Module 1 Graded Quiz
Module 1 Graded Quiz >> Financial Accounting: Foundations
Module 1 Graded Quiz
TOTAL POINTS 10
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| Asset | Expected Life | Balance Sheet Value, in USD |
| Cash | – | $50,000 |
| Accounts Receivable | 6 months | $100,000 |
| Accounts Receivable | 13 months | $200,000 |
| Machinery | 18 months | $50,000 |
| Building | 20 years | $100,000 |
| Inventory | 10 months | $50,000 |
| Prepaid Expenses | 3 months | $50,000 |
| Notes Receivable | 15 months | $200,000 |
| Equipment | 24 months | $100,000 |
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| Year | Stock issued | Amount of Common Stocks Issued | Par Value | Total Paid by Investors on all Stocks this Year |
| 2013 | Common Stock A | 10,000 | $2 | $100,000 |
| 2014 | Common Stock B | 50,000 | $2 | $120,000 |
| 2015 | Common Stock C | 20,000 | $2 | $150,000 |
| 2016 | Common Stock D | 30,000 | $2 | $180,000 |
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Hint: Please write down a representative income statement (you can refer to Walmart income statement), start from the bottom (i.e., net income after taxes), and work your way up in the income statement.
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Hint 1: Total sales (or Total Revenue) – Cost of Sales (Or Cost of Goods Sold) – Operating Expenses = Operating Income.
Hint 2: Interest revenue, interest expense, and income tax are not part of operating income.
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| Cost of Sales | $7,950 |
| Rent Expense | $4,020 |
| Utilities Payable | $400 |
| Cash | $20,700 |
| Sales | $1,700 |
| Accounts Receivable | $3,060 |
| Retained Earnings | $12,900 |
| Prepaid Insurance | $3,250 |
| Utilities Expense | $800 |
| Common Stock | $7,005 |
How many of these accounts would appear in The Gathering Sound’s year-end balance sheet?
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