2301 Midterm Review Key

1. D
2. A
3. D
4. C
5. A
6. C
7. D
8. D
9. A
10. A
11. A
12. C
13. C
14. D
15. B
16. C
17. B
18. A
19. B
20. A
21. D
22. C
23. B
24. A
25. C
26. B
27. C
28. A

29.
Feedback: Rent expense = $1,000 4 months = $4,000.
30. A
31. D
32. D
33. C
34. A
35. A
36. C

37.
38. B
39. D
40. C
41. C

42.
Feedback: Rent revenue = $1,000 3 months = $3,000.
43. D

44.
Feedback: Interest revenue 2015 = $100,000 6% 8/12 = $4,000.
Interest revenue 2016 = $100,000 6% 4/12 = $2,000.

45.
Feedback: Sales discounts = $1,500 2% = $30.
46. D
47. A
48. A

49.

50.

Tiffanys
Income Statement
Service revenue
Expenses:
Advertising
Salaries
Utilities
Interest
Total expenses

$129,300
$31,200
67,800
14,500
3,500
117,000

Net income

$ 12,300

Tiffanys
Statement of Stockholders Equity
Total

Balance at beginning of the year

Issuance of common stock

Common

Retained

Stockholders

Stock

Earnings

Equity

$20,000

$ 80,000

$60,000
15,000

15,000

Add: Net income for the year

12,300

12,300

Less: Dividends

(3,500)

(3,500)

$28,800

$103,800

Balance at end of the year

$75,000

Tiffanys
Balance Sheet
Assets
Cash

Liabilities
$ 6,400

Equipment

25,700

Buildings

108,000

Accounts payable

$ 6,300

Notes payable

30,000

Total liabilities

36,300

Stockholders Equity
Common stock

75,000

Retained earnings

28,800

Total stockholders equity

Total assets

$140,100

Total liabilities and

stockholders equity

103,800

$140,100