A company began operations at the start of Year 1.
During the year, it had cash sales of $50,000 and credit sales of $450,000. The company collected $420,000 in cash from the credit sales. The company purchased inventory costing $250,000 and paid $18,000 in dividends. The company incurred the following expenses:
Cost of goods sold | 210,000 | Rent expense | 6,000 |
Salary expense | 80,000 | Depreciation expense | 4,000 |
Interest expense | 5,000 | Income tax expense | 57,000 |
Using this information, answer the following questions.
Click Here to View All Chapter 1 Problems at Once | View | ||
1 | Current Assets | Easy | |
2 | Matching Basic Vocabulary | Easy | |
3 | Retained Earnings | Easy | |
4 | Account Classifications | Moderate | |
5 | Solving for Missing Amounts | Moderate | |
6 | Solving for Net Income | Moderate | |
7 | Tying the Statements Together | Moderate | |
8 | Account Classifications | Hard | |
9 |
Calculating Operating Income
You are here. |
Hard | |
10 | Solving for Retained Earnings | Hard |
1 | The Accounting Equation | 3:02 | |
2 | Assets vs Liabilities | 5:32 | |
3 | Shareholder's Equity | 5:26 | |
4 | The Balance Sheet | 5:52 | |
5 | The Statement of Retained Earnings | 5:51 | |
6 | The Income Statement | 6:19 | |
7 | The Statement of Cash Flows | 6:02 | |
8 | How the Statements Work Together | 9:02 | |
9 | Current Assets | 9:57 | |
10 | Non-Current Assets | 10:25 | |
11 | Current Liabilities | 6:24 | |
12 | Non-Current Liabilites | 2:00 | |
13 | Contributed Capital | 5:10 | |
14 | The Classified Balance Sheet | 4:48 | |
15 | The Multistep Income Statement | 12:44 | |
16 | Retained Earnings vs Shareholder's Equity | 6:41 |