ACC 290 WileyPLUS Final Examination

ACC 290 WileyPLUS Final Examination

Jackson Company recorded the following cash transactions for the year:

Paid $135,000 for salaries.
Paid $60,000 to purchase office equipment.
Paid $15,000 for utilities.
Paid $6,000 in dividends.
Collected $245,000 from customers.

What was Jackson’s net cash provided by operating activities?

 
 
$95,000
 
$110,000
 
$89,000
 
$35,000

Posting

 
 
should be performed in account number order.
 
is accomplished by examining ledger accounts and seeing which ones need updating.
 
accumulates the effects of journalized transactions in the individual accounts.
 
involves transferring all debits and credits on a journal page to the trial balance.

The following is selected information from L Corporation for the fiscal year ending October 31, 2014.

Cash received from customers    $300,000
Revenue earned    390,000
Cash paid for expenses    170,000
Cash paid for computers on November 1, 2013 that will be used for 3 years    48,000
Expenses incurred including any depreciation    216,000
Proceeds from a bank loan, part of which was used to pay for the computers    100,000

Based on the accrual basis of accounting, what is L Corporation’s net income for the year ending October 31, 2014?

 
 
$158,000
 
$220,000
 
$204,000
 
$174,000

La More Company had the following transactions during 2013.
• Sales of $4,500 on account
• Collected $2,000 for services to be performed in 2014
• Paid $1,325 cash in salaries
• Purchased airline tickets for $250 in December for a trip to take place in 2014

What is La More’s 2013 net income using cash basis accounting?

 
 
$675
 
$4,925
 
$425