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Expands on: E1-9 LO: 5
Seattle Service had thefollowing financial information at the end of 2017.
1/1/2017 2017 12/31/17
Accounts Payable $15,000 15000
Accounts Receivable $1,000 20,000
Advertising Expense
Cash 11,000
Owner's Capital $21,000 ?
Owner's Drawings 9,000
Equipment 33,000
Notes Payable 20,000
Rent Expense 3,500
Salaries and WagesExpense 16,000
Serv;ce Revenue 40,000
Utilities Expense 2,500
Instructions:
Prepare a 2017 incomestatement, 2017 owner's equity statement, and a 12/31/17 balancesheet for Seattle Service.

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Jean Keeling
Jean KeelingLv2
28 Sep 2019

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5. On June 1, 2008, Delbert Inc. reported a cash balance of $12,000. During June, Delbert made deposits of $3,000 and made disbursements totalling $16,000. What is the cash balance at the end of June?

a. $1,000 debit balance

b. $15,000 debit balance

c. $1,000 credit balance

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6. At January 1, 2008, Burton Industries reported owner’s equity of $130,000. During 2008, Burton had a net income of $30,000 and owner drawings of $20,000. At December 31, 2008, the amount of owner’s equity is

a. $130,000.

b. $140,000.

c. $100,000.

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7. Able Company pays its employees twice a month, on the 7th and the 21st. On June 21, Able Company paid employee salaries of $5,000. This transaction would

a. decrease net income for the month by $5,000.

b. increase owner’s equity by $4,000.

c. decrease the balance in Salaries Expense by $4,000.

d. be recorded by a $4,000 debit to Salaries Payable and a $4,000 credit to Salaries Expense.

8. In the first month of operations for Pocket Industries, the total of the debit entries to the cash account amounted to $9,000 ($5,000 investment by the owner and revenues of $4,000). The total of the credit entries to the cash account amounted to $5,000 (purchase of equipment $2,000 and payment of expenses $3,000). At the end of the month, the cash account has a(n)

a. $2,000 credit balance.

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9. Denton Company showed the following balances at the end of its first year:

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Prepaid insurance 700

Accounts receivable 3,500

Accounts payable 2,800

Notes payable 4,200

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Denton, Drawing 700

Revenues 21,000

Expenses 17,500

What did Denton Company show as total credits on its trial balance?

a.$30,100

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Cash $ 5,000

Prepaid insurance 500

Accounts receivable 2,500

Accounts payable 2,000

Notes payable 3,000

Cerner, Capital 1,000

Cerner, Drawing 500

Revenues 15,000

Expenses 12,500

What did Cerner Company show as total credits on its trial balance?

a. $21,500

b. $21,000

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d. $22,000

11. During February 2008, its first month of operations, the owner of Rutwing Enterprises invested cash of $25,000. Rutwing had cash revenues of $4,000 and paid expenses of $7,000. Assuming no other transactions impacted the cash account, what is the balance in Cash at February 28?

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