answer the 10 questions below quickly and give the answer and quick explanation

2 The following financial statements were prepared at the end of the month of May: TOPS IN TOPIARY - INCOME STATEMENT FOR the month of May 0.2 points Expenses: Rent Expense Advertising Expense Wages Expense Net Income $500 $500 $200 $2,540 $1,200 $1,340 TOPS IN TOPIARY - STATEMENT OF OWNER'S EQUITY FOR the month of MAY Owner's Equity at May 1 plus: Investment plus: Net Income less: Withdrawals Owner's Equity at May 31 $ 0 2,000 1,340 0 $3,340 TOPS IN TOPIARY - BALANCE SHEET AS OF MAY 31 ASSETS Current Assets: Cash Accounts Receivable Prepaid Rent Prepaid Advertising Supplies Equipment Total Assets $1,380 $1,500 $ 500 $ 500 $ 100 $3,980 $ 360 $4,340 LIABILITES AND OWNER'S EQUITY Current Liabilities: Accounts Payable $ 300 Advertising Payable $ 500 Advances from Customers $ 200 Owner's Equity $3,340 Total Liabilities & OE $4,340 During June the following transactions occurred: 1) Paid the helper the $200 owed from works done in May (the amount owed is in Accounts Payable). 2) Completed the job for which the customer paid $200 in May. Tops in Topiary collected $1,000 in cash once finished. 3) Paid $500 for the rent of July. 4) At the end of June notices that there are no supplies left. Makes a note to buy some in July. 5) At the end of June notices that there are few flyers left (used for advertising) worth $100 and decides to order some for July. Before ordering, the printer (supplier of flyers) asks to be paid $500 of the amount owed for the flyers done in May. Tops in Topiary pays $500. 6) In June collected in cash $3,000 for 3 jobs are done for a total of $4,200, the rest is owed in account by the customers. 7) In June decided to start depreciating the equipment bought for $360 that is expected to last for 3 years. 8) In June 23"d Edward Scissorhands withdrew some cash for personal reasons ($3,000). Prepare "T" Accounts in ACCRUAL Basis for the period ended on June 30t and then answer the question. At the end of the accounting period (June 30th, T account after AJE), what is the balance of Advertising Payable? \fAccounting is: 0.2 points Multiple Choice O None of the other alternatives are correct A blend of art and science An activity which facilitates commerce A science An art o O O O When a company uses the perpetual inventory system in accounting for its merchandise inventory, which of the following is true? 0.2 points Multiple Choice O The inventory account is updated after each sale The inventory account is updated throughout the year as purchases are made. None of the other alternatives are correct Purchases are recorded in the cost of goods sold account. OO OO Cost of goods sold is computed at the end of the accounting period rather than at each sale. Check my work 5 Which one of these liabilities is not a current liability? 0.2 points Multiple Choice 8 01:28:28 O Accounts payable O Salaries payable O None of the other alternatives are correct O Mortgage payable O Taxes payableCurrent liabilities include liabilities that are expected to be paid within one year. 0.2 points Multiple Choice O this is always a true statement although true for most of the times, there are several exceptions detailed in Canadian GAAP Cannot say if it is true or false given the limited information provided this is always a false statement ONge OO O although false for most of the times, there are several exceptions detailed in Canadian GAAP AB Ltd.'s gross purchases were $17,800, net purchases account for an average 10% discount on all items purchased and 5% of items were returned due to wrong specifications during the year. Also during the year the net sales were $16,478. 1 points Required 1: If beginning and ending inventory are zero (Just in time), AB''s cost of good solf for the period must have been: $ Required 2: AB's Purchase Return and Allowances for the period must have been: $ Required 3: AB's Purchase Discounts for the period must have been: $ Required 4: AB's Net Puchases for the period must have been: $ Required 5: AB's Gross Profit on Sales in dollars for the period must have been: $ 8 When Indigo Company acquired new equipment costing $3,950 on the first day of the year, the bookkeeper debited Depreciation Expense and credited Cash for the whole amount. The equipment has an expected service of 5 years and an expected residual value of $750. 1 points Required 1: What is the correct amount of depreciation expense Indigo should report on the year end income statement? $ F) B Required 2: What is the amount for accumulated depreciation Indigo should show on the year end balance sheet? (type it as a positive number) $ Required 3: What net amount (i.e., cost net of accumulated depreciation) should Indigo show for equipment on the year end balance sheet? $ The Balance Sheet at the beginning of the month shows Total Assets of $50,200 and during the month the following transactions occurred: (a) Provided services in cash for $10,280; (b) Purchase current month insurance on account for $10,400; 1 (c) Paid owed utilities from last month for $3,090; and (d) Received a cash payment from a customer that owed $7,500 on points account. Required 1: What are Total Assets at the end of the month before AJE? $ Required 2: By how much did the Total liabilities changed? $ Required 3: If these were all transactions, how much is the net income (loss) of the period (after AJE)? $ 10 Fargo Company paid in full for an annual rental lease on September 1 in the amount of $28,500 and immediately made an entry debiting Rent Expense and crediting Cash for the entire amount. At Fargo's year end the rent used was $14,600. 1 points Required: What is the balance of Prepaid Rent showing on the year end balance sheet? $[ ]