1. Beacon Corporation has provided the following information:

Cash sales totaled $245,000.

Credit sales totaled $522,200.

Cash collections from customers for services yet to be provided totaled $88,400.

An $20,000 gain from the sale of property and equipment occurred.

Interest income totaled $15,860.

How much of these items was included in income from operations?

 

1. Lantz Company has provided the following information:

• Cash sales totaled $255,000.
• Credit sales totaled $479,000.
• Cash collections from customers for services yet to be provided totaled $88,000.
• A $22,000 loss from the sale of property and equipment occurred.
• Interest revenue was $7,700.
• Interest expense was $19,900.
• Supplies expense was $336,000.
• Rent expense for the store was $36,000.
• Wages expense was $49,000.
• Other operating expenses totaled $79,000.
• Unearned revenue was $4,000.

What is the amount of Lantz’s income before income taxes?

1. Mama June Pizza Company sold land costing $49,000 for $78,000 cash. Which of the following statements concerning the land sale is correct?
2. The land account was credited for 78,000

b.Income from operations increases 29000

c.Income before income taxes increased 49,000

D.The revenue account was debited for 78,000

 

1. Beacon Corporation has provided the following information:

Cash sales totaled $225,000.

Credit sales totaled $502,200.

Cash collections from customers for services yet to be provided totaled $68,400.

An $19,800 gain from the sale of property and equipment occurred.

Interest income totaled $13,860.

How much of these items was included in income from operations?

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1. Which of the following statements isfalsewhen Mama June Pizza Company paid $47,000 cash on accounts owed to suppliers?

 

A.Account payable was debited for 47,000

B.Income from operations was not changed by the payment to the suppliers.

C.Supplies expense was increased by 47,000

1. The cash account was credited for 47,000

 

 

1. Quince Corporation has provided the following information:

• Operating revenues from customers were $299,550.
• Operating expenses for the store were $166,500.
• Interest expense was $13,800.
• Gain from sale of plant and equipment was $4,950.
• Dividend payments to Quince’s stockholders were $11,550.
• Income tax expense was $54,000.
• Prepaid rent was $7,500.

What is the amount of Quince’s income before income taxes?

 

1. During 2022, Sigma Company earned service revenue amounting to $760,000, of which $625,000 was collected in cash; the balance will be collected in January, 2023. Also in 2022, there were collections of cash prior to the delivery of goods/services totaling $9,200. What amount should the 2022 income statement report for service revenue?

 

1. Which of the following journal entries is prepared when cash is received from a customer prior to delivery of the goods or services?

 

1. Zeppelin Company received cash during January for services to be provided in February. Which of the following statements doesnotaccurately describe the impact on the financial statements when Zeppelin provides the services during February?

 

 

 

1. During 2022, Baltic Company incurred operating expenses amounting to $205,000, of which $138,000 was paid in cash; the balance will be paid during 2023. Which of the following is correct for the 2022 year-end balance sheet?