1.Owner's equity for our company is $500,000, and totalliabilities are $250,000. The company paid $50,000 in dividendsduring the year. What do our total assets equal?
$250,000
$300,000
$700,000
$750,000
2.The net income for our company this year is $20,000. Thebeginning and ending retained earnings balances were $46,000 and$52,000, respectively. The company issued no common stock.Calculate the amount of dividends paid by the company thisyear.
$14,000
$54,000
$60,000
$106,000
3.Which of the following accounts is increased with acredit?
cash
prepaid insurance
salaries expense
unearned revenue
4.On August 21, we paid four months' rent in advance, whichtotaled $3,200. What account would we credit when we journalizethis entry?
rent expense
cash
prepaid rent
account payable
5.On September 5, we received an $11,400 payment on account.What account would we debit when we journalize this entry?
accounts payable
cash
accounts receivable
fees earned
6.On September 11, we performed $5,750 of service and billed ourcustomer. What account would we credit when we journalize thisentry?
service revenue
cash
accounts receivable
retained earnings
7.On September 22, we purchased supplies on account for $1,150.What account would we debit when we journalize this entry?
supplies
cash
accounts payable
supplies expense
