Question 1 (6 points)
Bravo's complete assets and liabilities are Accounts Receivable $800, Equipment $10,000, Accounts Payable $4,200, Prepaid Rent $2,000, Supplies $400, Bank Loan $1,600, and Tools $300. Bravo's total assets are: (All account balances are normal.)
Question 1 options:
$11,500
$11,100
None of these.
$13,500
$13,100
Question 2 (6 points)
Bravo Company began operations at the beginning of 20X6 with a $10,000 cash investment by stockholders. During 20X6, Bravo Company had revenue on account of $5,000; of this amount $2,000 was collected during 20X6 and $3,000 was an outstanding receivable at year-end. Bravo Company incu
ed $3,000 of operating expenses during 20X6; of this amount $1,000 was unpaid at year-end. During 20X6, $1,000 cash was disbursed as dividends. The only other transaction during 20X6 was the purchase of $5,000 of equipment for cash near the end of the year. How much was Bravo Company's 20X6 net income?
Question 2 options:
Question 3 (6 points)
Beginning stockholders' equity was $120,000. Ending stockholders' equity was $195,000. Additional issuances of capital stock during the year amounted to $18,000. Dividends during the year amounted to $12,000. How much was net income for the year?
Question 3 options:
Question 4 (6 points)
Eight years ago, Bravo Company purchased land for $170, 000. The cu
ent fair market value of the land is $421,000. The rate of general inflation experienced during the 8-year period has averaged 10% per year. At the time the land was purchased, Bravo intended to hold it for 20 years. At what amount should the land be ca
ied on Bravo's books today?
Question 4 options:
Question 5 (10 points)
The information is provided in a table for Alpha Company and Bravo Company.
Alpha Company
Bravo Company
Balance 12/31/15
Assets
$165,000
Liabilities
$117,000
Equity
140,000
155,000
Balance 12/31/16
Assets
295,000
Liabilities
126,000
125,000
Equity
180,000
170,000
During the Year:
Additional Stock Issued
10,000
Dividends paid to shareholders
10,000
5,000
Revenue
125,000
Expenses
90,000
175,000
What are the amounts for each of the following missing items?
1. Alpha Company's 12/31/15 Liabilities
2. Alpha Company's 12/31/16 Assets
3. Alpha Company's 12/31/16 Additional Stock Issued
4. Bravo Company's 12/31/15 Assets
5. Bravo Company's 12/31/16 Revenues
Question 6 (6 points)
Bravo Company had a beginning Accounts Receivable account balance of $380. During the period Bravo' sold goods on account for $1,400. Ending Accounts Receivable had a $630 balance. How much was collected on account during the period?
Question 7 (6 points)
Bravo Company purchased goods on account for $4,500, paid $2,300 of Accounts Payable, and had an ending Accounts Payable balance of $16,890. How much was beginning Accounts Payable?
Question 8 (6 points)
Bravo Automotive provided repair services for $250 on account. What account will be debited?
Question 9 (6 points)
The balance sheet of Bravo Corporation contains the following list of assets: Cash $8,500,000; Land, $4,700,000; Buildings, $1,300,000; and Other Assets, $200,000. Bravo' only debt is $2,070,000 owed to a bank. What is Bravo' stockholders' equity?
Question 10 (6 points)
The balance sheet of Bravo Corporation contains the following list of assets: Cash $8,500,000; Land, $4,700,000; Buildings, $1,300,000; and Other Assets, $200,000. Bravo' only debt is $2,070,000 to a bank. How much will stockholders' equity change when Bravo bo
ows $300,000 to purchase equipment?
Question 11 (6 points)
On January 5, 2016, Charlie Company purchased equipment on account for $15,000. The equipment was purchased for $5,000 with cash and the remainder was on account. Prepare the compound general journal entry (without explanation) needed. If no entry is required then write "No Entry Required."
General Journal
Date
Accounts
Debit
Credit
Question 12 (6 points)
On January 15, 2016, Bravo Company collected $30,000 from a customer, previously billed, for services rendered. Prepare the general journal entry (without explanation) needed. If no entry is required then write "No Entry Required."
General Journal
Date
Accounts
Debit
Credit
Question 13 (6 points)
On January 15, 2016, Bravo Company purchased $4,000 of construction supplies, on account, from the Zulu Company. Prepare Bravo Company's general journal entry (without explanation). If no entry is required then write "No Entry Required."
General Journal
Date
Accounts
Debit
Credit
Question 14 (6 points)
On January 1, 2016, Mr. Bravo formed a new corporate (Bravo Unlimited) by investing $35,000 cash in capital stock. Prepare the general journal entry (without explanation) needed. If no entry is required then write "No Entry Required."
General Journal
Date
Accounts
Debit
Credit
Question 15 (6 points)
On January 15, 2016, Bravo Company billed a customer for $20,000 of services rendered to be collected at a later date. Prepare the general journal entry (without explanation) needed. If no entry is required then write "No Entry Required”
General Journal
Date
Accounts
Debit
Credit
Question 16 (6 points)
On January 31, 2016, Charlie Company paid employees $6,500 for January wages earned. Prepare the general journal entry (without explanation) needed. If no entry is required then write "No Entry Required
General Journal
Date
Accounts
Debit
Credit
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