Accounting Cycle Questions And Answers Homework Help
- November 4, 2017
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- Category: Accounting QA
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1.Coco, Inc.’s retained earnings at the beginning of the year were $52,000. Net income for the year is $51,000, and dividends declared during the year are $5,000. If stockholders’ equity at the end of the year is $198,000, what is the amount of capital stock at year-end?
2.Sea Coast Potters purchased a kiln on February 1 for $48,000 which is guaranteed to have a useful life of 10 years. Assuming adjusting entries are prepared monthly, what is the book value of the kiln on June 30?
3.The owners’ equity of Clean Air, Inc. is $400,000 on December 31, 2007, and is equal to two- fifth of total liabilities. What is the amount of total assets?
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4.If the $3,900 cost of a new microcomputer and printer purchased for office use were recorded as a debit to Purchases, what would be the effect of the error on the balance sheet and income statement in the period in which the error was made?
5.What is the most important output of the accounting cycle? Do all companies have an accounting cycle? Explain using examples.
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