Financial Reporting Mechanics

Which of the following items would most likely be classified as an investing activity?

Which of the following are most likely to be considered current assets?

At the beginning of the year, company X had $40,000 in retained earnings.

The company had a net income of $10,000 for the year, and paid out $3,000 in cash dividends.

What is the retained earnings at the end of the year?

A company issued $80,000 bonds, and repurchased $50,000 shares in a period.

What is the most likely combined effect of these 2 activities?

On 1 April, a PC retailer used $30,000 cash to buy 100 PCs for a customer.

What is the most likely effect of this on the retailer’s balance sheet?

On 1 April, a PC retailer used $30,000 cash to buy 100 PCs for a customer.

The 100 PCs were sold to the customer on 1 May for $24,000.

What is the net effect of these 2 transactions on the retailer’s balance sheet?

A retail shop pays a monthly rent of $50,000 cash to the mall owner. The rent is paid upfront for the month on the first day of the month.

If both the retail shop and mall owner prepare their financial statements under the accrual method, how will they record this transaction on the first day of the month?

The retail shop was renovated at a cost of $100,000. The renovation has been completed, but the retailer still owes $70,000 in payment to the renovation contractor. How should this $70,000 be recorded?

The collection of all business transactions recorded chronologically in an accounting system is referred to as a:

A firm issued $10 million worth of bonds.  Which of the following statements will likely reflect this transaction.

At the beginning of the year, Tintan Corp had a total equity of $520,000 in its balance sheet.

During the year, Tintan redeemed $100,000 worth of bonds, issued $80,000 worth of new shares, and did not pay out any dividend.

How much should the total equity be on its statement of owners’ equity at the end of the year?