Question

Can anyone just write the equations necessary for each of these accounting problems? The answer is not necessary, only steps for how I should solve these problems?

48.   At the end of the third year of operation, Forgione Corporation has total assets equal to $100,000, liabilities totaling $90,000, and contributed capital of $30,000. What is the balance in retained earnings?

a.	$40,000 (Dr)
b.	$40,000 (Cr)
c.	$20,000 (Dr)
d.	$20,000 (Cr)
e.	$10,000 (Cr)

51.   Shareholders of Augusta Corporation have received $35,000 in dividends in the current year. At year end the corporation has total assets of $500,000, total liabilities equal to $300,000, and contributed capital totaling $100,000. If retained earnings at the beginning of the year was $80,000, what was Augusta’s net income for the current year?

a.	$80,000
b.	$215,000
c.	$55,000
d.	$10,000
e.	$45,000

52. The following balances have been excerpted from Bain balance sheets:

	December 31, 2014	December 31, 2013
Prepaid Insurance ...................................	$ 6,000	$ 7,500
Interest Receivable .................................	3,700	14,500
Salaries Payable .....................................	61,500	53,000

Bain Company paid or collected during 2014 the following items:

Insurance premiums paid .........................	$ 41,500
Interest collected ....................................	123,500
Salaries paid ...........................................	481,000

The salary expense on the income statement for 2014 was

a.	$366,500.
b.	$472,500.
c.	$489,500.
d.	$595,500.
e.	None of these answer choices is correct.

75. The Supplies account balance at the beginning of the period was $6,600. Supplies totaling $12,825 were purchased during the period and debited to Supplies . A physical count shows $3,825 of Supplies at the end of the period. The proper journal entry at the end of the period

a.	debits Supplies and credits Supplies Expense for $9,000.
b.	debits Supplies Expense and credits Supplies for $12,825.
c.	debits Supplies and credits Supplies Expense for $15,600.
d.	debits Supplies Expense and credits Supplies for $15,600.
e.	None of these choices are correct.

67.   Malcolm Corporation purchased an insurance policy for three years beginning January 1, Year 2, and recorded the $6,000 premium in the Prepaid Insurance account. What adjusting entry is required to reflect the proper balances, in the insurance-related accounts at year-end, on December 31, Year 2?

a.	Insurance Expense         2,000      Prepaid Insurance                   2,000
b.	Prepaid Insurance          2,000          Insurance Expense                  2,000
c.	Insurance Expense         4,000          Prepaid Insurance                   4,000
d.	Prepaid Insurance          4,000          Insurance Expense                  4,000
e.	Insurance Expense         6,000 Prepaid Insurance                   6,000

69.   Andrews Corporation's liability account balances at June 30, 2013, included a 10 percent note payable. The note is dated October 1, 2011, and carried an original principal amount of $600,000. The note is payable in three equal annual payments of $200,000 plus interest. The first interest and principal payment was made on October 1, 2012. In Andrews’ June 30, 2013, balance sheet, what amount should be reported as Interest Payable for this note?

a.	$10,000
b.	$15,000
c.	$30,000
d.	$45,000
e.	None of these answers is correct.

60.   Llama Company signed a new $36,000 three-year lease beginning October 1, Year 1, for a storage facility for holding merchandise inventory. On October 1, Year 1, Llama Company recorded the first year's payment of $12,000 in the Prepaid Rent account. There was no balance in the Prepaid Rent account prior to this entry. Llama Company records adjustments only at the calendar year end. At December 31, Year 1, the adjusting entry needed to accurately reflect the correct balances in the Prepaid Rent and Rent Expense accounts would be to debit:

a.	Prepaid Rent for $12,000 and credit Rent Expense for $12,000
b.	Rent Expense for $12,000 and credit Prepaid Rent for $12,000
c.	Prepaid Rent for $3,000 and credit Rent Expense for $3,000
d.	Rent Expense for $3,000 and credit Prepaid Rent for $3,000
e.	Prepaid Rent for $9,000 and credit Rent Expense for $9,000

Answer 1