Question $1(1$ point$)$

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Delta Company started Year $2$ with a $$1,700$ balance in its Cash account, a $$700$ balance in its Supplies account and a $$2,400$ balance in its Common Stock account. During Year $2$ the company experienced the following events.

$(1)$ Paid $$1,600$ cash to purchase supplies.

$(2)$ Physical count revealed $$400$ of supplies on hand at the end of Year $2.$

Based on this information, which of the following show how the year$-$end adjusting entry required to recognize supplies expense would affect Delta's account balances?

Question $1$ options:

Assets $=$ Liabilities $+$ Stockholders' Equity

Cash $+$ Supplies $=$ Accounts Payable $+$ Common Stock $+$ Retained Earnings

$(1,600)1,600$

Assets $=$ Liabilities $+$ Stockholders' Equity

Cash $+$ Supplies $=$ Accounts Payable $+$ Common Stock $+$ Retained Earnings

$(1,600)(1,600)$

Assets $=$ Liabilities $+$ Stockholders' Equity

Cash $+$ Supplies $=$ Accounts Payable $+$ Common Stock $+$ Retained Earnings

$1,9001,900$

Assets $=$ Liabilities $+$ Stockholders' Equity

Cash $+$ Supplies $=$ Accounts Payable $+$ Common Stock $+$ Retained Earnings

$(1,900)(1,900)$

Question $2(1$ point$)$

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On August $1$ of Year $1$ Accounting Associates $($AA$)$ collected $$1,200$ cash for consulting services to be provided for one year beginning immediately. Based on this information, which of the following show how the required adjustment on December $31,$ Year $1$ would affect AA$$s ledger accounts?

Assets

$=$

Liabilities

$+$

Stockholders' Equity

Cash

$+$

Prepaid Rent

$=$

Unearned Revenue

$+$

Common Stock

$+$

Retained Earnings

$(700)$

$700$

Assets

$=$

Liabilities

$+$

Stockholders' Equity

Cash

$+$

Prepaid Rent

$=$

Unearned Revenue

$+$

Common Stock

$+$

Retained Earnings

$700$

$(700)$

Assets

$=$

Liabilities

$+$

Stockholders' Equity

Cash

$+$

Prepaid Rent

$=$

Unearned Revenue

$+$

Common Stock

$+$

Retained Earnings

$500$

$(500)$

Assets

$=$

Liabilities

$+$

Stockholders' Equity

Cash

$+$

Prepaid Rent

$=$

Unearned Revenue

$+$

Common Stock

$+$

Retained Earnings

$(500)$

$500$

Question $2$ options:

A

B

C

D

Question $3(1$ point$)$

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Knoll Company started Year $2$ with a $$500$ balance in its Cash account, a $$500$ balance in its Supplies account and a $$1,000$ balance in its Common Stock account. During Year $2$ the company experienced the following events.

$(1)$ Paid $$400$ cash to purchase supplies

$(2)$ Physical count revealed $$100$ of supplies on hand at the end of Year $2$

Based on this information, the amount of supplies expense reported on the Year $2$ income statement is

$$900.$

$$800.$

$$400.$

$$100.$

Question $3$ options:

A

B

C

D

Question $4(1$ point$)$

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A transaction has been recorded in the T$-$accounts of Powell Corporation as follows:

Rent Expense

$1,000$

Prepaid Rent

$1,000$

Which of the following reflects how this event affects the company's financial statements?

Balance Sheet

Income Statement

Statement of Cash Flows

Asset

$=$

Liabilities

$+$

Stockholders$$ Equity

Revenue

$$

Expenses

$=$

Net Income

A$.$

$+$

$=$

$+$

$+$

n$/$a

n$/$a

$$

n$/$a

$=$

n$/$a

$+$FA

B$.$

$$

$=$

n$/$a

$+$

$$

n$/$a

$$

$+$

$=$

$$

n$/$a

C$.$

$+$

$=$

n$/$a

$+$

$+$

$+$

$$

n$/$a

$=$

$+$

$+$OA

D$.$

$$

$=$

$$

$+$

n$/$a

n$/$a

$$

$+$

$=$

$$

$$OA

Option A

Option B

Option C

Option D

Question $4$ options:

A

B

C

D

Question $5(1$ point$)$

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Robertson Company paid $$1,850$ cash for rent expense. What happened as a result of this business event?

Total equity decreased.

Liabilities decreased.

The net cash flow from operating activities decreased.

Both total equity and net cash flow from operating activities decreased.

Question $5$ options:

A

B

C

D

Question $6(1$ point$)$

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Warren Enterprises began operations during Year $1.$ The company had the following events during Year $1$:

The business issued $$40,000$ of common stock to its stockholders.

The business purchased land for $$24,000$ cash.

Services were provided to customers for $$32,000$ cash.

Services were provided to customers for $$10,000$ on account.

The company borrowed $$32,000$ from the bank.

Operating expenses of $$24,000$ were incurred and paid in cash.

Salary expense of $$1,600$ was accrued.

A dividend of $$8,000$ was paid to the stockholders of Warren Enterprises.

After closing, what is the balance of the Retained Earnings account as of December $31,$ Year $1?$

$$10,000$

$$8,400$

$$16,400$

$$42,000$

Question $6$ options:

A

B

C

D