) Mercy, Inc. purchased equipment for $5,000 cash. The effect of this transaction on the accounting equation is;

A) Total shareholders' equity

B) Total shareholders' equity

C) Total shareholders' equity

D) Total shareholders' equity

32) Stackables, Inc. paid $8,000 cash for inventory. The effect of this transaction on the accounting equation is;

A) Total shareholders' equity

B) Total shareholders' equity

C) Total shareholders' equity

D) Total shareholders' equity

33) Stackables, Inc. paid $2,000 cash for inventory. The effect of this transaction on the accounting equation is;

A) Total shareholders' equity

B) Total shareholders' equity

C) Total shareholders' equity

D) Total shareholders' equity

34) Squid Roe, Inc. paid $1,000 cash for janitorial services. The effect of this transaction on the accounting equation is;

A) Total shareholders' equity

B) Total shareholders' equity

C) Total shareholders' equity

D) Total shareholders' equity

35) Squid Roe, Inc. paid $500 cash for janitorial services. The effect of this transaction on the accounting equation is;

A) Total shareholders' equity

B) Total shareholders' equity

C) Total shareholders' equity

D) Total shareholders' equity

36) Poe, Inc. made $7,000 of cash sales to customers. The effect of this transaction on the accounting equation is;

A) Total shareholders' equity

B) Total shareholders' equity

C) Total shareholders' equity

D) Total shareholders' equity

37) During the year, The Mane Event, Inc. had sales of $300,000 and had expenses of $240,000. The owners were paid $20,000 in dividends. Net income for the year equals ________.

A) $90,000

B) $60,000

C) $50,000

D) $40,000

38) Assume 2011 is the company's first year of business and there were no dividends declared in 2011.

For the year ended

December 31, 2011

Revenues$300

Expenses1.$_____________

Net Income2.$_____________

December 31, 2011

Assets$1,000

Liabilities3.$_____________

Contributed capital$300

Retained earnings$200

Determine the missing amounts, 1. Expenses. 2. Net income and 3. Liabilities, in the condensed income statement and balance sheet for the year ended December 31, 2011.

A) 1. Expenses of $(100); 2. Net income of $200; 3. Liabilities of $500

B) 1. Expenses of $(200); 2. Net income of $500; 3. Liabilities of $1,500

C) 1. Expenses of $(200); 2. Net income of $100; 3. Liabilities of $500

D) 1. Expenses of $(500); 2. Net income of $200; 3. Liabilities of $500

39) Assume 2011 is the company's first year of business. There were no dividends declared in 2011 and $100 of dividends declared in 2012.

For the year endedFor the year ended

December 31, 2011December 31, 2012

Revenues$300$2,500

Expenses$ $ (1,400)

Net Income$

1.$
__

December 31, 2011December 31, 2012

Assets$1,000$2,500

Liabilities$ ___2.
$

Contributed capital$300$300

Retained earnings$ ______________3.$ _____________

Determine the missing amounts, 1. Net income, 2. Liabilities of $200, and 3. Retained earnings of $1,400, in the condensed income statement and balance sheet for the year ended December 31, 2012.

A) 1. Net income of $1,100; 2. Liabilities of $200; 3. Retained earnings of $1,400

B) 1. Net income of $3,900; 2. Liabilities of $1,000; 3. Retained earnings of $1,300

C) 1. Net income of $1,100; 2. Liabilities of $1,000; 3. Retained earnings of $1,200

D) 1. Net income of $1,100; 2. Liabilities of $200; 3. Retained earnings of $1,200

40) It is Dives, Inc.'s first year of business. Dives' net income for its first year is $200,000. Dives declared and paid dividends of $50,000. The balance in retained earnings at the end of the first year equals;

A) $200,000.

B) $50,000.

C) $150,000.

D) $250,000.

Lox Stock & Bagel Company

a._____________________________

April 30, 2012

Cashb. $_________Accounts payable$3,000

Inventory1,610Notes payable15,000

Supplies300

Land10,000Common stock10,000

Building (net) 25,000Retained earningsc.

$39,910 $39,910