Fundamental Accounting Principles
Question 1: Determine the net income of a company for which the following information is available for the month of May.
Employee salaries expense $180,000
Interest expense $10,000
Rent Expense $20,000
Consulting revenue $400,000
$190,000
$210,000
$230,000
$400,000
Question 2: Prior to recording adjusting entries, the Office Supplies account had a $359 debit balance. A physical count of the supplies showed $105 of unused supplies available. The required adjusting entry is:
debit Office Supplies $105 and credit Office Supplies Expense $105.
debit Office Supplies Expense $105 and credit Office Supplies $105.
debit Office Supplies Expense $254 and credit Office Supplies $254.
debit Office Supplies $254 and credit Office Supplies Expense $254.
Question 3: Resources owned or controlled by a company that are expected to yield benefits are:
assets.
revenues.
liabilities.
owner's equity.
Use the following information as of December 31 to determine equity.
Liabilities $141,000
Cash $57,000
Equipment $206,000
Buildings $175,000
$57,000
$141,000
$297,000
$438,000
Question 4: Distributions by a business to its owners are called:
withdrawals.
expenses.
retained earnings.
net Income.
What is a trial balance? What is its purpose? APA.